Frequently Asked Questions

RIO Genesis is a comprehensive real estate management and transaction platform with unique tools and functions for all segments and aspects of real estate. We offer specialized systems and tools for various entities and individuals within the real estate industry as well as the ability for coordination between them.

Our largest user group is of course real estate agents and brokers that can then interact with our institutional and investor clients directly within the RIO Genesis system effectively becoming their “troops on the ground”.

In addition, we also have customized portals with complete tools for all others involved in a real estate transaction to seamlessly integrate and participate within a given transaction or portfolio. This includes, Title & Escrow, Property Repairs/Preservation, Valuation, Inspection, due diligence, vendor management as well as many others.

RIO Genesis is a technology platform only and does not own nor participate in the sale of real estate or non-performing loans. We are merely a technology provider.

A non-performing note is a great way to buy real estate at a very steep discount off the current market value. i.e. paying 55-65% of the home’s value. Non-Performing notes are loans where the borrower has fallen behind on making their scheduled monthly payment. Since the loan is not paying, banks or hedge funds will sell these notes for steep discounts.

REO stands for “Real Estate Owned”, this is an industry term commonly used to refer to foreclosures and bank owned homes. It can also include other institutional owned real estate acquired by means other than purchase - foreclosure, deed-in-lieu, coordinated sale, and even government owned properties.

As the RIO Genesis system was originally built for those in the default industry, many of our users are in fact involved in the sale of REO properties and many of the homes listed on our site tend to be foreclosures and other types of bank owned properties.

REO is “Real Estate Owned” you are buying the actual property free and clear albeit usually in “As-Is” condition. An NPL is a “non-performing loan” in this case you are not buying the property but the note – usually secured by a mortgage or other form of lien on the property.

To simplify – with REO – you are buying the property. With an NPL you are buying the loan on the property, which you then may foreclose if it remains in default and then acquire the property through foreclosure, deed-in-lieu or other means.

REO properties are generally sold at or close to fair market value whereas an NPL may be purchased at substantial discounts, sometimes for as little as 25 cents on the dollar.

However, with an NPL purchase you must continue the process to get title to the property. In many cases foreclosure is not necessarily the best option to profit when purchasing an NPL, there are other methods and ways to make money when purchasing an NPL.

The NRBA is the National REO Brokers Association, (www.NRBA.COM) a trade group that provides training and support to those real estate agents and brokers that specialize in representing banks and other financial  institutions in the listing and sale of REO properties, as well as other aspects of default real estate. Including: Valuations, Due Diligence, Short Sales, Rehab, Management, etc. The NRBA members are considered the best and most knowledgeable in the industry when it comes to default real estate. All NRBA members nationally are on and integrated within the RIO Genesis platform and available to assist at the local level all users of the RIO Genesis platform including those purchasers of NPLs.

This is a client directive from our note sellers. There are many unscrupulous individuals not familiar with nor adhering to fair debt collection laws when trying to resolve a defaulted loan. The clients on the RIO Genesis platform do not wish to do business with these individuals or entities with a history of violating the law. This is legitimate business for legitimate people.

Several reasons: The first is to cover the cost of your background check. The second is to cover your annual subscription to the platform and use of our software to manage your real estate and NPL. The third and perhaps most important reason is that it helps to ensure to our clients that only legitimate investors are on our platform.

This will vary, but as per one client:  For Non-Performing Notes, on average, returns can range in the 15-20%. Historically, some clients have netted greater than a 25% ROI, and over 50% annualized returns when purchasing discounted non-performing notes. For Performing notes, we see the returns average around 8-12% annualized.

Currently, there is over $600billion in Non-Performing loan debt still tied up in the five major banks along with all of the GSE’s (Fannie, Freddie, HUD). There are still thousands and thousands of homes under water or no longer performing on their mortgage.

You’ll need to partner with a licensed servicer to buy notes. There are licensed Servicers with teams you may utilize that will assist in handling all servicing and borrower outreach. We have a respectable number of referrals we can offer you if you’re looking to find a compliant and licensed servicer of your choosing. Here are a few that work with individual investors:

Granite Strategic Investments is a company dedicated to infusing knowledge and education to newer investors looking to get into the note buying market place. Loans are typically available in all 50 States. They suggest you begin in your own local market to get you comfortable, and then begin looking at loans out of state that may have the same property criteria as the loans you purchase in your home state. Most of their clients back in 2010 and 2011, had never purchased a note before, and now years later most of them are buying loans all throughout the country. The comfort will come with time and dealing with us on a consistent basis. In addition, we have access to well-known note educators that we will be glad to introduce you too.

We specialize in providing notes with fair market values less than $ 200,000. However, there will be notes with higher values, but many of the loans offered here for sale are within the low-to-moderate income range.

This is determined by the individual seller of the note but typically they include updated and recent due diligence information for each loan offered, at no cost to you, at times, investors can complete their due diligence inside of 24-48hrs and fund the deal inside of 72hrs (from start to finish). Others can take up to 7-10 days, and fund within 72hrs from then. It will all depend on your loan count, and volume. The more loans you go after, the longer period of due diligence is typically allowed. You may also reach out to a local broker on the RIO Genesis platform and have them assist you locally on the due diligence.

This varies by seller, but typically you will see an updated BPO/Market Valuation, a Prelim (O&E Report), Full Collateral Images, Copies of the assignment and allonge to the property, along with all updated servicing comments and communication with any known occupants or homeowner(s).

With Some sellers the answer is, Yes. Many have an asset management team responsible for borrower outreach on their loans, most of the time, the note purchaser wishes to keep the management of the asset in place. This is something you or your investors can typically do for a nominal monthly fee (i.e. $50.00/per file)

There is no limit on the amount of notes/loans you may purchase at any one time. The platform was built to handle portfolio level buyers or single loan buyers.

No, for privacy reasons we do not disclose the borrower’s name or the seller’s name until further along in the process.  Both the borrower’s name and the seller’s name will be revealed during the closing process.

Yes, with seller permission, we can provide notes and pool offerings in excel format, upon request.

You may cancel your offer at any point prior to your due diligence being complete. Once you’ve identified your due diligence is complete, and submit an offer, we would expect you to honor the offer.

The seller of the note will move forward to drafting up the Mortgage Loan Purchase Agreement (MLPA), and then schedule the date of funding and service transfer.

With most clients, during normal business hours M-F, you should here back within minutes. Outside of normal business hours, they will typically respond within 24-48hrs.

There is no limit on the amount of notes/loans you may purchase at any one time. The RIO Genesis platform will allow you to compare and purchase multiple notes at a time.

You may cancel your offer at any point prior to your due diligence being complete. Once you’ve identified your due diligence is complete, and submit an offer, we would expect you to honor the offer.

No, once your due diligence is complete and we’ve accepted your offer, we ask that you do not cancel the transaction.

The seller of the note will move forward to drafting up the Mortgage Loan Purchase Agreement (MLPA) , and then schedule the date of funding and service transfer.

Once the service transfer has taken place, you will receive an assignment of mortgage and an allonge that ties your entities ownership to that loan/property.

This will all depend on your current strategy. If your goal is grow your available capital, then non-performing notes can provide a fix and flip strategy that could allow you to grow your capital. You can also broker notes to your investors to grow your capital position as well. If you are seeking a cash-flow stream and a passive yield, then re-performing notes provide a great way to receive this passive income.

Once your due diligence is complete, most note sellers ask you to fund and close within 72hrs. If you need more time, 7-10 days.

Via a wire transfer or ACH Payment