Q. What is a BPO?
A. BPO is short for (Broker Price Opinion). Some REO packages from banks will have BPO’s or assessed retail values. These values come from Comps and are used to justify the LTV.
Q: How
do I know if it is a good price for the homes?
A: Do
you own homework, the bank might give you their (BPO) broker price opinion, but
you must understand that is just an opinion of an agent trying to get a listing,
you must do your own valuations. Since the market is changing fast today, a
valuation review by the buyer is recommended.
Q:
Can I Carve Out (cherry pick) from
the portfolio?
A: NO!
Q: Can I
choose which city/county/region the properties come from?
A: Yes, you can choose the city, county.
Q: You
said the minimum portfolio is $1 million. Will the bank consider
less?
A: Banks are giving preferences to customers with larger
purchasing powers. We will strive to meet as much of our investors’ needs as
possible but, in order for the bank to take your offer seriously, you should be
prepared to make at least a $1 million commitment. The $1 million minimum is on
the purchase not the quoted portfolio size.
Q: What
type of payment will the bank take? Can I finance these deals?
A:
The only viable financing scenario for this type of a transaction is via a line
of credit. You are expected to have either cash or line of credit to make these
offers. Commercial loans or hard money loans require assessment of collateral.
Given the nature of these transactions, and the proof of fund requirement,
Escrow deposit requirements, it makes assessment escrow difficult. There are a
few hard money lenders who have actually done bulk deals before. These will be
the only ones allowed to be used. Cash buyers are given priority from the
banks
Q: Do
you have commercial or multi-unit properties?
A: Yes, we have access to REO and NPN Commercial and Multi dwellings..
Q: How can I be assured of my
banking confidentiality? Who gets to see my proof of fund?
A: The
proof of fund is done exclusively by the bank No one in the
brokering chain is privileged to this information.
Q: Why can’t I go directly to the
bank?
A: Getting the time and attention from an Asset Manager would
be difficult, if not impossible, for a single individual or buying entity. Like
most businesses, Asset Managers sell their inventory through mass distribution
channels including Hedge Funds and large wall street buyers.
Q: What slows down order
processing?
A: Incomplete information, old dates on forms,
unreasonable LTV requests, unsigned documents or inability to verify funds in a
timely manner and busy and slow compilers. Please ensure all forms are complete
and current.
Q: What escrow company will handle the closings?
A: The Major Escrow Company can be chosen by the Buyer.
Q: What is bulk REO portfolios?
A: When lenders foreclose on real estate, the property must first be placed for sale through a foreclosure auction. If no one bids on the property, it reverts back to the bank. Once the bank has ownership the property becomes Bank-Owned/(REO) Real Estate Owned. Financial Institutions take these properties and bundle them in packages called Bulk REO portfolios.
We can offer our clients customized portfolios because of our direct relationship with certain banks.
Q: Is there a fee for your service?
A: There is a standard fee added to the sales price. This fee is based on the size of the portfolios and includes all sales fees payable to all parties involved in making the transactions happen. We like to work with reputable clients who understand the REAL meaning of WIN-WIN situations. We provide a valuable service to you for a honest and fair fee.
Q: How do you pre-qualify buyers?
A: Our goal is to conduct business in the most ethical and efficient manner and we expect the same from our clients. More than 80% of our order applications are rejected because the “Buyers” have no real money for purchase or the orders have unrealistic expectations. It makes no difference how well known you are, there are no exceptions to the process. We won’t jeopardize our lender relationships for any reason.
We are in the business for the long term and not for one deal. This means we strive to provide the best products and service to our clients to ensure your referrals. Our team works at the highest level of integrity and confidentiality.
