Now that the Fed has lowered interest rates, the mortgage market is heating up. However, the majority of that increase is due to refinancing current mortgages and not new purchases. The real
estate market continues to be flat across the country, with industry experts seeing moderate price increases and even falling prices in some parts of the country.
Stonecrest has been cautious with regards to the overall market – we are seeing houses take longer to sell. As a result, we’ve been purchasing fewer assets in the hunt for higher margins (deeper
discounts). And, even though higher priced assets have never been our focus, we are being extra careful before bidding on any property considered “high priced” for the area.
For these reasons, we have been purchasing fewer properties through the auction side of the business, and have allocated more resources to our consumer direct division with good results. We
will continue to aggressively market in our consumer direct division as these are higher margins combined with lower competition for those assets.
Featured Asset:
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Our featured property this quarter is a 1906 sqft single family home located at 2207 Buckboard Trail in Rocky Mount, North Carolina. Built in 1987, it has 3 bedrooms and 2.5 bathrooms. It sits on a 0.66 acre lot.
Investment Stats (rounded):
- REO Purchase Price: $111,423
- Expenses: $43,428
- Sold Retail:$170,500
- Gross Profit: $15,649
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Fund Performance:
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