Distressed Asset Investment Opportunities

Real Estate is cyclical and opportunities come along every 20-25 years during strong dips in natural real estate cycles. The current economic situation has again created such an opportunity, only this time the opportunities are more widely spread among asset classes, geographically, as well as having greater discounts on value, both current and future.

Currently, one of our exclusive clients has been forming funds in order to buy large pools of various distressed assets. They have brought in major equity partners to JV with them to pursue large portfolios (i.e., typically over $100 million).

The opportunities in large bulk distressed asset investments:

1. Buying performing and non performing residential notes in bulk.
2. Buying construction loan pools in progress.
3. Buying REO properties in bulk.
4. Buying notes securitized by multiple properties.
5. Buying large notes on single commercial properties

Investment Goals:

1. Our client’s goal in bulk purchases is to achieve 25% - 50% annual return on the investment based on calculated current value, amount of discount, and risk as determined in due diligence.
2. Our client has several JV agreements with reputable firms that specialize in all phases of management and disposition of distressed assets. A buyer (or JV group) does not have to worry about any of the management, servicing, or marketing of the distressed assets when paired with on of these firms.
3. The government is planning to market many of their toxic assets with government non-recourse financing and guarantees. The details on this program are only just emerging so it is important to be ready to act.

There have been many investments certain opportunities uncovered in which the dollar amount involved or the return was not sufficient to match our client’s current expectations. We believe that these opportunities are still worth pursuing.

We are interested in finding investors capable of buying these distressed asset opportunities either by themselves or as a joint venture. There will be an ample opportunity for large profits for the investor and fees or commissions for brokers. We want to emphasize that there are many management firms that are experienced in managing and marketing distressed assets.

We are not soliciting for a particular investment at the moment, only looking for a level of interest. We can then match the interest with the products that we are reviewing or come into contact.

If you or if someone you know have client(s) that are interested in this type of investment, please Contact LMT.

• About LMT
• Contact Us
• Exclusive Listings
• Recently Sold
• FAQ
• Glossary