THE PROCESS: We have developed a strategy and methodology to aid in the identification, pursuit, acquisition, marketing and sale of real estate and income-producing investment opportunities.
Phase I: Investing Partner Relationship Development
- Execution of Investment Partnership Agreement
- Investment criteria established
- Market selection
Phase II: Research & Procurement
- Property Research: Search, investigate and evaluate potential real estate investment opportunities to determine project feasibility based on pre-determined guidelines in collaboration with our associates:
- Realtors & Brokers: Realtors and brokers from many different brokerages are constantly searching for great opportunities that fit our acquisition guidelines: location requirements, zoning, condition, cost and comparable sales/value.
- Listing Agents: Listing agents are constantly sending us their personal listings with what their seller’s bottom line for our consideration.
- Wholesalers: Companies specialized in obtaining sales contracts of acquisition opportunities and assigning them to cash buyers in a double same day closing are constantly updating us.
- Land Planners & Engineers: Companies specialized in raw land entitlement through zoning, subdividing, and installation of facilities infrastructure; or ready for it.
- REO/Bank-Owned & Auctions: Companies specialized in real estate owned/bank owned and auctions are constantly sending us their lists of available properties and their scheduled auctions.
- Comprehensive market and trend analysis
- Detailed time-value-of-money investment analysis
- Business and cash flow analysis
- Lease vs. purchase analysis
- Real estate development strategy
- Recommendations based on:
- Highest and best use
- Economic indicators
- Current trends
- Property Offer Negotiations: After a property is evaluated, an offer is placed.
- Negotiate terms, conditions, contingencies, finalize and submit offer/counter-offers until final contract is signed.
- Usually a period of 2-4 weeks is requested to perform the necessary feasibility studies, inspections, value assessments and market analysis before fully committing to purchasing the property.
Phase III: Pursuit & Consultation
- Pursuit of properties
- Consistent partner update
- Due diligence support prior to full commitment: After our offer is accepted, we normally perform the following-
- Search records (County/City/Governmental Agencies) for related ordinances and regulations.
- Search liens, encumbrances, etc.
- Explore allowable use (i.e. commercial, offices, multi-family residential, etc.)
- Suitability studies for best use versus intended and/or allowable use.
- Perform appraisal on the vacant land and developed project.
- Inspect survey (legal description, encroachments, overlaps, easement, improvements, etc.)
- Explore preliminary plans/sketches
- Soil tests
- EPA search and environmental studies. Phase I ESA (Environmental Site Assessment) for commercial properties and in some cases for residential properties. Phase II ESA if environmental condition identified in Phase I ESA. The purpose is to identify potential environmental liabilities associated with the presence of hazardous materials, their use, storage, and disposal at and in the vicinity of the subject property, as well as regulatory non-compliance that may have occurred at the subject property.
Phase IV: Acquisition
- Letter of Intent (LOI)
- Purchase & Sales Agreement (PSA)
- Closing of Transaction: After the property checks out to be all in order, closing is scheduled.
- Title insurance policy commitment
- Escrow agent and escrow amount
- Closing on the property
Phase V: Production
- Project administration
- Project management
- Project Promotion and Marketing: Before the project is commenced and all the way through the entire construction process, in order to insure a quick sale or lease, the following steps are followed in order to maximize exposure of the project to the general market-
- Place property on Multiple Listing Service (MLS.)
- Send out mass email to all realtors and brokerages.
- Take weekly pictures and videos of construction progress and place on website.
- Place property on weekly newspaper ad campaign.
- Place property on all marketing websites (BudronHomes.com, Realtor.com, LoopNet.com, Zillow.com, Trulia.com, Homes.com, etc.)
- Complete & distribute marketing materials (flyers, banners, info boxes, brochures, pre-qualification forms, etc.)
- Install large site signs at the project.
- Install marketing signs at one-mile radius of the project.
- Assist Our Buyers with Financing: Before placing a property under contract, the following steps are followed in order to ensure that the buyer will be able to obtain a mortgage loan in the least amount of time possible:
- All loan applications are sent to main office for processing and distribution.
- Applications are distributed among lenders.
- Lender must contact prospects, verify credit and income before sending a prequalification letter.
- Prequalification or denial letter must be sent to main office within 48 hours from initial application.
- All income verification & supporting documents must be turned in by buyer and an Approved Eligible must be obtained by underwriting before prospect is considered prequalified and an executed contract is given.
- We must receive an approval letter with conditions within one week of application.
- An appraisal must be ordered within two weeks of application.
- Appraiser must contact us for access to property.
- Appraiser will receive an invoice and initial inspection and pictures report illustrating the condition of the property.
- Appraiser will receive recent comparable sales in the neighborhood of subject property.
- All initial conditions must be met within 20 days from initial application.
- All final conditions must be met within 35 days from initial application.
- Clear to close must be obtained within 45 days from initial application.
- Closing can be completed once the certificate of occupancy is obtained.
Phase VI: Continuous Evaluation
- Competitive strategy
- Emerging opportunities
- Staying ahead of the market
Phase VII: New Construction Projects- Ability to handle turn-key construction process into final completion.
INVESTMENT AMOUNT: Determine the total dollar amount available for investment.
GEOGRAPHICAL PREFERENCE: Determine the desired investment property location.
INVESTMENT CATEGORY: Determine the desired project category-
PROJECT TYPE: Determine preference of project type-
- Existing Structure
- New Construction