Bulk REO - How Renturly Could Be Paid: Helping Buyers' Reps!
Currently, in the industry, it is common for 3% commission to be paid out upon closing a deal: 1% Sellers’ Rep, 1% Broker, 1% Buyers’ Rep. By eliminating the daisy chain - with my Renturly software and securing an exclusive supply of bulk REO on an ongoing basis - Buyers Reps can claim a larger 1% fee for themselves and award Renturly 10% of that 1% commission. This means that on a $25M hotel in California that the total commission paid out will be $250K and Renturly’s commission will be $25K, while the Buyers’ Reps commission will be $225K.
Also, excited users might be willing to pay $20 per month for using my Renturly software. One Buyers’ Rep is so excited about using the software to vet his pool of buyers that he wondered whether he could use the software right now - and I said yes you can log on to Renturly.net anytime to use it yourself or with your VAs! He mentioned that it would not be unrealistic to drive 500 people from his network at $20 per month to use the software totalling $10K per month in subscriptions from himself. Think of how this could multiply once everyone is doing the same so that they can earn a larger 1% as Buyers’ Reps. But, we want to wait until the software is proven and everyone has made money via deals before doing that.
He was also worried about having the software over saturate one geographical real estate market by referring the Renturly software to his network. I mentioned that it should not be a problem if I am bringing in exclusive bulk REO for everyone to feed off of and do deals. He agreed.
I believe that the key for me to unlock this exclusive supply of bulk REO is to show my very large lenders POFs (bank statements; proof-of-funds) that Buyers’ Reps provide to me with the permission of their Buyers. The Buyers will know that I am going to provide them a bulk supply of discounted REO assets for sale for them to buy. Buyers' Reps will provide me with POFs from their Buyers so that I can secure exclusive supplies of Bulk REO to the marketplace for them to do deals with.
Is your business similar to this one Buyers’ Reps’? Could this be multiplied if you provide me with your Buyers’ POFs with their permission and you share this service with your network?