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 the Total Debt Program and are hoping to close by the end of August. These properties are almost always vacant. As a result, we have an opportunity to evaluate the condition and cost of rehabilitation prior to bidding. Purchasing vacant properties gives us the opportunity to “turn” inventory more frequently.
We continue to purchase individual assets that have title or occupancy issues from the banks on a “one-off” basis. Though these assets are relatively low in number, the returns on these properties have been robust.
Featured Asset:
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Our featured property this quarter is located at 7007 North Pennsylvania Ave., Kansas City, Missouri. This 960sqft single family home was build in 1965 and has 3-bedrooms, 1.5-bathrooms, and is sitting on a 8,712sqft lot.
Investment Stats (rounded):
- REO Purchase Price: $65,112
- Expenses: $8,843
- Sold Retail: $95,000
- Gross Profit: $21,045
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Fund Performance:
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