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Why is this the time to invest in Industrial with ID3? 

The financial crisis is directly linked to sub-prime lending and the soured credit instruments that proliferated over the last 5 years.  Unlike the saving and loan crisis, where the industry expanded wildly into commercial real estate lending, spurred by deregulation and poor regulation, this is a result of Wall Street’s negligence towards risky debt.  This time around, we’re not dealing with insured deposits at banks and thrifts, but with a range of financial institutions and credit instruments whose asset’s value has dropped substantial and become illiquid.  The business model worked as long as housing prices continued to rise.  The deterioration worsened with fancy instruments – credit derivatives, swaps – exacerbating the root cause, declining houses prices and lenders defaulting on their mortgages. 

First Bear Stearns, then Fannie Mae and Freddie Mac collapsed from too much exposure to bad investments in home mortgages.  Then the U. S government structured a deal to seize AIG because they insured too many of these failing assets to afford, extended government insurance to bank deposits of 3.4 trillion in money-market mutual funds for a year and banned short selling for 799 financial stocks.  Now, although the details are still being worked out, the government is foregoing rescuing one company at a time and instead is taking on a vast pool of mortgage linked bad debt investments in one gulp.  If it all comes to pass, Uncle Sam becomes the repository for the worthless leftovers of bad residential real estate bets.  If the plan works, it will solve the central cause of the economic distress: the continued plunge in housing prices. 

Unlike previous bailouts, this action by the U S government is not a result of overbuilding in the commercial sector.  A significant portion of the finance boom has been unrelated to commercial real estate much less the industrial market.  With the Savings and Loan crisis, the RTC came after the melt down, but as opposed to treating the symptom the government’s plan treats the cause, buying residential mortgages and mortgaged backed securities. 

ID3 Partners believes the misfortunes on Wall Street provide an excellent opportunity for a well positioned investor to participate in industrial real estate.  Targeting raw land tracts to buy plats that have been prepared for industrial buildings or buying unfinished or unsold industrial buildings, ID3 believes the winners from the government bailout will be the investor who is financially able to invest and hold onto their purchases for as long as five years without cashing them.  Distressed assets are due to a falloff of available credit rather than overbuilding.  The principals of ID3 have the resources to originate attractive opportunities through identification, sourcing and networking. 

ID3 is positioned to take advantage of these investment opportunities in the industrial market by acquisitions or development.  With Wall Street over leveraged and the securities market stumbling, the Principals of ID3 have endured all kinds of markets and stand ready to provide investors the knowledge and the expertise to help them achieve above average returns the current environment.