KBS Strat Opp

KBS Strat Opp

Postby Bmef41 » Wed Dec 07, 2011 8:57 am

In full disclosure I am a Financial Advisor, and I have stumbled upon your site. I find it useful in helping me dig through the minutia of details regarding Non-Traded REITS and whether or not to recommend them for my clients. I cannot trust my wholesaler or company literature or get lost in the glitz, so I am appreciative that this forum exists.
On to my question: I am considering recommending the KBS Strat Opp REIT to a small portion of clients who are looking for a straight growth play and like the "RTC story."
Also, from the research I have been able to conduct independently KBS seems to do a "better" job of getting more of the investors money in the ground averaging 88 cents on the dollar. I have examined a number of the assets they have purchased thus far (some loans and other actual properties or land) and so far they seem to be executing on their strategy. They have forecasted a 15-20% annual return with an anticipated time frame of 5-8 years...I know they have a ton of cash...so is this just pie in the sky or this something they can continue to execute on?
And like Sy Sperling, I am not only a Financial Advisor, I am a client, too-I like to invest in the same things I put my clients in.
Thanks in advance for your time!

Bmef41
 
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Re: KBS Strat Opp

Postby RealEstateGuy » Tue Jan 10, 2012 5:31 am

I know a bit about this one from KBS. It's a very interesting non-trader REIT in that only a few opp Reits are out there. Anyhow, IMO, the Opp reit structure has a much better chance to be successful because they are looking for more cap gains and have a reasonable chance to overcome the big commission, costs, fees, etc. bogey these non-trader REITs stack up.

This one is very unique and only for investors who know what they are getting into. It's a play on refinancing properties bought sometime around the crash (08,09) or bought now and can't get good, long-term financing. They are looking at properties owned or serviced by banks going out of business (in gov. receivership under SIPC). I do believe this is a good opportunity marlet to be playing in now so I like the product.

Higher risk, higher return potential. No where near the highest costs either.

RealEstateGuy
 
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