For those of you who were curious (and still are) about this venture, but chose not to participate, I’m going to periodically update you on our progress. Usually, once people decline an investment, they never get to see what happens with it. This will be your view into a deal as it unfolds.
As regular readers know, we’re purchasing a lot of distressed real estate properties from all around the country. The supplier is offering clusters of either low-end or midrange property. The low-end properties are very inexpensive; some of them are even damaged. We’re going to purchase a low-end group first, sell them for cash, regenerate profit, create notes, and find investment partners for those notes.
I anticipate taking a midrange cluster next, because properties in that group will be in better shape and selling will involve working with real estate agents. Once the agents give you an opinion about price, the idea is to price below that number in order to create a feeding frenzy among people who have lots of cash.
Next up: we’ll see the tape for the properties, approve the contracts, and conduct due diligence to ascertain the actual value. Stay tuned.
