By now, you have heard, read or listened to the “buzz” around the ‘investment opportunity of a lifetime:’ the potential to purchase FDIC distressed assets. Many of you – after analyzing the pros and cons — may be interested in this type of an investment opportunity but have yet to act. Why not? The good news is that unlike in the past days of the RTC and S&L where most of the assets were sold to institutional entities, you, as entrepreneurial real estate investors, have access to these unique deals. These assets are worth more than the current market conditions assigned to them and, over time, could be, may be, will be significant profit generators.
The time to act is now!
Good news: You don’t have to go at this ‘once in a lifetime’ opportunity on your own. Step number one in building a solid FDIC Strategy, therefore, is to develop relationships with professionals that have the expertise with FDIC assets and all of the steps necessary to be successful. That way, you can take their suggestions for the best course of action in these current market conditions, and learn how to buy these assets at the deepest discounts available from those who have already done just that. It’s all about finding a ‘win-win’ solution, a company that will provide you with value.
“Value comes in at a lot of different various levels. What we try to do is we try to take the objective of getting a higher return back on behalf of the FDIC but working with the borrowers and the public and then also getting those properties moved on to end consumers or working with the borrower to get them into more of a win-win situation,” said Alethea Cox, loan specialist, Kingston Management Services, an FDIC qualified bidder. “When we talk about value, we are talking about value from the standpoint of trying to find a synergistic solution for all that are involved. We don’t want neighborhoods out there in America or partial developments partially built things out in America that are devaluing current residential markets or commercial real estate sitting there as a sore thumb in a beautiful sector of your town, your hometown. So, what we try to do is get that property moved as quickly as possible.”
And, by getting the property moved quickly, the investor not secures a great deal but gets the deal done more quickly and efficiently.
“Kingston Management Services is in the business of liquidating these assets for the FDIC and they have a fiduciary responsibility and that is their job,” added Michael Anderson, Founder and Co-owner of RealSource.net, whose firm is assisting Kingston in maketing the assets. “When you are dealing with the conventional lending institutions on a short sale, their job is really still in the lending business so it’s a secondary thing for them to have to be in the process of liquidation through short sale and negotiations. They need to be concentrating their resources on other things where 100 percent of Kingston Management Services is about liquidating these assets.”
To hear more from Cox and Anderson, go to on my radio show at http://www.IncomePropertyInvestmentTalk.com/071509 or to view FDIC Assets in a Virtual Deal Room go to http://www.rcm1.com/EntryPoints/Teaser.aspx?pv=SAQWcbn2qEXqOKsThr8b4A&ref=[email protected].