(Mark Your Calendars: RealShare Distressed Assets convenes in Dallas on May 3 & 4.)
NEW YORK CITY-After hearing billionaire investor Warren Buffett say “buying residential homes right now is the single best investment opportunity in the US,” Carlton Group chairman Howard L. Michaels took action—and fast. Now, in an effort to capitalize on distressed assets in the market, the company is launching a new website devoted to the sale of performing, sub and non-performing residential real estate loans and REO, GlobeSt.com has learned exclusively.
The site, called “Carlton Residential,” will offer financial institutions the ability to sell large amounts of defaulted residential loans to investors, according to a release from Carlton. Designed in competitive bidding format, the website is set up for banks to sell individual houses on a retail basis to homebuyers, giving buyers access to information and portfolios in a real-time format.
The launch is seen as a natural move for the company, which has been in the accelerated sales business since 1991 when the firm was called Carlton Property Auctions. Throughout its history, the firm has closed close to $100 billion in transactions, including thousands of residential and commercial assets via the auction process.
The website is also coming at a time when recent legislation and governmental settlements are clearing the way for lenders and investors to move unwanted single-family housing inventory off their balance sheets, including the recent $25 billion settlement between the federal government, 49 state attorneys general and the five largest mortgage servicers.
After investors complete a due diligence review, the bids are reviewed by Carlton in consultation with its client on the site. The webpage also offers opportunities to bid on all of the assets being offering in a specific portfolio or any sub set of assets through the creation of bidder-selected mini pools. And in select instances, Carlton can sell individual loans or real estate assets directly to purchasers.
“Our residential experts also have tremendous relationships with investors throughout the world, and these investors are sitting with lots of cash and are highly motivated to acquire large residential portfolios,” says Michael Campbell, a partner at Carlton.
Michaels could not be reached for immediate comment.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
