- 1. Welcome toThe REO Business Offer by 3NetInvestments
2. Disclaimers
- Neither Sharon Bacchetta nor her partners, affiliates, or team
members provide legal or tax advice.
- Any d ocuments provided in this presentation are examples only.
Always seek professional advice with respect to any document used
in a real estate transaction.
- A lways consult a real estate attorney for legal advice on your
real estate deals.
3.
- Bulk REO challenges and opportunities
- Maximizing reward/Minimizing risk
Making Money in REOs Today 4. Foreclosure Terms
- Foreclosureis 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.
5. Foreclosure Terms (REO)
- REO means Real Estate Owned (by the bank)
- It is a term that refers to the real estate that thebank had to
repossessfrom a borrower who defaulted on the terms of a loan owed
to the bank and secured by a real property.
- The bank goes through aforeclosure processand ends up taking
over the property from the borrowerto recover their loan loss . (It
becomes a REO in the Non performing Assets Dept.)
6. Foreclosure Terms(Land Contract)
- It isa contract agreementbetween a seller and abuyer whereby
theseller financesthe sale price by carrying a note and retaining
legal title of property andbuyer qualifieseasier and faster by
making timely payments till pay off with interest to get legal
title of ownership
7. Foreclosure Terms
- Deed and title:A deed is 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.
8. 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
9. 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:
- Sell it at retail price (realtor commission)
- b) Rent it at market value for a long term upside (takes a long
time)
10. REO Challenges
- 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
11. 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 $1,000,000+ in CASH and show EXPERIENCE for bank
to consider selling a minimum bulk purchase of 100 homes
12. REO Opportunity
- We have hundreds of REOs available:
- With us you can buy 5-10 properties at a time
- Your price will be $18 21K each and they resell at apx. $35,000
or more (some sell as high as $75,000)
- You get a full turn key opportunity by having anexpert support
service team that handles your deals from A to Z
- The support service package is offered to you atno additional
charge and it includes a g uarantee
13. REO Opportunity
- Your $18 21K per property includes the following fees, services
and guarantees:
- Theproperty taxes,if any are owed
- Thewater liens,if any are owed
- Support gets you property insurance (you pay)
- They place a combolock box (and get photos)
- They place aFor Sale signoutside
- Theytake the callsandqualify buyers
- Theysend the contractafter you select buyer(s)
14. REO Opportunity
- They sell the homes on a land contract within 90 days or less (
contract included )
- They turn over contract to a national service company to
collect and deposit in your bank account the PITI payments
- Weguarantee an exchangeof properties in the unlikely event any
of your properties are found burned down (1% statistically) within
less than 10 business days
15. REO Opportunity
- Somehomes may need rehabbut 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. $375 (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
build equity.
- If they default on the payments of a land contract they are
evicted and not foreclosed on
16. REO Opportunities
- Title is assuredto be clear and insured when reselling to end
buyer (s)
- Deedmay take apx. 90-180 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 office for less than $700 fee. You may resell at higher
price!
17. Seven Steps to Profitable REOs
- You buy a batch of 5-10 properties plus
- Let the support service division handle your listing and
qualify the buyers for you
- Respond promptly to any calls and emails from support to
qualify and select a Buyer from the list they send to you
- Read and sign all documents of sale sent to you
18. Seven Steps to Profitable REOs
- Give your bank info to the loan servicing company to deposit
money into your bank account
- Enjoy income for a year or longer then contact buyers andask
them to get a new loan to cash you out based on their good history
of paying on time
- You may decide to discount the note and sell it at a discount
anytime once you have history of payments, we can help you with
that.
19. 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 need a chance to own a home and take
advantage of the low prices but cannot due to low credit scores .
They much prefer to own instead of rent to rebuild their credit and
get a chance to build equity
20. 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
21. Review
- Buy 5-10 properties @ $18 21K each
- 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
- You have support and guarantees on low priced REOs with our
full service
22.
- Our affiliates pay all back taxes and liens if any
- List the properties and qualify buyers
- Do all the legal paper work
- Your property is resold on a land contract within 90 days
- Your returns are usually around 20%+
- and they are secured against your RE
- Offer guarantees and deliver results
- e-mail: 3NetInvestments@gmail.com
3NetInvestments