The majority of financial institutions
and funds participating in the distressed real estate space have
focused on commercial assets and/or performing or sub-performing
mortgages.
Most have steered away from residential REOs and non-performing
mortgages because they do not have the expertise or the
infrastructure to effectively manage the portfolios. Many of those
that have attempted have failed. Consequently, this specific niche
has become very inefficient providing unconventionally high spreads
between the bid and the ask. In our case, we are essentially
serving as the market maker purchasing directly from the lending
institutions and selling directly to the retail investor. We do
this through exclusive arrangements with companies such as IPIN and
our broker/agent networks. By arranging the exit strategy in
advance, we are able to provide our investment partners with
unconventionally high liquidity, double digit returns and low
risk.