Iron Arizona Capital Fund
May 17, 2011
Residential Distressed Asset Fund
A targeted opportunity existed in the single family home market in the greater Phoenix Metropolitan Area, in Arizona for newly constructed homes. Over the past several years, Phoenix has seen a steady increase in sales velocity for new construction and resale/rehabilitated homes.
By targeting these specifically, along with adjusting home price and size to meet the buyers’ demands, the builder can have an edge over the competition. Having intricate local market knowledge, connections, and purchasing tracts which are already platted and have utilities can significantly cut down on costs and development time. Additionally, the inefficient and opaque nature of purchasing homes at auction with little to no inspection period discourages many investors from participation in that sector, encouraging them to look at new homes with less risk-factors involved.