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Rehab and Restoration

An overview of the Rehab and Restoration program

Questions

Answers

Question: What Is The Overall Concept?
Answer 
Digital Matrix Group (DMG) partners Investors with pre qualified Contractors and Brokers to locate, acquire, rehab, and sell distressed assets both domestically and globally. To that end, a Contractor Registers with DMG and they and their Subcontractor Network are thoroughly vetted with respect to both past performance and required licensing. The Contractor then puts forth an Asset Acquisition Request containing detailed information on the asset; a bidding recommendation; and a broker's price opinion (BPO). If accepted, the Investor engages the Contractor in a direct contract relationship. Generally, the Contractor has brought forth a Real Estate Agent or Broker whom will handle the actual purchase of the asset as both parties are known to each other and know the area.

Question: What Are The Requirements To Participate?
Answer 
All Contractors and Subcontractors must be citizens or legal residents of the country they are providing services in. They must possess the legal licensing required to perform the services required and they must have a MINIMUM of One Year of documentable experience. Real Estate Agents and Brokers must have a license to operate in the area of transaction; they must be a member in good standing with their Association; and they must have access to list in their Mortgage Listing Service (MLS).


Waivers for Criminal History are taken on a case-by-case basis and at the sole discretion of the Investor. The ability to read, write, and speak the native tongue of the Country of Record of the asset is mandatory.

Question: Who Provides What?
Answer 
The Investor provides all materials. The Contractor provides all tools and manpower necessary. The Real Estate Agent or Broker provides all necessary asset transactional services. It is that simple.

Question: What Are The Asset Requirements?
Answer 
While any asset will be considered, there is a heavy emphasis upon Single Family Residences (SFR). There are no hard caps to the purchase and rehab and the targeted price range is $350,000 and above, although lower priced assets will be considered. Depending upon Investor, the general requirements are that there is a required twenty percent (20%) profit margin upon sale. As a general rule, assets requiring changing of the footprint; hazardous material removal; common utilities adjoining; or post conveyance, distressed assets.


An example would be that a $60,000 asset purchased requiring $20,000 in repairs, would need to have a final broker's price opinion of $100,000, or above.

Question: How Does Pay Work?
Answer 
The Rehab and Restoration program functions in much the same way as how speculative housing construction operates. Upon acceptance of asset, the Investor will pay One Third down, at the beginning of the project and after an accounting of all deliverable materials to the jobsite.


At the midpoint, the Investor will review the project and if so warranted, the Investor will cause to be paid another One Third of the balance due.

At the completion of the project, the Investor will rely upon the Real Estate Agent or Broker's approval. Any punch list or change orders will be completed, prior to final payment. Waiver of Liens are executed and any necessary remedy(s) occur. Upon acceptance by Investor, the final One Third of balance due is paid.

Payments may be executed through cashier's check or by direct deposit, according to the Contract between Investor and Contractor.

Question: What Is My Legal Relationship?
Answer 

Contractors and their Subcontractors are explicitly, just that. At no time, whatsoever, shall either Contractors or Subcontractors be the employee of either the Investor or Digital Matrix Group.

With respect to contractual status, all services rendered are done such directly with the Investor. There is a Master Service Agreement entered into before any services may be performed by the Contractor or Subcontractor. Rehab and Restoration is accomplished by and through unique and independent contracts on a per asset basis.

Digital Matrix Group operates as a clearinghouse facilitating workflow between Realtors, Investors, Contractors, and their Subcontractors.

Question: Right To Lien
Answer 

As opposed to most Mortgage Field Services Industry operations, ALL contracting performed requires customary State Lien Laws to be obeyed. It is the Contractor's responsibility to facilitate such either through third parties such as ZLien or by and through their own in house counsel.

With respect to our International Operations, this is on a country-by-country basis and is addressed independently at the time of Registration.

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