Property Asset Investments, LLC (PAI) is a visionary company dedicated to converting distressed residential real estate into valuable assets. Founded in May 2009, PAI strives to serve investors, financial institutions and consumers through a broad and dynamic strategy focused on acquiring distressed properties and then returning them to the marketplace in an efficient manner, allowing new families to bring life to homes that were vacant due to foreclosure. PAI is able to purchase these abandoned properties at well below market value. The various properties are then either held for income production or resold at a substantial profit.
Property Asset Investment’s Unique Approach –
Foreclosures across the U.S. are at record highs, more than doubling in the past year. This unfortunate trend is expected to continue at least through 2010. These defaulted loans have resulted in an unprecedented number of homes, apartment buildings and other potential investment real estate being currently held by banks and other lenders, as real estate owned (REO) properties. Unable to successfully sell these REO properties via a foreclosure auction, financial institutions often release them at a substantial discount. After analyzing the various distressed properties that are available, those that meet strict PAI criteria are purchased at 30-35% loan to value (LTV).
Focusing on determining the “highest and best use” for each piece of real estate under consideration is a key tactic employed by the PAI team. Based on this determination, a profit-maximizing plan is developed and implemented for each property purchased, providing an excellent return for investors. PAI also provides freedom from non-performing loans for financial institutions, thereby freeing up capital for other purposes, and increased homeownership opportunities for consumers. This approach serves to revitalize communities, deterring the crime and alleviating the urban blight that is often pervasive in neighborhoods where many homes are vacant.
The PAI approach is unique. Targeting distressed real estate properties with the explicit intention of evaluating each and every one for profit maximization potential, and then marketing those properties complete with a comprehensive management plan already developed, provides investors with a wealth of information on which to base investment decisions. In addition, financial institutions and consumers benefit through an increase in the number of homes available for purchase and an easing of the foreclosure crisis.
Property Asset Investment’s Specific Strategies –
PAI is developing at least two funds. The first focuses on REOs in various markets that are expected to rebound and where on-site evaluation by members of the PAI team is feasible. Specific markets identified thus far include Houston, TX, Seattle, WA and Denver, CO. The PAI strategy includes working directly with mortgage holders in these markets to purchase distressed properties that will then be resold to real estate investment trusts (REIT), special-purpose acquisition companies (SPAC) and large hedge funds.
The second fund concentrates on bulk real estate portfolio purchases. These acquisitions are re-bundled, packaged with a suggested management plan, and sold to various types of investors.
Property Asset Investment’s Competitive Edge –
The PAI team is comprised of experts in all areas pertaining to real estate as well as professionals with experience in other pertinent fields such as finance. PAI also has access to sophisticated technology that provides the unique ability to not only effectively evaluate properties in the current market environment, but also to project values two years into the future. State-of-the-art software filters and assesses properties based on specific economic and demographic parameters. While other companies may be positioned financially to take advantage of today’s distressed real estate opportunities, no other company is currently able to do this kind of analysis, giving PAI a significant edge when considering various real estate investments.
PAI is able to achieve a high rate of return by purchasing properties at a substantial discount and then turning them over quickly, usually in 3-12 months. Available at an estimated 30-35% LTV, properties are resold at 60-100% LTV, generating an annual return on investment of 60-100%. Profits are reinvested to generate a larger pool of funding. Properties that are not sold are held and managed to produce a positive cash flow. Partner investors are chosen by PAI with the specific goal of developing an extended, profitable relationship. Employee Investment Fund investors are welcome to participate, as well.