Hello Investors,
After a few months off, I am back on the blogging trail again. I have been very busy in the mortgage and real estate investment business these last few crazy months and I am looking for investors who want to take advantage of the ton of due diligince that I have been working on lately. With all of the foreclosures (over 400 a month each month in Williamson and Travis Counties combined), this has led to a tremendous amount of bank owned properties that are starting to sit on the MLS and market. Lenders are not liking the fact that this huge amount of unperforming assets are killing their ability to lend and make money. That is where we win!
How do you win in this market without having $3 to $5 Million in cash to purchase these tremendous deals? Work with me! I have worked out several afiliations with several hedge fund managers who have pledged to back my company with the purchase of mulitiple REO pools ranging from $10 to $50 Million in size. We are looking for individual investors to come in and purchase these properties at below market values. Obviously, we are making a small percentage on the deal, but we have worked out several scenarios with several lenders to allow us to purchase these bulk pools.
Scenario 1. Provide a list of qualifiable Letters of Intent from investors to purchase 1 or more properties in specific geographic areas. This list will reduce the amount that we need to borrow from our hedge fund clients and allow us to buy more than we borrow, reducing the bulk pool price to even lower percentages across the board. In this scenario, we will only charge each investor a 10% fee of the sales price, which will be encompassed within the final price (not to exceed 60% of fair market value). This does not include any commission that we will be paying out to real estate agents who provide us with a viable buyer/investor.
Scenario 2. Buy a pool with hedge fund money, and resale the properties to investors. This option will allow us to negotiate a great deal, but we have to keep in mind that we will need to provide the hedge fund with a viable return rate. Henceforth, we will be looking at selling these at 65% of fair market values, not including realtor commissions.
Either way, this is an awesome deal. The more that we are able to buy, the bigger the discount, and the more investors can make in the long run by allowing us the opportunity to negotiate lower purchase price, resulting in lower selling costs to the end users/investors.
If you are interested in learning more, please contact me directly at scott@arielcap.com! Chekc out my upcoming blog on Large Defaulted Note Pools as well!
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