Purchasing REO Properties With JG Wealth
JG Wealth Fund's current bulk REO program permits investors to buy toxic assets and profitably dispose of them. By purchasing bulk REO for sale by financing with our lending services, borrowers can take advantage from $1 million and up for a single transaction.
What is REO property?
When considering how to buy an REO, understanding what REO property is is vital for the prepared investor. REOs (Real estate Sale Owned) properties have entered into foreclosure and are currently in the possession of their lender, but have not yet been resold. After the bank owns the property and sells them in bulk; those properties can be purchased for a competitive price, making it quite likely that the wise investor will return a solid profit after reselling the REO property, and this program can apply to buying defaulted 1st mortgage paper directly from the lenders.
Overview of Our 110 Percent Program
JG Wealth offers financing for bulk REO purchases, and provides an effective and high quality program for REO repossession in order to make them a profit generating investment. This is not a program for individual buyers, but for those who are interested and have the capability in purchasing bulk REO assets for sale by banks or other institutions. JG Wealth's 110 percent financing program includes the following advantages:
- JG Wealth will fund 110 percent of the transaction from $1 million and up. This is a unique feature of working with JG Wealth.
- The interest rate for the loan is 8 percent on an annualized basis.
- The loan would prepay the first six months of interest from the closing of the loan.
- At the point of closing, the lender and all fees will be deducted from the closing proceeds.
- Brokers who refer qualified borrowers to JG Wealth will receive half a point (.50 percent on a recurring basis... we always protect our referral sources.
- Any expenses, such as legal fees, will be paid from the borrower's own funds.
This provides an effective and useful source of funds for those seeking to buy toxic assets ranging from residential properties to commercial properties. Commercial properties will be considered on a case-by-case basis by JG Wealth before approval. Finally, JG Wealth will perform a due diligence examination of buyers, in order to evaluate their past record in REO repossession, especially their ability to successfully dispose of such purchased assets in a timely fashion.
An Example of Purchasing an REO Property with JG Wealth
The following assumes that the buyer has qualified for JG Wealth's 110 percent program, and demonstrates how this program would work, assuming a five million dollar purchase. Using our 110 percent loan, that would result in JG wealth providing a $5.5 million loan to the buyer, with the following attributes:
- The buyers will pledge a certificate of deposit (CD). This will equal 25 to 30 percent of the total loan.
- The CD will remain in escrow until such a time as the loan has been paid off.
- The buyer will be able to prepay the interest at a guaranteed 8 percent rate for the first six months rather than making monthly payments.
- The loan has no out of pocket fees to the borrowers thereby reducing their expenses.
- As a pledged CD, investors can be assured that their investment is safe. Upon liquidation, the investors will receive their CD back with the interest on their CD.
By working with JG Wealth, qualified investors will be able to buy toxic assets with the assurance that they will be making use of an effective and high quality-lending instrument, which will contribute to their profits from this transaction.