Five years into the crash of the real estate market and four years into the Great Recession, Florida continues to stubbornly stay at Ground Zero when it comes to the single-family foreclosure market.
As a result, Florida investors Erik Wesoloski and Scott Kranz, in their capacity as principals of Title Capital Management, are for the second time in as many years offering fresh opportunities for private equity, REITS and institutional fund investors to capitalize on the distressed property market in Florida by purchasing and then renovating foreclosed residential properties.
The opportunities being offered by the Florida Fund include a buy-fix-flip strategy fund, which has raised $50 million and is known as the Foreclosure Arbitrage Fund II LP; a buy-rent-hold strategy fund, which has raised $150 million and is known as the Florida Asset Recovery and Income Fund IV LP; a 'Fund of Funds' for different participating family offices and institutional funds; and the offering of a complete real estate and legal organization with a ready-built, state-wide foreclosure infrastructure designed for institutional real estate fund investors in Florida.
"Distressed real estate funds are hot in the institutional investment community right now," says Kranz. "Big funds are seeing the opportunity to buy and professionally manage or sell single-family rental homes. Our first full cycle fund in Florida two years ago achieved an average cash-on-cash return of 25% in an average of 172 days."
Kranz goes on to say that with their real estate and legal expertise and experience, they can take any property from acquisition, title and rehab through to management, leasing and sale. Kranz believes that they are able to partner with foreign investors, family offices and institutional funds in order to deploy capital efficiently, intelligently and profitably.
