Real Estate Growth Fund sold 28 properties and 3 mortgages in the 3rd quarter. REGF also continued to purchase properties through auction channels as well as banks.
We are networking with other large banks to increase our deal flow through them. The real estate market has been slowing overall for a variety of reasons. In part, it’s a victim of the economy’s success. The Federal Reserve is seeking to keep inflation in check by raising interest rates, which makes mortgages more expensive. Additionally, a crackdown on immigrant labor and tariffs on imported lumber have made the cost of construction materials more expensive. And it doesn’t help that the Tax Reform Act limits deductions, making home ownership more expensive for those with a mortgage.
Most of our purchases involve vacant homes that we can turn around quickly, minimizing the impact of a slowing market. Having said that, we continually assess the markets around the country by keeping in touch with our large Realtor base. We also are bidding more conservatively especially in areas that have appreciated the fastest.
We will continue to monitor the market and make adjustments when necessary in order to look for any new opportunities that may arise.
Our featured property is located at 4759 Dandelion Drive in Orlando, Florida. It is a 1,405 sqft, single family home on a 8,163 sqft lot. It has 3 bedrooms and 2 bathrooms. It was built in 1987.
Investment Stats (rounded):
- REO Purchase Price: $85,000
- Expenses: $47,300
- Sold Retail:$175,000
- Gross Profit: $42,700
|Performance Since Inception|
|Land Contracts Summary|
|Face Value of Notes:||$214,413|
|Non-performing Notes Summary|
|Cost of notes:||$556,632|
|Modified Notes Summary|