Dynamic Ventures Corporation has announced its intent to enter the $250 billion real estate-owned (REO) services market. The company has drafted a term sheet with an investment group to raise between $6-$10 million dollars to take advantage of the current opportunity in the credit markets by acquiring and reselling distressed residential REO properties. This investment will be targeted in and around the Phoenix metro area.
"We believe the bulk REO market is strong and has the potential for extremely lucrative investments in foreclosure properties in both the short and medium term," said Paul Kalkbrenner, chief executive officer of Dynamic Ventures Corporation. "With the prospects for a reasonable economic recovery and stronger housing market just around the corner, the time to invest in bulk REO is now."
REO homes that are in good condition and listed at $300,000 or less are drawing multiple bids in some areas from homebuyers and investors looking for bargains.
"Our team has built over 50,000 homes and has a combined 50 plus years of experience in residential and commercial construction, primarily in the Greater Phoenix area," said Kalkbrenner. "This, combined with our ownership of a company specializing in interior finishes and our relationship with many trades has our team well positioned to capitalize on this market. We believe bulk REO properties will become a very lucrative and ongoing source of revenue for us and will prove to be another winning strategy for our company as we expand our existing business into this exciting market segment."