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About
The US economy and real estate markets are in dire straits. Nowhere is this more apparent than in the for-sale housing market. While the media reports declines in value of 20-30%, we have sourced opportunities where the discount is much higher. In this environment of extreme distress, opportunistic investors can achieve robust returns through acquiring blocks ("Pool's") of residential properties directly from financial institutions who own property through foreclosure ("REO", Real Estate Owned).
Multi Distressed Asset Co. (Multi) has been acquiring and selling bank owned properties (REO) directly from Banks and / or the asset Servicers since the end of 2007. The REO product available in the US currently exceeds 1.3 million and has been increasing on a monthly basis. Multi purchases directly from national and regional banking institutions as well as servicing agencies. There are a tremendous amount of foreclosure sales that are occurring on a daily basis. Banks are taking huge write-offs to account for the losses they bear on loans that went bad. The banks are left with literally thousands of properties that are potentially worth a lot of money. An empty house is a nonperforming asset on their books. The longer a house sits unoccupied, the more its value depreciates. Meanwhile, the lender is spending money for its upkeep -- or not, in which case it faces the possibility of a thorough trashing and an "as is" sale price.
The primary goal of Multi is to capitalize on today's bearish real estate market by acquiring "bank-owned REOs" at deeply discounted prices and then immediately selling those properties for a profit.
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