Fund Type: Distressed Real Estate
Fund inception: 2009 (fund dissolved as of 12/31/2015 )
During the housing market collapse, Stonecrest recognized the value of investing in distressed real estate. The Stonecrest Income and Opportunity Fund invests in residential REO properties located in low-income communities throughout the United States. Our strategy is to maximize the Fund’s assets by investing in as many homes as possible during the period the Fund remains active. Our aim is to secure low purchase prices and then provide financing or resell each property quickly for cash.
How it Works
Properties are acquired in bulk packages via Stonecrest’s nationwide network of qualified lenders, loan servicing companies, and government agencies. Following acquisition, we execute resell strategies in wholesale or retail markets. Between the 4th and 5th year of the Fund, we sell the equity in land sale contracts and notes secured by deeds of trust or mortgages. Mortgages are sold into the private investor and secondary markets. Stonecrest strives to generate an all-cash price on each mortgage for 80% of its face value. We anticipate liquidating all properties and mortgages and distributing cash and other assets to investors within five years.
- Steady dividends in combination with superior growth potential.
- Strong, national network of industry professionals to move properties quickly and profitably.
- Participation in a diversified portfolio of real estate from all over the U.S.
- Professional, full-service account management.
- Involvement in a fund that helps low-income families own their own homes, often for less than it would cost them to rent.
|Preferred Interests Offered||4,000|
|Price per Preferred Interest||$5,000|
|Maximum Offering Amount||$20,000,000|
|Anticipated Return||20% - 30% Annually|
|Preferred Return||8% Annually|
|Annual Dividend Paid (Paid Quarterly)||5%|
|Final Distributions||100% Members and 0% Manager until Members receive 100% of original invested capital, then 50% Members - 50% Manager as long as Members receive a minimum of 8% preferred return.|
|Expected Offering Expenses||$50,000|
|Term of Fund||5 years|
The Stonecrest Income & Opportunity Fund-1, which was opened in March of 2009 in order to take advantage of the severe downturn in the real estate market, has finally closed. Even though the types of real estate, mortgages and the sellers we faced changed over the life of the fund, the one constant was the […]
When we started the Stonecrest Income & Opportunity Fund in 2009, we believed that the window to purchase distressed real estate assets would last approximately five or six years. However, we now believe that the opportunity to purchase these types of assets will exist for many years to come and, with that in mind, we […]
The national real estate market continues to improve and the demand for housing is increasing. Investors looking for consistently higher paying investments than what they can find with comparable fixed income investments are turning to performing modified loans. This increased activity is supporting our objective of selling off Stonecrest Income & Opportunity Fund-1’s remaining assets […]
As we mentioned last quarter, we made the strategic decision to resolve the rest of our assets and sell for maximum (or higher) profits rather than liquidating them at a discount. During the first quarter of 2015, we were able to sell or dispose of a number of low valued assets. We’ve also finished the […]
We have slightly modified the Stonecrest Income & Opportunity Fund-1 strategy in order to maximize our returns on pools of Land Contracts, Modified Loans and Non-performing Notes. We had previously been marketing them under their main ‘type’ – but now we are breaking them into sub-categories. We create pools based on geographic area, size of […]
The Stonecrest Income & Opportunity Fund-1 continued to liquidate assets throughout the third quarter. We sold eight separate pools of assets. We are selling performing notes, non-performing notes, loans in bankruptcy, high and low value REO’s, etc. delivering activity in all segments of the fund. Buyers usually focus on one or two type of asset classes so we are continually […]
We had a robust quarter in our Notes Department, selling 33 notes for a gross profit margin of approximately $700k. Our Retail Department also had a very busy quarter, reflected in their strong sales. They closed 130 transactions and many more properties are in escrow. This past May, Stonecrest attended the Mortgage Banking Secondary Conference […]
Stonecrest Income & Opportunity Fund-1 is continuing to market various segments of our loan portfolio, as evidenced by a recent transaction where we sold both land contract and modified loan pools to the same buyer. One of our sales strategies for SIOF is to group the fund’s assets so that they share similar profiles, such […]
The Stonecrest Income & Opportunity Fund-1 marketed part of our land contract inventory and received three bids from qualified bidders. At the very end of December, we closed the first tranche (eighty-five) of a trade with a firm from Texas. We expect to close a second tranche with them shortly. We will be marketing, cleaning […]
The Stonecrest Income & Opportunity Fund-1 had another solid quarter with profits derived mainly from our retail real estate and non-performing notes sales. We continue to create our own real estate inventory by either foreclosing or convincing borrowers to deed their properties over to us in lieu of foreclosure. One of the most challenging parts […]
We’ve experienced a very solid second quarter with the asset managers making progress on the non-performing loans they are working out with borrowers. We purchased a handful of smaller pools of non-performing notes in the second quarter and have recently bid on a few larger packages. Even the most difficult loans have returned dividends so […]
The real estate market continues to improve in most parts of the country with the Bay Area being one of the brighter markets. Stonecrest has been working to improve the positioning of our land contracts for their eventual sale next year. The increasing values across the country will help us attain a solid price for […]
|Performance Since Inception|
|Land Contracts Summary|
|Face Value of Notes||$2,277,765|
|Non-performing Notes Summary|
|Cost of notes:||$11,933,668|
|Modified Notes Summary|