Stonecrest’s Real Estate Growth Fund is scheduled to close in 2021 and management has decided to make an early distribution of capital, which is reflected in your enclosed statement. The fund was established to take advantage of the pool of distressed properties and non-performing mortgages that were created during the “Great recession”. The business model had been very successful but over time the amount of distressed assets has decreased substantially while the price for the remaining assets has increased. The margins have continued to decline, making it difficult to earn significant returns.
We will seek to liquidate all remaining assets in the fund by the end of the calendar year. Liquidation will be a somewhat time-consuming process, since we must navigate the current restrictions on foreclosures and evictions at the local, state, and federal levels due to the pandemic. We will push to have this process completed, and all capital returned, by year end.
We intend to make further distributions throughout the year as assets liquidate.
Featured Asset:
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Featured property is located at 3081 Paty Drive Unit H, Honolulu HI 96822. The property is a single-family home built in 1961 sitting on a 6,149 sqft lot. The house has 3 bedrooms and 2 baths with a total interior livable area of 1,866 sqft.
Investment Stats (rounded):
- REO Purchase Price: $539,750
- Expenses: $4,161
- Sales Price:$645,000
- Gross Profit: $101,089
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Fund Performance:
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