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Sovereign Funds Seeking to Purchase

Abu Dhabi, Kuwait, The Arab Emirates have created fund called sovereign funds to invest. ( Loaded from petro dollars from 140 dollar a barrel oil)

These funds seek to reinvest in the United States residential real estate market. They are now planning on buying up billions of dollars of REO property from the banks and mortgage companies at steep discounts.
The unidentified fund joins individual US investors, hedge funds and Wall Street banks in kicking the tires of REO homes, which have fallen in value so much that they are now tempting investments.

A sovereign fund would have two distinct advantages over other investors – the depressed value of the US dollar makes the homes a bargain, and sovereign funds have deeper pockets.

The sovereign fund of Abu Dhabi, for example, has a reported $875 billion in assets, while Norway has $391 billion, Singapore has $303 billion and Kuwait has $264 billion in their sovereign funds, which are funded by proceeds from oil sales …

So far, prices on bulk sales of REO properties vary based on location and are selling from 60 cents to 80 cents on the dollar. They are currently offering 40 cents on the dollar for about $2.5 billion worth of California properties by IndyMac – This offer was turned down. I believe you will see offers being executed at the 70% market in CA.

Morgan Stanley puts together 8 billion property fund

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