707-573-9273 | 866-524-0442 Fax |  info@rpadvisors.com
Due to the discounted purchase price, careful analysis of repairs or renovations and our proprietary Accelerated Marketing Plan©, Real Property Advisors, Inc. believes the risk to Investor capital is substantially minimized.
The Accelerated Marketing Plan© is a mix of techniques from both conventional and auction marketing to sell the formerly distressed property quickly as conventional, unencumbered property to retail purchasers.
Once free of the stigma of a foreclosure or short sale - and priced correctly - retail Buyers and their Agents will no longer avoid these otherwise attractive properties.
To expedite the sale, Real Property Advisors, Inc. uses several techniques to create interest and excitement among Buyers and their Agents. Most Investors, and Sellers in general, list their properties at the highest possible price they hope someone might pay and slowly reduce it until they get an offer. This has several drawbacks including (a) other real estate agents don’t show their property other than to show how poorly it compares with other, well-priced properties; (b) the listing gets ‘stale,’ meaning Agents begin to ignore it because it’s been sitting around with no offers and they begin to think there’s something ‘wrong’ with it; and (c) once the price starts dropping, Agents want to see how far down it goes before it finally sells.

The Accelerated Marketing Plan© developed by Real Property Advisors, Inc. uses the opposite approach. The property is listed below fair market value to (a) attract multiple offers and create a competitive bidding environment, which (b) tends to drive the price up to the higher end of fair market value; and (c) results in a quick sale.

Moreover, we believe our focus on more desirable locations in the Sonoma and Napa County markets which have been purchased at discounted, distressed property prices, provide additional economic stability and less risk. We think our distressed properties investment plan presents an opportunity as a stand-alone investment or possibly a place for investors to 'park' funds for a relatively short period of time until they wish to re-deploy them in a different investment type.

The B-C Transaction

 

The disposition of the property by the Investor to the ultimate Buyer is referred to as the B-C transaction, where the Investor is B and the ultimate Buyer is C. Per the Accelerated Marketing Plan©, Real Property Advisors, Inc. will begin pre-marketing the property to the C Buyer upon the Lender’s and Investor’s acceptance. This includes setting up a website dedicated to the property, preparing marketing materials, and arranging for any repairs or improvements to increase the desirability of the property.
At close of escrow on the A-B transaction, Real Property Advisors, Inc. will then launch an aggressive marketing campaign to sell the property at the highest fair market value. Real Property Advisors, Inc. will re-list the property at a price meant to attract multiple offers and competitive bidding. A deadline date will be set to entertain offers. The C Buyer’s Agents will be offered incentives to submit their client’s highest and best offers. Real Property Advisors, Inc. will launch the property website, including full disclosures with multiple pictures, and otherwise advertise the property to drive Buyers and their Agents to the website. Due diligence reports will be offered from the website to reduce Buyer contingencies. Real Property Advisors, Inc. will broadcast emails to brokers advertising the property and Open House showing dates. Once free of the stigma and uncertainty of being a distressed property, Buyers and their Agents have no reason to offer less than full market value. The goal of the marketing efforts is to find a Buyer at the highest market value and close escrow within 60 – 90 days, unless the Investor wishes to hold the property for a longer period of time as a rental. In that case, RPA can lease and manage the property as well.

Projected Investment Based on a Short Sale Transaction

 

  • $516,273: Existing 1st & 2nd Mortgages
  • $470,000: Fair Market Value / Broker Opinion of Value
  • $390,000: Offer by Investor (B) to
    Original Seller (A)/Acceptable to Lender(s)
  • $470,000: Selling Price to Eventual Buyer (C) @ FMV
  • $80,000: Gross Profit

Projected Profit Based on 60 Day Re-Sale

 

  • $470,000 Investor (B) to Buyer (C) @ FMV
  • (390,000) Offer to Seller (A) & Accepted by Lender(s)
  • $80,000 Gross Profit
  • (28,200) 6% Commission @ $470,000
  • (14,100) 3% Closing Costs
  • (4,700) Miscellaneous
  • $33,000 Net Profit = 50.8% Annualized Return to Investor (B)
*Example is for illustration purposes only. Actual performance may vary depending on market conditions, lender policies, Investor requirements, actual costs, and other factors not considered here.

The keys to maximizing profits are the ability to negotiate a reasonable discount with the Lenders and then quickly re-sell the property at, or close to, fair market value using our Accelerated Marketing Plan© or rent for an amount consistent with the Investor’s investment objectives.

 

Contact us today at info@rpadvisors.com or 707-541-2345 and let us know how we can help you.

CalBRE #01904379

NMLS/MLO #355855

Bond #92-F3-8975-7


Real Property Advisors, Inc. Sonoma County
6570 Oakmont Dr. Suite 110
Santa Rosa, CA 95409
707-573-9273 Office | 866-524-0442 Fax

Real Property Advisors, Inc. Napa County
PO Box 4018, Napa, CA 94558
707-235-6615 Office | 866-524-0442 Fax