As the Foreclosure rates increase across the country, I have had several request in reference to Bulk Sale Procedures. They are very simple and to the point. It has been my experience that many investors believe the Golden Rule applies here, but it doesn't. The banks control the entire process and in most cases, will not deviate. He who has the money must understand, they do not control the deal.

I have outlined the process here with the exception of the required disclosures, fee agreements, and non circumvention agreements. The Bulk Sale Package price does vary from provider to provider, though the average package for a sale remains $25,000,000 minimum, with 3 points paid out.

Procedures:

Please find my updated escrow pre-handshake procedures.
==============


Please find our NCND enclosed.  Please sign and return that ASAP.

Our procedures are described as follows:

To protect your Buyer clients, we recommend that they contact our seller escrow company as they are familiar with our procedures (REO­­­­­­­­--------------).   Please see escrow contact info below.  However, the client is free to use any registered escrow company.
===
Escrow contact

­­­­--------------------------------
REO-------------------------, Inc.
000  abc  Ave, Suite 0001
no where, ca 945219

888-555-5555 ext 221
888-556-5555 fax
===

Your clients will write an LOI and a POF authorization to REO Land Services (the escrow company).  The LOI can be addressed to "To Whom it may concern" because this letter is kept in complete confidence by the escrow company.  This letter will only be released to the seller, and only with your permission.  No one in the brokering chain can see this.

The escrow company will do the following:

1) Keep the LOI in CONFIDENCE.
2) Write an escrow (scrubbed) LOI to the sellers on the Escrow company's letter head.
3) Make it of 4 business day duration (to prevent it from being shopped)
4) Call the financial institution to validate that the client has the funds to transact the deal.
5) Fax it to (000) 006 0008 so it is unalterable.
6) Email confirmation of such.
7) Email the compiler/seller the principle's contact information

Once we receive this Escrow LOI, we will present it to the Compiler.  The Compiler will arrange to contact your seller directly to have a principle to principle conversation.

If the conversation is fruitful, and the principles want to proceed, then escrow will release the original LOI, POF authorization and the completed Master Fee Agreement to the seller.

It is a very simple but effective procedure.  Half the problem is that buyers are unable to provide proof, and thus waste valuable Bank contact's times.  Worse yet, they waste the bank's effort in compiling a package, and the buyer is unable to perform.

In addition, having this procedure in place means that it is very easy for your buyers to deal with multiple potential sellers without haggling with "handshake protocols".  This way, Sellers will take such offers much more seriously.


Summary
-------------

Step 1
Fill out and fax NCND to (000) 006 0008.

Step 2
Write LOI + POF authorization

Step 3
Buyer's direct contact agent/broker to complete Master fee agreement, designating Buyer's paymaster, Seller's paymaster, Intermediary paymaster

Step 4
Contact REO Land Services (or your desired escrow company)

Step 5
Deliver LOI, POF authorization and COMPLETED Master fee agreement

Step 6
Escrow to confirm POF

Step 7
Escrow to write escrow LOI using template enclosed

Step 8
Escrow to fax escrow LOI to (000) 006 0008

Step 9
Synergy Capital Partner LLC will provide escrow with the compiler's contact information.

Step 10
Escrow to email compiler/seller the PRINCIPLE Buyer contact info (so that seller may contact Principle directly)

Step 10
Principle to Principle conversation

Step 11
Buyer Principle to authorize release of LOI/POF and Master Fee Agreement to Seller/Compiler from escrow

Step 12
Seller/Compiler do due diligence on Buyer.  Including their own POF verification.

Step 13
Seller/Compiler compiles or delivers tape to Buyer.


Please note, using this process Buyer's contact information is only released from escrow to the Seller/compiler directly.  No one in the brokering chain will see the Buyer's information. 

To ensure fast and efficient service, please follow these procedures.  

We look forward to a long and prosperous professional relationship with you.


Q&A
------
1) Can I talk to the compiler first before going through this process?  I don't even know if you are real.
There is simply too many buyers in the market.  Our compiler simply do not have the time to spend with every single client.  Frankly, there's no way for our compilers to know a true buyer from a brokering shopper.  Our compiler only wants to speak to the principle buyer.

Frankly, you've got nothing to lose.  By proofing up this way, you can easily work with other seller contacts.  Your seller contacts will appreciate your professionalism and honesty.  Throughout the process, your Buyer's contact information is completely protected.

Think about it.  Having a precompleted Master Fee agreement means that once the principles wish to proceed, there's no surprises or last minute rush to get the documentation complete.  Having a smooth process gives your clients confidence and respect for your professionalism.

2) How do I protect my Buyer's LOI from being shopped?
Escrow is legally bound to hold your client's LOI in complete confidence.  The Escrow LOI is completely scrubbed of your client's information.

3) How do I know that I won't be circumvented?
That's why the LOI is submitted with a Master Fee agreement.  This way, there's no surprises for parties involved.  This is a very small and tight industry.  Word spread very fast.