Real Estate Tip: Investment Opportunities and Strategies for Acquiring Defaulted Community Facilities District (CFD) Bonds

An opportunity that investors have recently been exploring is the acquisition of defaulted CFD bonds which may present special advantages to the investor.

Opportunities include:

*foreclosing out lenders and fee owners, or

*holding the bonds and enjoying the higher yield resulting from the purchase of the bonds at less than their par value.

Community Facilities Districts ("CFDs") are often formed to finance the infrastructure for master planned communities. The lien securing the repayment of the special taxes which are pledged to pay debt service on the bonds issued by the CFD is senior to all liens securing private loans encumbering the property within the CFD.

Please see full alert for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

Tax

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Allen Matkins Leck Gamble Mallory & Natsis LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×