What are REOs?

REO stands for “Real Estate Owned.”

Bank owned properties. Clean title and clear of any liens.

Time is of the essence. Window opportunity 18-24 months.

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Bank•Reduce inventory / less reserve

pressure•Wholesale only

Portfolio Buyer•Help stabilize market•Help rebuild affected communities

End Buyer•Buy at discounted price•More affordable for first time

buyers•Good investment opportunity

Win-Win

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•Buy low, direct from clearing house

•30%-80% discount

Purchase

•Use local teams

Operation

•Turnkey solution

Exit strategy

Strategy

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•Cash

Direct Sale

•Create notes

•Sell notes for cash

Seller Financing

REO Exit Strategy

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California vs. Out-of-StateCalifornia Out-of-State

Purchase discount 30-40% 50-80%

Logistic Within distance Requires local teams

Cash sale No Yes

Seller financing Yes Yes*

* Monthly payment is lower than local market rent.

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Process and timelineEstablish LLC – Investment vehicle (2 weeks)

Capital injection

Purchase portfolio (2 weeks)

Exit strategy (3-5 months)

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Using IRA FundsOpen a Self–Direct IRA account with American

Pension or other passive custodian companies.

•IRA is an effective investment vehicle, can be used for various asset classes, including real estate.

From American Pension a/c, invest through LLC.

Return of investment goes back into American Pension

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Real Case Example

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REO Pictures

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REO Pictures

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