Experience, Knowledge, Professionalism
Our management team has created and operated three prior affiliated distressed real estate investment funds that have 140 accredited wealthy investors who invested several million dollars. The three prior funds have owned over 100 distressed houses that were purchased and repaired for cash before they were rented for years and some houses have been sold for profits. Our prior investment funds are still operating and the investors are continuing to receive their quarterly income checks.
Throughout history, the U.S. economy has had a financial slowdown / recession approximately every 4 to 7 years. The recessions have caused the stock market prices and the real estate market prices to fall significantly in value. When this happens, millions of people have lost their job and usually their house or property through foreclosure, bankruptcy or short sale.
The lenders and the bankruptcy courts sell at auction each distressed house or property to the highest cash bidder. Most of these houses and properties need some amount of repair before they can be rented or sold. The people that aren’t able to purchase another house, become renters and the increased demand drives up the rents and property prices. To stimulate the economy, the Federal Reserve lowers interest rates, pumps up the money supply and the economy slowly recovers.
Eventually the renters and the first time buyers start buying the limited supply of available houses and properties. The demand pushes the rents and the selling prices to the old prior highs. The current real estate depression that started in 2007/08/09 has only recovered approximately 30% to 60% of the fall in the price of houses and properties in most areas. Most houses still have between 50% and 100% price increase to go just to get back to the 2008 highs.
There are also millions of people that don’t pay their real estate property taxes on time each year. The county treasurers offers for sale at their auction to any cash buyer a tax certificate (which is the first lien on the property title). The buyer of each tax certificate will earn a high rate of interest of between (10% to 36%) per year during the redemption period of 1, 2 or 3 years depending on the state. Our prior investment funds have also invested $10,000,000 cash into the purchased of several thousand tax certificates on real estate properties in 20 states. Over the last 175 years, the average redemption of all sold tax certificates has been between 92% and 96%.