In this Scenario ... Borrower / homeowner is no longer making their payments. Typically the foreclosure
process has begun. Since we purchase the Note with deep discounts, we can still make a wholesale profit for this short term
investment usually within 2 to 6 months.
On this type of note an Investor can make a lot more by flipping the property quickly by pricing
it far below other homes currently on the market. Pricing it under market should get multiple bids, so it's a win-win
for both parties. The new Buyer is thrilled to be able able to purchase the property far under current market value and
we will be able to make a quicker profit so we can purchase another Note and do it again.
Our research and analysis is much more intensive when we buy a non-performing note. There are many
extra services needed on this non-performing note; the Note Buyer will Joint Venture with 'REPS' upon the purchase of
the note. 'REPS' diligently performs numerous duties throughout the re-sale time-frame, doing whatever is necessary to
deliver a vacant property for resale.
When the property is located out of the area, REPS may hire an agent to list the property for sale;
usually enlisting the same agent who did the BPO or other research including Market Analysis or other research
such as Title Reports or Tax Records. The property will be priced under the current market conditons in order
to attract a savvy new Buyer quickly.