• Venture Capital
• •  Specialty Asset Investments
• •  Aligned Wealth Investments

• Real Estate Development
• •  Global Energy
• •  Distressed Real Estate

Distressed Real Estate

Overview and Investment Strategy

The Firm has formed a fund to take advantage of what could be the largest re-pricing of real estate assets in the last 100 years.

Investment Strategy and Process

The Fund will purchase REO’s (or Real Estate Owned by the bank, otherwise known as homes that have already been through the foreclosure process) and NPL’s (or Non-Performing Loans) from banks and other non-bank sellers in bulk and either break these portfolios up to sell them wholesale or actually work them out retail on a house-by-house, asset-by-asset basis.  The Firm has a dedicated team of specialists based in Portland, ME which has significant expertise at this highly sought after skill set. 

Specifically the assets that will be targeted are assets that are or have:

• Single family residences which can be sold or rented
• Those that can be purchased at dramatic discounts in pools of loans or assets from bank balance sheets.  The discounts can range from 30-60% of current market value for REO, and a similar range of discount from either the unpaid principal balance (UPB) or current market value of the property for NPLs
• Low ongoing maintenance costs
• Labor intensive operations necessary to “workout” the REO or “recover and workout” such as deed in lieu of foreclosure strategies for NPL. This creates high barriers to entry for many investors
• Well defined exit strategies:  common sense and flexibility
• Minimal dependency on prevailing market conditions for exit execution

Steps involved in Identification and Evaluation are:  Interaction with Lending Institutions; Servicing Desks; Hedge Funds; Family Offices; Initial Compliance and Collateral Review; Retention of BPO Services; Analytics and Analysis of Estimated Recovery and Payoff Speeds and the use of Valuation Software and Other Tools.

Before the assets are acquired, the Team will go through a pricing and discount negotiation period as well as a title, abstract, assignments, recording and title insurance analysis. 

After the assets are acquired, the Team hires separate Servicing Department for Non-Performing Loans and Performing Loans as well as a separate national network of deed recovery specialists.  The Team utilizes real time reporting software for asset status and estimated recovery times and values. 

To realize liquidity on the portfolio of assets, the Team also hires a national network of REO qualified retail real estate agents, auction houses, secondary buyers, the national network of loan officers / underwriters in order to refinance existing mortgages as well as property/asset management companies for any retained assets.

Key Team Member Information

Andrew Preston - Venture Partner
Chris Rhoades – Venture Partner / COO
Jack Wes Haga - Venture Partner
Bryan Simms - Venture Partner