The majority of financial institutions
and funds participating in the distressed real estate space have
focused on commercial assets and/or performing/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 manage the portfolios accordingly. Many of our
competitors that have attempted have failed.
Consequently, this specific niche has become very inefficient
providing unconventionally high spreads between the bid and the
ask. In BridgePoint's case, BridgePoint is essentially serving as
the market maker purchasing directly from the lending institutions
and selling directly to the retail investor through exclusive
arrangements with companies such as IPIN. By arranging the exit
strategy in advance, BridgePoint is able to provide our clients
with unconventionally high liquidity, double digit returns and low
risk.