The majority of investors will never get to see genuine off
markets deals, traditionally most opportunities will either be
purchased by institutional funds long before it reaches the
retail market or seized by the bank due to the short time frames
involved. The current economic climates lack of liquidity has
removed much of the institutional funds buying power, making
private finance king.
Off market deals are designed to protect the integrity of the
seller, be it a developer protecting the company’s share price
or private individual protecting his or her personal reputation.
These sellers are highly motivated by a number of factors, these
can include:
Cooperate developer sale:
· A global credit crisis! Virtually removing all lines of credit,
this makes financing development debt nearly impossible, causing
cash flow problems and a need to liquidate assets.
· The house price crash has resulted in far fewer buyers and a
need to look at alternative routes to clear inventory.
Private individual and portfolio sales:
· Their circumstances have dramatically changed (death, divorce,
emigration, loss of job etc.)
· They have exchanged or completed on properties they could not
financially afford during the boom times, with the sole
intention of flipping (selling on)
· Lack of mortgage finance in far less lenient times.
However of all the above the most likely is the risk of
foreclosing on their loan repayments.
This not only results in the loss of the property to the bank
plus any deposit, but can have the more serious long term effect
of tarnishing the company or individuals credit rating. This
makes future purchases or business expansion incredibly
difficult.
In these unprecedented times, banks do not care about the
bankruptcy of a developer or the loss of a personal property
portfolio so long as they can recoup their loan amount. They
will try to dispose of the property as early as possible
regardless of the interests of its owners. Its these type of
situations that create buying opportunities not seen in the last
20 years.
Question may arise as to the morality of taking advantage of the
miseries and pains of defaulting developers and investors. It
may not give one a good feeling to benefit from the miseries of
others, but if one looks closely, there is not much choice and
the long term effects of foreclosure can be far worse.
StayInvest will shortly be offering a private and bespoke
service to those investors in the privileged position of being
able to benefit from the highly discounted distressed stock in a
number of locations, primarily the UK, USA and the Spain but not
exclusively.
We currently have access to private offers in Bolton, Sheffield
and Stoke, some 35% below RICS all direct from the developer. We
are also expecting deals in Spain some 50+% below bank
valuations and a portfolio in Brazil some 30% BMV.
These types of proposals come with a strict purchasing procedure
and nondisclosure agreements due to the very sensitive nature of
the selling parties involved. We cannot advertise these in the
usual manner. However, it is these off market deals where true
investors will see the exceptional returns and double digit
yields we strive for.
Due to the sensitive nature of the developments we will be
offering, these will not or cannot be listed on our website,
investors will be dealt with on an application only basis and
must be able to show proof of funds (£1m +) through a lawyer,
accountant or bank.
To register for these types of opportunities investors will have
to sign a copy of self certification of HNT or a sophisticated
investor disclaimer. We will also require parties to sign an NDA.
This process of cause can be done remotely and we are happy to
act for investors anywhere in the world.
However where possible we invite you to our head offices in
Oxford for a full consultation and will gladly meet you at the
site of any of our opportunities.
For more information abouts whats coming up at StayInvest
please feel free to for
more details.
Off Market Deals
and Distressed Property