In Episode 150 of the REI Hot Seat, we break down a unique on market deal that’s now a power of sale and what that actually means for you as a buyer. Dave and Jake walk through the realities of buying bank controlled properties, why power of sale listings often come with limited information, and what you need to understand about as is where is conditions, no reps and warranties, and the schedule that can override your entire agreement.

They also cover how to protect yourself when the rent roll, expenses, and documentation are incomplete, including building your own rent roll from a unit by unit walkthrough, pulling public tax data, estimating utilities using comparable properties, and underwriting with conservative cushions and a risk premium. You will hear why some power of sale deals can close fast, how that can create opportunity for buyers with capital ready, and how aligning your offer with the lender’s motivation can lead to better pricing.

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EP 150 Power of Sale Secrets Buyers Need to Know

0:05 A unique on market deal that turned into a power of sale
0:48 What power of sale means and why banks must market the property
2:18 Why power of sale listings have limited info and no reps and warranties
3:23 The schedule and how the owner can reclaim the property before closing
4:09 The upside and the risks buyers need to be ready for
6:24 Deal overview Wasaga Beach motel conversion and why the area is bullish
8:10 Pricing assumptions and how the deal could look at different purchase prices
9:48 Why touring comes first on this one and what to document unit by unit
11:48 How to mitigate risk when the schedule supersedes your clauses
12:43 Building your own rent roll using tours, taxes, and comparable utility data
13:38 Underwriting with cushions, risk premium, and why returns look higher
14:41 Fast closes, timelines, team readiness, and how to win power of sale deals
17:02 Getting an opinion of value and joining the insider list

DISCLAIMER: THIS EPISODE, AS WITH EVERY EPISODE OF THIS SHOW, SHOULD NOT BE CONSIDERED AS ADVICE. INVESTMENT ADVICE IS NEVER GIVEN ON THIS SHOW. ALWAYS CONSULT A COMPETENT INVESTMENT ADVISOR BEFORE MAKING AN INVESTMENT DECISION.