Our Mission is to enable investors to purchase superior bank owned homes (REOs) at significant discounts, so they may realize above average returns by employing our various proven exit strategies from our investment model that consistently creates wealth.

We pledge our organization to provide the most optimal and cost efficient, turnkey management system through our partner company BlueStone REO for all of our investor clients.

We will execute our optimal investment model and achieve optimal results for all our of our clients.

Investment Process & Strategy

Step 1: M3 acquisition team underwrites REO packages to insure properties match our acquisition parameters and pass our rigorous due diligence process.

Step 2: Investor completes and submits a purchase contract and transfers funds to the escrow account.

Step 3: M3 & BlueStone markets and places end term buyer in the home utilizing a land contract (seller financing-contract for deed).

Step 4: M3 & BlueStone markets and places end term buyer in the home utilizing a land contract (seller financing-contract for deed).

Step 5: M3 & BlueStone Manage the assets and ensure all costs such as property taxes, maintenance and other expenses are up to date. The Investor enjoys a truly passive investment and has access to their detailed property account information through our online reporting system.

Step 6: M3 & BlueStone work together with the investor to exercise one of the many proven exit strategies. Investors can typically expect on average a 100% capital appreciation within a 1-3 year period.

Details about the Process

Buying foreclosed homes in multiple regions of the United States can be very profitable; however, it can also be quite risky if you don't know what to do with them once you own them. Recognizing this problem, M3 REO Group’s assets are expertly managed by our complete property management division. BlueStone provides asset owners an operating mechanism and several exit strategies for their assets.

One main strategy employed by BlueStone that facilitates investors to realize immediate profits on any given pool of houses is:

Owner Finance Model Using a Contract for Deed:

Each home is sold to an end user (homeowner) using a contract for deed such that the homeowner pays the investor a monthly mortgage payment. The premise is that the monthly payment, plus taxes and insurance must be significantly less than the cost of renting a similar product in the immediate housing area. Typically a qualified homeowner will pay a $500 down payment and pay a monthly payment which is usually between $250 and $500 per month. The homeowner is responsible for all repairs and maintenance of the house from day one. Homeowners will buy these homes and take care of any work that needs to be done to the home, as they are now the owner. The investor does not act as a landlord and will not do any rehab work to these houses unless there are some emergency repairs needed prior to selling the house. The homeowner is responsible for all maintenance issues as well as fixing up their homes as need be.

The investor will acquire the homes on an average of $21,900. This home will be land contracted (owner financed) typically between $30,000 – $60,000. The investor will carry financing for a 15 year term at 10% interest at the tenant buyer acquisition price ($30K – $60K). As you can see the returns can become substantial.

The investor will receive a livable, rentable, almost ready to move in home. The deed for the home always remains in the investors name.

Exit Strategies:

Once the home is sold using the owner finance model then BlueStone will service the properties by collecting payments and making sure taxes are paid. After 12 months of payment collections, M3 REO Group will exhaust the following strategies for the investor:
The homeowner qualifies for a bank refinance after they have made necessary home repairs, so that the property qualifies for a conventional or FHA type mortgage and the property can appraise at the principal owed (note that the servicing unit reports monthly payments to all three credit rating agencies).
The secondary note market comes back into operation and investor groups, both private and institutional will buy these 'notes' as they yield a 10-15% return on the face value. Historically the notes were sold in the secondary market at 80 cents on the dollar, such that the effective yields to note buyers reflected returns of 15-25%.
The home is rehabbed for costs between $2,000 and $6,000 and is sold in the local market to prospective buyers & investors via realtors, bid auctions, or through the M3 Equity/BlueStone online marketing platform.
The investor refinances the stabilized pool through an institutional lender at market interest and amortization rates. These assets typically will appraise for 100-200% of cost and the investor is able to receive a 50-85% loan to value. The investor retains the asset, withdraws his initial investment and this still yields an attractive and sustainable ROI which will service the debt.
The investor holds the property for residual income for a 15-25%+ return on investment.