This was sent to Art in San Francisco Saturday October 3rd in response to his starting and stopping an acquisition of Commercial REO Property in San Francisco:
Please read through and see the links below and you will see how it works and how US NEWS wrote an article on the non-profit.
Name of Non-Profit: Regional Neighborhood Community Development Cooperation (RNCDC)
I ( our contact) am working directly with the FDIC. Sheila is the Chair and I have closed deals through out the North east with her and Florida as well. I can set the parameters commercial (Hotels, Office and or Multi Family) in any areas you would like. I have tape/FDIC Notes tailored to the areas in New York. For example: If you would like to concentrate only the New York City. I can have it the parameters set anyway you would like. Please read below to understand the protocol from FDIC.
I am dealing with Robert Rosenthal and Sheila Bair with the FDIC. I want to get you registered with them ASAP. The reason is when these notes come out they do not last long and are given to the ones who are registered and ready to purchase the notes. So I will need the following from you:
I will need to get you to sign my CA and a LOI. The LOI has to be a minimum of $20 Million and all it is says is that you are prepared to purchase a set amount for a certain area of the country you would like to focus on. So IE: You would state the price you would like to purchase direct from the FDIC and you would also state what area of the country you would like your tape modified to. Sheila will be coming out with new notes/fresh properties this week. So I can send you over after you are registered the entire notes as well as contacts with the FDIC.
I have attached a CA agreement, FDIC Protocol and a OLD Note Pools (Sample) to show you what to expect.
Please make LOI made out to the following:
Sheila C. Bair
Chairman of FDIC
1776 F Street
Washington DC 20006
Below is some links to sites as well as alittle about the Gov’t Non-Profit program.
The Rosenthall Group, Inc works with municipalities, counties, Faith-based organization, Community Development Corporations and businesses to assist with developing and implementing strategic plans for economic development. Our network of businesses and Faith-based organization have worked with or currently engaged with affordable housing construction for low and moderate-income families and job creations.
At the same time:
a) Why can’t anyone get a list from the FDIC?
Anyone can with the proper documentation; however as I mentioned going through the non profit will allow us to get better pricing.
b) Would the FDIC really give a not-for-profit deeper discounts than a regular corp.?
They’re probably not taxed on it anyway. And it’s probably not their intention to have the NFP flip the properties. We are talking bulk purchases and the flipping exemption was implemented last year for non profit and municipaties. The non profit has successfully transacted already and remember the non profit is putting their commission split back into the community unlike a corporation that is making a profit.
c) Why would they ask for an LOI and POF up front, with no idea what the product is or who these people are?
Who would all this info be made out to, the NFP or the FDIC? This protocol was setup up by the agencies. The reason they are only requesting 2 documents, letter of intent and a bank letter verifying the buyers ability to purchase. This is not hard proof of funds and only verification that the buyer is financially qualified. I can tell you that the buying entity will also be required to provide their exit plan for marketing the assets. This is the first step in the process to weed out tire kickers and assignment junkies.
d) The NFP would probably mark it up to the price everyone else is paying anyway. The Non profit makes a commission as the seller’s rep, 1 point and is agreed to under a MFA and non circumvent.
e) Does the NFP sell for the FDIC or do they actually take down the product? Is the NFP SHARING the commission they are making from selling these for the FDIC? They act as an agent/non profit that purchase the assets on behalf of the client and are paid a commission.