Strategic Realty Fund sold thirty-five properties and thirty four notes in the first quarter of this year. The fund still has a significant amount of non-performing notes that are either being modified or are going through the foreclosure process.
Unfortunately, foreclosure can take multiple years in some states and, once finished, the eviction can also be lengthy. Some notes can be sold during the foreclosure process but, for the majority, it makes more economic sense to finish the process, remodel the property and sell it through our realtor partners. This boosts the return for the fund.
Due to these drawn-out processes, we’ve decided to extend the fund through 2019, with the first tranche of capital distributed within thirty days of the end of the third quarter and the remainder being distributed within thirty days of the end of the fourth quarter 2019. We believe this will help to maximize our return.
Our featured property this quarter is located at 4410 Oglethorpe St #617 in Hyattsville, Maryland. This 880 sqft condo has 2 bedrooms and 1 bathroom. It has been fully renovated to include a stunning new kitchen featuring granite countertops and stainless steel appliances, new carpet, all-new interior doors, and a full bathroom remodel.
Investment Stats (rounded):
- REO Purchase Price: $63,549
- Expenses: $46,062
- Sold Retail: $149,900
- Gross Profit: $40,289
|Performance Since Inception|
|Land Contracts Summary|
|Face Value of Notes||$795,721|
|Non-performing Notes Summary|
|Modified Notes Summary|