Investment Strategy

Through its vast network of relationships Synergy has established direct access to financial institutions REO (real estate owned) portfolios. The REO’s can be purchased at significant discounts to “current” market conditions, ranging from 30% - 70%, depending on the size of the portfolio being acquired.

Once the REO is acquired the portfolio is split up into various interests. The majority of the desirable residential real estate is immediately listed for disposition in the retail market utilizing national real estate companies such as Coldwell Banker, Remax, Century 21, etc. In such cases net returns ranging from 24% - 33% are not uncommon. Some dual use properties are converted to commercial use as the typical conversion will yield substantially greater rate of returns. The commercial real estate portion of the portfolio is retained as rental property. In most cases it is anticipated that a three to four year hold can yield net returns in excess of 100% over and above the acquisition cost.

A secondary source of revenue for Synergy is the acquisition of nearly completed development projects from distressed builders. Synergy’s primary focus in this arena is in major metropolitan areas such as Boston, New York, Los Angeles, Las Vegas, Miami, Chicago, Seattle, etc. Such projects have historically yielded significant double-digit returns in the first annum following acquisition.

Another strategy that Synergy plans to implement in order to mitigate risk and maximize profits with regard to large REO acquisitions is The REO can be immediately broken into smaller pieces and resold. Small REO’s are very desirable and almost impossible to find. A $1B REO can be bought for as little as $330mm (a discount of 67%) where a $60mm or $70mm REO will be priced at a 30-40% discount. Thus Synergy can split the REO into smaller pieces and immediately lock in profits of 10%-25% by simply repackaging and flipping the packages to smaller REO buyers. This can be facilitated in a matter of weeks, securing significant double digit monthly profits for the investors.