Asset Sale Advisory & Disposition
The REO and secondary loan markets have never been more challenging for community bank asset sellers – while the need for timely and effective legacy risk asset disposition has never been greater. Loan Workout Advisers bridges this gap through a combination of analytical and data transparency and longstanding relationships with a best-of-class team of strategic resources in the areas of loan sale advisory, real estate appraisal and conventional and unconventional real estate brokerage.
For loan portfolio valuations and ‘for-sale’ offerings we work closely with a select number of highly experienced advisory firms. These relationships and our constant involvement in today’s secondary loan market enable us to provide bank clients with:
- Unique market intelligence, including proprietary pricing data on our recent offerings.
- An incomparable network of distressed and performing loan buyers.
- Reduced execution risk.
Our disciplined and proven approach to loan sale advisory provides transparency for buyers and complete confidentiality for bank client sellers.
Our specific loan valuation and ‘for-sale’ analytical offerings include:
- Watchlist Loan Portfolio Valuation Report: Produced in cooperation with trusted loan sale advisory strategic partners, this comprehensive report delivers:
- Secondary loan market valuation estimates for each credit in a given portfolio based on our intimate knowledge of current market pricing, including proprietary data on or exclusive recent offerings.
- Sell versus hold recommendations for each credit in a given portfolio.
- Loan pooling recommendations designed to maximize market appeal and achieve the highest possible secondary loan market selling prices for each tranche.
- Watchlist Loan Portfolio ‘For-Sale’ Offering Package: Produced in cooperation with trusted loan sale advisory strategic partners, our ‘for sale’ loan portfolio offering package provides secondary loan market buyers with full analytical transparency and data integrity, all designed to maximize selling prices. Our ‘for sale’ loan portfolio offering package delivers:
- A 60-data field loan portfolio ‘tape’.
- Expert pooling of portfolio assets into distinct tranches.
- WAR reports on the largest and most distressed credits.
- Asset summary reports on all credits.
- Property inspection reports on all real estate collateral.
- Fully digitized credit and collateral files in a secure v-room setting.
For REO advisory, we rely on our expert real estate consultants, who collectively bring decades of real estate development, appraisal and brokerage experience to the table. We provide our bank clients with expert real estate analytics and clear recommendations on strategy. We focus first on repositioning distressed real estate assets (including incomplete development projects) to maximize selling prices. We then turn to our vast network of conventional and unconventional real estate brokerage resources to ensure timely and reliable execution on disposition strategy.
When unconventional disposition strategy calls for the strengths of a real estate auction, we often turn to Rick Levin of Rick Levin & Associates. Our principals have worked with Rick on numerous loan workout and bank turnaround projects over the past decade, with great success. Most recently, Loan Workout Advisers designed a new ‘bank directed’ auction model for Rick Levin & Associates that has since been successfully executed for numerous bank clients in the current market cycle. The concept behind this model is to encourage cooperative borrowers to voluntarily contribute real estate assets that secure their non-performing loans to auction, in exchange for loan settlements tailored to specific deals. The ‘bank directed’ auction model leverages off of our loan workout and negotiating acumen and has been proven successful in dramatically shortening the time to cash recovery for our clients, while avoiding the discount inherent to secondary loan market sales.
For specific REO advisory analytical offerings see Regulatory Capital Management.
