I recently had a Hedge Fund Manager answer one of my craigslist ads. I have had a couple of meetings with him to define his criteria and my percentage fee. I called my realtor to start sending me REO deals matching his criteria. I originally submitted 3 deals and received an email back promptly stating he liked them and that he though that we were going to do A LOT of business together. He's doing his due diligence now and waiting to hear back from him in a day or so.
That's how I sort of fell in to working with REO's. Now here's the MOTHER LOAD PART. My realtor sent me a 59 property REO package. I wasn't able to contact the H.F. Manager last Tuesday or Wednesday (he was finalizing another deal). SOOOO, I decided to try advertising this deal on sites that have some real estate investor & hedge fund groups. This was Wednesday afternoon, within a few hours I started receiving emails requesting info on location & descriptions. I responded with just the state and listed the type, BPO value, status, & condition of each property. Again I received a follow up email stating their interest and send them details. My next email was attaching a "Non-Disclosure Agreement" explaining that this had to be executed and returned before I could release any further info. Now, to my surprise within "minutes" I received (4) agreements back.
This all took place from Wed. night to Fri. noon. I'm on hold until Monday because of the Easter/Passover weekend. Since then, I have 20-25 more email request, but I want to wait until after Mon.'s meeting to respond and be much better prepared!!!
I have an early appointment with my realtor to gather all the info so I can send it back to the investors. But, now that I've had a moment to breath (This whole thing caught me off guard!!!) I'm formulating game plans on how I can complete this deal and gain the most. Here's goes:
1. Partner with investor- buy, repair, sell off individually, share in profits- several of these big boy type investors have expressed this as a possibility!
2. Next option- Buy on back to back closing- send offer in for let say 65% below BPO & close A-B then have buyer at 50% below BPO for B-C closing for the complete package
3. Or same thing, but have several B-C buyers and sell off partials of package.
4. Work on referral fee only.
I've been contacting people to see what I can line up to complete this deal with the most gain. So, this is what will be discussed at Mon. meeting. I'll keep everyone posted!!!
Happy Easter/Passover to everyone!!!
"A LIKELY impossibility is always preferable to an UNCONVINCING possibility!"