DISTRESSED DEBT ACQUISITION
Real Diligence understands how to handle a distressed debt acquisition. Real Diligence works with private investors, hedge funds, private equity firms, and real estate investment companies in the process of distressed debt acquisitions. Working with clients, we close transactions quickly through a proven due diligence process focused on the critical components of these transactions. Our Distressed Debt Acquisition services include:
- Loan Evaluation
Attorneys with deep experience with the CMBS market provide a comprehensive structural and organizational analysis of the interests, rights and obligations of all parties to the loan (e.g., mezzanine vs. senior debt, interest of members within the borrower entity, etc.).
- Loan Abstracting
Comprehensive abstraction of loan documents and inter-creditor agreements with special attention paid to critical dates and affirmative borrower obligations.
- Underlying Property Due Diligence
Clients purchasing notes typically do not have full access to the underlying property's financial documentation or do not want to spend the time collecting the requisite information and conducting comprehensive due diligence on the property. Real Diligence conducts comprehensive due diligence on the underlying property (as access to the documents will allow) and fashions a due diligence process that best suits each client.
- Title Services
Real Diligence is affiliated with Madison Title Agency, one of the nation's largest title insurance agencies. Working with Madison Title, Real Diligence orders a title search and review to ensure there are no encumbrances or violations of record on the property. Madison Title is authorized in each state to serve as an escrow agent offering a smooth transaction and transition as an insured on the property. We work with the existing/ outgoing lender to secure payoffs and, in the event of an assignment, prepare and coordinate assignment documents. Finally, if necessary, we secure the release of the existing loan and ensure recording of the lien.
- Post Acquisition:
For clients who purchase the note(s) and subsequently foreclose on the underlying property, Real Diligence provides a host of services aimed at assisting with the organizational and logistical issues that arise when taking ownership of a property. These tasks are set forth in our Post Acquisition Due Diligence Bundle and Management/ Ownership Bundle.In short, Real Diligence can help summarize, in fine detail and an easy-to-read format, all of the details (financial, legal, management, lease) related to the property.
Please click here to read more about our menu of distressed debt acquisition services.