BOMI RPA - Asset Management
REO properties acquisition methods - Answer-deed in lieu of foreclosure, judicial foreclosure, trustee
sale
Lender's primary objective with an REO - Answer-To convert the non performing asset to performing
status and or to attempt to recover the loan principal through the disposition of the asset
Buyer apprehension - Answer-A critical factor asset managers should address when converting an REO
property to either cash or to a performing asset
Caveat emptor - Answer-Principle of law stating that a purchaser of an item is responsible for examining
and judging for him or herself the acceptability of it
Market conditions - Answer-A critical factor asset managers should address when converting an REO
property to either cash or to a performing asset
Costs evaluated for selling a property as is - Answer-Discounted price, repair poor improvement
allowances to the buyer, payment of buyer closing costs, environmental indemnification, bonding or
insurance policy
Buyer closing costs examples - Answer-Buyers title insurance, legal fees, costs of inspection reports
Capital improvement project types - Answer-Remodeling, rehabilitations, renovations
,Remodeling - Answer-The most economical and least time consuming method for creating a building
that has new appeal
Rehabilitations - Answer-Involve repairs to all building systems and cover the entire building, requiring a
larger investment which must be evaluated for positive return
Renovations - Answer-Require the greatest investment to deliver a 'new' building as the final product
Hold/sell analysis critical areas - Answer-Review market data, develop a DCF model, compare analysis to
owners objectives
Effective REO management strategies - Answer-Minimizing expenses and maximizing value, timely
resolution of deferred maintenance, completing necessary capital improvements, evaluating market
conditions, competitive rebidding of service contracts, evaluating tax assessment
Collateral value - Answer-Estimated or appraised value of an asset pledged as collateral to obtain a loan
Primary tasks of asset manager for collateral value - Answer-Evaluating security and maintenance issues,
insuring the property, maintaining utilities, inspecting mechanical systems, checking for hazardous
waste
Secondary tasks for collateral value protection - Answer-Securing rents, resolving tenant concerns,
evaluating property condition, obtaining title report, obtaining architectural plans, bidding out work
Management decisions post repositioning - Answer-Identifying a property manager, selecting a leasing
agent, developing a marketing schedule, evaluating the property's curb appeal
Strategies for managing stabilized property - Answer-Responding quickly to tenant concerns, putting
property manager on site, keeping unused spaces clean, monitoring utility expenses
, Marketing a property for sale - Answer-Define the price, engage a qualified broker, define concessions,
confirm proceeds, assemble rent roll and tenant correspondence, define advertising and promotional
events, identify likely buyer profile, quantify and qualify offers
Legal counsel's contribution in property sale - Answer-Responsible for drafting a purchase and sale
agreement, confirming title and seller's ability to convey property, creating language for amendments,
confirming recording of closing documents
Warranty deed - Answer-Expressly includes one or more covenants of title
Broker's role post sale terms finalization - Answer-Facilitate buyer due diligence, prepare market
surveys, confirm time and date of closing with all parties
Encumbrance - Answer-Any claim or interest in real property held by a person other than the owner that
diminishes the value of the property without preventing title to pass from the owner
Property manager's tasks post sale terms definition - Answer-Advising tenants of change in ownership,
requesting utility companies to prorate charges, reconciling accounting associated with rent collection,
terminating services, reconciling all accounts associated with the property
Sellers market - Answer-There is an abundance of qualified buyers and thus only limited advertising and
minimal exposure needed in the real estate multiple listings service.
Buyers - Answer-It is necessary to work harder to attract an offer from a buyer.
Equilibrium - Answer-The number of buyers is equal to the number of sellers.
REO properties acquisition methods - Answer-deed in lieu of foreclosure, judicial foreclosure, trustee
sale
Lender's primary objective with an REO - Answer-To convert the non performing asset to performing
status and or to attempt to recover the loan principal through the disposition of the asset
Buyer apprehension - Answer-A critical factor asset managers should address when converting an REO
property to either cash or to a performing asset
Caveat emptor - Answer-Principle of law stating that a purchaser of an item is responsible for examining
and judging for him or herself the acceptability of it
Market conditions - Answer-A critical factor asset managers should address when converting an REO
property to either cash or to a performing asset
Costs evaluated for selling a property as is - Answer-Discounted price, repair poor improvement
allowances to the buyer, payment of buyer closing costs, environmental indemnification, bonding or
insurance policy
Buyer closing costs examples - Answer-Buyers title insurance, legal fees, costs of inspection reports
Capital improvement project types - Answer-Remodeling, rehabilitations, renovations
,Remodeling - Answer-The most economical and least time consuming method for creating a building
that has new appeal
Rehabilitations - Answer-Involve repairs to all building systems and cover the entire building, requiring a
larger investment which must be evaluated for positive return
Renovations - Answer-Require the greatest investment to deliver a 'new' building as the final product
Hold/sell analysis critical areas - Answer-Review market data, develop a DCF model, compare analysis to
owners objectives
Effective REO management strategies - Answer-Minimizing expenses and maximizing value, timely
resolution of deferred maintenance, completing necessary capital improvements, evaluating market
conditions, competitive rebidding of service contracts, evaluating tax assessment
Collateral value - Answer-Estimated or appraised value of an asset pledged as collateral to obtain a loan
Primary tasks of asset manager for collateral value - Answer-Evaluating security and maintenance issues,
insuring the property, maintaining utilities, inspecting mechanical systems, checking for hazardous
waste
Secondary tasks for collateral value protection - Answer-Securing rents, resolving tenant concerns,
evaluating property condition, obtaining title report, obtaining architectural plans, bidding out work
Management decisions post repositioning - Answer-Identifying a property manager, selecting a leasing
agent, developing a marketing schedule, evaluating the property's curb appeal
Strategies for managing stabilized property - Answer-Responding quickly to tenant concerns, putting
property manager on site, keeping unused spaces clean, monitoring utility expenses
, Marketing a property for sale - Answer-Define the price, engage a qualified broker, define concessions,
confirm proceeds, assemble rent roll and tenant correspondence, define advertising and promotional
events, identify likely buyer profile, quantify and qualify offers
Legal counsel's contribution in property sale - Answer-Responsible for drafting a purchase and sale
agreement, confirming title and seller's ability to convey property, creating language for amendments,
confirming recording of closing documents
Warranty deed - Answer-Expressly includes one or more covenants of title
Broker's role post sale terms finalization - Answer-Facilitate buyer due diligence, prepare market
surveys, confirm time and date of closing with all parties
Encumbrance - Answer-Any claim or interest in real property held by a person other than the owner that
diminishes the value of the property without preventing title to pass from the owner
Property manager's tasks post sale terms definition - Answer-Advising tenants of change in ownership,
requesting utility companies to prorate charges, reconciling accounting associated with rent collection,
terminating services, reconciling all accounts associated with the property
Sellers market - Answer-There is an abundance of qualified buyers and thus only limited advertising and
minimal exposure needed in the real estate multiple listings service.
Buyers - Answer-It is necessary to work harder to attract an offer from a buyer.
Equilibrium - Answer-The number of buyers is equal to the number of sellers.
