The Covid-19 pandemic is having an interesting effect on the real estate market. Mending from a sharp drop in activity, the real estate market has begun to heat up (since mid-May) as inventory remains low. This is a reflection of both the release of pent-up demand and a desire by some to move out of larger cities and into suburban and rural areas.
Not every area of the country is experiencing this mini boom. Some of the largest cities in the U.S. are experiencing a reciprocating effect as those homeowners mentioned above leave, slowing activity and softening prices. Additionally, mortgage rates have dropped to historic lows and are expected to stay low for the rest of 2020.
With the market correcting, we have prepared our most expensive asset to go back on the market shortly. If that asset sells, we will be making another distribution and will be sending a statement reflecting updated balances.
We remain confident that we can sell the rest of our real estate assets. There is still a hold on our non-performing loans in foreclosure. Most states continue their moratoriums on foreclosures and evictions. These moratoriums have stopped the pipeline of foreclosed mortgages turning into REOs, which are then rehabbed and sold by our REO team. Because the pandemic is not showing signs of slowing, and 2020 is an election year, it is hard to predict when the moratoriums will be lifted.
We would much prefer to finish the foreclosures and realize a higher return by selling the portfolio’s properties. We are pushing hard to close the fund by year’s end. If forced to, we will sell the remaining mortgages at a discount in order to accomplish our goal.
|Performance Since Inception|
|Annualized Return||Final Annualized of Return to be determined at the end of the fund|
|Land Contracts Summary|
|Face Value of Notes||$16,591|
|Non-performing Notes Summary|
|Modified Notes Summary|