Answers to frequently asked questions posed to National Syndication Network, LLC (NSN)
Sourcing
Q: Do you source commercial or residential properties from the public real estate websites?
A: No. NSN has developed relationships with select lending institutions or their assigned seller’s mandates or seller’s representatives that are authorized to interface with them and fully authorized to disposition their distressed commercial and residential real estate and notes.
Engagement Process
Q: What’s the process to get started acquiring properties from your lending institutions?
A: The engagement process varies from one institutional distressed inventory source to the next. So, the particular steps depend on the specifics of what you’re looking for. Some require an LOI. Others an LOI & soft-proof. And still others, just an indication from a proven buyer of his/her interest of what the bank source has to sell at reasonable pricing.
Contact us to discuss your buying criteria. If we have a fit, completing NSN’s NCND/MFA agreement will get us underway.
Proofing
Q: Do you require a proof of funds to get started?
A: No…NSN does not require a proof of funds to get started. But, some of our bank inventory sources do. NSN does not ask for a hard-proof of funds. That may only happen between the seller and the buyer.
Some of our lending institution sources require a soft-proof to verify the buyer is real, has liquid cash in an amount to cover the transaction, the cash is associated with a current legal US entity, and is in an FDIC-approved bank. A soft-proof generally includes the name of the buyer, the associated entity, the bank name, a bank contact, and his/her phone number. This information is handled in strict confidence by NSN, and is passed directly to the bank source.
By the way, most of our lending institution sources do not accept a line-of-credit in place of liquid cash.
Broker
Q: Are you a broker?
A: No. NSN introduces proven buyers to proven sellers of distressed bulk commercial properties, bulk residential REO properties, performing notes, and non-performing notes.
NSN does not negotiate between buyer and seller, nor do we list properties…or charge a finder’s fee for making an introduction.
Buy-in Amount
Q: What’s the minimum buy-in level for your selling sources?
A: Minimum buy-in varies. With some, it’s $10M. Others start higher.
Raising Money
Q: Do you raise money from investors to syndicate investment projects?
A: No. And, this brings up two important points.
First, NSN works with buyers of distressed properties and notes. We do not solicit for investors..nor do we or market investments.
Second, and although “syndication” is in our name, we are currently not raising money or syndicating investment projects.
“Deals”
Q: Do you offer “deals”?
A: No. Whether a purchase opportunity is considered to be a “deal” or not is entirely up to the buyer to determine for themselves based on their acquisition criteria. Buyers may gain, break-even, or lose money on the properties or notes they purchase from our selling sources.
“Direct”
Q: Are you “direct” with actual lending institutions?
A: With some, yes…and others, no. We’ve found that the term “direct” means different things to different people. So, here’s what it means to us:
NSN has distressed property and notes sources who we are immediately next to. With others, we have a seller representative who’s made the introduction to a source we now enjoy a relationship with.
Many institutions only want to have a select few authorized companies to represent them to liquidate their inventory of distressed real estate and notes. NSN has direct relationships with these seller’s mandates and seller reps.
In any case, NSN puts buyers into direct communication with the bank asset liquidation manager…or the seller mandate / seller rep that the lending institution directs us to.
Tapes: Part I
Q: Do you market tapes of distressed properties or distressed notes.
A: The answer is a qualified no. Our experience is that the bulk of the tapes flying around the Internet are nothing more than a colossal waste of time, and they are passed around by those who think they are real. Does NSN market this type of tape? No.
However, we do work with custom tapes. A vetted buyer of ours indicates exactly what they’re looking for from one of our vetted bank sources. Then, the bank representative searches available inventory and produces a custom tape of product matching the LOI (Letter of Intent) from the buyer. This tape is not meant for anyone else…and, it certainly does not get blasted out to a distribution list or to the Internet.
Tapes: Part II
Q: I want to see a tape from your source before I’ll move forward with you. Do you do that?
A: No…unless our source has made a sample tape available for the purpose of demonstrating to a buyer the quality of product the source has. With rare exception, our buyers get an exclusive look at a tape that has been custom-pulled from our source’s inventory to match as closely as possible to the buyer’s LOI.
One-Off Properties
Q: Do you source individual properties or notes?
A: NSN sources bulk distressed commercial properties, bulk REO residential properties, and bulk performing notes, and bulk non-performing notes. The only exception we make are for providing sources of large, off-market properties, such as hospitality and malls.
Compensation
Q: How does NSN get paid?
A: NSN is paid via the MFA (Master Fee Agreement) from a closed transaction. If a transaction does not close, NSN does not receive a payment.
Referrals
Q: Are you open to referrals? If so, how do I refer a buyer (or an institutional seller)?
A: If you’re direct (meaning the person you’re referring) with a buyer (or institutional seller) of bulk properties or notes, the answer is yes. Click the “Join Us” badge (above and to the right) to get started. Note that Associate Partners and Referrals are not employees of NSN.
If your buyer (or seller) is looking for an individual property or two, you’d be better served finding another source to refer to.
Compensation for Referrals
Q: How much do I get paid for a referral?
A: It all depends on the level of value provided during the course of bringing a transaction together. Fees are only paid as a result of a closed transaction. And, it’s what is fair and reasonable.
A referral for a simple phone introduction is compensated differently than one for someone doing the daily heavy-lifting to help get buyer with seller. We’ll discuss your specific situation if you’re selected to be part of the Associate Partner and Referral program.
Don Roberts
What questions do you have? Ask in the comments section below.