Residential Bulk REO Program
Welcome to the webspace for REO Property Exchange (REOPropertyX) – a division of PDS Capital. This Residential Bulk REO program obtains large portfolios of foreclosed residential REO properties from regional banks and one of the Nations GSA’s. Large portfolios are broken down into smaller bulks in the range of $10 MM to $100MM, and are grouped by states or regional areas, and offered for sale to private equity investors and institutional buyers. The institutional selling entity will typically provide BPO’s that have bee completed within in the past 6 months. In addition, the GSA selling institution has the subject properties vacated and then repaired to meet minimum habitable standards per FHA guidelines.
Unlike other bulk acquisition programs, this Residential Bulk REO program will not go to the highest bidder, but will be awarded to the equity investor that is deemed to be best suited for the timely and reliable closing of the subject REO bulk tape being offered. This equity buyer vetting process will include establishing direct communications with the principal(s) of the equity buying entity, verification of closing funds, and verification of past bulk residential acquisition experience.
These are “All Cash” transactions, and the equity buyer is to pay our broker fee in the range of 3% to 4%, dependent upon bulk offering. More detailed Program Guidelines are outlined below. We will cooperate with Outside Brokers, but only under the specific terms and conditions outlined below.
Upcoming Residential Bulk REO offerings:
Below are the Residential Bulk REO portfolios that are to be offered in the 3rd Quarter of this year (2011). These portfolios will be group by the following four States/Regions – southern California, Florida, Arizona and Colorado. Below is an brief outline of each REO portfolio per State/Region:
- Florida: Portfolio size is 94 Residential properties for an Acquisition Price of $6,086,000, with a nominal average home value of $64,760. Properties are located in average to good areas in the State of Florida, and primarily located in the cities of Miami, Jacksonville, Orlando, Tampa and West Palm Beach. The properties comprised of mostly Single Family detached Residential with some Condominiums and multi-family. End buyer acquisition price discount is 63% of Banks BPO values.
- Los Angeles County and Orange County: This Portfolio is from a Regional Bank, and the bulk size will be in the range of $29MM with a nominal average home value of $335,000. The properties will be comprised of approximately 75% Single Family Residential with approximately 25% Condominiums. End buyer acquisition discount will be in the range of 67% of recent BPO. Our Fee is 3.5% payable at transactions closing, for a total nominal Price/Value ratio of 70.5%.
- Southern California: Portfolio size will be in the range of $200MM to $400MM, with a nominal average home value of $275,000. Properties will be located in the counties of Riverside, Los Angeles, San Diego, San Bernardino and Orange. The properties will be comprised of approximately 80% Single Family Residential with approximately 20% Condominiums. End buyer acquisition discounts will range from 60% to 65% of Fair Market Value.
- Arizona: Portfolio size will be in the range of $100MM to $200MM, with a nominal average home value of $105,000. Properties will be located primarily in the greater Phoenix and Tuscon areas. The properties will be comprised of approximately 90% Single Family Residential with approximately 10% Condominiums. End buyer acquisition discounts will range from 53% to 58% of Fair Market Value.
- Colorado: Portfolio size will be in the range of $100MM to $2000MM, with a nominal average home value of $140,000. Properties will be located throughout the State of Colorado. The properties will be comprised of approximately 90% Single Family Residential with approximately 10% Condominiums. End buyer acquisition discounts will range from 53% to 58% of Fair Market Value.
NOTES: The ideal equity buyer will verifiable POF, verifiable past residential portfolio experience, and acquire the entire portfolio for a particular State/Region. Offers from several buyers for smaller bulks that can be carved out of each portfolio, will also be considered.
The basic policies and procedures for this Residential Bulk REO program are as follows:
- Establishment of direct communications with principal(s) of equity investment firm.
- Initial vetting process to determine which equity investor is best suited for the bulk REO properties being offered.
- Review and execution of Non Disclosure and Fee Agreement, by principal of equity investment firm.
- Delivery of the REO portfolio tape direct to principal of equity investment firm.
- Equity investor to conduct due diligence including property valuations.
- Generation and execution of Letter of Intent (LOI) to Purchase, accompanied by Proof of Funds (POF) to close.
- Sellers final approval of LOI, POF and equity buyer.
- Generation and execution of Purchase and Sale Agreement (PSA).
- Opening of Escrow, delivery of 10% Deposit, and closing processing (typically 30 days).
We do cooperate with Outside Brokers, but only under the following specific terms and conditions:
- Co-op Fee is 1/2%.
- REOPropertyX to sign fee sharing agreement with Outside Broker, thus locking in the 1/2% above.
- Outside Broker to introduce the principal(s) of the equity buying firm, directly to the principals of REOPropertyX .
- Principals of REOPropertyX to deal direct with the principal(s) of the equity buying firm, and follow the procedures 1 thru 9 outlined above.
For more information about this unique program, or to express your interest as an equity investor, please contact us at: (949) 334-2902, or email us at: REOAssets@crexchange.com, or complete the form below:
Note: The above information will be held in our strictest confidence, and will not be shared or distributed to any outside firm, organization or person(s), other than the Seller of a particular subject asset(s) being offered for purchase.
SVP of Asset Management