Real Estate Profit Sharing
Asset Buyers Consortium LLC (ABC), a private real estate investment company, has introduced the Real Estate Profit Sharing (REPS) program, a joint venture partnership with those highly interested in real estate investing. REPS allows you to make additional income as a Joint Venture Partner as you work with us to identify, buy and resale properties in your local market.
How is this better for you?
You will be partnering with us to place a real estate contract on the property, physically show the home and market it to prospective buyers. You will negotiate with motivated sellers to buy the property at a fair wholesale price. We will work with you to sell the house to a retail buyer.
Here is how our program works:
1. We will contract to buy houses at 18% -20% (or more) below Fair Market Value (FMV) with the seller understanding that if we assign the contract to another buyer, they will pay the difference between what has been contracted with the seller and what we will resell to our retail buyer. We will sign a 30-day non-exclusive option agreement with the seller to gain the legal right to show the home to our buyer list.
2. If the deal meets our criteria and suitable terms can be agreed upon, we will proceed with the transaction.
3. After making contact with a seller by phone, seek to make a personal visit to the home (if possible) to see the home and determine what items stay with the home when it is sold. Get a good overview of good and bad of the home. Make written notes of everything.
4. Inform the seller that you may wish to place an offer on the home and that you will review the sales of surrounding homes before doing so.
5. Call back the seller and inform them you have put together an offer you would like to get to them. Present offer to seller and negotiate final terms.
6. E-mail or fax final offer and seller information to ABC to draw up contract. We will forward the contract and addendums directly to the seller to have the seller execute contract.
7. Your next step will be to use our marketing strategies to attract buyers for the house. Once you have presented the offer to the homeowner and the offer is accepted, you can then go to work in locating a buyer to which we can offer creative/owner financing. We will work closely with you to cover the details of our marketing and advertising approach.
8. Begin marketing the home using our methods. Place out your Bandit Signs and snippet signs for end-buyers. Use "Seller Financing” and “Creative Financing” with our toll-free number on the signs. Show the home to buyers in an open house format 5:00pm -7:00pm on Tuesday and again on Thursday. We will forward calls that come into our toll-free number to you for you to make contact. Take calls as soon as you receive them from us. Provide us with directions to the home and we will place the directions and time for the showing on our voice mail system for buyers to retrieve.
9. You will need to have a Home Showcase event to show the home and take credit applications from the buyers that come to see the home. We will need 2-3 Home Showcase events scheduled for the week on Tuesday, Thursday and Saturday. These times will be dependent upon your free time and the available time of the sellers. We will provide you with additional information on how to set up a Home Showcase event. On those houses that will be vacant, we would ask that you have the seller provide you with a key or have the home open for you at least 3 hours before any showing. You will need that time to properly set up the home for the scheduled showing.
When a potential buyer contacts you and shows real interest in the house, you will need to fill out our buyer profile sheet and verify that the prospect can afford the monthly payment, have a solid employment history and if they have money saved to be used toward downpayment and closing costs. Once the buyer profile is completed, fax it to us and we will evaluate the potential buyer with our financial sources.
10. On the day of your Home Showcase, you will not need to discuss any particular details about financing for the prospects. You will only tell potential buyers that "we can work with a wide variety of problem credit all the way down to the lower credit scores. We mainly want to see a steady job history." Then you hand the buyer the mini-credit application to complete and fax the applications to us. We will get back to you with final approvals and denials on the applicants.
11. After showing the home, sit down with the buyers individually and explain the process. Then hand them our mini-credit application to fill out and sign in order to determine if they can qualify for the home. Let them know you will make your decision by the end of the week. We will supply you with the mini-credit applications.
12. You should not attempt to decide who may or may not qualify for a loan. That is the job of a mortgage broker and illegal for us or you to attempt. The goal is to secure a written offer with earnest money from interested buyers. This prevents the buyer from walking away from our deal and shopping for another home using another real estate professional. With our program, our buyers can only buy the house we are selling. The buyers coming in are your buyers only. The house you are showing is the only house they can buy due to our creative/owner financing.
13. The final step in the REPS program is the contract stage. At this point, it will be decided by us who will be able to buy the house. You will collect the signed contract and earnest money check from the chosen buyer. The earnest money will be made out to the seller.
14. No approval can be obtained until a contract is presented to a loan officer and they obtain the income documents from the buyer.
15. Always have the earnest money check made out to the seller and hold it until the final contracts are signed by the seller and buyer. At that time we will instruct you on what to do with the earnest money deposit.
16. Closing can take about 30 days depending on how smoothly the title and loan process goes. We would ask you to locate a reputable local attorney/title company we can use for the closings.
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