Fund Type: Distressed Real Estate and Non-Performing Mortgage Loans
Fund inception: 2014 (fully subscribed)
Using our unique expertise and carefully crafted niche within the Non Performing Mortgage Loan (NPML) and Real Estate Owned (REO) markets, we invest in moderate to higher income assets located throughout the United States. Our Investment strategy is either to sell these assets quickly for cash, carry back financing, modify notes, or implement other exit strategies to maximize returns for our investors.
How it Works
Asset acquisition through national Loan servicers and Lenders: The manager has unique relationships with national loan servicers, lenders, hedge fund managers, and auction houses, etc. who understand the strict seller profile and low price requirements set by Stonecrest.
Property Disposition: After acquisition, Stonecrest will use various strategies to bring these assets to an exit. Some of the methods we use include: loan modification, foreclosures, deeds in lieu, realtor cash sales, carry-back financing, payments, short sales/sales of mortgage, rehab and retail sales.
Liquidation of all assets: Our strategy will be carried out over a 48 month period. We will be improving and liquidating all assets during the life of the fund and they will be marketed and sold when advantageous to the fund, but no later than 6 months prior to the end of the life of the fund. Mortgages will be sold into the private investor/secondary markets. Stonecrest plans to generate an all-cash price on each mortgage for 60-70% of its face value. Our goal is to generate as much cash for the Fund as possible and to liquidate, distribute all cash, and terminate the Fund within 48 months of fund inception.
- A steady dividend combined with great growth potential.
- Higher-than-average returns.
- Participation in a diversified portfolio containing real estate from all over the U.S.
- An opportunity to benefit from this unique marketplace.
- Professional, full-service account management.
|Preferred Interests Offered||4,000|
|Price per Preferred Interest||$5,000|
|Maximum Offering Amount||$20,000,000|
|Anticipated Return||15-20% Annually|
|Preferred Return||10% for Investors, in first $10M; 8% for investors who join the fund afterwards.|
|Annual Dividend Paid (Paid Quarterly)||5%|
|Final Distributions||50% to Members and 50% to Manager|
|Fund Set-up Expenses||$50,000|
|Term of Fund||4 years|
Our Non-Performing Notes department was active in the third quarter and sold thirty-five notes, while our Real Estate Department sold thirty-one properties. Strategic Realty Fund contains a large number of non-performing notes. Many of these non-performing notes have already been modified or are in a certain stage of foreclosure. For modified loans, our strategy is […]
The national real estate market continues to be strong and our REO team was able to sell twenty-nine properties and thirteen non-performing mortgages this quarter. We continue to be excited about HUD’s two asset disposal strategies: CWCOT and the Total Debt Program. We are currently running due diligence on a pool of sixty assets from […]
Sales of real estate slows during the winter months, especially in the mid-west and eastern parts of the country. With that being said, Strategic Realty Fund was able to sell twenty-three REO’s and nine mortgages in the first quarter of 2017, as well as modifying 3 loans. Our acquisition department has had success purchasing 31 […]
As the number of REO properties continues to shrink, investors are looking for distressed inventory in different areas and looking at different opportunities to buy discounted real estate. One of those programs is the CWCOT (Claims without Conveyance of Title) that was designed to decrease the number of FHA properties in default through quick sales. […]
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 […]
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 […]
Strategic Realty Fund sold twenty-four REO’s, sixteen mortgages and modified seven loans for a busy, productive quarter. We are also active in purchasing REO’s from our auction partners as well as purchasing non-performing mortgages from Clearview Capital and Springleaf Corporation. The number of REO assets that are available for auction has remained steady, with Freddie […]
A late winter in the East helped us to sell forty properties from the retail division, garnering a solid gross profit. We were also able to sell eleven modified loans and increase the number of land contracts in our portfolio to forty-four. In late February, we will be attending the Mortgage Banking Servicing Conference in […]
Stonecrest’s Strategic Realty Fund had a strong third quarter with the REO department selling 29 properties and our Asset Management team selling 13 notes and modifying 8 others. I expect SRF to also have a strong fourth quarter as many of the assets that were purchased over the last year are now on the market. […]
Though the Stonecrest’s Strategic Realty Fund is relatively new and most of the invested capital has been raised in 2015, it is already starting to bare the fruits of our labor. We were able to evict, remodel, and sell eighteen properties for a gross profit margin of 16.96%. The net profit for the 2nd quarter […]
The acquisition department was busy in the first quarter purchasing 116 REO’s (versus 27 last quarter), and another pool of non-performing assets from Nationstar. The fund has been purchasing mainly Bank of America assets but cemented another relationship to purchase Freddie Mac REO’s. We are excited about this relationship as it seems that Freddie Mac […]
Since the inception of the Strategic Realty Fund, we have focused on purchasing bank owned properties and non-performing mortgages. During the last half of 2014, we purchased 27 REO properties for $3.6 million through our relationships to a number of auction companies. Those properties are currently in one of three stages: 1. Eviction 2. Remodel […]
|Performance Since Inception|
|Land Contracts Summary|
|Face Value of Notes:||$786,536|
|Non-performing Notes Summary|
|Cost of notes:||$3,159,846|
|Modified Notes Summary|