What Is a REO Schedule?

REO stands for “real estate owned” and a REO schedule simply means a list of all of the real estate owned by your firm. So how do you complete a basic REO schedule?

Start by listing each real estate investment that your firm has ever had an equity or credit ownership stake in. Most requestors of REO schedules will also want you to include a column for the fund name, if applicable, as well as the address, property type, total square feet, number of units (if multifamily) or number of beds (if hospitality), and current projected 12 months’ NOI. 

For equity investments, they will also want you to input the acquisition date and price, disposition date and price (if applicable), and ownership percentage of each investment. Now, ownership percentage may seem like a simple request at first, and it usually is. However, you might think that they mean the ownership percentage after current projected sale’s waterfall distribution. That is a complicated request and likely not what they want. Instead, most requestors of an REO schedule want the percentage of equity invested by your firm divided by the total equity invested by all owners.

For credit investments, they will typically ask for the total commitment amount, interest rate, origination date, and maturity date. In this scenario, the interest rate is too simple of a request. Do they actually want the accrual rate? Use your best judgment here. Explain the rate you listed in a footnote.

Keep in mind that some REO schedules may require additional detail. Having the basics outlined here will most certainly help you complete a schedule of REO faster and more accurately.