Following is an overview of the protocol for custom Bulk REO portfolio orders.

The Seller builds exclusive, custom Bulk REO portfolios for clients based on their "order". These are not tapes that have been "shopped" all over the Internet, that you can never find the owner of, or tapes that you will be in a bidding war to win.

The Buyer specifies the area to buy in, as well as price point and amount of rehab they wish to perform and the Seller delivers what is requested. Gone are the days of having to take what's given to you as you need to when the bank issues a tape. The discounts are much more generous also, which makes for some very profitable transactions.

How this begins is that the Buyer would issue a Letter of Intent stating what they are looking for and where, along with the desired level of rehab. It's a very simple document crafted on the Buyer's letterhead. We have a template that we can share as an example to get the Buyer started.

Along with the LOI, the Seller asks for a Soft Proof of Funds which would contain contact info only of the Buyer's bank officer and the name of the bank - no account info is needed. This can be made part of the LOI or can come as a separate document on bank letterhead.

After this information is provided to the Selling Team and verifications are completed, we then set up a meeting between the Buyer's Rep, and the Seller's Rep. This call is set up to make sure that both sides are clear on protocol and that the Buyer does truly intend to proceed with placing an order. The Buyer's Rep can have any questions that might arise on procedure answered at that point. Essentially, you can compare this transaction to a standard real estate purchase---before we can get the Seller himself on the phone, his team needs to confirm that The Buyer is ready, willing and able to close...a mantra that we ALL know very well and live by in the real estate world!

After the call with the Sellers Rep, confirmation that the Buyer definitely wishes to proceed to purchase, and verification of funds, The Buyer is connected DIRECTLY to the Seller to move into contract phase. The Seller will negotiate and customize the terms of the contract for the Buyer DIRECTLY with the actual Buyer --- the individual that will actually have signatory power to complete the transaction. At this juncture, the Reps move aside and let the Buyer and the Seller fine tune their transaction. There will be no chains of individuals that the Buyer would go through. The Buyer is now DIRECT to The Seller after this initial introduction to the Seller's Rep and confirmation that the Buyer is ready, willing and able to move forward.

The Buyer then moves into due diligence, the length of which is determined by the bank. Normally for a smaller order, 2 - 5 days is what we see as common. Again, this will be stipulated in the contract. Once the Buyer has this tape, it is all theirs---you don't have to worry about someone else coming along and outbidding you or getting into a bidding war to purchase the tape. Best of all, the Buyer certainly doesn't have to worry about getting stuck with product in areas they don't wish to take on. After everything passes DD, the transaction and once the due diligence period has ended, according to the terms of the Purchase Contract, it then moves to closing escrow. 

The contract will state that if the Seller does not perform within a specified amount of time, then the Earnest Money deposit is 100% refundable within 72 hours. There is no risk to the Buyer at all. There is also a stipulation on replacement in the contract, further enforcing the no risk involved factor. If a property is found to be deficient it will be exchanged during the predefined replacement period.


_For more information on protocol contact: scott@homelandacquisitions.com