Last month, we attended the Five Star Conference in Dallas, Texas. This is one of the larger conferences that attracts banks, mortgage servicers, Realtors and investors. We were able to meet
with the heads of two of our auction company partners, as well as the individual in charge of Wells Fargo’s distressed assets. The conversations were fruitful and gave us insight into where the
REO/Auction industry is going to be focused in 2017. The importance of networking in this industry cannot be overstated.
In our meeting with one of our auction vendors, we were able to craft a new strategy in the way we purchase a certain class of properties. That strategy is paying off. We are winning a much
higher percentage of properties on which we bid. We now can narrow down the size of the initial property list and perform quality diligence up front, which helps us bid on the properties once the
bank lowers the price.
We have also seen an uptick in the amount of non-performing pools that are coming onto the market at more reasonable prices. We have closed on a number of small pools and believe we will
continue to see volume increases in 2017.
Featured Asset:
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Our featured property this quarter is a 3-bedroom, 2-bathroom, 1,836 sqft single family home that sits on a 2.1-acre lot. It is located at 66 Dead End Lane, in Lehighton, Pennsylvania.
Investment Stats (rounded):
- REO Purchase Price: $76,436
- Expenses: $27,613
- Sold Retail: $155,000
- Gross Profit: $50,951
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Fund Performance:
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