The CEO and President of Greenfield Partners, Eugene Gorab has been in the real estate investment space since the early 1990s. Eugene Gorab has completed over two billion dollars of successful investments, much of which was in distressed mortgage acquisitions through the Resolution Trust Corporation.
Distressed mortgages can be a tricky proposition for investors who are unfamiliar with the specifics involved but they can also be a great investment with the right approach. Distressed property mortgages can be purchased at prices far below market value, and through smart collateralization and due diligence, they can create a significant return. Getting value from them, however, is a challenge. Investors need to have extensive experience in refinancing, loan modification, and deficiency judgments and be able to use all those effects. The primary risk is a weak real estate market in cases where foreclosure is necessary. Taking over the property in a weak market that ends up being sold quickly cuts into returns. Therefore, the key takeaway is to have a strong grasp of the real estate market and learn how to hold or let go of properties to mitigate any financial risks.
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Eugene Gorab is a real estate investment professional and former chemical engineer. As the President and CEO of Greenfield Partners, Eugene Gorab is responsible for the firm’s broad strategy, which includes the logistics industry.
The logistics industry is one of the most susceptible industries to disruption in recent years as both the business-to-business and business-to-consumer spaces are becoming more demanding. No longer satisfied to wait for weeks or even days for shipments, customers except deliveries within hours of placing an order. The mass exodus of consumers from brick and mortar stores to the online space has also left many logistics providers struggling to keep up. Today’s logistics mantra is “total retail,” a single model that covers physical stores, online shopping and everything in between but so far only the big contenders have been able to implement it. Furthermore, automation is taking over the industry at a rapid pace. This presents huge investment opportunities as human labor is being replaced with fully automated equivalents such as warehouse robots. Since the early 1990s, Eugene Gorab has been a leading authority in the field of private equity real estate investment. As the founder, President, and CEO of Greenfield Partners, Eugene Gorab has sponsored nine investment funds through Greenfield Partners, securing over four billion dollars in capital for various real estate investments. Diversifying your investment portfolio through commercial real estate allocations has numerous benefits. As an asset class, commercial real estate has great returns and presents relatively low volatility. The average returns of the NCREIF property index per year have exceeded those of the US Aggregate Bond Index from 1978 through 2018. It also has a low correlation with the stock and bond markets making commercial real estate a great way to diversify a portfolio. There’s also room to diversify within the asset class since different types of commercial property respond to different market drivers, thereby reducing risks and maximizing return on investment. |
AuthorCurrently, Eugene Gorab serves as the President and Chief Executive Officer of Greenfield Partners, LLC, a company he founded in 1997. Archives
May 2022
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