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Ok REO - PRO's, check this out!
Our clients have a HUGE appetite.
Yep, you read that right. 100 deals per month.
Two buyers have cold called me in the last 14 days. These buyers gave us some specific criteria: Combined market capitalization of almost $1bln.
The street finds out again that I am interested in doing business with institutional buyers again and my phone starts blowing up!
Here are some notes I made of their acquisition criteria.
Both want off market (aka pre-list) REO's, short sales, inherited property, probate etc distressed SFR's.
• $75k-250k all in price
• For the first client, minimal to no rehab. About 10k total rehab or below. 1980 or newer only.
• 10-14% gross. (annual gross rents divided by acquisition price)
• $100k-300k all in price
• 1980 or newer.
• Will look at rehab projects of 50% or less of market value. Example - if ARV of 200k, then no more than 100k in rehab.
• Want good school zones
• San Antonio
Cities with * indicate second client also wants properties there.
Multifamily apartment buildings $1-5mm
• Class A-C
• Cap rate 4-7%
Here is the way it works, we want distressed properties that we can put under contract that matches EXACTLY what the criteria says.
Send a bunch of garbage and watch the possibility leave before your eyes. Send EXACTLY what the criteria says and buy yourself two new BMW's for Christmas.
Send a non compete so as to protect ACP's position and include us on the purchase agreement so as to joint venture. Otherwise, we will pass.
ACP will joint venture with brokers/agents. Your name can also be on the contract and we will split profits equally. If required, I will review any joint venture agreement you have and execute when the terms state as such.
Now, let's go do 200 deals before Christmas!
R. Glynn Williford
American Capital Partners