Investment Criteria for Residential and Commercial Real Estate Notes

 

Residential

 

SFR-Performing:

Min. UPB. Trade/Pool Size: $20K to $50M based upon UPB (unpaid pricipal balance)
Pay History: Current - Will allow 1X30 in the last 12 months.
Min. CMV per asset is $20K+
Max. CMV per asset is $750K+
Age of home must be 1980 or newer.
Occupied: Yes (preferred) but we can purchase SFRNO
Area: AZ. CA. TX. NV. OR. IL. NY. NC. GA. CO.
Hot spots are trading in the 60% to 90% of UPB range.
Note: This applies to SFROO, SFRNO, 1-4 units, townhomes and DWMH / SWMH with land.

SFR - NPN's:

Min. UPB Pool size: $30K to $50M based on the UPB amount.
Pay history: No more than 5 years past due in payments.
Min. CMV per asset is $30K+
Max. CMV per asset is $400K
Age of home must be 1980 or newer.
Occupied: Yes (preferred) but will purchase vacant properties.
Area: Nationwide - Quality of product will be reflected in pricing.
Hot spots: AZ. CA. TX. NV. OR. IL. NY. NC. GA. CO.
Note: Rust belt regions are less likely to trade due to regional issue.
Max. paid for rust belt areas ar 15% to 30% of UPB.


Some guidelines to keep in mind:
All deals must be off market.
We need to be seller direct.
No Broker chains.
We will only provide proof of funds when we have an interest in the deal - no POF's just to look at a deal!
We need to know what the sellers asking price is/are.
We need to know if the seller is doing an all or nothing trade or if cherry picking in the tape is allowed.



                                                  Commercial
 

We are looking for off market Non Performing Notes and Bulk REO's.

  •  1st Lien Only
  • One off Trades
  • Portfolio of Assets or Bulk Sales

 Property Types:
  
  Multi Family - 5+ units
  Retail Shopping Centers
  Office Buildings
 
Multi Family:

 Property Age: 1995 or newer - or recently remodeled in the last 3 years
 Min. Cap Rate:  7+ (this can be based on purchased price and  geography) 
 Min/Max Purchase Price: $250,000 - $50,000,000 per complex.
 Min. # of units: 100 + (75 + units in Manhattan, NY.)
 Min. City Population: 250,000 people
 Property Class: A, B or C (pricing will reflect quality)
 Min. Occupancy: 50% + (no vacant buildings)

 We can acquire the properties nationwide through Bank REO or OFF Market and Non Performing Notes.
 Targeted States are: AZ,CA,FL,TX,NY,NV,WA,IL,NE,PA,GA,NC.SC,NJ,CO,UT. 
 Small amount of deferred maintenance is okay. Not looking to do any large remodeling.
 Multi family also applies to broken condos.

Office Buildings:

 Property Age: 1999 or newer: or completely remodeled in the last 3 years.
 Min. Cap Rate: 7+ (this can be based on purchased price and  geography)
 Min/Max Purchase Price: $1,000,000 - $100,000,000 per complex.
 Min. City Population: 250,000 people
 Property Class: C+ or greater
 Min. Occupancy: 50% + (no vacant buildings)
 Min. Sq.Ft.: 10,000 +
 Min. # of stories: 1+
Max. CMV 80%

 We can acquire the properties nationwide through Bank REO or OFF Market and Non Performing Notes.
 Targeted States are: AZ,CA,FL,TX,NY,NV,WA,IL,NE,PA,GA,NC.SC,NJ,CO,UT.
 No Vacant Building at this time. Price will have to be adjusted for any property issues. We can
 do single tenancy deal as long as the tenant has a solid credit rating of B+ or better. 75% of the
 tenants leases must have 3 + years remaining in place. (if this is not the case - it will require a
 higher cap rate for purchase consideration).
 

Retail Shopping Centers:

 Property Age: 2000 or newer: or completely remodeled in the last 3 years.
 Min. Cap Rate: 8%+ (this can be based on purchased price and  geography)
 Min/Max Purchase Price: $10,000,000 - $200,000,000 per complex.
 Min. City Population: 250,000 people
 Property Class: B or greater
 Min. Occupancy: 50% +
 Min. Sq.Ft.: 10,000 +
Max. CMV: 90%
 
 Anchor Tenancy: Yes - Must have credit rating of B + or better.
 Anchor Tenants are required for purchase consideration.

 We can acquire the properties through Bank REO or OFF Market and Non Performing Notes.
 Targeted States are: AZ,CA,FL,TX,NY,NV,WA,IL,NE,PA,GA,NC.SC,NJ,CO,UT.
 No Vacant Building at this time. Price will have to be adjusted for any property issues. We can
 do single tenancy deal as long as the tenant has a solid credit rating of B+ or better. 70% of the
 tenants leases must have 3 + years remaining in place. (if this is not the case - it will require a
 higher cap rate for purchase consideration). Shopping centers must have anchor tenants


Special Note Buying Criteria:

 

                                                                  POOL PURCHASES

 We can purchase pools of REO or NPN's of Commercial  properties nationwide. Must be Off Market and  direct to the seller. No broker chain or market listing. Closing time on this types of products are 2-8 weeks depending on pool size and proeprty types. Funds are available to purchase with a min. of $1M for up to $40M in commercial market value per property. No war zones. Rehab: zero to medium for REO's. Total of funds allocated for purchasing commercial products is $1B in CMV.

  South Atlantic:
   Delaware, Maryland, District of Colombia, Virginia, West Virginia,
   North Carolina, South Carolina, Georgia, Florida.

  East South Central:
   Kentucky, Tennessee, Mississippi, Alabama.

  West South Central:
   Oklahoma, Texas, Arkansas, Louisiana.


What we are not looking for:

  •  Properties that are not finished
  •  Commercial Constructions
  •  Trashed out properties
  • Vacant Properties
  •  2nd liens
  •  Lands