Long Beach, Ca. Bulk Purchase of REO, notes and distressed assets through one of the largest
resellers of lender owned assets in the United States and an approved asset manager
under the U.S. Governments (Public-Private Investment Program) for the
disposition of bulk REO/Distressed assets through the FDIC.
In order for new and/or prospective buyers to get a better understanding of how to buy
wholesale bulk real estate assets through this program we have prepared the following flow chart.
Should you have any additional questions please call:
Step 1
NAA Representative will assist Buyer in preparing the following for submission:
1. Letter of Intent
2. Executive Summary/Profile
3. Non Compete Non Disclosure Agreement
Step 2
Prospective New Buyer (Buyer) to be considered for bulk inventory purchase must meet or have
phone interview with NAA Representative.
During this meeting/interview the following will be determined:
1. Mutually suitability of Buyer with NAA business model and goals.
2. Buyer previous history/track record in bulk purchase(s)
3. Buyer capital capacity for bulk purchase(s).
4. Buyer business plan for off load or resale of units.
Step 3
Buyer submits Letter of Intent and Executive Summary/Profile to NAA Representative>
NAA Representative reviews paperwork>
NAA Representative submits package to NAA Managing Partner>
NAA Managing Partner Committee reviews for:
1. Letter of Intent for suitability and availability in current marketplace.
NAA Legal Department reviews:
1. Executive Summary/Profile of Buyer for background review.
Step 4
Upon successful completion and approval of Letter of Intent and Executive
Summary/Profile, NAA Representative and Managing Partner will meet or conference with
Buyer to review process and product availability.
Buyer will provide satisfactory evidence of capital resources Proof of Funds to match with
Letter of Intent target purchase.
Step 5
A price quote/product list will be generated within 5 business days and sent to Buyer for
review.
Step 6
Buyer has 48 hours to review and either decline or enters into agreement by signing and
ratifying NAA generated purchase agreement. A final Product List is generated and
incorporated into purchase agreement.
Step 7
Buyer places 10% of the purchase price into mutually agreed upon escrow holder.
Buyer has between 5-15 business days to perform all due diligence and approve the final list of acceptable properties. Time factor will be determined by size, complexity of the transaction
and logistical considerations. Time factor will be determined by negotiation in advance of ratified
purchase agreement. The final list of accepted properties must be equal to or greater than 90% of
the "Letter of Intent", otherwise the pricing is subject to review and or renegotiation.
Step 8
Day 6-16/ or 1 business day after due diligence period
Deposit is equal to 10% of the purchase price goes "Hard" (Non Refundable). The receipt of the
Deposit will activate the contract.
Designated escrow agent works with the designated Title Company to get deeds issued and
titles cleared of any liens or encumbrances. (Note: Partial Closings may occur weekly until total
takedown has been completed.)
Title prepares Preliminary Title Report and HUD statement.
Step 9
Day 30 Remainder of Outstanding Funds must be deposited in escrow.
Notes:
In consideration of the requirements of the product sources, it must be taken into account the live
nature of the assets. Live assets are not guaranteed to remain available and are subject to going
under contract at any time prior to being secured.
Information Completeness is extremely important. Particularly in respect to the executive
summary, track record and financial capacity. The reason that we are able to purchase
discount or wholesale real estate assets from the financial institutions at the prices and ongoing
availability (while other competitors become blocked out of the market) is that when we place an
order we have one of the highest "pull through" rates in our industry. This allows us to continue
to offer the products we do, at great discounts to our clients on an ongoing basis.
We need to know who we are really dealing with and their ability to complete a purchase with us.
The moment we begin researching and finding the discounted assets our clients order, we are
employing staff man-hours and our financial outgo begins. We are looking for serious business
people who are ready, willing and able to complete the orders they create in their Letter of
Intent's as we are able to fill the Letter of Intent parameters.
Once the Balance of Funds has been satisfied we will entertain subsequent orders.
The entire sales process generally plays out over a period of approximately 25-30 business
days or less (5-6 weeks).
Kirk Mulhearn, a Long Beach Real Estate Broker co-manages Prudential California Realty, "The Bixby Knolls Office," and a Net Branch of, GEM Mortgage, a direct lender specializing in FHA, VA, and Conventional financing. Contact him at: 562-989-4608 ext. 110
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