Monthly Archives: May 2015

Our Real Estate Deals Offer Funding Sources Security and Excellent Return on Investment – ROI

We have an Increasing number of single family home real estate investment opportunities. We are  actively networking for $1.3 million in funding now and an additional $2 million in June 

Seminole FloridaOur Business Model:

We only buy properties that are homes.  Most of our deals are single family homes only because we are not finding  multi-family properties that meet our buying criteria . Currently there are no shortages of buy and hold  deal opportunities in our core market which is Tampa Bay Florida. We have one buy fix and flip property on our radar screen.

We buy properties to fix and resell (flips) and buy and hold (rentals)  Our business model limits our acquisitions to distressed properties which allows us to quickly create a margin of equity that further secures the principle of our funding sources.

Recently we published an article about our exclusive bank owned (REO) bulk buy program (Click Here For That Article) Our goal is to invest up to $500,000 in these properties this month.  That list is published on or about the 20th of each month.

Financial Model 

Buy Renovate and Resell Properties:  The deals we have done this year to date are projected to result in a 30% or higher return on investment for our funding partners. Going forward we are looking for 100% of the funds needed for these deals from one source. Our view is 30% on an annual basis is conservative. Our plans are to be in, renovate and sell in 6 months or less. The first property to be listed this year sold took 4 months to buy, fix and close. We have two more coming on line to be listed now.  We are planning on acquiring  one home about every two months in the Tampa market as we are not finding many opportunities that have the profit potential our model requires. We have a highly skilled partner who plans and executes our renovations.

Buy and Hold (Rentals):  For single family homes we are looking to pay about 8% for the funding required for a property and share in the equity build during the hold period.  The spread between our all in cost at the time we acquire the property and market value is usually 10% or higher. The annual equity build is currently projected to be 5%.  We are requesting a three year commitment on the funding for these deals.  The average annual return for this model is estimated to be 12% each year for three years. We use very experienced property managers for this niche and our ROI calculations are net of 35% for expenses including property management.

Bank Owned PropertiesBulk Buy Bank Owned Properties (REO): We have  a strategic partner for this program that has been in this niche for 8 years and has all the direct banking contacts. Additionally there is a unique exit strategy so we are looking to joint venture for funding to initially buy $500,000 of properties each month.  The source of funds can reasonable expect annual returns in excess of 30%.

For more information and immediate consideration please call 

Steve Pohlit
727-587-7871
Email 

PS  We are requesting 100% of the funds required for these properties. The funds can be structured as combination debt and equity.

 

Our Exclusive Bank Owned (REO) Property Program Has Excellent Returns With Minimal Risk

bank owned propertyBank Owned Property Lists Are Distributed To Investors For Bids Our Program Goes Way Beyond Bidding 

Banks use the bidding process to sell inventory of properties that have not been sold  by short sales or auctions.

In the real estate industry many investors  are familiar with bank owned property lists or bank tapes. In most cases they are pitched by people  who say they are direct contact with the banks which is often not true.  Investors can spend a lot of time chasing deals to then find the source is not in a position to facilitate a bid or worse the list is out of date. 

Our partner receives bank owned property lists directly from the banks, uses an escrow agent for handling the money for those  investors placing bids. Our partner also  bids  many millions of dollars each month on properties for his own company.  He has a large group of investors who buy homes that have been awarded.  Why to these investors like these homes?  Because my partner is getting them at deeper discounts than most because of the huge volume he buys.

Additional Information for Investors in Bank Owned Properties That Are Listed For Bid Each Month

1. Monthly Nationwide Bank Owned List: This list is distributed to investors on or about the 2nd day of the beginning of each month. Investors decide on which properties they want to bid and submit that through me if the bid is for a small number of properties. If the investor is a “deep pocket” buyer (with resources and intent on buying a portfolio of  10  or more houses  then I will connect that investor directly with my partner who will guide them on the bids most likely to be successful and the  deposit required to proceed.

Note select homes a distributed to friends and personal real estate investment contacts.  Those who want the best deals subscribe to our program where they will receive the entire list, are able to attend our three day seminars held twice a year and receive the entire cost of this program back when they buy their first home though our program.

Key to successful bidding: a common mistake is thinking 40-60% of the bank list price will win the bid. This can be true but can also mean you lose on a very good deal. The recommended approach is for you to determine the value to you of a winning bid and then place the bid so you can make your targeted profit.  Example of a flip:  List Price $80,000 Estimated Repairs $10,000 ARV  $120,000  Target Profit 15%  You might decide to bid $70,000 or higher.

2. Requesting a Specialized List ( For Deep Pocket Investors Only):  We recently were on a conference call with a buyer for Southern California homes at higher prices points than what is typically found on the monthly list.  My partner is working with them to clearly define their buying criteria and request as specialized  list from the banks.

3. Exist Strategy for Properties An Investor Decides They Don’t Want :  If an investor decides they do not want one or more properties that they were awarded in the bidding process there are two ways those properties can be sold.  First they will be offered to the large group of investors wanting awarded properties. Should they not be sold that way, the homes will be marketed on the company’s buy here pay here home  site.  The buy here pay here program is unique as all steps are done for an investor wanting to sell a property this way.  The investor will become a note holder and then of course sell the note for full cash out and a profit should having the cash be a priority. This virtually eliminates the risk of an investor being stuck with something they do not want. However for this process to work the investor must be working with us and following our bidding advice

Frequently Asked Questions

Q. What is the bidding process?
A. Once the list is distributed there are 7 -9 days generally to submit a bid. During this time an investor does due diligence on the property to determine what work might be needed and market value after repair. We also recommend calling the county clerk to check on tax liens which are not common but can occur.   To place a bid,  normally 50% of the bid amount plus the processing fee  needs to be wired to escrow.  A lessor amount can be negotiated if bidding more than $100,000.  If the bid is won,  the remaining bid amount is due within 24 hours. If the remaining money is not wired you will forfeit your deposit as the house still must be purchased.  So be sure before you bid you can fund the entire amount if awarded.

Q. Do the properties come with clear title?
A.  Once a bid is awarded we recommend have a title company issue a warranty deed.

Q How Do I get the monthly list?
A Send and email with “Add To Bank Owned List” in the subject line. Click Here To Email in the email be sure to be clear as to what city is of interest. If you are interested in bidding $100,000 or more please call me direct

Q What returns can I expect
We can show you recent examples of awarded bid and the returns these properties are likely to earn.  We know you will be pleasantly surprised.

Steve Pohlit
727-587-7871
Email