Published: March 03, 2010
RebuildUS Unveils a Potential Solution to the Foreclosure Crisis: Bypass the Banks and Auctions to Move Americans Back Into Affordable Homeownership
WOODLAND HILLS, Calif. - (BUSINESS WIRE) - Economists believe the nation's sub-prime mortgage meltdown and
foreclosure crisis will continue to worsen unless innovative thinking
reinvents the system. In direct response to this need, RebuildUS, LLC,
an online foreclosure
marketplace launches today. RebuildUS empowers small investors to
buy foreclosed homes at bulk volume prices, and manage them effectively,
with an emphasis on seller-financing and affordability for homebuyers.
The first package of homes will be listed on RebuildUS.com
March 3, 2010 at 9:01 am PST.
"RebuildUS was created to do what the banks can't do: create house
payments families can afford, and put people back into homes for good,"
explains Benjamin Kim, co-founder and CEO of RebuildUS.com. "Our
approach discourages flipping homes. Flipping keeps homes empty, as each
seller looks to make the best possible short-term gain. Empty homes lead
to urban blight, and the general degradation of the surrounding
community."
RebuildUS.com
is an online marketplace that allows small investors to:
-
purchase foreclosed homes at the bulk buyer's cost plus a flat fee per
property;
-
secure, manage and provide seller-financed properties to Homebuyers
who will live in the homes and maintain the properties, while enjoying
monthly payments that are often lower than area rents.
Through RebuildUS, properties transfer from the bank to the
owner-occupant in three steps: First, financial institutions sell
portfolios of foreclosed homes to Bulk Buyers who list the individual
homes at low bulk volume prices on RebuildUS.com. These properties are
purchased in packages of five or more by RebuildUS members (called
"Resellers" ) who select from many options to secure and manage each
home. Finally, the Reseller offers seller-financing
to Homebuyers looking to buy an affordable primary residence.
Prices for each of the management options are clearly explained by the
participating vendors. Resellers with appropriate real-estate experience
or property-management backgrounds also have the option to manage the
properties themselves. RebuildUS.com strongly encourages Resellers to
re-list these homes in the Homebuyer's section of the online marketplace
when they're ready to sell.
Prior to RebuildUS, only individuals buying thousands of foreclosures
directly from the banks could get bulk prices. One such individual, Odell
Barnes, built his fortune with an unusual approach to
bulk-purchasing, marketing, and reselling foreclosed homes. His
approach, called the Barnes Method, landed him on the list of "TIME 100
Finalists" for the magazine's 2009 person-of-the-year honors. Facing
home foreclosures of epic proportions, the banks have again tapped bulk
buyers like Barnes. Barnes decided to harness the power of the Internet
to help him get the job done. Now Barnes' inventories are exclusively
available through RebuildUS. "The volume of new foreclosures is
overwhelming," says Odell Barnes. "And so is the opportunity to do
things differently, and to do things right."
The opportunity lies in having RebuildUS.com list large portfolios of
homes and pass the savings directly to the Reseller. Since auctions tend
to ignite price inflation, RebuildUS.com has no auction component.
Resellers can often sell to families at a total cost below market prices
while still enjoying a healthy return on their investment.
By spreading the ownership and financing of these homes from a few
financial institutions that are dependent upon short-term gains, to
Resellers nationwide looking for long-term investments; distressed or
vacant properties can be turned into affordable, livable homes.
The current housing problem was partially caused by people entering into
adjustable rate mortgage contracts, so-called "balloon mortgages," they
could not afford. Resellers who choose the "Barnes Method" offer
Homebuyers seller-financed monthly payments that are encouraged to be
slightly lower than market rent right from the start and never increase.
"RebuildUS is not about minting instant real estate millionaires,"
continues Kim. "The company's mission is to put distressed properties
back into productive use. With the Barnes Method, Resellers get to
establish a stable long-term revenue stream and more Americans get to
live in homes they can actually afford."
About RebuildUS
Based in Woodland Hills, CA, RebuildUS, LLC offers a variety of
resources and options for individual Resellers to review, buy, and
manage available foreclosed properties; and connect with potential
Homebuyers. www.rebuildus.com
Connect with RebuildUS online: Twitter @RebuildUS;
Facebook facebook.com/RebuildUS;
YouTube youtube.com/RebuildUSvideo;
LinkedIn linkedin.com/in/rebuildus.
The Reseller Experience
There are many ways to do business on RebuildUS.com. Resellers can
manage their own properties or hire LLC Managers who can inspect and
secure each property, and help find the Homebuyer who will eventually
call it home. Investing in foreclosures can be very rewarding, but it is
not without risk. RebuildUS.com has a minimum purchase requirement of
five properties to spread the risk over multiple homes.
Account Management:
-
RebuildUS.com clearly lists the prices for all services and membership
upgrades before a Reseller enters into the transaction.
-
Resellers create an account on RebuildUS.com for $99.95 per month.
-
Resellers have their choice of one or both premium upgrades, each
$29.95/mo:
-
Real-time email, SMS, and voice-alert service that updates the
Reseller the instant new foreclosures arrive on the site.
Subscribers can customize their alerts to feature only the
properties that meet their specific criteria (geography, number of
rooms, etc.).
-
Proprietary research software: search, research, map, analyze,
trend, and generate reports for more than 170 million US
residential properties. Resellers can locate current
pre-foreclosures and REO (bank owned) properties with a
user-friendly reporting feature.
Purchasing Homes
-
Once the Reseller is ready to buy, he clicks on five or more homes,
adding each property into a shopping cart - a transaction process
similar to most online retail sites.
-
Once the homes are added to the cart, they are unavailable to anyone
else unless the purchase is abandoned or the 5 minute time action
window timer runs out.
-
Then, the Reseller has 15 minutes to confirm the purchase.
-
Contracts are affirmed through a secure 3rd-party e-signature process
(DocuSign).
-
Finally, the Reseller will have until the next business day to wire
transfer funds to the Bulk Buyer to complete the transaction and
transfer ownership of the properties.
-
If the home is not purchased, or the money isn't transferred within
the time allotted, the homes are returned to active status within the
RebuildUS property database.
Property Management
While the Reseller can choose to manage their properties themselves,
RebuildUS emphasizes the Barnes Method - as it has been successfully
applied to thousands of properties.
-
Under the Barnes Method, properties are inspected and priced to sell
as-is; some being sold immediately for cash and the remainder being
sold using seller-financing.
-
The Barnes Method encourages Resellers to offer Homebuyers a low down
payment and a fixed monthly cost priced below neighborhood rental
rates.
-
Traditionally, marketing of the Reseller's property consisted of only
a hand-written sign posted in the front yard or window. Now, Resellers
can also use RebuildUS.com to find applicants outside the home's
immediate neighborhood.
-
LLC Managers will compete for the Reseller's business. Each company
will offer its own services and pricing menu. Similar to the eBay
model, the LLC Manager's performance will be rated by existing
customers within the RebuildUS community.
-
Resellers joining RebuildUS are expected to have experience in real
estate investing.
-
Resellers will be able to use this experience to select and oversee an
LLC Manager or manage the properties themselves.
The Homebuyer Experience
RebuildUS.com offers prospective Homebuyers an opportunity to own a home
and claim their stake in the American Dream.
Finding a home on RebuildUS.com:
-
Many prospective Homebuyers will see the sign in the front yard and
contact the Reseller (or his/her LLC Manager) directly.
-
With RebuildUS.com, this home-ownership opportunity is also available
via an online search tool. This is good news for people who don't
happen to be in the neighborhood when the yard sign goes up.
-
RebuildUS.com Homebuyers will pay a monthly fee ($19.95) to have the
ability to view properties online as soon as the homes are uploaded
for sale by the Resellers. For a limited time, the Homebuyer section
will be available at no cost.
-
The Reseller (or his/her LLC Manager) will select the best candidate
to buy the home. As with the Reseller purchase transaction, this
contract will be signed offline.
Buying a home on RebuildUS.com:
-
When using the Barnes Method of seller-financing, the monthly payment
can be below average rent in the neighborhood.
-
The Homebuyer signs a Land Contract, wherein the Reseller holds the
title to the home.
-
Since the Reseller holds the title, he/she is responsible for property
taxes until the note is paid off.
-
The seller-financed Homebuyer has most of the traditional rights and
opportunities of any residential property owner (with the notable
exceptions above): pride of ownership, property appreciation, mortgage
interest deductions, capital gains exclusion, and so on.
-
The Homebuyer buys the home as-is and assumes all liability for
repairs and maintenance.
Advantages of seller financing:
-
On day one, the Homebuyer typically enjoys a reduction in price
compared to monthly rent in the respective neighborhood. The savings
increase over time because the monthly payments never increase while
rents typically do.
-
Homebuyers who have fixed-up and maintained their properties, and have
a solid payment history, often find a seller-financer more flexible to
work with than a bank, should a payment ever be late or missed for any
reason.
-
Once the note is paid in full, the Homebuyer will own the home free
and clear.
Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6200485&lang=en
The Rogers Group
Keith Creighton, (310) 552-4163
kcreighton@rogerspr.com
or
Leslie
Galerne, (310) 552-4104
lgalerne@rogerspr.com
or
Jason
Avila, (310) 552-4156
javila@rogerspr.com
Copyright © 2012, Business Wire, Inc., All rights reserved.
Copyright © 2012, NewsBlaze,
Daily News
Search News
