1. Welcome to
The REOs business offer by

2. Disclaimers
• Neither Fahad Karamat nor his partners,
affiliates, or team members provide legal or tax
advice.
• Any documents provided in this presentation
are examples only. Always seek professional
advice with respect to any document used in a
real estate transaction.
• Always consult a real estate attorney for legal
advice on your real estate deals.

3. Today
Making money in REOs
• Foreclosure terms
• Bulk REO challenges and opportunities
• Buying the REOs
• Listing the REOs
• Qualifying Buyers
• Selling the REOs
• Collecting the income
• Maximizing reward/Minimizing risk

4. Foreclosure Terms
• Foreclosure is a process that gives
a lender or other lien holder the
right to sell or repossess a
property after the owner has failed
to comply with an agreement
between the parties whereby the
property was pledged as a
guarantee.

5. Foreclosure Terms (REO)
• REO means Real Estate Owned (by the bank)
• It is a term that refers to the real estate that the
bank had to repossess from a borrower who
defaulted on the terms of a loan owed to the
bank and secured by a real property.
• The bank goes through a foreclosure process
and ends up taking over the property from the
borrower to recover their loan loss. (It becomes
an REO in the Non performing Assets Dpt.)

6. Foreclosure Terms
(Land Contract)
• It is a contract agreement between
a seller and a buyer whereby the
seller finances the sale price by
carrying a note and retaining legal
title of property and buyer qualifies
easier and faster by making timely
payments till pay off with interest
to get legal title of ownership

7. Foreclosure Terms
• Deed and title: A deed is a the
document that proves ownership.
The title is the manner for which
you want to own the property. On
the deed of ownership you may
hold title as a single and sole
owner, or as a LLC etc.

8. REO challenges
Thousands of REOs are available:
• Banks want to sell you a minimum of 100
homes (in bulk) to give you the best price
• Banks want to see proof of funds (no
financing)
• Banks want to make sure you have
experience
• Banks sells them to you “as is where is”

9. REO Challenges
• You, the investor must deal with each
property individually no matter the
location (they are spread out nationwide)
to fix it up first then either:
a) Sell it at retail price (realtors commission)
or
b) Rent it at market value for a long term
upside (takes long time)

10. REO challenges
• Must pay all cash (several millions for bulk)
• Must pay any property taxes still owed
• Must pay any water liens still owed
• Must get and pay for property insurance
• Must place a combo lock box (get photos)
• Must place a For Sale sign outside property
• Must take calls and qualify buyers
• Must send contract and execute the sale

11. The REOs reality
• Too much work and risk for long term profits
• Must have an office and/or a great team to
coordinate various functions per property
(Purchasing-rehabbing- qualifying buyers or
renters- doing legal paper work- title and deed
transfers- handling the income- processing
expenses- managing risks)
• Must have over $2,000,000 in CASH AND show
EXPERIENCE for bank to consider selling a
minimum bulk purchase of 100 homes

12. REO opportunity
We have hundreds of REOs available:
• With us you can buy 10 properties at a time
• Your price will be apx $20,000 each and they
resell at apx. $35,000 or more (some sell as high
as $75,000)
• You get a full turn key opportunity by having an
expert support service team that handles your
deals from A to Z
• The support service package is offered to you at
no additional charge and it includes a
guarantee

13. REO Opportunity
• Your $20,000 investment per property includes
the following fees, services and guarantees:
• The property taxes if any are owed
• The water liens if any are owed
• Support gets you property insurance (you pay)
• They place a combo lock box (and get photos)
• They place a For Sale sign outside
• They take the calls and qualify buyers
• They send the contract after you select buyer(s)

14. REO opportunity
• They sell the homes on a land contract
within 90 days or less (contract included)
• They turn over contract to a national
service company to collect and deposit in
your bank account the PITI payments (fee)
• We guarantee an exchange of properties in
the unlikely event any of your properties
are found burned down (1% statistically)
within less than 10 business days

15. REO opportunity
• Some homes may need rehab but this is not a
problem because when home is sold on a land
contract based on Support teams surveys for apx.
$500 down and low monthly payments of apx.
$375 (less than local rent) buyers accept property
in as is where is condition and stick to payment
schedule to realize their dream of ownership and
build equity.
• If they default on the payments of a land contract
they are evicted and not foreclosed on

16. REO Opportunities
• Title is assured to be clear and insured
when reselling to end buyer (s)
• Deed may take apx. 90-180 days but you
do not transfer it to buyers until they paid
on time for 12 months on the land
contract
• Assistance in case of default. Support can
coordinate with legal office for less than
$700 fee. You may resell at higher price!

17. Seven Steps to Profitable REOs
1. You buy a batch of 10 properties plus
2. Let the support service division handle
your listing and qualify the buyers for
you
3. Respond promptly to any calls and
emails from support to qualify and select
a Buyer from the list they send to you
4. Read and sign all documents of sale sent
to you

18. Seven Steps to Profitable REOs
1. Give your bank info to the loan servicing
company to deposit money into your bank
account
2. Enjoy income for a year or longer then contact
buyers and ask them to get a new loan to cash
you out based on their good history of paying
on time
3. You may decide to discount the note and sell it
at a discount anytime once you have history of
payments, we can help you with that.

19. Our Objective
To sell as many properties in the next 24 months
and help 4 different parties:
1) The investors who need cash flow and a chance to
participate in the profitable REOs but on a smaller
scale. They prefer the low risk, high cash flow of these
properties with a turn key service opportunity but have
been too busy and confused to find a successful, low
risk business model
2) The end buyers who need a chance to own a home
and take advantage of the low prices but cannot due to
low credit scores . They much prefer to own instead of
rent to rebuild their credit and get a chance to build
equity

20. Our Objective
3) The banks who got greedy and ended
up foreclosing and holding non
performing assets nationwide
4) The training companies that have been
offering one educational program after
another without presenting the actual
real estate opportunity and creating cash
flow for their investors

21. Review
• Buy 10 properties in batches @ $200K
• The support team will assist you to list
and sell as well as get the positive cash
flow
• You can keep the income or sell the
note at a discount
• You have support and guarantees on
the lowest price ever offered in REOs

22. • Our affiliates pay all back taxes and liens
if any
• List the properties and qualify buyers
• Do all the legal paper work
• Your property is resold on a land contract
within 90 days
• Your returns are usually around 20+% and
they are secured against your RE
• Offer guarantees and deliver results
• For more info e-mail: REO@FinHRC.com