Crown Asset Advisors has posted a new item, 'CROWN REALTY ADVISORS...
This paradox explains the Government at work..SNAFU
What a REO mess Fannie and Freddie now OWN $ 6.9 B in SFR reo compared to $8.5 B by all the other 8500+ active banks. The nation's largest landlord by far- no surprise.
Their mission is to sell assets to End Users at FMV or close to it achieving the highest yield and protect the values of the surrounding properties.. So Banks don't like to sell to investors at a 20% discount and sell it quickly. No surprise here either- as it Devalues America.
Here's the Rub: The carry costs on these assets (overhead, ins, repairs, management vandalism, etc) exceed 2% a month. So to avoid devaluing the product we hold it for upwards of a year- 24% then sell it at a further discount- 20% to get it off the books to meet capital reserves.
Everyone knows it cost money to keep it and carry it. Just sell it and move on.
visit: http/www.CrownAssetAdvisors.net
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