How to Turn Distressed Mortgages Into a Billion-Dollar Portfolio

Yonel Devico has made a name for himself in the real estate industry. His accomplishments include a track record of over $100 million in purchase loans.

As the founder and managing partner of Crosby Capital, he oversees investments, originations, underwriting, servicing, and asset management. He is also the founder and principal Manager of Crosby Capital USA, a Miami-based mortgage investment company.

How Did You Get Started in Real Estate?

I actually wanted to be a real estate developer. After grad school, I went to Cornell University to pursue a master’s in real estate development. But the situation became challenging in 2011 due to the great recession.

It was a time when thousands of homeowners across America were struggling with foreclosures. After some thought, I started investing in distressed mortgages. Since then, my company has purchased over a thousand distressed mortgages across 42 states. The total value exceeds one billion dollars in property value, mostly single-family homes.

Single-family homes are one of the safest investments out there because everyone needs a place to live. I have worked across all asset classes (office, land, retail, and hospitality), but single-family has always been my preference.

Interesting fact: Single-family homes are the largest asset class in real estate, with over 200 million units and $55 trillion in market value.

Who Are Your Clients at Crosby Capital?

We work with investors from different backgrounds. In the past two years, our focus has been the origination and purchase of bridge loans. We help developers and fix-and-flip investors acquire properties. Our company helps foreign investors and borrowers in special situations—like foreclosure or credit challenges—who may not qualify for traditional bank financing.

$23 Million Bridge Loan Deal in Miami

Yonel Devico recently sourced a $23 million deal in Miami through brokers and referrals. It was a $23 million loan on one of the largest pieces of land in Fort Lauderdale. The loan had to be closed in 4 days because of a time-sensitive situation. The borrower had approached banks but banks couldn't move fast enough. That’s why Crosby Capital was approached for a bridge loan.

Real Estate Market in South Florida

Yonel moved to Miami in 2017 after spending seven years in New York. Since then, he has seen tremendous growth in Miami, especially during the pandemic when many people relocated here.

There is now another wave, driven by businesses moving to Miami.

Major players like Ken Griffin are building large office projects here. Tech executives are relocating and high-profile buyers like Mark Zuckerberg are purchasing ultra-luxury properties. Five of the six richest people in the world now have a presence in Miami—except Elon Musk.

From Formula 1 to the Miami Open, the NBA, NFL, and MLS—with Lionel Messi now playing here—Miami is becoming a global hub.

Latest Trends in the Miami Market

Luxury markets in Miami are performing well. The growth is driven by migration from states like California, Illinois, and New York. There is also strong demand for affordable housing because Miami is becoming expensive. There are opportunities in the $300K–$400K range. The market slowed down a little bit last year due to rising interest rates but the activity is still strong. Yonel Devico is bullish on the Florida market.

There could be more migration to Florida if property taxes are eliminated and there is already no state income tax.

How Do You Source Funds and What Differentiates You From Banks?

Yonel Devico and his team source capital from multiple channels, including:

• Institutional investors

• Banks (through lines of credit)

• Family offices

• Pension funds and retirees seeking passive income

• Insurance capital

• Securitization markets

How Should New Real Estate Investors Focus On a Niche?

Yonel suggests focusing on positive cash flow and strong cap rates. It’s crucial that the income covers the debt and you don’t have to cover expenses out-of-pocket. Fix-and-flip investors should think about the exit strategy ahead of time. Relying on appreciation is never a good idea. Always be conservative with your numbers so the deal can be closed successfully.

How Would Yonel Invest $1 Million Today?

Yonel Devico will lend money to an investor who is a developer or flipper.

“We typically lend up to 65% of the property value, which provides a safety margin. Our investors earn steady income without dealing with tenants, maintenance, or operational risks.

In today’s uncertain market, it’s safer to be a lender than to be a landlord".

Biggest Lesson of Yonel’s Career

Yonel Devico invested in non-performing loans in Chicago without fully understanding the broader picture and the market took an unexpected turn. Demand dropped and selling those properties became extremely challenging. The experience taught him an important lesson: always diversify your investments across different markets and asset types.

The Most Important Skill for Investors in 2026

Real estate investing needs strong teamwork. You must coordinate successfully across different areas such as capital management, acquisitions, marketing, and operations. Growth never happens without learning. Yonel attends and speaks at conferences regularly which is great medium for growth.

What’s Next for Yonel on a Personal and Professional Level?

On the business side, Yonel is focused on expanding bridge loans and his non-performing loan business. Personally, Yonel has a goal to attend every Formula 1 Grand Prix. There are about 26 races, and he has attended 8 or 9. His favorite teams include McLaren, Red Bull, and Mercedes. He enjoys watching all the drivers. Some favorites include Charles Leclerc, Lando Norris, and Max Verstappen.

You can connect with Yonel via his email (yonel@crosbycapitalusa.com), Instagram, or LinkedIn.