Real Property not only includes buildings and other structures, but also rights to the land itself. The Real Property that we consider can be either for rental purposes or act as a conduit for seller financing opportunities.
In identifying potential Real Property opportunities, we seek areas where bidding competition is reduced due to time constraints or by the complexity of the transaction. For example, we seek to participate in Sherriff’s auctions, bankruptcy auctions and in direct negotiations with bankruptcy trustees, property receivers, and lenders where the assurance of a closing in a time sensitive matter is more important than pricing.
When evaluating Real Property opportunities, we seek opportunities that are connected to factors including but not limited to:
Bank or other lender foreclosure properties (REOs) – many institutions that own REOs do not have the expertise, experience, time, or desire to take the necessary steps to maximize the property value and return.
The real estate requires repositioning, leasing, improvements, or other attention and management expertise in order to realize market value.
Acquisition price typically well below replacement cost and/or real market value. Expected discounts to market value will vary but would typically be greater than 35%.
Geography of purchased real estate expected to be major metropolitan areas or sub-markets nationwide with a population of 500,000 or more.
The real estate provides some return on investment during the holding period with expected total return upon disposition to significantly increase overall ROI to our investors.
Typical size range from $250,000 to $2,000,000.
All markets and submarkets have their own unique characteristics that make them and different properties within them more or less attractive for investment. In most markets ‘Sponsors’ can be engaged who specialize in their real estate market niche and who have extensive track records and experience in their area of expertise. One of our goals is to seek out and work with those Sponsors in markets that we consider for investments. These Sponsors are typically interested in participating in smart investments in their market and in many cases end up working with us on lucrative investment opportunities.