In the wake of the 2008 real estate collapse and foreclosure wave, J. Kale Flagg saw an opportunity. The area of Northern California, Nevada and Arizona were especially hard-hit with foreclosures; that’s when J. Kale Flagg partnered with other principals to form the American Redevelopment Fund. According to J. Kale Flagg, American Redevelopment Fund has devoted itself to purchasing, improving and re-selling single family homes in the region. Investors find this model to be an appealing one, says J. Kale Flagg, since the American Redevelopment Fund is a one-stop-shop that makes use of tools and techniques that maximize profit and limit risk.
Properties acquired by ARF, says J. Kale Flagg, are acquired at wholesale prices from trustee’s sales, bank-owned REO property inventories or short sales. Most properties need a minimal amount of work – cosmetics like paint, cleaning and fresh carpet, rather than more intensive structural work. This helps mitigate investors’ exposure to risk. With his time in the real estate and property-rehab business, J. Kale Flagg has learned the importance of keeping costs down before they can cut into margins. J. Kale Flagg ’s experience has also taught him to put in due diligence on things like title search and construction needs assessment, and to insure that all transactions are covered by insurance and the appropriate legal risk mitigation structures.
J. Kale Flagg and his partners at The American Redevelopment Fund realize that investment in distressed properties can be a gamble, especially for the uninitiated. That’s why they do the work of scouting the properties, doing the rehab work and accurately forecasting a sale price. In the last decade, J. Kale Flagg and the Operators behind the American Redevelopment Fund have sold over 1700 single-family properties, sharing all profits 50/50 with investors. J. Kale Flagg says that American Redevelopment Fund leverages its success via economies of scale – banks are often motivated to sell REO properties to investment groups who can do deals on several properties at once.
J. Kale Flagg and his partners founded American Redevelopment Fund after successful careers in sales, marketing and business. J. Kale Flagg is a 1989 graduate of Yale University. The American Redevelopment Fund has contracted Von Vesting Inc. to oversee operations, and J. Kale Flagg serves as chief operating officer of Von Vesting. Partners at Von Vesting include Rich Von, who possesses more than three decades’ experience in distressed properties; Tiffani Von, a thirty-year veteran of real estate and business; and Michael Harman, who as CFO is a specialist in accounting and finance. In addition to the redevelopment business at ARF, at the commercial real estate development company that he co founded with Lance Bradford in 2005, Stable Development, J. Kale Flagg has overseen three major commercial development projects from start to finish.