American Home Veteran Now Eyeing REO Market
Don Henig, former president of third-party lending at American Home Mortgage, Melville, N.Y., has found a new career after mortgages: investing in foreclosed properties at public auctions.
Since the end of November, Mr. Henig has been involved in 30 home purchases.
His goal is to buy the homes at a deep discount for cash, fix them up and resell them quickly. He is out raising capital through his firm, First Light Capital of Farmingdale, N.Y. He works with another company, Island Properties, also of Farmingdale, to fix up the homes and then find investors that eventually will buy what he acquires.
Mr. Henig said he began researching the foreclosure market last summer and slowly grew comfortable with it. He's also an investor in Island Properties, which he says treats "consumers well in every case" that it can. "They truly create win-win situations."
For now, he is concentrating on buying homes in New York and New Jersey but not the five boroughs of New York City.
He recently bought a home for $151,000 in Deer Park (Long Island) and hopes to eventually sell it for $375,000 after fixing it up. American Home, a REIT that specialized in both prime and nonprime lending, filed for bankruptcy protection last summer. (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/