Savvy investors recognize that fluctuation, distress and uncertainty within markets often create unprecedented investment opportunities. The recent banking and credit crisis, turmoil in the financial markets and an uncertain economy, have created a compelling ‘environment of opportunity’ where private equity for the funding, acquisition, development and management of well-placed investment real estate is in high demand. Attractive real estate values combined with conventional lending constraints and tight credit markets; have contributed to a market rich in opportunity.
These historic credit events have dramatically increased deal flow and availability of high quality projects resulting from real estate investors targeting undervalued and distressed inventory (on-the-market for “for-sale” and off-the-market as “shadow inventory”). The corresponding increase in need for private equity to provide funding for these projects will provide consistent high-yield, asset backed, secured, low-risk investment opportunities for the next 3-5 years or more.
Recent residential market statistics indicate a significant increase in demand for new housing while supply remains low. These factors, coupled with historically low interest rates for resale buyers, have created a high demand for private capital to supply professional real estate investors, builders and developers who are seeking to capitalize on the current market opportunities.
Within the commercial markets, the lack of liquidity resulting from tight credit and higher priced capital caused by the financial crisis, has placed enormous pressure on owners to sell assets that otherwise would not be available on the market. Slowing sales, declining values and less available credit creates an impossible situation for over-leveraged owners to refinance or restructure, forcing them to liquidate at reduced values.
ClearLight Capital Group is well positioned to leverage this window of opportunity by providing private equity and funding for acquisition, financing, development and management of investment real estate, backed by high yield, secured Trust Deed investments. Our specific market experience and the ability to fund and close quickly, differentiates us from institutional banking sources, which allows our clients to seize opportunities that would otherwise be lost due to time constraints and inefficiency.
The expertise and depth of knowledge we provide our clients further strengthens the position of our professional network to create win-win-win solutions and investment opportunities for each party involved.