Torcana manages this whole process (and much more) from start to finish and we do our best to minimize the work a client needs to do. However, once we'd processed a lot of these units and established a very robust network of local contacts, it became evident that there was also a much better way of doing this, both the agents and the buyers point of view. 
 
Is there a better way of purchasing these properties?

As has happened in Ireland & the UK, when the credit crunch was causing misery for local Orlando developers quite a few decided to try and ride out the storm by furnishing and renting out the remaining units themselves while waiting for the market to turn. Makes sense right? But what if we could find a developer who owned and rented high quality units and was about to be foreclosed by a bank? Let's say we find one who needs to raise $5 million in 30 days or the bank will seize his assets. Would he be willing to sell 100 of his properties to investors with tenants in place at a foreclosed price level (say $50,000) in order to avoid the excruciating foreclosure process? If you can convince him that you'll be able to sell them, then yes, he certainly will, which is what our Tradewinds development is all about.
 
This ticks all the boxes in terms of location, quality, price and rental yield. It has all of the benefits of a foreclosed property (highly discounted price, v high rental yield) with none of the headaches (bidding process, red tape, finding tenants). Over the next 3-4 months we will be sourcing more of this development type, although it will be difficult to another Tradewinds with one beds at $49,900 and two beds at $59,900. You'll find more information below, or you can contact us directly if you'd like to learn more.
 
New Distressed Property Mortgage in Spain
Don't forget about Spain though - the director of one of the banks we deal with called my office on Wednesday to let me know they've launched a new mortgage product specifically for people purchasing distressed Spanish properties. Loan to value of up to 90% available for anybody resident in an OECD country, with low application fees (0.35%), low interest rates (around 3%) and terms up to 40 years.
 
It's a big deal that a Spanish bank has launched a 90% mortgage product specifically for these properties, as most of them have their heads completely in the sand. For example, myself and my (Spanish) wife can't even get 90% for a regular property in Madrid!
 
This new mortgage is perfect to use with our Granada product, which will achieve net rental yields of up to 8%. If you would like full details, please let me know asap.

 

That's it from me this week. Don't forget that all previous newsletters are published in our archive. You can also leave comments and read further articles on the Torcana Blog.
 

Kind Regards