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Foreclosures


Contrary To MANY Reports Out There — FORECLOSURES and/or REOs Continue To Rise

If you keep a constant pulse on the market and have the necessary knowledge and viable resources, this is a great Buyer’s Market and a Fantastic opportunity for investors If not, this market can become volatile and intimidating to even the most savvy investors

In the current state of the economy, we have all heard of foreclosures. We all (as investors) know the opportunity they present. Unfortunately, as the popularity of an opportunity grows, so do the marketing predators trying to push expensive programs and workshops on potential, unknowing investors. The fact of the matter is, if you do not already have an established relationship with somebody who specializes and operates within this market every day, you will likely become very frustrated and be never be successful in your endeavors. REAL foreclosure opportunity is usually only available to investors for a few days, not weeks. As your Agent, PIP-West performs market analysis DAILY. We determine which areas are the most profitable to our clients and which properties in those areas are the most viable.

Our services do not stop with market analysis, however. We handle EVERY aspect of the investment in foreclosed property. As you can imagine, many foreclosures are in need of work and may be categorized as “Distressed Property”. New carpeting, paint, minor repairs, etc., may be necessary to maximize your return. Although an expectation when investing in foreclosures, most of us do not have the time for the oversight of repairs, tenant management, or otherwise. As with ALL the opportunities available through PIP-West, we take all challenges with default property investments and make this a truly passive investment opportunity for our clients. From acquisition, to management, through the liquidation of your properties, PIP-West will handle all aspects on your investment on your behalf, while you retain 100% ownership.

The following are just a few examples of your potential with PIP-West. Keep in mind, these foreclosures were just a handful of the opportunities available to our clients between May 5th and May 20th, 2011 (a TWO week period)!!

Foreclosures Forclosures Foreclosures

  See more May, 2011 examples here

Qualified REO Specialists Offer Private Investors Opportunity Too Exceeding the Goals of our Investors:

  • Private Investors
  • Developers
  • IRA Custodians/Clients
  • Pensions
  • Real Estate Advisors
  • Hedge Funds
In the "boom" of the foreclosure market, REOs have become a popular investment tool for both institutional and private investors. Known as "real estate owned", these properties have been returned to the bank after attempts were made to sell the property through foreclosure auctions. Since banks are in the business of lending money, not owning property, properties are offered in bulk at steep discounts. The "over-stock" of REOs today, is directly connected to the failure of many banks and lenders. Too much inventory and not enough operating capital means banks are offering their REO packages at historically low rates. Without an REO Specialist investors do not have an established inner-bank resource to truly maximize on REO opportunities and usually face mark-ups, or sales from third party liquidators who have diluted the margin of profitability.
PIP-West Offers Investors a Direct Link To Its Inner-Bank Resources
Typically, in a strong market a good REO Specialist can acquire viable property for about 80 cents on the dollar. In TODAY’S market, good, rent/move-in ready property can be acquired for as little as 50 cents on the dollar. Most REO liquidators buy these properties in bulk, mark them up to about 70, or 80 cents on the dollar and re-sell them individually. Others will convey that they are selling them for 50 cents on the dollar, against the loan value. However, the loan value is approximately 30% higher (or more) than today’s fair market value, so what is being conveyed is typically a half-truth with regards to your margins of profitability.

PIP-West provides its clients the opportunity to negotiate directly with the bank and essentially determine LOCATION, TYPE, COST and at what margin against TODAY’S fair market value they want to acquire property. Our investors can pick an area, get a list of properties from the bank that meet the investor’s terms and even have TWO WEEKS to perform any due diligence, prior to purchase.

So what is the catch?
Bank resources are only interested in making "big", "bulk" deals. We cannot, nor would we approach a bank resource with less than $2,000,000 per transaction. This is why REOs have been a great opportunity for institutional investors, but usually slightly out of the reach of private/individual investors. Our solution for the smaller, private investor is to group their requests for REO listings with other small private investors. WE DO NOT POOL INVESTOR FUNDS. We take 8, $250k investors to meet the minimum of $2M and get the REO listings at that time. This enables the smaller/private investor an opportunity to earn the safe profits as "the big guys"

Here’s How Investing in REOs with PIP-West Works:
1) Before becoming a client of PIP-West, we will consult with you and discuss your investment objectives. This includes determining the area you want to purchase property, whether you want PIP-West to just assist in the acquisition, or if you want us to handle the property management, liquidation, maintenance, etc. Once we determine the best course of action for you, you will become a client of PIP-West

2) You will provide PIP-West with a Letter of Intent ("LOI") outlining the terms of your REO request (value, property type, location, etc.), as well as Soft Proof of Funds. PIP-West will validate your proof of funds and qualify you as a buyer.

3) You, PIP-West, the Bank Resource and the Escrow/Closing Attorney will execute a Non-Disclose/Non-Compete agreement ("NDNC"). Once all forms/contracts have been properly executed, PIP-West, on your behalf, will submit your request to the bank resource for a listing of REOs based on the terms you provided in your LOI. (Click here to download a sample NDNC/LOI form)

4) The bank will research and provide PIP-West/you a listing of properties to choose from (usually about 50). You will have two weeks from the date we/you receive the listing to perform any due diligence on the property. PIP-West handles all due diligence on your behalf, to include physically viewing the property, checking comps, current fair market values, taxes, etc. We report those findings to you and you direct us as to which, if any, properties you wish to purchase. (Click here to download a sample PIP-West Property ProForma)
Note: You are under no financial obligation with the bank to purchase any property provided in the listing and can request additional listings.
5) Once you have selected the properties for purchase from your listing, the remaining portion of the transaction works in the same method as it did when you purchased your home. Purchase Agreements/Contracts are signed, the closing attorney is provided with the information and your funds are placed into escrow.

PIP-West will attend the closing on your behalf and provide you with the Warranty Title to the properties following the closing.