Welcome to the REA Hubzu National Dispo Platform.
You have arrived at this page because you have had a conversation with a member of our team, and now want to add our Dispo resources to your Business Process and get your next contract sold.
This page will outline the steps to move forward and get your properties sold for the highest price on the REA Hubzu National Dispo Platform.
Step 1: You should have signed the JV Agreement (Click Here to view the JV Agreement). If you have not signed the JV agreement reach out to your REA Success Manager.
Step 2: Get your property approved. When you have a property about to go to contract or just under contract … Connect with your REA Success Manager to go over the details of the property you want to Dispo with us.
For this part of the process you need to get the details and numbers and get them into the format that will be used on the auction page.
Download this Auction Marketing Format template and fill in all of the property details and include a link to the pictures as well. Once you have filled in all of the important data on the property email the document to your REA Success Manager and request a call with your REA Success Manager to go over the underwriting.
During the on-boarding call we HIGHLY recommended you get pro photos and a 3D walk through of the property you are putting on Hubzu. We have found that the 3D walk through definitely helps generate the highest bids.
Here is the link to the HomeJab service: https://bit.ly/HomeJab_3DWalkthrough
Also during the on-boarding call we recommended REIPro as the underwriting analysis software to use to run your numbers
Step 3: Once the property has been approved there are two scenarios moving forward.
A: You have an accepted offer – but have not signed a contract with the seller. In this scenario you will use the Hubzu approved purchase contract to get the property under contract.
Here is a link for you to view a sample contract. (Click Here to view the Hubzu Approved Purchase Contract) After you have a fully executed contract you will forward that to your REA Success Manager.
B: You have an accepted offer and have a fully executed purchase contract. In this scenario you will need to have the seller sign a Hubzu contract addendum. This addendum keeps everything transparent and discloses that you will be marketing this property to your network of investor partners (buyers) and will be marketing the property on Social Media, Auction sites, Listing services etc.
Here is a link for you to view a sample addendum (Hubzu Purchase Contract Addendum)
After you have a fully executed addendum you will forward that to your REA Success Manager.
*** Note that the addendum should only need to be used once for your first deal with us. Going forward you should be using the Hubzu approved Purchase Contract. ***
Step 4: The Auction is Live
When the auction is live you will receive a link to the Auction and will be able to track the bids coming in.
Details on the Auction format: Contractually we are committing to up to 3 auction cycles to achieve a successful purchase price. The Hubzu auction cycles are Two (7 Day Auction cycles) and a 3rd (4 Day Auction Cycle) . This format is in place to source a qualified buyer within 2 weeks of signing the contract and then provide two weeks for the escrow process and closing around 4 weeks after the initial contract signing.
When the first auction cycle is complete the plan is for you to have a fully qualified offer from the winning bidder who bid the reserve price or higher. At the end of the auction cycle, if there is a winning bid above the reserve price you will have the option of rejecting that offer or accepting that offer. You are in Control of the deal.
If a winning bid was not received during the first auction cycle a second auction cycle will be started, If a winning bid was not received during the second auction cycle a Third auction cycle will be started. Historically based on Hubzu data most successful auctions take place in the second or third cycle.
If you accept the winning bid you will receive all of the buyers contact information and you will proceed as normal with a wholesale transaction to obtain POF and have the winning bidder sign an assignment contract. Once the assignment contract is signed you will then proceed to the Title/Escrow stage with either a Title Company or Attorney depending on the state the property is in.
Once the Escrow process is complete, the property will close and everyone is paid.