REO Sales Presentation

• 1. Welcome toThe REO Business Offer by 3NetInvestments

2. Disclaimers

• Neither Sharon Bacchetta nor her partners, affiliates, or team members provide legal or tax advice.

• Any d ocuments provided in this presentation are examples only. Always seek professional advice with respect to any document used in a real estate transaction.

• A lways consult a real estate attorney for legal advice on your real estate deals.

3.

• Foreclosure terms

• Bulk REO challenges and opportunities

• Buying the REOs

• Listing the REOs

• Qualifying Buyers

• Selling the REOs

• Collecting the income

• Maximizing reward/Minimizing risk

Making Money in REOs Today 4. Foreclosure Terms

• Foreclosureis a process that gives a lender or other lien holder the right to sell or repossess a property after the owner has failed to comply with an agreement between the parties whereby the property was pledged as a guarantee.

5. Foreclosure Terms (REO)

• REO means Real Estate Owned (by the bank)

• It is a term that refers to the real estate that thebank had to repossessfrom a borrower who defaulted on the terms of a loan owed to the bank and secured by a real property.

• The bank goes through aforeclosure processand ends up taking over the property from the borrowerto recover their loan loss . (It becomes a REO in the Non performing Assets Dept.)

6. Foreclosure Terms(Land Contract)

• It isa contract agreementbetween a seller and abuyer whereby theseller financesthe sale price by carrying a note and retaining legal title of property andbuyer qualifieseasier and faster by making timely payments till pay off with interest to get legal title of ownership

7. Foreclosure Terms

• Deed and title:A deed is the document that proves ownership. The title is the manner for which you want to own the property. On the deed of ownership you may hold title as a single and sole owner, or as a LLC, etc.

8. REO Challenges

• Thousands of REOs are available:

• Banks want to sell you a minimum of 100 homes (in bulk) to give you the best price

• Banks want to see proof of funds (no financing)

• Banks want to make sure you have experience

• Banks sells them to you as is where is

9. REO Challenges

• You, the investor must deal with each property individually no matter the location (they are spread out nationwide) to fix it up first then either:

• Sell it at retail price (realtor commission)

• or

• b) Rent it at market value for a long term upside (takes a long time)

10. REO Challenges

• Must pay all cash (several millions for bulk)

• Must pay any property taxes still owed

• Must pay any water liens still owed

• Must get and pay for property insurance

• Must place a combo lock box (get photos)

• Must place a For Sale sign outside property

• Must take calls and qualify buyers

• Must send contract and execute the sale

11. The REOs Reality

• Too much work and risk for long term profits

• Must have an office and/or a great team to coordinate various functions per property (Purchasing-rehabbing- qualifying buyers or renters- doing legal paper work- title and deed transfers- handling the income- processing expenses- managing risks)

• Must have over $1,000,000+ in CASH and show EXPERIENCE for bank to consider selling a minimum bulk purchase of 100 homes

12. REO Opportunity

• We have hundreds of REOs available:

• With us you can buy 5-10 properties at a time

• Your price will be $18 21K each and they resell at apx. $35,000 or more (some sell as high as $75,000)

• You get a full turn key opportunity by having anexpert support service team that handles your deals from A to Z

• The support service package is offered to you atno additional charge and it includes a g uarantee

13. REO Opportunity

• Your $18 21K per property includes the following fees, services and guarantees:

• Theproperty taxes,if any are owed

• Thewater liens,if any are owed

• Support gets you property insurance (you pay)

• They place a combolock box (and get photos)

• They place aFor Sale signoutside

• Theytake the callsandqualify buyers

• Theysend the contractafter you select buyer(s)

14. REO Opportunity

• They sell the homes on a land contract within 90 days or less ( contract included )

• They turn over contract to a national service company to collect and deposit in your bank account the PITI payments

• Weguarantee an exchangeof properties in the unlikely event any of your properties are found burned down (1% statistically) within less than 10 business days

15. REO Opportunity

• Somehomes may need rehabbut this is not a problem because when home is sold on a land contract based on Support teams surveys for apx. $500 down and low monthly payments of apx. $375 (less than local rent) buyers accept property in as is where is condition and stick to payment schedule to realize their dream of ownership and build equity.

• If they default on the payments of a land contract they are evicted and not foreclosed on

16. REO Opportunities

• Title is assuredto be clear and insured when reselling to end buyer (s)

• Deedmay take apx. 90-180 days but you do not transfer it to buyers until they paid on time for 12 months on the land contract

• Assistance in case of default . Support can coordinate with legal office for less than $700 fee. You may resell at higher price!

17. Seven Steps to Profitable REOs

• You buy a batch of 5-10 properties plus

• Let the support service division handle your listing and qualify the buyers for you

• Respond promptly to any calls and emails from support to qualify and select a Buyer from the list they send to you

• Read and sign all documents of sale sent to you

18. Seven Steps to Profitable REOs

• Give your bank info to the loan servicing company to deposit money into your bank account

• Enjoy income for a year or longer then contact buyers andask them to get a new loan to cash you out based on their good history of paying on time

• You may decide to discount the note and sell it at a discount anytime once you have history of payments, we can help you with that.

19. Our Objective

• To sell as many properties in the next 24 months and help 4 different parties:

• 1) The investors who need cash flow and a chance to participate in the profitable REOs but on a smaller scale. They prefer the low risk, high cash flow of these properties with a turn key service opportunity but have been too busy and confused to find a successful, low risk business model

• 2) The end buyers who need a chance to own a home and take advantage of the low prices but cannot due to low credit scores . They much prefer to own instead of rent to rebuild their credit and get a chance to build equity

20. Our Objective

• 3) The banks who got greedy and ended up foreclosing and holding non- performing assets nationwide

• 4) The training companies that have been offering one educational program after another without presenting the actual real estate opportunity and creating cash flow for their investors

21. Review

• Buy 5-10 properties @ $18 21K each

• The support team will assist you to list and sell as well as get the positive cash flow

• You can keep the income or sell the note at a discount

• You have support and guarantees on low priced REOs with our full service

22.

• Our affiliates pay all back taxes and liens if any

• List the properties and qualify buyers

• Do all the legal paper work

• Your property is resold on a land contract within 90 days

• Your returns are usually around 20%+

• and they are secured against your RE

• Offer guarantees and deliver results

• e-mail: [email protected]

3NetInvestments