Real Estate Owned (REO1, LLC)

Asset Class

Off Market, Real Estate Owned (REO) portfolios 

Strategy

Using our network and experience in the mortgages and servicing industry, we work with our mortgage and lending partners to source off market REO portfolios from banks and other lending institutions.

We then complete our due diligence on the assets within the portfolio to assess true market value, accurate repairs costs and the time frame for exit.  At this point we will evaluate different exit strategies for each individual properties to maximize return.

Once due diligence is complete, we will set a bid price and begin negotiations on the acquisition of the portfolio.

After acquisition of the portfolio, we will execute on our value add and exit strategies.  This includes vacancy coordination, property management and construction.

While the property is undergoing improvement, we will coordinate with our internal brokers and exit the property as quickly as possible.

Background

Real estate owned or REO is a term used in the United States to describe a class of property owned by a lender—typically a bank, government agency, or government loan insurer—after an unsuccessful sale at a foreclosure auction. A foreclosing beneficiary will typically set the opening bid at a foreclosure auction for at least the outstanding loan amount. If there are no bidders that are interested, then the beneficiary will legally repossess the property.

Bank REO properties are generally in poor condition and need repairs and maintenance, both to satisfy property upkeep laws and to preserve and prepare the property for sale. Bulk REO or bulk real estate owned, is like investing on wholesale real estate properties.  Banks or lenders sell or open their assets in group for auction at a very low price compared to their market value.

Fundraising Period
Target Fund Raise
Property Types
Targeted Investor IRR
Minimum Investment
Hold Period
Due Diligence and Advisory Services
Formation Fee
Performance Fee
Leverage