The Buyers Club
Our Buyers Club is our exclusive, private, invitation-only free membership for access to off-market distressed assets. The Club members receive emails for off-market highly discounted distressed properties and non-performing notes, according to each member’s investment criteria. We negotiate deep discounts by buying in bulk. You conduct your due diligence within the 5 business day inspection period. If you approve of the inspection, then you respond with a selection of your desired distressed assets and wiring your full purchase funds into escrow. You confirm with the escrow agent that your funds are now committed for closing. If the seller is unable to close, then the escrow agent is authorized to return immediately your funds without offset or deduction.
Selection of the distressed assets is on a first-come, first-served basis. We determine our offer price to the seller by performing a preliminary inspection and limited due diligence. The buyer is ultimately responsible for final approval of each asset and then confirming to the escrow agent that the deposited funds are committed for closing. We typically allow 5 business days for due diligence, because the sellers want a very fast sale to dispose of the distressed assets. Often, but not always, conveyance from the seller to us is by quitclaim deed, and our resale to you is by quitclaim deed.
The title company may provide extended title insurance for your purchase. You are responsible for all closing costs, including the cost of title insurance, for each asset that you buy from us through the double closing, or simultaneous closing, or contract assignment.
A typical deal for a fix-and-sell house is the sum of the purchase price plus all estimated entry costs will usually total less than 50% of the After Repaired Value (ARV). We make our profit by acquiring these assets in bulk and reselling the assets at a conservative mark-up in a double closing or a simultaneous closing. For a double closing, we use transactional funding.
For a simultaneous closing, we use the funds of our cash buyers to flow through both closings simultaneously (the transaction looks like a loan to us that is immediately repaid by conveying the title) to buy and sell the distressed assets. These transactions are handled by licensed, insured title companies and attorneys. You wire your funds directly into escrow. Our company never controls your funds. The closing agent processes and records the legal paperwork, pays the seller, pays our mark-up profit, and conveys title to you for your selected distressed assets. When we are distributing the distressed assets to multiple cash buyers, we wait until all of the buyers complete their due diligence and confirm their commitment of their escrowed purchase funds for closing. When all funds are committed, then we schedule an immediate closing with the bulk seller.
As a professional courtesy, we may provide sample comparable properties or general contractor scope of work estimates, with no assurance or guarantee of accuracy or completeness. Neither the seller nor we make any warranties or representations regarding any aspect of the distressed assets, and all sales are final. This is not an auction site. The cash price offered is non-negotiable. If multiple cash buyers select the same asset, then the buyers will be placed in a queue for committing their purchase funds. The first cash buyer to commit their purchase funds to closing gets the asset and the other cash buyers are immediately refunded without offset or deduction.
Membership is currently free. If we submit multiple assets to you for your consideration, you select some and then you decline to buy any of them, then we will review with you to determine whether we need to update your investment criteria. If you subsequently continue to decline all offered assets that meet your investment criteria, then we can revoke your membership. Membership is only for frequent cash buyers, not tire kickers.
We require a verifiable Proof of Funds letter as a cash buyer. Lender letters are unacceptable. We gather together the POF letters for our members, and then our attorney reviews and verifies each POF. Then our attorney writes a Verification of Funds (VOF) letter that we use to approach sellers of bulk distressed assets. The VOF protects the anonymity of our Cash Buyers and protects our principal position in the deal as a wholesale flipper.
We also include private financiers who are willing to lend or invest as equity partners to buy deeply discounted properties for reselling in about 30 to 45 days.
Here is a summary of our requirements for membership:
- You are easy to reach and quick to respond by email, phone, and texting;
- You are quick to decide;
- You are a cash buyer with verifiable Proof of Funds (POF);
- You will allow us to use your POF for our attorneys to write a Verification of Funds (VOF) letter;
- You are active in your selected submarkets;
- You are investing with specific criteria;
- You have strong potential for closing many profitable transactions;
- You don’t care how you buy the distressed asset (e.g., contract assignment, simultaneous closing, double closing, joint venture, etc.).
- Or you are interested in providing short-term financing, 30 days to 45 days, either as a private non-recourse lender or as a private equity financier, with an investment of up to 50% of the After Repaired Value (ARV).
If you meet these membership requirements, then please provide the requested information below. Please allow for one business day for us to respond.