FABRIZIO SANTORO, CEO
Alto Investments Inc., in business for almost 20 years, has grown to become the premier facilitator of foreclosed properties and distressed assets in South Florida. With a proven and verifiable track record of carefully selecting properties to acquire and consistently generate positive capital returns for it’s privileged investors, Alto Investments continually proves “The Company Makes Money for it’s Client the Day it Acquires a Property.”
South Florida is ground zero for foreclosures. In this booming foreclosure market a large percentage of residential properties sold monthly in the tri‐county area are investment grade, foreclosed with discounts below market value. Alto Investments’ acquisition model works because a highly systematized research and development team monitors all factors affecting the local marketplace and buys accordingly.
The remaining distressed property sales were retail or commercial. Banks have accumulated an unimaginable number of single family properties creating a consistent inventory for investment. According to the Federal Government, it will take 5 to 8 years to properly liquidate the entire inventory of REO properties. “As a result of the high number of foreclosures that have been taking place across the nation,” said HUD. The FHA “encourages investors that specialize in acquiring and renovating properties to target foreclosed and abandoned homes, with the objective of increasing the availability of affordable homes for first‐time buyers and other purchasers, and help stabilize real estate prices as well as neighborhoods and communities.”
The National Association of Realtors (NAR) continues to predict that are foreclosed properties will remain a significant . Essentially, the investment decision is simple; Alto Investments has the core competencies for investing in distressed real estate assets. It buys properties with built‐in equity, typically between 60 to 70 cents on the dollar, with an average discount of 33% below market. Alto Investments has developed a strong reputation for successfully acquiring and managing properties. Alto Investments is a trusted and respected player, in part due to its unique ability to successfully transact in difficult financial times and perform through adverse economic climates. As a result, Alto Investments is pursued by lenders and sellers looking to dispose of their assets. They know that Alto Investments has a competitive edge. The Company’s main competitive advantage lies in its ability to operate and manage the properties that it acquires. Alto Investments dominates the market in which it practices, and has an insider’s grasp of the political climate in which they operate.
Unlike most other real estate private equity funds, which invest in operators, Alto Investments, is a direct operator. In this capacity, Alto Investments has created an in‐house operation with the necessary capacity to achieve economies of scale through specialization, while still being nimble enough to rapidly adapt to changes in the marketplace. All departments are in-house and fully staffed:
· Sr. Management Department · Accounting Department · Acquisitions Department · Legal Department ·
· Processing Department · Construction Department · Property Management · Rental and Sales Department ·
This access to unlimited service creates value to Fund investors by providing a great sense of control and accountability within each project. Alto Investments is fully aware of the competitive dynamics of each pursued opportunity and of the situations in which it has a competitive advantage or shortfall. The company selects opportunities from a wide range of sources. These sources include:
· Courthouse Auctions · Tax Auctions · REO · Portfolio Sales · Short‐Sales · Resellers ·
· Public/Private Partnerships · Direct lender/bank relationships ·
With foreclosures making up the majority of the real estate transactions in South Florida, there is a window of opportunity to capitalize on the excellent profit margins that can be achieved. According to the FHA, the average discount on a foreclosed homes leaves investors with a great equity position at the moment of purchase. Alto Investments is the largest buyer of foreclosed properties at the Broward auctions.
Because everything is in-house, Alto Investments adds value to the purchased properties, providing excellent returns. The real estate market is continuing to push prices toward disequilibrium, thereby leaving owners and lenders uncertain about the value of their real estate assets. The opportunity to acquire real estate well below both replacement cost and stabilized market value, and the high percentage of objective quality properties presently available to investors will not remain static. Prudent investors will team with Alto Investments to facilitate their objectives.
Already established as the premier buyer of real estate in the South Florida market, Alto Investments is driving the competition out of the marketplace. Our existing, scalable and ever expanding infrastructure enables us to identify and analyze opportunities on a micro‐level by exposing inefficiencies within the banking bureaucracy to achieve macro results.