Sales of real estate slows during the winter months, especially in the mid-west and eastern parts of the country. With that being said, Strategic Realty Fund was able to sell twenty-three REO’s and nine mortgages in the first quarter of 2017, as well as modifying 3 loans. Our acquisition department has had success purchasing 31 NPN’s from banks and 45 REO’s mainly from auctions and a new program we identified called “Total Debt”.
There are two main programs that enable investors to purchase HUD properties. These are CWCOT and the Total Debt programs. We have been purchasing properties through the CWCOT program with success and now have started to purchase through the Total Debt program. We have found a seller that has sold us a pool of Total Debt properties at an attractive price. In order to be considered a buyer for these properties, a company has to be a nationwide buyer and get recommended by a certified auction company. Stonecrest satisfies both these criteria.
At the beginning of May, Stonecrest will be attending the Mortgage Banking Secondary Conference where we will network and learn more about the latest industry developments. The mortgage and servicing industries are constantly evolving, but there is always an opportunity to purchase undervalued assets. The number and type of assets may change, but the opportunities are always there. It’s our challenge to figure out how to best take advantage of those opportunities.
Our featured property this quarter is a 3-bedroom, 2-bathroom, 1,548sqft single family home built in 1946. It is located at 5241 Bryant Avenue, Klamath Falls, Oregon.
Investment Stats (rounded):
- REO Purchase Price: $76,912
- Expenses: $14,271
- Sold Retail: $119,000
- Gross Profit: $27,817
|Performance Since Inception|
|Land Contracts Summary|
|Face Value of Notes||$912,847|
|Non-performing Notes Summary|
|Modified Notes Summary|