Use the Schedule of Real Estate Owned (SREO) report as a top-level summary of your entire portfolio including debt, equity, and income. This document will show you your buildings and land as well as who the owner is, when the property was acquired, the acquisition price, and the expense. You can also see what needs to be done on or with that particular property to keep it up to date with this particular SREO report.
Where to Find the REO Report
This report is created every time that you press the “REO” button on the paperless cashier.
Where to Find the SREO Report (Online)
You can access this report in almost an identical way online through our Property Management Portal. You will need to log into your portal account and then click on the “Cashier” tab. Then click on the “Cashier/Schedule of Real Estate Owned” link. This file is a PDF file located under management_documents under Order History from your last transaction with us.
What to Look For
On the report, you will see your name at the top of the page. You will see the location of the property and street address as well as a brief description of what is going on with that property. You will see any outstanding taxes due for the building or land displayed here by default, but if there is something else that needs to be recorded for this particular property, you can add an additional line item here or here in eSellerate software. Just press “Enter” twice after opening up a new line item to edit your text and enter your own information.
If you find something incorrect on this report, you can edit your changes and then press “Save” to record your changes.
How to use the SREO Report
The Schedule of Real Estate Owned report is very informative and you can use it in a number of ways. Here are the top tips for using it:
Keep in mind that all properties for which you have not obtained an official title are deemed to be 'Qualifying Buildings' and so will count towards your Net Asset Value. These properties should probably only be used for cash collection purposes, or as collateral for obtaining a mortgage on another property or land. If using your SREO report as collateral to secure a loan or debt – remember to either include the property/land on the mortgage or list them separately on the mortgage in some way. If they are used for a debt, always add the property/land to the balance sheet.
If you have purchased a property under an LLC, you may want to list it under the LLC name or by its street address rather than your own name as co-owner. You may also want to notify the new owners of any pending issues regarding any previous owner like unpaid taxes. This is preferable in many situations as it benefits the entire company if you know that all owners are on board and have agreed with one another.
This can be a very helpful tool for keeping track of your income properties and they only make up a small portion of your portfolio considering everything else you own. You can use your schedule of real estate owned to keep track of the types of buildings you own, the location, and the amount you paid for them. You can use it as a reminder of any outstanding issues or taxes and expenses that need to be paid.
You will want to make sure that all properties on your SREO are kept up to date. The “Owned” property column should always be filled out with the current owner if there is one. If there isn't a current owner, then go down to “Sold” and fill in who sold it to you or when you purchased it and when you sold it. You can use the “Sold” column to note when you sold it and who the new owner is. If there is no “Sold” column, add one in and fill in all of that information there if you no longer own it.
Be sure to have good records of any expenses incurred while owning a property. Whether it was fixing up the interior to make it more attractive or paying taxes, you will want to have good record-keeping for your entire portfolio. You will need this information if you decide to sell or refinance your properties so be sure that all of your records are accurate and in order. If you do not keep good records, you may find yourself in a situation where your title is unclear or the land/building is difficult to sell. This could lead to wasted time and effort in trying to sell the property.
Key Tips for Using the SREO Report
Be sure to review this report before you start using it again. There is no reason to just toss an old report at the bottom of a pile if something needs to be updated or added. Think ahead so that you can make the most of your schedule of real estate owned. Make sure all properties on this list are up to date with current owners and funds owed.
When you are reviewing this report, be sure to check the “Owned” column to see who is listed as the current owner. This will indicate what the current owner(s) paid for that property. If you purchased it under an LLC, fill in the LLC name or street address. Do not include any of your personal information in this column.
If there are no “Sold” entries in your report when you got a new one, you will need to update this section by listing whose property it was sold to or when and for how much money you sold it for. If there is no “Sold” column, add one in and fill in all of that information there if you no longer own it.
Be sure to include any property/land that you have bought and sold as an LLC or co-owner. Make sure that you purchase these with an LLC or in your legal name as a co-owner so that it is easier to track your expenses and revenue. You may also want to note any outstanding taxes for the buildings and land before deciding on your next step that will be needed to properly pay them off.
In short, the SREO report can offer a lot of information if it is used correctly. It can be used to keep track of the buildings, land, and loans that you have bought and sold. It can help you keep track of the debts that you have incurred with these purchases. Take the time to review this report every couple of months so that you know who owns what property and how much it was purchased for.
In most instances, when a property is purchased at a foreclosure or auction sale even if it is immediately resold to another buyer at auction, it is considered by the IRS to still be an SREO property (unless specifically excluded from SREO status).
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