subject: A huge transfer of wealth [print this page] A huge transfer of wealth A huge transfer of wealth
In the late 1990s, enormous wealth was being transferred from venerable pension funds to Silicon Valley kids in their early twenties setting up overvalued dotcoms. I was a 20 something in San Francisco at the time and even at that tender age I couldnt believe what was happening in front of my eyes.
Similarly in the late 2000s, an ever bigger amount of wealth is being transferred from those who overpaid massively for real estate to those who are willing to underpay massively for real estate. Funnily enough, a lot of the money lost was from the same venerable pension funds repeating their mistakes from a decade earlier!
The last two years have been great for Torcana as weve been sourcing a lot of high quality distressed property. Our job was to put it in front of cash buyers who are keen to take it off the hands of those who paid top dollar for them when prices were irrationally high.
We target areas that are going to recover fast when the tide turns. They are places within a 15 minute commute to the city centre, where professionals buy and rent, where they send their kids to great nearby schools and in neighbourhoods that are safe and clean with lots of parks and shopping areas. Makes sense to buy these kinds of properties right?
Despite having a local office, an enviable network of contacts and Torcana directors living in Florida fulltime, its getting very hard to find these deals. There are practically no new condos being built in Orlando at the moment and inventory of existing units is falling fast - the year on year sales figures are up 22%.
Residences at Sabal Point meets all of our investment criteria and with prices at $54 per sq ft (you couldnt build them for twice that) were probably not going to have much trouble selling the 31 units weve exclusively secured for investors. As with all of our products, this is a turnkey investment with full services provided to buyers.
