Transcript Syndication Training

Welcome to the
The REOs business offer
by
www.minibulkREOs.com
Disclaimers
• Neither Cherif Medawar nor his partners or team
members provide legal or tax advice.
• Documents provided in this course are
examples only. Always seek professional advice
with respect to any document used in a real
estate transaction.
• Always consult a real estate attorney for legal
advice on your real estate deals.
Today
Making money in REOs
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Foreclosure terms
Bulk REO challenges and opportunities
Buying the REOs
Listing the REOs
Qualifying Buyers
Selling the REOs
Collecting the income
Maximizing reward/Minimizing risk
Foreclosure Terms
• Foreclosure is a process that gives
a lender or other lien holder the
right to sell or repossess a
property after the owner has failed
to comply with an agreement
between the parties whereby the
property was pledged as a
guarantee.
Foreclosure Terms (REO)
• REO means Real Estate Owned (by the bank)
• It is a term that refers to the real estate that the
bank had to repossess from a borrower who
defaulted on the terms of a loan owed to the
bank and secured by a real property.
• The bank goes through a foreclosure process
and ends up taking over the property from the
borrower to recover their loan loss. (It becomes
an REO in the Non performing Assets Dpt.)
Foreclosure Terms
(Land Contract)
• It is a contract agreement between
a seller and a buyer whereby the
seller finances the sale price by
carrying a note and retaining legal
title of property and buyer qualifies
easier and faster by making timely
payments till pay off with interest
to get legal title of ownership
Foreclosure Terms
• Deed and title: A deed is a the
document that proves ownership.
The title is the manner for which
you want to own the property. On
the deed of ownership you may
hold title as a single and sole
owner, or as a LLC etc.
REO challenges
Thousands of REOs are available:
• Banks want to sell you a minimum of 100
homes (in bulk) to give you the best price
• Banks want to see proof of funds (no
financing)
• Banks want to make sure you have
experience
• Banks sells them to you “as is where is”
REO Challenges
• You, the investor must deal with each
property individually no matter the
location (they are spread out nationwide)
to fix it up first then either:
a) Sell it at retail price (realtors commission)
or
b) Rent it at market value for a long term
upside (takes long time)
REO challenges
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Must pay all cash (several millions for bulk)
Must pay any property taxes still owed
Must pay any water liens still owed
Must get and pay for property insurance
Must place a combo lock box (get photos)
Must place a For Sale sign outside property
Must take calls and qualify buyers
Must send contract and execute the sale
The REOs reality
• Too much work and risk for long term profits
• Must have an office and/or a great team to
coordinate various functions per property
(Purchasing-rehabbing- qualifying buyers or
renters- doing legal paper work- title and deed
transfers- handling the income- processing
expenses- managing risks)
• Must have over $1,500,000 in cash and show
experience for bank to consider selling a
minimum bulk purchase of 100 homes
Solution
• www.minibulkREOs.com offers you
the best possible REO opportunity in
today’s market….
REO opportunity
We have hundreds of REOs available:
• At Minibulk you can buy 3 properties at a time
• Your price will be less than $20,000 each and
they resell usually at over $30,000 (some sell as
high as $50,000)
• You get a full turn key opportunity by having an
expert support service team that handles your
deals from A to Z
• The support service package is offered to you at
no additional charge and it includes a guarantee
REO Opportunity
• Your investment per property includes the
following fees, services and guarantees:
• The property taxes if any are owed
• The water liens if any are owed
• The combo lock box (and photos)
• The market survey
• The placement of a For Sale sign outside
• Taking the calls and qualifying Buyers
• Sending the contract
• Finalizing the sales transaction (apx. 90days)
REO opportunity
• We usually turn over contract to a national
service company to collect and deposit in
your bank account the PITI payments (fee)
• We guarantee an exchange of properties in
the unlikely event any of your properties is
found burned down (1% statistically) within
less than 5 business days
REO opportunity
• Some homes may need rehab but this is not a
problem because when home is sold on a land
contract based on Support teams surveys for apx.
$500 down and low monthly payments of apx.
$325 (less than local rent) buyers accept property
in as is where is condition and stick to payment
schedule to realize their dream of ownership and
building equity.
• If they default on the payments of a land contract
they are evicted and not foreclosed upon
REO Opportunities
• Title is assured to be clear and insured
when reselling to end Buyers
• Deed may take apx. 120 days but you do
not transfer it to buyers until they paid on
time for 12 months on the land contract
• Assistance in case of default. Support can
coordinate with legal offices for apx. $500
fee. You may resell at higher price!
Seven Steps to Profitable REOs
1. Say you bought a minibulk of 5 properties --2. Let the support service division handle your
properties by surveying area, taking photos
and getting signage placed . This takes apx. 45
days from Date of Purchase (DOP)
3. Let support take the calls and qualify Buyers
then send you sales contract (apx90 days DOP)
4. Respond promptly to any calls and emails from
support to finalize sale Read and sign all
documents of sale sent to you
Seven Steps to Profitable REOs
5. Give your bank info to the loan servicing
company to deposit money into your bank
account (they will collect tax and insurance)
6. Enjoy income for a year or longer (over 15%)
7. You may want to contact buyers and ask
them to get a new loan to cash you out based
on their good payment history
8. You may decide to discount the note and sell
it at a discount anytime after they have made
a few payments on time and the note is
seasoned (I can assist through my network)
Our Objective
To sell as many properties in the next 24 months
and help 4 different parties:
1) The investors who need cash flow and a chance to
participate in the profitable REOs but on a smaller
scale. They prefer the low risk, high cash flow of
these properties with a turn key service
opportunity but have been too busy and confused
to find a successful, low risk business model
2) The end buyers who needs a chance to own a home
and take advantage of the low prices but cannot
due to his low credit score . They much prefer to
own instead of rent to rebuild their credit and get a
chance to build equity
Our Objective
3) The banks who got greedy and ended
up foreclosing and holding non
performing assets nationwide
4) The training companies that have been
offering one educational program
after another without presenting the
actual real estate opportunity and
creating cash flow for their investors
Review
• Buy 5 properties in minibulk @ $90K
• The support team will assist you to list and
sell as well as get the positive cash flow
• You can keep the income or sell the note at a
discount on our website
• You have support and guarantees on a the
lowest price ever offered in REOs
www.MiniBulkREOs.com
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We pay all back taxes and liens if any
We list the properties and qualify buyers
We do all the legal paper work
Your property is resold on a land contract
within 90 days
• Your returns are usually over 15% and
they are secured against your RE
• We offer guarantees and deliver results
• For more info please go to website…
Cherif Medawar, Founder
[email protected]
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Investor
Educator
Author
RE Syndicator
President of ICRE
MinibulkREOs.com