Andrew Clemente

One of my contacts has decided to focus on Mixed Commercial NPN's - Apartments, Condos, Strip centers etc. The properties are all over - LA, IL, East TX - with higher concentrations in South East CA and South NY Tri-State areas.

Range is from .54 to .61 +2 Cents on the dollar. This is a direct source!

A signed confidentiality agreement gets you the full packages.

Please email me if interested and I will put together the conference calls so you can talk direct !

mme2000b@yahoo.com

For those of you that have followed my Blog posts regarding my experience with Countrywide to my experience with BULK REOs I will be starting a blog series soon regarding the Commercial NPN subject.

Sample Example Letter of Intent (LOI) Components

1. LOI Components. These are the components we highly recommend a buyer use to communicate their order in detail to the REO Seller.
   1. Dollar Order Amount. Example $USD 20 Million.
   2. Offering Price. Based on availability and order amount Buyer offers to pay a "realistic" percentage of the "current value" of property based on Broker Price Opinion ( BPO ) held by the REO seller. BPOs are typically less than 30 days old. Pricing is stated as a range of BPO value. Based upon completed orders Valor can provide current pricing trends.
   3. BPO Delivery Range. Actual BPO value range of the total property portfolio being purchased. Such as $30.7 Million to $40 Million ($0.50 to $0.65 cents on the dollar equivalent)
   4. Property Type. Example: single family residential.
   5. Price Range ( LTV ). This is the range of pricing based on current BPO value that the Buyer is targeting for individual property value. Buyer will be paying a percentage of this value such as $0.50 to $0.65 cents on the dollar or 50% to 65 % LTV of current BPO .
   6. Property Condition. Identify the condition of property you are willing to accept. Example: Minor cosmetic to light rehab.
   7. Occupancy. Provide the occupancy requirements for the property portfolio.
   8. Title. Buyer states how they would like to accept title.
   9. Proof of Funds. Buyer states the type of funds that will be utilized: Cash, BLOC, etc.
   10. Requested Geographical Location. List the geographical locations and percentages of properties in each location to be purchased. Use "Exhibits" if necessary to detail locations.
   11. TAPE Delivery Time Requested. Buyer states how soon they need the tape, typically between 24 to 72 hours. However, all orders are filled subject to availability.
   12. Initial TAPE Review Period Requested. Typically 24 to 72 hours. This represents the Buyer's "free look" period.
   13. Refundable Deposit: Sometimes requested by Financial Institution or Government Sponsored Entity when beginning "due diligence" (takes the property off the market exclusively for Buyer)
   14. Due Diligence Period: Typically - residential a 3 to 7 days; commercial 20 days
   15. Closing: Two calendar days after the expiration of the due diligence period the full amount of the deposit becomes non refundable. Closing to be coordinated with title & escrow.
   16. Title: To be determined by the Buyer
   17. Escrow Company. To be determined by the Buyer. Contact Information A Must!
   18. Commission: Buyer shall pay 3% (or 4% for orders under $30 Million)
   19. Closing Paragraph. This is a brief paragraph describing your purchase.

Sample REO Bulk Purchase Process (Countrywide/ Bank of America )

The Buyer submits a current letter of Intent (LOI) and Proof of Funds (POF).

• The LOI is made out directly to the bank: Countrywide/ Bank of America.
  • Contains a detailed description of the purchase request
  • Includes geographical description of properties wanted by State, County, City, and Zip Code
• The POF is a current bank letter from the buyer's bank to Countrywide/ Bank of America:
  • Stating the buyer has cash/ cash equivalents in the amount of the LOI.
    • Is submitted with either a tear sheet or bank statement
    • If a Letter of Credit provides for conditions to close an REO portfolio
    • Is signed by a bank officer
  • Provides Countrywide/ Bank of America with the buyer's bank contact information
  • Provides permission for a designated Countrywide/ Bank of America employee (to be provided after the buyer returns NCND & NCND Fee Addendum) to call the bank to verify funds.

The Buyer typically receives the REO portfolio (TAPE) from Countrywide/ Bank of America within 72 hours.

• Buyer reviews TAPE (Buyer typically receives a 24 to 48 hour "free look" period.)
  • The TAPE will be accepted/declined in total (the properties will not be "cherry picked").
• Buyer and Seller enter negotiations and agree to a enter into a purchase contract
• Buyer and Seller open escrow (Buyer's Choice). Typically a 10% refundable deposit is made at the open of escrow held during the due diligence period. At the completion of the due diligence period the Buyer accepts or declines the properties (again, in total) and the deposit becomes non-refundable. When the Buyer proceeds with the TAPE purchase, the transfer of money and property occur in the Buyer's escrow.

Once the Buyer's initial transaction is completed with Countrywide/ Bank of America, the Buyer can return to the Seller as often as their business model and market conditions allow.

Importantly, there are several dozen sources for REO residential and commercial properties to complete a buyer's order as needed. We provide our buyers the opportunity to purchase in order sizes from $5 Million to $1.5 Billion direct to platform.

We hope this protocol statement enriches your understanding of our REO bulk purchase process. There is an abundant amount of REO properties available. However, due to current banking conditions a buyer must be patient - all the banks are in crisis management and many are under audit or preparing for audit. Delay's can occur - sometimes a platform will temporarily shut down due to funding, reorganizations, or emergency company meetings. Additionally, LOI accumulation can temporarily be placed on hold due to an audit requirement or slowed due to market conditions. However, our professionals are actively managing information and working diligently with REO Sellers to provide our clients with real product, unparallel options and successful closing results.

I have posted a few blogs and I have come up with a great idea! I am likely foolish for posting this and I am likely not the first to think of it. Many of you can agree the Foreclosures especially in areas like Sacramento, Riverside, Las Vegas, and Florida to name a few are increasing drastically. While loans have changed and we are seeing a refinance boom for traditional conforming limits many people can not afford nor qualify. Especially in higher markets. I have seen many properties that require jumbo financing just sit for months. So what's new? It's been like this for the last few years. Many of you Realtors have pounded on my e-mail (assuming I still was employed with Countrywide) harder than any spam that I get. You are trying hard to get "In" to be approved with lenders like Countrywide because buyers want REOs. So who's making good money? Either the Superstar Realtors who always make great money, but face it not as much as they used to, or the Realtors approved to sell REOs. Well in the BULK SALES we help investors buy REOs from the banks between 40-50% on average. Some resell for 50-70% and others are Brokers buying for the resell at less than market 70-90%. Would you like to sell these? Unless of course they are providing them to their own agents why not create a sub-market for our BULK Process. What do you think? Would you work for me or an associate if I can arrange some business for you?? In mortgage ops the latest software always required a work-around. If the banks won't approve you why not!

Andrew T. Clemente

949-677-6394 Cell

mme2000b@yahoo.com