Buying Distressed Properties

Russian billionaire Mikhail Fridman is launching a real estate fund that will focus on distressed properties from Boston to Miami. According to the Wall Street Journal 12/21/2011, Mr. Fridman, who founded the Russian financial-industrial conglomerate Alfa Group, is part of a venture that plans to invest in properties with a total value of about $1 billion, in the latest example of a deep-pocketed foreigner betting U.S. real estate market bouncing back.

Other examples such as Zhang Xin, chief executive officer of Beijing-based real-estate developer SOHO China, acquired a 49% stake in Manhattan’s Park Avenue Plaza in September. Mexican industrialist Carlos Slim bought several buildings in New York and is on the hunt for more New York Property.

The positive factors sometimes have been ignored by investors in U.S. are that U.S. real estate is considered a relative safe haven, especially comparing to the developing world.  Government is stable; and the market is the most well-regulated and liquid in the world. All these provide the best protection for investor rights.

U.S. real estate market did not have major correction until 2007. Unlike stock market, real estate market traditionally had been a safe investment. There were many factors contributed to the recent market correction, but the outcome should be promising. We will have stronger regulations, better monitoring system, and more scrupulous lending practice.   

The outlook for 2012 is generally good. For example, Freddie Mac forecasts that,

• Economic growth will likely strengthen to about 2.5 percent in 2012.
• The U.S. unemployment rate will decline but likely remain above 8 percent.
• Mortgage rates will likely remain very low, at least through mid-2012.
• Housing activity will be better in 2012, but not robust.
• Expect less single-family originations but more multifamily lending in 2012.

If things go like forecasted, 2012 will be a great time to invest in U.S. real estate.  It is probably an once in a life time opportunity to buy distressed properties.

Why you should hire Lei Jiang LLC

Lei Jiang LLC provides a full range of legal services, related to negotiations, acquisition, disposition, financing, leasing of real estate properties. We have handled all types of property, such as residential, apartments, office buildings, and shopping mall.  We are experts in distressed properties. Whether you want to buy from market, from banks, or straight from Sheriff Sale, we can help.  We are quick, effective, and efficient in every deal. Moreover, we respond to your every question. Finally, our fees are lower than most other law firms.