Michael Shustek (a Las Vegas real estate investor) is betting $550 million that he can make a profit from a few of the markets in the nation that were hit hard by the faltering economy. Shustek's new investment fund, MVP REIT, is attempting to raise up to $550 million from their investors in order to purchase commercial properties and mortgage loans in several states. The U.S. Securities and Exchange Commission has given him the green light to begin selling his shares.
Although certain real estate markets are currently undervalued, borrowers are still having a somewhat difficult time time getting their projects properly financed. Nevada's real estate market is not likely to fully recover in the near future, which has been keeping sale prices to a minimum. Through these financial downfalls however, opportunities have been created for market investments that have the potential of long-term growth.
Having worked in Nevada since the early 1990's, Shustek founded Vestin Mortgage in Las Vegas. The company invests in loan that are backed by real estate. Along with two publicly traded real estate investment trusts, an investment fund, $135 million dollars in total assets, and the co-authorship of two books about investing, it is safe to say that Shustek knows his stuff!
Along with MVP REIT, significant gains could be made for Shustek through the purchase of inexpensive property that has potential to bounce back later on, and increase in value.