Dunne Real Estate Capital, LLC

Distressed Property Investing refers to the acquisition of real estate assets (property or land) that were originally purchased with a loan in which the buyer has defaulted. Vehicles used to potentially acquire distressed property include Short Sales, Foreclosures and Bank Owned REOs (Real Estate Owned).

Our Strategy

Dunne Real Estate Capital's primary strategy incorporates the discounted purchase of REO or bank notes collateralized by finished or near-finished residential units which will either be resold at a lower cost basis, thereby undercutting the existing market, or leased for several years before the units are resold.

With virtually no new development set to occur any time in the near future and typical development delivery timeframes taking at a minimum 2 years from inception, investors acquiring discounted residential properties will be well positioned to capitalize on market trends when inventories start to run dry. 

The real estate market is a buzz with groups claiming to be distressed real estate investors however, few have the expertise and relationships to acquire and manage residential properties.  DREC has the experience to purchase assets out of distressed situations and achieve the property's true market value.

Although numerous opportunities are available, a critical aspect of this investment strategy is underwriting and managing the assets properly.  DREC focuses on opportunities containing four main criteria.

1. A unit will only be purchased if recent comparables can be identified and justify an acceptable return.  The investment's disposition must be based on 2010 pricing and not reliant on significant appreciation. 
2. The units must perform at rental rates below market rents thereby providing cushion protecting the investment. 
3. The units’ net operating income must cover any projected debt service in excess of 10 percent.  This provides additional buffer against unexpected expenses.
4. Properties located in infill locations only.

DREC is actively sourcing deals on a national level with a specific concentration in Chicago. 

The opportunity to purchase highly undervalued real estate over the course of the next 2 years only occurs once in an a lifetime.