Motivated Buyers Looking for Property

Hi REOPro Members,

So...REOPro has been approached by a large national buyer of distressed properties whose model is to buy, fix and flip.

They are hoping to leverage our 15,000 members to bring the distressed properties from around the country that they can push through on their model to buy, fix and flip.

Right now, it appears that members will go to REOPro, click on the "Buyer Direct" tab, input their property details and withing 48 business hours, know if our national buyer is interested in learning more.

As it stands right now, access to the Buyer Direct portion of REOPro will be a paid access section with a reasonable annual fee of only $29.95.

Right now, we are working out details like referral fees...if any, offer tracking, etc......

If this all pans out, our members will be able to go out into the market place and solicit listings knowing we have a buyer who is ready, willing and most importantly able to make a deal.

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                • Hey Andrea, again, I have to stress, a investor can't compete with a retail buyer. I'm not sure where were are communicating past one another but, if you had multiple offers on the retail market I can assure you, an investor can't compete with that.

                  • Jesse that makes sense, but you don't understand what I submitted obviously. Have a good day.

    • Hmm,
      I haven't joined yet as I was researching properties in my area. I have been swamped with other things. But I do have a question. When you submit, is there a specific or built in form or do I just upload a cma? I won't be the listing agent on any of these properties so I wont have a bpo, but can submit comps. For those who have submitted a deal- what exactly are the investors looking for??? are mls pictures good enough or do they want pics that I have personally taken? are they buying sight unseen? Please advise on the ins and outs. Thanks in advance.

      • Hey Marilyn, it's a built in form. You don't have to have a BPO, just use the form we provide. It's really simple. If you do have a CMA / BPO....provide that via email to BuyerDirect@REOProNetwork.com, and reference the property address in the subject line, we will put the two together on this end. As to what these investors are looking for...it's imperative that you understand, they are investors, not retail buyers. So, with this in mind, here is a typical...."investor" formula to follow.

        Our Investors use the 70% of ARV minus repairs. Repairs can be calculated at $30/sq ft.

        Example of 3,500 sq ft house. Higher value houses command higher per sq ft rehab costs.

        ARV is $500,000 – 30% = 350,000.00

        350,000 – 105,000.00 = 245,000

        Our clients will pay us $245,000

        Another example....

        500k house is move in ready, needs no rehab

        500k – 30% = 350,000.00

  • How large of a spread are these investors looking to make in a deal? Is there a minimum?

  • I am overjoyed and excited to bring an incredible opportunity to Buyer Direct. We are in talks with a premier Self Directed IRA Custodian who can bring hundreds, if not thousands of smaller to medium sized investors to our Buyer Direct program. This is outstanding because that means, our agents will get more offers, from ready, willing and able investor buyers.

    We haven't finalized anything yet and I am not at liberty to say who they are but, if you have been a long time member of REOPro, you have seen their advertisements in our banner and sidebar ad spaces in the past.

    With all that being said, Buyer Direct is essentially growing. We are going to be adding even more investors to our network of ready, willing and able investor buyers and that means good news for our agents and their sellers. Look forward to more announcements on this here in the next few weeks.

  • Hey Guys.

    So...we've now been up and running for a little more than a week and here's some insights you all might find helpful.

    #1: Our investors make their initial offer their highest, final and best.

    #2: They will NEVER accept non-refundable EMD (Earnest Money Deposits).

    #3: Most of the time....an offer will be submitted the same day it's received.

    Finally, it's important to remember, our investors aren't hoping to do 1 or 2 deals a year with you....they are hoping to do that many a month. So, just because you can't get a closing on one property doesn't mean you can't get one on another.

    Deals are like city buses, if you miss one, that’s ok. There will be another in about 15 minutes.

  • Ok....so, from looking at some of the properties that have been submitted, it seems like I need to stress some facts about the Buyer Direct program.

    #1: The buyers in the Buyer Direct program are Investors. In broad sweeping strokes, this means they aren't looking for retail properties. So, when filling out the form on REOPro and you tell us the list price is 100K but, your comps show us sold properties at 90K or 95K.....um, that property isn't what were looking for. Again, these are institutional investors, they aren't new to the investing game. Most need at least a 10% net profit and if you're telling me the property your presenting is higher than the comps....then it has no equity for the flip and the investors aren't interested in retail properties.

    #2: The online form gives you the ability to provide / upload a BPO and a Repair Bid / List. Please use these things because the more information you can provide to the investor to show it's a good candidate for a Buy-Fix-Flip scenario, the more likely you're going to get an offer. Now, if you don't have those items, you may want to at least have three sold comps to fill in on the form its self. Again, the more information you can provide, the better.

    #3: Keep in mind, the investors aren't located through out the US. That means, they likely don't know the market as well as you do in your local area. For this reason, sending a property over without any details like Sold Comps, CMA, BPO or Repair List means that the investor doesn't have a lot of information to go off of. Most likely, you're going to get an automatic "Not Interested"....because they don't have enough information to be interested about.

    NOTE: Keep in your mind, these investors don't know your market, they don't know the property your offering up and they don't know what repairs are needed and yet, you are asking them to be interested so, you're going to have to provide more information than just the address and list price. The more information, or the stronger the pitch, the more likely your going to get an offer so, when filling out the online form, please provide as much information as you can.

    • What are the requirements for property submission?  Are you required to be a licensed Realtor/  I am in Illinois

      • Great question.Yes, at this time, you do need to be a licensed agent. This is because we are charging the agent submitting the property to our investors a 25% referral fee on their gross commission. Now...with that being said, we are already tossing around the idea of opening this up to the general public but, that is at least a few months out. We have to make sure we got the process, procedures and general operations under control before we expand to the public at large.

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