In October of 2008, Nexia Holdings announced that it has developed plans for growing its real estate portfolio and creating value for its shareholders. The company intends to capitalize on large portfolios of residential real estate held by banks, individuals, corporations or other entities as a result of subprime or other foreclosed loans.
Many of these distressed properties have been devalued as result of a tight credit market and numerous other factors. Those with cash are in a tremendous position to purchase properties for pennies on the dollar. Nexia Holdings recently sold its Wallace/Bennett Buildings in Salt Lake City for $2.15 million which will provide the liquidity required to propel Nexia forward with its future plans.
CEO Richard Surber commented, “I am optimistic that this acquisition will be the first of many that can be acquired using this method. Nexia can buy highly leveraged properties at great prices in anticipation of the inevitable turn around in the real estate markets in the coming years. I believe it is possible to build a $100M plus portfolio of properties given the current market conditions with very little or no upfront cash outlay.”
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