repo business

RealtyTrac is used by everyone who wants to save big money buying real estate, including first time home buyers, investors and realtors. RealtyTrac researches and compiles distressed real estate data for businesses, investors and consumers. Pre-foreclosures, REOs (bank owned), and government properties can be accessed directly from the RealtyTrac web site, or from one of our data partners' Web sites. Buyers can search bargain homes in our national database of foreclosures, or choose from a suite of online products.
Homes for 1/2 Price

Distressed assets: profiting from mistakes of others
Author: Murray Priestley
Distressed asset investing can cover a wide range of scenarios from foreclosures on private homes, to buying and selling assets in failed companies, to stocks and bonds in companies entering or leaving bankruptcy protection or under other financial pressure. It’s about making money from other people’s problems or mismanagement. There are bargains to be had because the seller is usually desperate to raise cash in a hurry.

Early this decade in North America, there were all kinds of opportunities for distressed assets investing, and not just in securities. Remember the big fiber optics bust? Cisco Systems and Nortel, among others, found themselves with too much inventory and too much debt. After dramatic growth throughout most of the 1990s, the market for fiber optic equipment and systems declined dramatically in 2001. Fiber overcapacity and cutbacks in telecom carrier capital investment triggered near panics in stock markets in the U.S. and Canada.

Fiber optics equipment is constantly being improved to give more bang for the buyer’s buck. It’s not something that can lie around in warehouses until the market for it improves. Suddenly, a lot of equipment, billions of dollars worth, had to be dumped. Distressed asset investors profited. True, the companies and their investors lost a bundle, but they stood to lose everything without the intervention of distressed asset investors.

Exodus Communications (an unfortunate name, as it turned out), once claimed to be “the recognized market leader in managed hosting services.” Venture Asset Group, a Palo Alto, Calif.-based financial services firm specializing in sales of assets of troubled telecom companies, got the nod to liquidate the company’s venture capital investment portfolio in 17 private companies, valued at about $200 million.

A company spokesman said buyers could include storage and Web-hosting companies or speculators, including venture capital firms, looking to pick up cheap investments and turn the companies around. “In bankruptcy, everybody’s focus is usually on the big assets (such as the core company), which are very hard to find buyers for right now. There can be liquidity in small assets.”

Bankruptcies or Chapter 11 reorganizations often trigger distressed assets opportunities. As you might imagine, though, these are rarely opportunities for individual investors. But where there is a possibility of a buck to be made, someone somewhere in the investment industry will find a way to let private investors in on the fun and the rewards. Today, there are funds managed by professionals who have the knowledge, flexibility and patience that a company’s creditors may not have.

Many institutional investors, such as pension funds, are barred from holding bonds that are below investment grade, even if the company is a viable one. They may sell at deeply discounted prices, which has the effect of lowering priced further. Banks often prefer to sell non-performing loans; they are not in the business of figuring out how reorganizations will work out for creditors. And holders of trade claims have no expertise in assessing the likelihood of getting paid once a company has filed for Chapter 11 protection.

An example is Barney’s Inc. It filed for Chapter 11 in early 1996. Many clothing designers chose to sell their trade claims and recoup a portion of their money. It was of no consequence whether Barney’s was a solid company that had simply overextended itself, they wanted something immediately. Investors who believed the company would emerge successfully from Chapter 11 protection bought the claims for as little as 25 cents on the dollar. The price rose 50% within months, when it was announced a potential buyer had been found for Barney’s.

When creditors can’t wait or are unwilling to wait, steep discounts are common – and this is the distressed assets investor’s opportunity to make a good profit.

Some companies in the process of reorganizing their debt will issue new securities to junior creditors when they cannot repay them in full. If a fund manager believes the company will emerge from bankruptcy and be viable, he might buy these junior bonds for an opportunity to receive shares in the company under a reorganization plan.

These shares are sometimes referred to as ‘orphan’ equities when the issuing company has no Wall Street coverage. Lack of coverage results from investment banks tending not to view companies emerging from bankruptcy as potential clients. Consequently, the only people able to understand the value of these orphan issues are investment professionals who have taken the time to research the company’s liquidation value during the Chapter 11 process. They now profit from buying the newly issued equities at low prices when other creditors, issued the shares in exchange for their claims, dump them because they don’t understand their value.

This is what happened with El Paso Electric when it exited bankruptcy in early 1996. Its orphan equities were first issued at $5 a share. As creditors dumped them, the price fell. Savvy professionals were able to add to their holdings when this happened. Two years later, the shares were trading at more than $9.

Orphan equities can be highly profitable as the investment community, at first overlooking the stock, gains more understanding and confidence in its value. This ultimately leads to Wall Street coverage and higher prices.

As always, look for a manager with a solid track record.

Distressed asset investing can be a good way to increase diversification in an investment portfolio. Opportunities are more prevalent in a recession, but companies get into trouble in expansionary times, too. Distressed assets do not have the same volatility as many other types of investment. Excessive prices, if they existed, have already been wrung out of them.

About the Author

Written & published by Murray Priestley, Managing Partner of Portofino Asset Management, private investment managers and publishers of the Portofino Report. www.portofinoasset.com

Other sites that feature repo business

1. ISMA lays foundations for more accurate European repo market stats
... A survey commissioned by the International Securities Market Association (ISMA) puts the total value of repo business outstanding on participants' books at EUR1,863 billion - although the true figure ...
http://www.bankingmm.com/ISMA.htm

2. Software Information & Resources
... e-Synergy, Exact Globe, Microsoft Certified Partner Marr Software | Towing - Wrecker - Repo - Auto Business Software Solutions > Software ( Dnn 2.1.2 ) Marr Software | Towing - Wrecker - Repo ...
http://www.online-softwar ...com/businesssoftware/

3. FREE MP3 MUSIC DOWNLOAD
... store Blank cd download music Download music new persian Country download music old Download hip hop music rap Asian download music rap Car repo sale Business mba school New york state income tax form
http://mp3.musi.ws/index1.aspx

4. 75
... Coverage of Sense Holdings Targeting Share Price to Approximately Double to $0.75; Repo... NEWSPAPERS Business Wire 10/19/2005 ... research firm, has initiated research coverage of the Company ...
http://enciklopedija.cc/75

5. Pro Tow XTR, Pro Repo ACV, AnyOrder III - Mail Order Business Kit, ... - Bus...
... Rated 1 Towing Software For Professional Towing Companies Pro Repo The Industry Standard Software Including Accounting Mail Order Business Kit Process orders invoice bill track sales inventory Home ...
http://www.acidfiles.com/ ...s/Accounting-Finance/

6. WorldPhotos - photos from all around the world
... diva BeyoncÈ to France, Philip Green knows how to throw a good party. | In May he spent a repo... Business Celebrity Entertainment Media Photos Letters: The trial of Saddam Hussein The Independent ...
http://www.3dimensions.co ...ip and Green&mode=and

7. International [Archive] - Truck Forum
... my father in law has one of the biggest tractor trailer and heavy equiptment repo business in the U.S. He has to know the stats. Beaver3000 10-31-2005, 05:00 PM Chevyguy you have an International ...
http://www.truckforum.org ...index.php/t-5729.html

8. foreclosure statistics at The Foreclosure Palace
... Sale by owner move better an looking acreage long and foster mortality, values repo business cycle multiple listing service lis pendens tax liens national statistics office colwell banker. About ...
http://www.idealrecords.c ...reclosure_statistics/

9. Wholesale Swim Wear
... Mr. Derago will repo Business Wire - Hit The Beach, Deck Or Dock In West Marine's New Versatile Swim Trunks July 13, 2001 -- Business/Sports Editors WATSONVILLE, Calif.--(BUSINESS WIRE)--July 13, 2001 ...
http://vacationcruiser.co ...olesale_Swim_Wear.cfm

10. Delaware Dmv : Delaware HQ
... net/~cjbeckman/ CPA Associates Towing - Wrecker - Repo - Auto Business Software... Marr Software Wrecker Software For Professional Towing Companies Large and Small Operations. We provide software ...
http://delaware-hq.com/delawaredmv/index.php

11. List of articles
... in a casino ; investing in ethanol companies ; personal finance magazines ; how to start a repo business ; investing for education ; how to start cleaning business ; how to design business cards ...
http://www.moreloanshere.com/articles/69/

12. Where to find information online about: slow pays, repair credit, tax liens,...
... company How to Sell foreclosures repo How to Buy foreclosures repo Ins and Outs of Business services tax repo report rating credit services with emphasis Business tax repo Information credit tax ...
http://www.4-creditrepairservice.com/

13. What does it take to open a repo business?
Popularity in Business Plans FAQ: 2 [recommend this question] Location : FAQfarm : FAQs : Business : Business Plans What does it take to open a repo business? BizPlanR [13] contributed the first ...
http://www.faqfarm.com/Q/ ..._open_a_repo_business

14. About Bill
... Mind you, Jack Merchant doesnt own the marine repo business, Sarah does&and in my future books, the repo business will only apply in only the most tangential ways. Essentially, Jack is a guy on the ...
http://www.billeidson.com/qa.htm

15. AllPages.com - Best Buy Repo's, Fort Lauderdale, FL - Business Profile & Maps
... com Other Channels ::Health| Reference | Weather September 27, 2005 Best Buy Repo's 735 West Broward Boulevard Fort Lauderdale, FL 33312-1747 Additional Business Information Tel: (954) 525-2627 Fax ...
http://listings.allpages. ...-fort-lauderdale.html

16. Auctions Sources - Find Auto Auctions, Government Auctions Police Auctions F...
... michigan repo voluntary repo repo properties repo rv repo jobs fha repo repo companies and repo business. For repo car auctions the repo man bank repo houses vehicle repo now joe repo repo man ...
http://www.auto-auctions.doingbig.com/

17. Corporate Repo Sweep
... Governance - Fraud/Identity Theft - Free Credit Report -About Us -Kids Corner -Privacy & Security Home  |  Business Banking  |  Corporate Repo Sweep Business Banking Corporate ...
http://www.centralvabank.com/84916.html

18. Jackson LaTree Mortgage 503-794-8333 VA home loans OR,Milwaukie Oregon City ...
... VA home loans OR,Milwaukie Oregon City Clackamas Multnomah homes VA home loans OR property real estate agent realtor bank repo builder business buy buyer buying coastal commercial,VA home loans OR ...
http://www.homeloansportl ...VA_home_loans_OR.html

19.
http://doingbig.com/

20. Winnipeg airport
winnipeg airport digital camera buyers guide james madison high school repo boats business letter template lexmark printer drivers honda ct 70 online prescriptions dj bobo mp3 electronic payment ...
http://winnipeg-airport.fluky.nl/

21. Car Repo Sales - InFold
car repo sales - Business & Economy - Computers & Internet - Personals & Dating - Health & Beauty - Travel & Leisure - Shopping & Money - Auto & Sports - Law & Finance Related searches hair care avis ...
http://infold.us/cat-car+repo+sales.html

22. FFA Links Page - movak.com - Free For All Links
... than $1.67 per day " Copy Machine " Discount Copy Machines, Copy Machine MARR SOFTWARE | Towing - Wrecker - Repo - Auto Business Software Solutions Ebooks N'Byes Technical and scientific translations ...
http://www.movak.com/links.htm

23. Bankrupt in new york
... circuit bankruptcy court Credit counseling montgomery Maxwell bankrupcy Debt relief for auto repo Business bankruptcy Pennsylvania chapter 7 bankruptcy Bad card credit credit guaranteed unsecured ...
http://www.bankruptcy-web ...rupt-in-new-york.html

24. mobile application development data synchronization field force automation
... >> read about it Repo business owner goes high-tech to boost bottom line Few associate the automobile repossession business with high technology, but a Valley man has revolutionized his ...
http://www.appscafe.com/news.htm

25. Alltel Cellular
... rental, dial up services, free demographics, cheap blinds, telegram service, mobile home repo, avery business cards, tty phones, sprint pcs prepaid, free scanning software, website free, rental home ...
http://www.jobtrapping.co ...-alltel-cellular.html

26. Rip Off Report:AmeriCredit Financial Services Rude and abusive Fort Worth Te...
... U.S.A. Rebuttal Consumer Comment Submitted: 11/15/2003 7:21:18 AM Modified: 3/27/2004 10:29:42 AM Americredit is in the Repo business I read the comments that had been posted and they match the way my ...
http://www.ripoffreport.c ...ports/ripoff27076.htm

27. College Sports Business Influence
... n9396312 mba courses colleges with business and comics programs brisbane graduate school of business mba distance learning schools to learn repo business intitle influence of business college sports
http://www.business-schoo ...usiness-influence.php

28. Online Trading News: 06/01/2005 - 06/30/2005
... Corp. TradeWeb launches online trading for tri-party repo Computer Business Review, UK - Jun 9, 2005 Online fixed-income trading network Thomson TradeWeb has launched a multi-dealer electronic trading ...
http://www.1929stockmarke ...05_06_01_archive.html

29. http://www.irs.ustreas.gov/pub/irs-regs/il6593.txt
... These rules are adopted in order to eliminate a potential opportunity for abuse that arises from the manner in which a matched book repo business is conducted by securities dealers. A matched ...

30. volkswagen parts
... kenny chesney mp3 dui attorneys travel nurse agencies yacht charter better homes 26 gardens repo boats business to business technology new york web design pool kids driver requirements florida vacation ...
http://volkswagen-parts.rudienvera.nl/

31. Your number 1 resource for quality used and repo business equipment in Colorado
... V.O. Remarketing is a full service professional remarketing organization specializing in discovering, collecting, marketing and selling used business equipment and used office equipment recovered from ...
http://voremarketing.com/

32. Ministry of Consumer Affairs - Business Info - cccfa-cs-repo
Home | Useful Links | Contact Us | Site Map | Access Keys | News | Media Centre About Us Consumer Information Business Information Policy, Law & Research Measurement Product Safety Scamwatch ...
http://www.consumeraffair ...-cs-repossession.html

33. auto loan calculator amortization save by paying early - Quick Results!
... credit repo ? - loans check into cash iowa city - homeloanfunding. ... Auto loans bad credit repo. business-loan.business-loan ... Loan officer introduction letter. auto loan calculator amortization ...
http://www.loan-dance.com ...-by-paying-early.html

34. http://www.towinglinks.com/Boards/ask-pros-01-2004.htm
... rr.com We are looking for information on getting into the repo business. Any info would be helpful Thanks for your time Angie & Dan Kramer Mon Dec 22 18:28:41 2003 , Michigan spaceman926@yahoo.com Can ...

35. Education Learning - Auctions
... 7.99 Repo Man- Get into the Repo Business Audio CD - $14.00 RARE CIVIL WAR PICS/MAPS/READINGS/AUDIO CD!!! - $3.99 Hooked On Phonics Learn to Read! New w/ Audio Tapes! - $10.00 Anthony Robbins Personal ...
http://www.way2bid.com/c/ ...ion---Learning/Audio/

36. The Accountant Search LA 350
... Business Development Partners Llc Cp Business Management Services Inc Business Resources & Repo Business Resources & Repo Butler Daniel L Jr Cpa Butler Daniel L Jr Cpa Butler James L Cpa Butler John ...
http://www.the-accountant-search.com/search-LA-350

37. Business Intelligence The ProClarity Analytics Platform: Business Reporter f...
Business Intelligence Knowledge Base 173,196 Business Intelligence subscriptions Welcome, Guest Sign in / Create user BI Home Groups Strategy & Planning Vendor Selection Technical & Functional Career ...
http://www.businessintell ...porter-for-Excel-1471

38. Seized Electronics $ Repo Jewelry. Earn Big $ After One Time Pay. (Business ...
... Place Free Ads| Manage My Ad| Advanced Search Ad ID 41807In Category: Business Opportunities Seized Electronics $ Repo Jewelry. Earn Big $ After One Time Pay. FACT: SERIOUS CUSTOMERS ARE HAPPY TO PAY ...
http://www.hot-web-ads.com/view/adId/41807.html

39. Browse Ads Online
... 1294. FOR SALE Towing/repo business. For more information please call 736-5651, 339-3569. WANTED Old 8N Ford tractors for parts, any condition. Cash paid. Call 775-7900. Will pick up. 71712 IN CITY ...
http://www.csgonline.com/browse.php?curAd=20

Other Results for repo business
foreclosed homes free listing
foreclosed land in austin, texas
foreclosed vha dunn, nc
foreclosed condos utah
foreclosed land in texas
arizona forclosure properties
repo lot
repo homes.com
repo lots of san antonio
repo man drink can
repo mobile home dealers
repo mobile ho
mexico forclosure property
repo man food can
repo homes on oahu
picture of repo mobile homes
mon repos palace corfu
mobile home repo texas
repo 510
repo and pontoon and boat
repo depot toronto
repo depo ontario
repo cargo van
repo boat
repo mobile home texas

Research Links