In the fourth quarter of last year, Nexia Holdings told investors that President Richard Surber has developed a new real estate acquisition strategy for the company. This plan focuses on growing Nexia’s real estate portfolio, while creating value for its shareholders, as large portfolios of residential real estate held by banks, individuals, corporations or other entities as a result of subprime or other foreclosed loans are capitalized on.
Normally, these owners only have the following exit strategies: Quickly resell the property, Obtain financing to pull their capital out of the properties, Lease or rent the properties which may require additional capital to restore the properties, or provide seller financing. These options, however, are all unfavorable (and perhaps unfeasible) in the current economic climate.
Nexia believes massive return potential can be created, while hedging risking, when the holder of real estate sells the possession in exchange for a stated value Preferred Security while maintaining a lien on the real estate for their initial investment plus a reasonable rate of return. Under the new SEC rules, after a non-affiliate has been at risk for over six months they can look to the public markets to liquidate their securities. In other words, six months after Nexia purchases the properties, the seller is able to convert their preferred stock into shares of common stock in a controlled and incremental manner. This would give the seller the option to liquidate their shares and convert their holding to cash.
Commenting on his strategically developed plan, Mr. Surber stated, “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.”
Right now, most people don’t even know that Nexia exists, but the company is in the process of branding itself and marketing its current products. Nexia has already partnered with Clearvision, Inc. to brand its name. In addition, Nexia is looking to promote the opportunities that it will present on a large-scale basis. Nexia is not looking to Wall Street for money. It is looking to Main Street. The company is seeking to provide potentially millions of ordinary people with the opportunity to invest a little and gain a lot.
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