By Mike Colpitts
An Atlanta based firm has formed a real estate investment fund with an ambitious goal of raising $100-million to invest in troubled homes and apartments in an effort to produce high net profits for investors.
The new company is jointly owned by principals of an investment firm, Avalon Investment and Securities Group, Inc. and Alexander Properties. The fund, which has formed a Limited Liability Company for its venture, is targeting foreclosed properties and short sales for its acquisitions from banks and other mortgage lenders, which it intends to buy in bulk at discounted prices.
“We’ve been managing apartment developments for 30 years,” said Andy Alexander, president of the new Housing Recovery Fund of America LLC, “and we’ve never seen an opportunity like this for investors because eventually I think everyone is in agreement prices will come back.”
The newly formed company is seeking aggressive returns for investors in a down market projected at 13.4% return on investment over a three year period. Single family homes and apartments the group purchases will be managed by the fund for investors. Alexander Properties is a real estate company specializing in the management of multi-family and single family homes.
The management team brings an impressive set of credentials to the new investment fund. Its president, Andy Alexander has 32 years experience in real estate management and development. Das Borden has 47 years experience as a home builder, developer and has managed 65 apartment complexes with more than 10,000 units. Maurice Mitchell has been in real estate finance, property management accounting, appraisal and asset management 24 years. Mitchell worked as a real estate appraiser and Certified Public Accountant prior to joining the Housing Recovery Fund.
Jim Shields brings more than 22 years experience in accounting, finance and construction to the team with a deep understanding of current IRS rules and regulations, particularly effecting high net worth individuals . Shields also served as the Chief Financial Officer for a full-service real estate company that provided development, construction, and management services for multi-family and retail properties and has assisted clients with investments including hedge funds, angle investments and bridge financing.
Rusty Moore, Jr. will serve as Chairman of the Board for the investment fund with over 25 years in investment and the insurance industries, presently serving as Chairman and CEO of Cherry, Inc, a family of financial service companies offering client tools, investment management and advisory services.
The group will be acquiring apartments and single family homes in cash from proceeds it collects during a fund raising drive it just launched in the eastern half of the U.S., especially the south-east in Georgia, Florida, Alabama and several other states. The group was formed as a result of the collapse in real estate, which it considers to be the worst since at least the Great Depression to provide the best opportunity in years for investors.