Summary
Turnstone is seeking Investment Partners interested in taking advantage of one of the best markets for real estate accumulation in the last 30 years. Residential real estate (one to four unit family dwellings) in the State of California and Los Angeles County in particular, has seen a rapid reduction in property values since first quarter of 2005. This rapid reduction in property values, together with an unprecedented Federal action to support credit markets, has created a once in a lifetime opportunity for equity accumulation in the one to four unit residential real estate market. We believe that in the next 60 months, there exists a window of opportunity to realize substantial return on investment through the accumulation of real estate, its cash flow, and subsequent appreciation. Turnstone is structuring investment partnerships specifically designed for Investors who are otherwise unable to participate in the business of investing in foreclosed properties in Southern California.
Demand
Since the third quarter of 2005, the median home price in certain California sub-markets has declined by around fifty (50%) percent. This means that a home valued in 2005 (in the Turnstone targeted area) at $395,000 is only worth approximately $155,000 today (estimations).
The result of this abnormal correction in the median home price is that for the first time in 30 years, affordability for first-time-home-buyers has risen from 13% to 53% (California Association of Realtors).
Property Selection
Our investment projects are located as a result of our network of REO (Real Estate Owned by banks) specialists. These “Property Locators” and Realtors are aligned with bank asset managers and are often notified in advance of significant price reductions on REO inventory. Through these contacts, Turnstone is able to secure properties significantly below current market value. In addition to REO and foreclosure inventories, Turnstone purchases properties at the Trustee Sales at the County Recorder. Turnstone’s ability to obtain these highly discounted properties has two major benefits:
It provides an increased opportunity to take advantage of the quick turn option of the investment and it builds in a buffer against the possibility of further decline in real estate value.
