Market Opportunity Assessment
Project: Location:
Custom REO Property Portfolios & Asset Management Services United States Urban/Suburban, Residential, Mixed Use, Commercial Properties Hotels/Resorts, Luxury Condominiums, Developer Close-Outs Capitalize on current market trends in foreclosed properties, REO (bank owned) properties and unsold units in new developments. The market opportunity leverages the synergy in local redevelopment, bank consolidation, the rise in foreclosures and the economic recession. Target Market 1: Accredited investors that seek high yield and income producing assets. Preferred timeframe (1yr or more). Target Market 2: Savvy real estate investors or fund managers that seek to increase investment returns through direct purchases from banks (rather than wholesale or retail markets). Purchase Size: Preferred $10MM or greater (purchase/takedown) Frequency: Quarterly volume of $100MM preferred. Recurring business partners can get better pricing (multiple traunches). 2-5yrs (Business Opportunity Window: 2008-2012)
Opportunity:
Client Profile:
Timeframe:
Requirements: Licensed Realtors (Brokers & Agents)
Licensed Investment Advisors (Series 65, 24) Licensed Insurance Professional (Agent a/o Broker)
Example:
Example from $10MM REO Package (Purchase) REO Closing Costs (avg. 3%)
(Compiler, Intermediary, Buyer Mandate)
$300,000 est. ROI (yr) 72% 60% 35%
REO Investment Strategy Options Sell Properties (seller finance / resell notes)
(works best for short holding period 6mos or less)
Sell Properties through Wholesale Realtors
(works best for short holding period 1yr or less)
Manage Properties for Rental Income*
(works best for 2yr+ holding period) (some upfront preparation costs may be required)
Sales proceeds can be reinvested in new REO packages or Re-allocated to separate Asset Management Accounts: - Principal Protection (Guaranteed Fixed Annuity) - Generate Recurring Income (Managed Income Strategy)
Commissions: Key Sources
Average Commissions Consulting Fee* $2,500/mos (residual, per active membership) REO Assoc(1) 0.25%* (share of Intermediary Fee) (2) REO Assoc 0.50%* (share if Direct Buyer Mandate) Realtor Sales 5% - 6% (one-time, closing-exit strategy) Investment Assoc. 2% (residual, per account value) Insurance Agent 1% (upfront, small trails 0.05% p.a.) *Consulting Fee may be substituted for 2-3 minor properties from the client’s portfolio. Power-Of-Attorney & Quick Claim Deed will be used to transfer the approved properties at closing.
Contacts:
Name Daryl Gregory
Role REO Director Email: gregodar@mlgcap.com Tel: 732-261-9549 Fax: 732-398-0016 Associate Email: lbsmith@mlgcap.com Tel: 516-642-6964 Fax: 888-802-8170 Director Email: jz@mlgcap.com Tel: 562-569-0816 Fax: 888-802-8170 *(Mandarin, Cantonese, Japanese)
Laurence Smith
Jerry Zhang
Victor Lloyd Smith CEO / Investment Mgr Email: vsmith@mlgcap.com Tel: 917-653-4406 Fax: 888-802-8170