Investors Purchase $2.5 Million Bulk REO Foreclosure Notes for .18/dollar
BridgePoint Ventures West announced that it closed a deal on 2.5 million dollars of notes on foreclosed properties. They noted that the underlying asset with worth more so it worked out to be .18 cents on the dollar. BPV specializes in making bulk reo purchases on distressed real estate assets. Here is the release about the news.
BridgePoint Ventures West recently announced that their investor group has raised the necessary capital to purchase a $2.5 million dollar bulk REO portfolio directly from a major bank. The notes were purchased from the bank at a remarkable rate of just eighteen cents on the dollar. This particular bank was so impressed by the urgency in which BPV West acted that they’ve come to them again for a similar offering of $6.4 million dollars, again at 18 cents on the dollar, but gave them only 3 weeks to fund the entire deal.
“Our situation creates an enormous opportunity for both the small and large investor, especially in these recessionary times”, said BPVWest affiliate Ron Costa. “Because so many investors in the group took part in the original $2.5 million package, the group is now looking for additional investors to take the new package down”, he added
Costa also noted that this opportunity provides investors with the ability to purchase REO’s at a fraction of the cost – in an environment where they couldn’t possibly get anywhere close to these terms and pricing on their own.
“The size of our group brings tremendous creditability to the table. But more importantly, we have a clearly defined exit strategy for these properties that really piqued the bank’s interest, which really was the convincer in our group getting the package in the first place.”
By investing with the group, members invest in bulk REO properties at pennies on the dollar pricing without all the hassles of going to auctions, contacting banks, probate sales, estate sales, and all that other noise you see advertised by the many “get rich quick” real estate schemes that are constantly promoted via the internet or on TV.
Source: PR Inside