Tag Archives: bank owned properties

Exclusive Program With Awarded Deep Discount Bank Owned Properties

bank owned propertyThe Main Points

Each month around the 20th day my partner receives an list of homes where the bids submitted 10 days or so earlier have been accepted. These are largely bank owned properties. My partner’s business that started buying bulk from banks and  others over eight years ago and submits bids every month on every property offered. The bids are in the range of  35% of the list price presented by the banks. Those list prices are often  already below market value.  In summary there is a very large profit opportunity on the awarded bids list.

Note most of the properties are lower priced homes.  This does not mean they all need significant renovation. Some may. But it does not matter because regardless of the condition there is very significant value for the buyer.  The goal of this article is for you to be able to see that.

Once the list is available, there is a window of 24-48 hours to make a buying decision.  When that decision is made, the money for the property needs to flow into escrow in 48 hours or less.

Another Note: our partner offers owner financing.  Remember this is an awarded list meaning a third party will buy one or more of the home and whatever is not purchased by a third party is paid for by my partner

Exit Strategy

All the normal exit strategies for a real estate investor apply. These include:

  1. Fix it and resell it
  2. Rent it
  3. Wholesale it

The One Unique and Exclusive Exit Option – Very Easy and Completely Done For You 

Buy Here Pay Here Homes4. Click Here and visit Buy Here Pay Here Homes  That is an important and meaningful  part of our partner’s business. This program has two vehicles for  reselling homes purchased by investors from the awarded bank owned property list.

First – Market and sell them to owner occupants though the Buy Here Pay Here Homes Program Note sell them means they are sold on terms and the deed is retained by the original purchaser until the note is paid or until the note is sold.  Example  Purchase Price $30,000 Face Value of Note $60,000 Interest Rate 12% Monthly Payment – 30 Year Note 617.17  You could hold the note and collect this monthly payment. Alternatively you could sell the note (we are connected to note buyers) at a discount for say $45,000 and the note buyer gets a significantly higher rate than 12% (slightly more than 16% which is very attractive) and  the investor has made a $15,000 profit and in reality with fees more likely $10,000 in this example. The time from start until the note is sold is in the range of 6 months.

Online Home AuctionSecond – the home purchased by an investor from the awarded bank owned property list is entered in the company’s auction site coming live by July 1 2015  This is going to be an amazing vehicle for quickly selling homes and yes you can and should have a reserve on these houses. Note our partner has a strategic relationship with owners of several of the top auctions sites for houses and they will be driving traffic to the new auction site immediately upon it going live. The first group of houses that can be entered for auction will be those from the awarded bank owned list coming out on or about June 20, 2015  This vehicle has the potential of selling the home to a new buyer at a premium from the original purchase price within a very short time of the original purchase.  (This option is brand new, not tested by us but we project this to be a game changer.)

Note: as a reminder everything in this business model is focused on the primary benefit associated with buy homes at a discount deeper than those commonly found by real estate investors. This strategy increases the security for individual investors buying 1-5 properties as well as buyers of larger groups of homes.

Bluewater Capital Properties LLC (Bluewater)

The principle of the company that is the source of the bulk buy property list, the awarded bulk buy property list and Buy Here Pay Here Homes are members of this newly formed LLC In addition we have a prominent attorney and  CPA firm as members. Bluewater’s primary mission is to raise capital (equity and debt) to further develop the acquisition of bulk residential properties primarily offered by banks and the related sales through the Buy Here Pay Here Homes program and/or auction site.  This strategy is expected to yield cash on cash returns secured by the properties substantially about current market rates.

Equity Investors in Bluewater – Must be accredited investors and the information for this group is outside the scope of this article.  For more information including a copy of our private placement memorandum when available please email  or call at your convenience.

Steve Pohlit, Member
Email 
Phone 727-587-7871

Request for Lenders – Exclusive For Bluewater Capital Properties LLC

Bluewater is requesting  a starting loan from real estate lenders of at least $500,000  The lender should have the capacity to loan $500,000 each month going forward. Note: we will work with multiple lenders and at no time will more than one lender be secured by a property, We are open to reasonable rates of interest. The key part of the lending program is repayments of principle  and interest are made when each home is sold or the note is sold. We are requesting 100% of the principle amount for the all in costs of acquiring the homes we buy. The purchase price is estimated to be 40-60% of the bank list price and 30%-50% of current market value. These estimates are subject to revision and are based on a limited sample results in May 2015. While we are requesting 100% of the funds required for the buy we have invested considerable resources in the Buy Here Pay Here Homes Program and the soon to be released auction site. In addition to the home office staff there are approximately 200 people on contract to execute the Buy Here Pay Here Homes Program in the field with the systems in place to service the marketing and sale of a home in nearly any location where a home is purchased. There were 53 homes on the awarded list in May and they were in 20 states. The number will change  every month and we expect it to grow with additional funds allocated to this business model

Our program that focuses on acquiring properties at a deep discount offers lenders more security and safety than many of the residential real estate transactions we have seen in our experience. We also understand our program is not typical because when the list comes out we have 24-48 hours to make a buying decision and a short time after that decision to wire the funds to escrow to confirm the buy. We know we need to provide first secured position to the lender for each home purchased. We can execute that on the day funds are wired. What we cannot do is deliver title on that date because of the fast process the title is still in the banking system and it takes approximately 30 days to get title.  We are still looking at ways to further give the lender assurance of ownership. This not a new process Our partner has never had a problem with not receiving title for a property purchased.

Buyers and Lenders Should Take Immediate Action for June 2015 Otherwise The Next Opportunity Will Be In A Month. 

Contact 
Steve Pohlit, Member
Email 
Phone 727-587-7871

 

How To Buy Bank Owned Property At Discount Using Our Direct Connection With Real Estate Portfolio Managers

bank owned propertyBank Owned Property Lists Distributed To Investors For Bids

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.

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 site. 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

Steve Pohlit
727-587-7871
Email