This week the papers and media in general are alive with stories of failure and losses. The stock market is jumping around and gas prices are rising.
Housing in general is continuing its slow downward spiral and Detroit is laying off more workers in their SUV plants. Its not a rosy picture, is it?
But wait, it appears there is more activity on the investor side of the market. Investors are seeing its time to get busy, and are activley seeking newer properties at bargin prices.
I, Mike Norvell Sr, work for Developers Capital Realty. We work primarily Commercial Properties and Land Deals.
We have never been so busy. Long days and longer days are now becoming normal. Now it appears we may have to bring on more help to handle the load. In the last few weeks I have been in contact with some of the people here on Active Rain. There is no way to handle the upcoming rush of business that is coming into our doors.
In the past few months, I have put out Letters of Intent on distressed Commercial Projects for over 80 million. We are working with Hedge funds, Investment Funds, and Finally, we NOW have an offer to work with private placement opportunity to create our own fund. We are currently reviewing another over 200 million for bid anaysis at this time.... With funds being limited, we have to go after only the best deals.
Developers Capital Realty is in the process of entering into relationships with other proffesionals in the Fla area. I am bound by confidentiality agreements to not publicly disclose much of what we are doing, but it is exciting. So very exciting.
I came to Developers Capital Realty with a promise from the founder that we, as a very small company, would target larger distressed commercial properties. My past experience in foreclosures and short sales would be put to good use, only here we don't go for the house, we bid on the whole subdivision. We bid on large land parcels that are in the entitlement process, we bid on Commercial Office buildings with some cash flow. Latlely, we have been getting more of the investment Funds to offer to work with us, and anticipate an even bigger year.
My goals for joining Developers Capital Realty was to do 100 million in sales in the first year. In just over 3 months of concerted effort with basically only 2 clients, we are seeing that may be not nearly ambitious enough. My primary client (not disclosed here, if you noticed) is an experienced 3rd Generation Developer/Business man that has all the ducks in a row for this market. Right now, its all about who can come up with the funding for these deals. There are NO shortage of deals.
Last week we put the (hopefully) finishing touches on a large land DRI project for just under 20 million. We are representing a Joint Venture of my client and a large California Hedge fund who wants to invest heavily in Central Fl. It is all cash, no banks involved, and should close by this fall...The same client is now actively reviewing over 100 million in other projects here in Central Fl. We plan on continuing to earn their faith and trust so that we can represent them on all of these deals!!
This morning I am picking up the paperwork for contract on a smaller project, over 150 acre development that has been stalled by this economy, and now must be sold and finished by someone else. This project was bid on about 60 cents on the dollar and the banks have finally approved the sale. We are Representing a local Investment Group on this project, who is saving 3 years of commision meetings and engineering costs and about 4 million in expenses. The city has approved a change in the plans here to put in smaller lots and go for affordable housing. Everyone will win..
In the next few weeks, we may announce some Joint Ventures with some of our Co Bloggers here on Active Rain. The amount of business to be done in distressed Commercial Acquisition is just stagering to concieve of. By some accounts, over 3 billion in partially finished projects are up for grabs, and we will do our best to handle as much as we can get funded.
Developers Capital Realty, LLC have reset our goals upward to 250 million in the next year. I will keep posting as time permits.