Special Assets

TIC WORKOUTS, NON-PERFORMING ASSETS, REO DISPOSITIONS

Special Asset Management encompasses both the resolution of the problem loans and the management of commercial real estate owned (REO) assets for value maximization and disposition. 

When managing non-performing assets, IAG's focus is to maximize the recovery of our clients' capital by negotiating settlements where possible and enforcing rights when necessary.

HOW IAG CAN HELP

The IAG Asset Management Team will proactively engage in the resolution of non-performing assets by:

Avoiding lender liability suits. 

• We will assist in negotiating a pre-workout agreement to minimize risks that can arise due to misunderstood verbal statements made in workout negotiations. Oftentimes institutions find themselves the victim of claims that oral agreements, representations or waivers made in the course of a workout entitle the borrower to rights or damages never contemplated by the lender upon entering workout negotiations. 
• Analyzing and summarizing all relevant information on the loan, the borrower, the collateral and relevant documentation and history. In addition to gathering all loan documents, promissory notes, guarantees, evidence of advances and notices, a complete written history of the loan will be prepared including the borrower's financial statements, tax returns, litigation history and credit rating. 
• Working with your legal counsel, IAG will work with your in-house legal department or outside counsel to protect information gathered from being used as evidence in any future litigation. 
• Determining the value and viability of the project or property. IAG's property valuations include DCF modeling, NOI analysis, cash flow projections, risk and return analysis, occupancy cost and market opportunity analysis, budgeting updates and reconciliations, and Cap structure evaluation. We also take a close look at the project viability, including non financial factors such as debtor's track record, integrity, character, and business planning ability. 
• Documenting the transaction completely. Once negations have resulted in a restricting or workout, all aspects of the agreement will be thoroughly and fully documented. 

COMMUNICATION IS KEY TO SUCCESSFUL OUTCOMES

IAG's asset management team will maintain direct communications with you throughout the entire process. You are free to participate with IAG in any and all borrower meetings and deliberations. Further, you will have final approval prior to the execution of any agreed upon workout strategy. 

If you obtain title to the asset, IAG's focus is to help you realize the maximum value of the asset. IAG's core group of real estate professionals will oversee the property management, leasing, redevelopment, repositioning, and disposition activites for REO assets of our clients. 

REO DISPOSITIONS

IAG recognizes inherent REO complexities, the risk exposure of non-performing assets and the potentially high costs associated with holding REO properties. More importantly, we understand how all of this impacts operations and the financial picture - market-to-market and property-to-property. Our focus is to help you craft a strategic action plan that meets your time requirements, which could result in minimized losses and a quicker sale when the asset has been positioned appropriately. 

At IAG we understand that some REO Departments are overworked and understaffed. We understand the sense of urgency to move toward disposition. However we also recognize that proper asset management preserves equity.

WHY IAG?

IAG's primary goal for REO properties is to quickly stabilize the asset's performance, then work to achieve increases in value, optimize operations, and yield the best possible revenue stream. Options to examine include repositioning strategies, capital improvements, lease-up activities, improving operational efficiencies, refinancing debt, or best positioning the asset for optimal sale in a down market. IAG will use its experience and understanding of market variables to recognize and derive a property's potential.