Objective, experienced, third-party advice
When lenders need a plan to mitigate loss
When a commercial or investment property is re-possessed, the goal is to mitigate loss. Since the early 1990s, beginning with the savings and loan crisis, White + Burke has worked with lenders to analyze properties, their markets, finances, and strategic alternatives to expeditiously prepare and implement action plans to dispose of OREO properties.
Property review
What are the property’s attributes? Physical condition? Occupancy? Location? Lease terms? Position in the market? White + Burke’s depth of experience allows us to quickly assemble, review, and understand how each of these informs an effective workout strategy.
Financial analysis
White + Burke has decades of experience preparing realistic operating proformas based on current market conditions, discounted cash flow (DCF) analyses, and broker’s opinion of value. We do the behind the scenes number-crunching so the lender can focus on working with the borrowers and managing the overall process.
Action plans
White + Burke is adept at developing alternative plans to mitigate losses and move expeditiously. And we put action with our words, whether it’s marketing an OREO property, obtaining permits that add value, or overseeing completion of construction of a partially built project.
During the savings and loan crisis I was head of asset recovery for an S&L. We routinely engaged David, Tim, and their team to analyze OREO properties and develop strategic disposition plans. They were enormously helpful in timely disposition, maximizing value, and mitigating loss.
Will a distressed property get even worse?
We provide cost-effective asset management
The last thing a lender wants is for the value of an OREO property to decline further. Sometimes a property needs to be stabilized. Perhaps tenant problems need to be addressed or repairs made or maybe it simply should be cleaned up. We can identify those issues, make cost-effective recommendations, and manage the process of getting them done.
Backup, Support & Strategies
Backup
Sometimes the volume of work is overwhelming. We step in to expand your capacity on an as-needed basis.
Support
We’ll do the legwork to gather information, deeds, property tax information, and the myriad other documents needed for a complete file and analysis.
Analysis
Each property and situation is unique. To develop effective loss mitigation plans requires analysis of each property, its market, and finances.
Strategies
You can dump a distressed property on the market and hope someone makes an offer. Or you can first develop thoughtful strategies to position the asset to maximize its value and mitigate losses.
Brokerage
When it comes time to sell an OREO property, we can help a lender manage other brokers or take the assignment ourselves. Either way, the goal is to get it off the lender’s books quickly at a price that minimizes any loss.