The Covid-19 pandemic is having an interesting effect on the real estate market. Mending from a sharp drop in activity, the real estate market has begun to heat up (since mid-May) as inventory remains low. This is a reflection of both the release of pent-up demand and a desire by some to move out of larger cities and into suburban and rural areas. This has led to an increase in activity and prices. Additionally, mortgage rates have dropped to historic lows and are expected to stay low for the rest of 2020.
Not every area of the country is experiencing this mini boom. Some of the largest cities in the U.S. are experiencing a reciprocating effect as those homeowners mentioned above leave, slowing activity and softening prices.
We are seeing more activity in our real estate portfolio and believe that the third quarter Summer selling season should be solid. However, for the most part, our extensive portfolio of non-performing mortgages is still on hold as most states continue their moratoriums on foreclosures and evictions. These moratoriums have stopped the pipeline of foreclosed mortgages turning into REOs , which are then rehabbed and sold by our REO team. Because the pandemic is not showing signs of slowing, and 2020 is an election year, it’s hard to predict when the moratoriums will be lifted.
People have asked if we are seeing an uptick in the number of distressed assets coming to the market. Due to all of the restrictions and moratoriums mentioned above, we have not seen an increase yet and don’t expect to see one until second quarter 2021.
The featured property for REGF Q2 is 174 Blueberry Dr, Burnsville, NC .
The property is a Single family home sitting on a 1.41 acres lot. It has 3
bedrooms and 3 bathrooms for a total of 2,537 sq of livable space.
Investment Stats (rounded):
- REO Purchase Price: $116,261
- Expenses: $39,351
- Sold Retail:$215,000
- Gross Profit: $59,388
|Performance Since Inception|
|Land Contracts Summary|
|Face Value of Notes||$89,877|
|Non-performing Notes Summary|
|Modified Notes Summary|