Strategic Realty Fund has been acquiring vacant properties that require relatively minimal repair and are located in markets that are strong. We phased out purchasing occupied properties some time ago. Our experience shows that the discounts for vacant properties are not substantially different than for occupied ones. Our goal is to increase the rate of inventory turnover while maximizing return.
Stonecrest always gets a minimum of two interior valuations before bidding on a property. We also ask for a detailed estimate for the repairs and remodeling. With that being said, we sometimes need a third valuation as the first two can be far apart in financial estimates of property modification costs.
There are properties in the fund which hold the prospect of larger profits and we anticipate our yield to move up as those properties sell.
Our featured property this quarter is located at 1605 W. Briscoe Ave., in Artesia, New Mexico. It is a single family, 1,678 sqft home with 3 bedrooms and 1.75 baths. The property was built in 1986 with a lot size of 8,158 sqft.
Investment Stats (rounded):
- REO Purchase Price: $97,681
- Sold Retail: $165,000
- Gross Profit: $20,938
|Performance Since Inception|
|Land Contracts Summary|
|Face Value of Notes||$698,089|
|Non-performing Notes Summary|
|Modified Notes Summary|