The tREO Story
Execs of tREO amassed a $2 billion portfolio of commercial real estate over a 16 year period, yet since late 2008 there suddenly were no more buying opportunities as the credit markets froze.
After searching for several months for the right opportunity and as real estate investors ourselves, we finally identified a real estate investment with significant, dependable upside,…we found it…right under our own noses….buying homes at LA County Auctions… right on the court house steps. How easy does it get?
Eight investors have come together to form tREO Capital Group, Inc. exclusively dedicated to becoming the “best in show” at the auction business. We have developed a customized, high tech platform to acquire deeply discounted houses every day at various auction sites.
Not only is the Trustee Auction business lucrative in that it can offer in excess of 30%-40% annualized, leveraged cash on cash yield on multiple investments, but the business itself is very exciting, every day. When you buy a great value property, it’s like finding the ‘needle in the haystack’.
Trustee Auctions are not for the faint hearted or the one- man-show operators. To be effective and successful in this business, you need to be in it every day, with a dozen playmakers on your team and at least $ 2 million in cashier’s checks at the auction sites.
In a matter of a few hours, you have to uncover big reductions in the lender’s published bids (the loan balance) that allow you to buy quality homes at 20%-35% below today’s market value. In addition, our team of 20 skilled professionals completes valuations and tours each property and sub–market physically prior to bidding. We also evaluate occupancy resolutions, exterior rehabs and value add solutions, confirm tax and title status and then, finally, we make a pricing decision and hope to win!!!! That’s the fun part!!