Fund News: Stonecrest Strategic Realty Fund – Q2 2016

Stonecrest has had solid success working with and purchasing properties from Bank of America’s Distressed Asset Division. This division sells properties they consider “ titled impaired”. The title may not actually be impaired, but the bank wants to sell these assets and get them off the banks’ books. Many times the bank has just finished litigation with the old homeowner and now doesn’t want to take the time to evict them. The bank would rather take a discount and sell the asset to a sophisticated investor who understands the risks and rewards with this type of purchase.

We have been courting Wells Fargo, as well as other banks, and are hopeful that they will start selling us these type of assets as well.

During summer each year, we review the fund’s assets in order to identify those properties located in areas where the local market is affected during cold weather seasons. We then accelerate the rehabilitation of those properties in order to get them on the market before demand lessens.