About Us
North American Real Estate Consulting (formerly NJ RE Consulting) was formed in 2017 by Ahmed Khawaja, Michael Morris, and Bilal Afzal with over 50 years of cumulative experience in real estate, REOs, Real Estate Private Equity Funds, and Business Management.
Since its inception, our team has helped hundreds of clients buy and sell homes throughout New York, New Jersey, Connecticut, Massachusetts, and Rhode Island. We understand that every person has a unique real estate dream. That’s why we emphasize building a relationship with our clients to learn what matters when it comes to their homes.
Your agent can serve as your trusted advisor as you work toward your real estate goals. To date, North American Real Estate Consulting has assisted asset companies and retail clients in listing over four hundred and fifty assets through our team of real estate licensed professionals.
The objective of North American Real Estate Consulting is to highlight the advantages of trading properties acquired from distress (REO, Short Sale, Tax Sale, etc.).
Our experience is that the rate of return is anywhere between 20% to 35%, depending upon the area and re-work required. The annualized yield could be higher if a commercially viable property is held and leased for some time.
Real estate owned or REO
is a term used in the United States to describe a class of property owned by a lender—typically a bank, government agency, government loan insurer, or any other financial institution, due to a foreclosure. Such properties are held in a portfolio of similar properties. The financial institutions do not wish to keep such inventory for long as buying and selling properties or leasing is not their primary business.
Short sales
are when an owner sells their house below its mortgage value. A short sale typically happens when the owner is under financial distress and is behind on mortgage payments. The owner is obligated to sell their home to a third party while the sale proceeds go to the lender. The lender must approve the short sale before it occurs.
Tax Sales
generally occur when municipalities collect taxes that the property owner has not paid for at least five years for residential properties and three years for commercial properties. Offering property at public auction achieves this by either selling the property or forcing payment of the property taxes.
The Trade Mechanism
REOs and Short Sales can be listed by any real estate broker, although they are frequently listed with brokers specializing in distressed sales. Buyers can also look for such properties on a Multiple Listing Service (MLS). Tax sales occur via public auction. A few critical markers:
Buying distressed properties
• Homeowners or investors facing default are required to list short sales on the market with licensed brokers.
• Buyer’s agents, if not the same, review the available properties with the buyers.
• Such properties are usually listed on an “as-is” basis.
• An offer is made for such properties.
• If accepted, the terms are closed within a short period or upon Bank approval (short sales only).
Renovating Properties
• They should quickly review the property for any damages or up-keep, like paint and upgrade of appliances.
• Budget and cost the changes and get the work done in the shortest possible time.
Sale of property
The net return on investment depends upon how experienced and organized the team is and how quickly the property can be turned around and sold at fair market value.
We have this experienced team at your disposal; we will get a listing of either REOs or short sales, negotiate with the bank, and renovate the property to be sold. In 2018 – 2021 our average realized transaction yielded a net return of over 25%, and properties were purchased and sold within six to nine months.
