Strategic Realty Fund had a solid 3rd quarter, selling 20 properties and 10 mortgages for a nice margin. SRF continued to purchase well-priced assets throughout the country, mainly through banks and Xome auction company.
The real estate market has been slowing overall for a variety of reasons. In part, it’s a victim of the economy’s success. The Federal Reserve is seeking to keep inflation in check by raising interest rates, which makes mortgages more expensive. Additionally, a crackdown on immigrant labor and tariffs on imported lumber have made the cost of construction materials more expensive. And it doesn’t help that the Tax Reform Act limits deductions, making home ownership more expensive for those with a mortgage.
Most of our purchases involve vacant homes that we can turn around quickly, minimizing the impact of a slowing market. Having said that, we continually assess the markets around the country by keeping in touch with our large Realtor base. We also are bidding more conservatively especially in areas that have appreciated the fastest.
We will continue to monitor the market and make adjustments when necessary in order to look for any new opportunities that may arise.
Our featured property this quarter is located at 398 West Main Street, Unit 4D, in Hyannis Massachusetts. It is a condo built in 1982. The unit has 2 bedrooms, 1 bathroom and is 864 sqft.
Investment Stats (rounded):
- REO Purchase Price: $74,170
- Sold Retail: $137,900
- Gross Profit: $26,340
|Performance Since Inception|
|Land Contracts Summary|
|Face Value of Notes||$665,074|
|Non-performing Notes Summary|
|Modified Notes Summary|