Residential Housing Market Implosion---Investment Opportunity

The residential housing market has imploded in the current economic cycle. The demand for housing has dried up with the implosion of the subprime mortgage market, which imploded when the hedge fund problems surfaced earlier in the year.

Wall St. supplied the funding for the homebuilders to build to sell to the subprime buyer who has now defaulted and the hedge fund investor cannot buy anymore subprime debt paper.


What we see in this market correction is an investment idea that has the potential to generate double digit returns over a 24 month period.

The collateral supporting many of the subprime loans is worth at most 70% on the dollar. We suggest purchasing the collateral at a face value of 30% on the dollar with the ability to hold for 24 months.