TOP REO Real Estate Investors Group – Philippines
– Investment Group REO Acquisition Strategy
– Why and How TOP REO Works
– Privileged Information Defined
– Property Bidding Formula and Process
– REO Inter-scope Platform
– Funding of Individual REO Investment Blocks Reserved by Members
– Property Bidding Formula Example
– Sequence of Events: “ACTIVE” TOP REO Investment Group Fund
– Questions & Answers
The information posted on this website is not an offer to sell or a solicitation to buy any security, which can only be made by Offering Memorandum, Information Statement or Prospectus, nor does it constitute an offer by Dataflo MLS, Inc. or its affiliates to provide its investment advisory services in any jurisdiction in which, or to any person to whom, such would not be permitted under applicable law.
While information on this website is accessible to the general public, it is solely intended for viewing by licensed real estate professionals and others directly invited by Dataflo MLS, Inc.
By accessing this website or any of its pages you understand, accept and agree to the terms as set out above. If you do not accept, please do not access this website or any of its pages.
For those of you invited to learn more about the TOP REO Real Estate Investor Group, this introduction page contains complete information describing who we are, our history and what we are offering.
The information herein is intended for seasoned REO professionals who have an advanced knowledge of the REO industry in both brokerage and personal investment aspects.
As mentioned in our initial contact with you, we had asked if you would have interest in learning more about our international REO opportunities and consider joining our REO investment group.
Thank you for your interest.
George B. Flessas, President
Dataflo MLS, Inc. Philippines
Acquired-REO Asset Management
Toll free direct from North America: (414) 815-8029
The Dataflo MLS business model was created in January 2012 by American real estate/REO brokers Marcus Shirley and George B. Flessas at the request of several Philippine real estate trade groups.
Dataflo MLS Multiple Listing is similar to real estate industry software commonly used in the United States by real estate brokerage agencies, appraisers and financial institutions to buy, sell and evaluate real property.
Shirley and Flessas, both having significant expertise in MLS systems and mortgage default management confirmed the need, viability and profitability of the Dataflo MLS project and began designing and introducing the Philippine’s first capital market compliant MLS System.
Following twenty three months of on-site Philippine research and development, the two brokers attracted additional partners and investors creating cutting edge efficiency solutions to the rapidly developing Philippine real estate industry nationwide.
The Dataflo MLS online professional “SaaS” software serves as the central core of the multi-level search and list database addressing five categories of real estate.
Additional sub-platform brands include on-line real estate broker education, contracts & forms, electronic transaction management, BPO property valuation services and nationwide acquired asset foreclosure management.
The following pages describe the TOP REO Real Estate Investor Group and the exclusive opportunities that exist by association with the Dataflo MLS real estate platforms.
Top REO Real Estate Investor Group Philippines is essentially a hedge fund. Specifically, an international REO investment partnership primarily among 50 close real estate colleagues practicing real estate in America.
The purpose of TOP REO is to capitalize on the acquisition of REO properties within the Philippines under the guidance of Acquired-REO Asset Management.
Investment Group REO Acquisition Strategy:
Any full-time REO investor who actively buys and sells bank owned real estate understands the importance of keeping a consistent supply of new inventory on the horizon, while managing their current acquired REO inventory.
Maintaining a good rapport with REO brokers and key bank REO representatives is essential.
Regardless of the strength of these relationships, there is no shortage of competition actively pursuing the same inventory sources.
Aside of that factor, consider renovation crews, carrying costs and then the resale?
All of these elements chewing away at your profit margin each and every day.
Why and How TOP REO Works
The TOP REO Real Estate Investors Group is everything that serious REO investors dream of.
Top REO was created by the front-line managers of Dataflo MLS and Acquired-REO Asset Management.
There are no under the table payoffs, hidden agendas or weak links behind the shadows. We own and operate the entire operation delivering privileged, first-hand information about REO properties as they process through our asset management services.
Privileged Information Defined
Typically in the foreclosure process, Acquired-REO is the first to enter foreclosure properties on behalf of the lender following the Sheriff’s sale. Through our Acquired REO – Managed Care System, we provide the initial securing, BPOs, property inspections and preservation services in pre-determined intervals over the course of our service agreement. These services allow us to provide highly informative updates and status reports to our clients.
In many cases, we have the early-bird ability to negotiate a “bulk” purchase of several REO properties, whereas an individual bank client can forego the entire asset management process and liquidate several properties immediately.
Property Bidding Formula and Process:
Top REO monitors each asset as they initially come under the control of Acquired-REO Asset Management on behalf of the bank client.
Individual properties that meet our minimum acquisition standards are flagged and closely monitored by our internal REO team based on:
- Type of property
- Highest and best use
- Sales incentives offered by bank client
- Compatibility with other flagged properties
- Meets 35% profit margin
TOP REO calculates the attractiveness of the property prospect utilizing the traditional 35% minimum profit requirement when considering properties for potential purchase by the Investor Group:
(Resale Price) – (Property Acquisition, Repair and Re-development Cost) = Profit margin of 35% or more
Once a group of properties that meets our criteria is identified, the property group is packaged and assigned a “Funding Code” -example “Fund 23”. The fund may contain one or multiple properties potentially consisting of single family, condominium, multi-family, vacant land or commercial & industrial. Any property type combination is possible.
Properties within that funding group are then personally evaluated by both our in-house evaluator and a licensed broker/appraiser who is a member of our vendor network. This may also include several BPO studies provided by our local brokers within that geographical area.
Final decisions regarding the “Go” of a particular fund is then evaluated by our TOP REO Operations Manager. If all checks out and the fund is approved, Offers to Purchase are drafted immediately through our secure transaction platform naming “Top REO Real Estate Investors Group” as the buyer (in the case of condominium units) or “Jenny Pearl de Leon, Dataflo MLS, Inc. Treasurer” (in the case non-condominium units) with standard contingency terms and notices applicable to the investment group’s operational guidelines.
Standard Contingency Terms and Notices:
- Buyer has the unrestricted right to withdraw this offer within 15 days of Seller’s acceptance beginning at 12AM of the day immediately following the acceptance date.
- This is a cash offer.
- This offer represents Buyer’s highest and best offer.
- Buyer reserves the right to access the property any time during the 15 day withdrawal period for the purpose of conducting property condition inspections. This will supersede any other language that may exist in the Buyer’s Offer to Purchase or Seller’s Special Addendum that may be contrary to this provision.
- Closing date shall occur no later than 30 days following Buyer’s notice to Seller waiving Buyer’s 15 day withdrawal contingency beginning at 12AM of the day immediately following the date of Buyer’s waiver notice.
In the event a collective or single Offer to Purchase is accepted by Seller(s) (in the case of multiple bank Sellers involved, meaning all offers associated with the collective Offer to Purchase have been accepted), this will thereafter initiate notification to investment group members alerting them as to the availability of an “ACTIVE” Top REO Investment Group Fund posted on the group’s REO Inter-scope online platform.
REO Inter-scope Platform
As part of the services provided to members of the REO investment group, is the REO Inter-scope platform.
Top REO Real Estate Investor Group members are provided individual login credentials allowing them to access the following member features:
- Member profile information editing
- Investor group news and updates
- Flagged properties in consideration
- Immediate notification alerting members (via text, email or other means) as to the availability of a newly offered “TOP REO Investment Group Fund”
- Specific individual fund information (Photos, maps, negotiation documents, financial calculations, time-lines, etc.)
- Reservation of fund blocks
- Notice of “Non-participation” of a specific fund offer by a group member
- Notifications as to member requirements and funding of reserved fund blocks
Funding of Individual REO Investment Blocks Reserved by Members
TOP REO Investment Group Fund members are not required to fund any “fund offer” until all associated Offers to Purchase primary documents, addenda and sequential components to a particular fund have been deemed fully executed, complete and representative as to the terms and subsequent provisions as indicated specifically within the specific individual fund information offering.
The 15 day initial “Right to Withdraw” from the transaction(s) is a safety provision for the primary purpose of allowing reasonable time for individual members of the investor group to examine the particular REO investment fund.
When an “ACTIVE” TOP REO Investment Group individual Fund package is presented to group members, the Property Bidding Formula (as discussed earlier) would create and apply an individual investment calculation (referred to as a “Block”) representing 1/50th of the total Fund cost (Acquisition, repair, management, sale, CPA, taxes, insurance, etc.).
The “ACTIVE” Fund package would also contain:
- Complete interior/exterior photo gallery
- Broker Price Opinions (As-is and Repaired)
- Proximity mapping
- Highest and best use evaluation
- Capital improvement plan
- A timetable for the construction and completion of the project
- Explanation of expenses for the project
Property Bidding Formula Example:
The following example illustrates the Property Bidding Formula and how Blocks are calculated:
Let’s say a small group of four (4) REO residential properties were identified and offered in a specific fund. The properties require a small amount of repair and we calculate resale as follows:
Property 1: $160,000
Property 2: $100,000
Property 3: $90,000
Property 4: $102,000
Total Resale Projection: $452,000.00
Repair Costs: *Includes permits, taxes, insurance, etc.
Property 1: $14,000
Property 2: $10,000
Property 3: $9,000
Property 4: $6,000
Total Repairs: $39,000
Management and Re-development Costs:
Property 1: $4,000
Property 2: $3,000.
Property 3: $3,000
Property 4: $2,000
Total Management and Re- development Costs: $12,000
Total Maximum Cost = Resale Projection – 35% profit margin = $452,000 / 1.35 = $334,815
Highest Offer Price = Total Maximum Cost – Repairs – Re-development Costs = $334,815 – $39,000 – $12,000 = $283,815
Individual Block Cost Value = Total Maximum Cost / 50 = $334,815 / 50 = $6,696.30
Individual Block Return Value = Resale Projection / 50 = $452,000 / 50 = $9,040.00
Individual Block Profit Value = Individual Block Return Value / Individual Block Cost Value = $9,040.00 / $6,696.30 = 1.35 = 35%
Sequence of Events: “ACTIVE” TOP REO Investment Group Fund:
- Top REO Operations Supervisor approves fund and assigns funding number.
- Fund package is loaded to the REO Inter-scope system with 50 calculated blocks.
- “Active Fund” alert is sent to members.
- TOP REO members may buy funding blocks.
- At the 9th day of the Fund initial offering, either the Fund is fully funded or the Fund Offer is withdrawn.
- If fully funded, then the Offer to Purchase documents are fully executed.
- Collection of Funds: Top REO members are issued “wiring/swift code” information to the prescribed closing agent, usually one of the banks (Sellers) involved, in the same fashion a mortgage lender would fund a home purchase.
- Commencement of project updated to investors on REO Inter-scope and marketing begins.
- Re-sale is updated on REO Inter-scope
- Funds are dispersed to Investors
Questions & Answers
What criteria does TOP REO consider when reviewing individual member applications?
- Applicants are preferred to be licensed in the capacity of a Real Estate Broker
- REO industry experience, recognition and affiliation
- Financial ability
- Having a special, vested and committed interest in skillfully developing a financially aggressive REO investor group
Are there any admission fees or other costs associated with becoming a member?
Yes. The investment group operates financially independent from the MLS and acquired asset divisions. Top REO members pay an initial one-time admission fee of $1,200. which provides the group an initial start-up administrative budget in order to eventually reach a self-funding position.
The one-time admission fee also includes 200 shares of Dataflo MLS, Inc. stock.
What are the start-up operating budget items?
- Technical Development of the REO Inter-scope Platform
- Implementation of a full time operations manager exclusive to the Top REO group
- Implementation of a full time administration position
- Customary business equipment
- Legal requirements
- Creation of the Top REO Real Estate Investor Group – Board of Directors
What are the self-funding time-line projections?
Over many years of continual presence in the Philippines, Dataflo MLS, Inc. has established a firm footing as a recognized professional entity. This will permit the Top REO Group to create a fully functional organization within just a few weeks.
How does TOP REO intend to initially approach REO investments?
Like any new relationship, we would like to illustrate our ability in an initial modest investment approach. As a few funds are closed, we can increase our aggressiveness.
What safeguards are practiced to reduce liability and down time?
Dataflo MLS, Inc. and its family of companies is represented and advised by one of the largest law firms in the Philippines. Our corporate counsel is readily available and highly experienced in large scale business operations. Our front-line Top REO management staff has an incredibly vast background in REO brokerage/theory, mortgage default servicing, building construction, field services, valuation and business management. When we say “Top REO”, we mean it.
TOP REO carries a blanket insurance policy applicable to any property we acquire.
When “multiple-property” Offers to Purchase are made on behalf of a specific fund, are the properties owned by one bank or several banks?
Multi-property offers are sometimes owned by several banks (individual, unrelated sellers) or by one bank. Top REO’s relationship with Dataflo MLS and Acquired REO makes multi-property acquisitions easily manageable.
How many individual TOP REO investor groups exist?
One. The TOP REO Real Estate Investment Group is exclusive.
How many individual “Funds” exist or are presented at any time?
The number of individual “Funds” that are available is determined by the group.
Who handles the accounting of the operation?
Accounting is provided by a Certified Public Accountant licensed through the Philippine Regulatory Commission. All accounting information is provided on the REO Inter-scope system to the members.
Once the 50 member investment group is filled, how long before it is fully operational and “Fund Offers” commence?
Members can expect a fully operational organization (with Fund Offers) within sixty days of at least 30 members of the 50 member roster filled.
As a Top REO Real Estate Investor Group member, am I obligated to purchase Fund Offers?
No. Participation in all Fund Offers is not required.
Is the group incorporated?
The group is not currently incorporated. Incorporation will occur after the Top REO Board of Directors is elected. Prior to this, TOP REO may operate under the authority of Dataflo MLS, Inc. Philippines.
How does TOP REO purchase and title property in the Philippines?
The Philippines provides a friendly and welcoming environment encouraging foreign investment. Reciprocal licensing (American/Philippines) is common-place and fully recognized.
However, ownership laws are specific depending on the type of property purchased. Condominiums many be purchased and titled to foreign owners, other properties must be titled under a Philippine national or the appropriate corporate entity, which are available in many degrees.
In the interim, prior to TOP REO incorporation, property may be acquired under the Dataflo MLS Secretary or Treasurer and meet full compliance.
Who is the Fund Manager and how is the Fund Manager compensated?
The fund manager consists of two people:
George B. Flessas, President Dataflo MLS, Inc.
Greger Eriksson, Vice President Dataflo MLS, Inc.
The fund manager charges both an expense ratio and a performance fee: 2% asset management fee and 20% of any gains generated.
*The fund manager(s) are also active paying members/investors of the fund group.
If I want to relinquish my membership with Top REO Investor Group, how is this accomplished?
Members may re-sell their membership position to another investor at any time and at any price they choose. However, the first right of refusal is to the Top REO group at the original $1,200 admission fee.
How many REO foreclosure properties are available in the Philippines?
The number of REO properties is unlimited. There is a substantial inventory from bank to bank.
I am interested, what is the next step?
In order to provide a comfortable and safe experience for any invitees interested in becoming a member of the TOP REO Real Estate Investor Group, I request that all interested parties contact me before proceeding to the Application Form and Membership Payment areas on our website.
George B. Flessas, President
Dataflo MLS, Inc. Philippines
Acquired-REO Asset Management
Toll free direct from North America: (414) 815-8029