There are many Real Estate related opportunities out there.  Foreclosures, bulk REOs, Tax sales, Short sales, Auction, Probate, you name it.

Some how, I’m surrounded by people that are actively engaged in Real Estate investments right now.  They are brokering, buying & flipping, passively investing, etc.  It’s amazing to know, there are tons of people who have access to millions of dollars.  For them, this is a very exciting time; certainly NOT down economy.  This is the time to make more money for those with money and/or time.

Oh… I wish I have millions to invest right now.  Since I don’t, I just need to be creative!  I always seem to attract tons of interesting opportunities … but I need to do a better job in managing both time & money.  Otherwise, before you know it, they come and go quickly!

Yesterday, I visited Castle Arch Real Estate Investment Company in Costa Mesa.  They offer passive investment opportunities for investors through bulk REOs; but they do so by evaluating 1 property at a time using local professionals in a very careful & concise manner; nation-wide.  They use Conix system to streamline processes.  The company is lead by reputable Kirby Cochran, CEO with great track records.  What I learned:

  • Interestingly, market value is usually less than stated BPO (Broker Price Opinion) in banks’ REO inventory.
  • In addition, value is lost on average 1.2-1.5% per month.  This is not being adjusted in bank’s system.
  • So they don’t use bank’s BPO as a base, they do their due-diligence and negotiate the price down based on their own findings which also factor in fix-up cost for each property.

Investments offered by Castle Arch goes through a cycle within 6-12 months; with a targeted return on 15%-30% per investment cycle.  To be more specific, minimum investment is $50K, preferred A dividends @ 15% APR plus distribution of adjusted net profit for investor pool at 25% within average of 4 month period, as an example.  Conix system allows them to evaluate RE more accurately with lower risks.  Investors can log-in and see, evaluations, data, pictures (google earth too), buy price, targeted sell price, expenses for EACH property; total of $10M+ worth of REO properties all at once.  I have never seen so streamlined & so transparent “system” in Real Estate investment before.

There is no guarantee in life (except death) …everything has risks.  But for passive investors, this appears to be safer short-term investment opportunity with high return.