Workout Resolution Counseling
Workout Resolution Counseling – Service Provided by David Dornbos
Workout Resolution Counseling plays a pivotal role in helping to resolve a wide range of roadblocks that may be restricting your return on your investment, interfering with a closing, or may be limiting your ability to perform on loan.
Commercial Lenders Often Employ Workout Resolution Counseling
Workout resolution counseling has historically been used by commercial lenders to attempt to salvage and protect their financial interests in a mortgage loan. Commercial bank workout counselors typically work on behalf of a commercial lender when an owner is teetering on the edge of a loan default. Commercial lenders do not want to foreclose on an owner’s secured property to attempt to recover on a loan.
The foreclosure process can be costly, time consuming and often only leads to a partial recovery of the original loan amount extended to a borrower. Following a bank foreclosure, a commercial lender is often left holding a sub-standard commercial property that has been significantly diminished in market value due to the property’s loss of income, deferred maintenance costs and tarnished public image in the marketplace.
A new owner will also find their efforts to secure conventional financing to be limited because of the prior owner’s loan default. Original property owners are typically left financially devastated and with the possibility that they may still be financially liable for the original loan for many years to come.
Workout Resolution Counseling Redefined!
Real Estate Asset Advisor David Dornbos and Capital Investor Services, Inc., are redefining the role of Workout Resolution Counseling by offering proactive counseling services that are focused on working with commercial property owners, investors and lenders before a project has defaulted on a loan commitment to preemptively offer creative solutions to help relieve bottlenecks that may be hindering project performance and may, if not corrected, led to a loss of asset value, or loan default.
Workout Resolution Counseling can play a pivotal mediation role in helping to create a constructive pathway to explore options that may help alleviate stress, and to present practical, creative, and workable solutions to problems. David’s experience and dedication make him an invaluable asset in helping owners, investors and lenders find new pathways through the challenges that commercial property owners are facing today.
Owners, investors, and commercial lenders often find themselves navigating through complex situations when commercial property investment returns and commercial loans are ‘at risk’. In today’s commercial real estate investment environment, it is becoming increasingly necessary to consider outside experienced professional assistance that can offer creative solutions to help mitigate losses and to help protect asset value.
Real Estate Asset Advisor David Dornbos, will thoroughly assess the conditions contributing to an at-risk, or underperforming investment property, or troubled loan.
David will review and analyze current underlying contract provisions, recorded title conditions, zoning restrictions, the property’s physical conditions, a borrower’s financial position, and other project related issues that may be relevant to identify the root causes of distress, and to highlight the assets that each property or property owner may have available to help mitigate risk and better realign an investment property within the local market.
By gaining a comprehensive understanding of the borrower’s circumstances, Real Estate Asset Advisor David Dornbos, will tailor their counseling services to provide relevant and effective guidance at an affordable price.
Effective counseling in a workout scenario hinges on building a strong relationship between the Workout Resolution Counselor ownership, and contractual related parties. Trust and transparency are essential components of this relationship, facilitating open communication and collaboration. A Workout Resolution Counselor can be your friend and trusted advisor committed to assisting you in navigating through challenging times. This relationship-building process begins through productive counseling and cooperation.
Real Estate Asset Advisor David Dornbos, alongside Capital Investor Services, Inc.
Real Estate Asset Advisor David Dornbos and Capital Investor Services, Inc. works closely with clients to explore various options for addressing the troubled or underperforming commercial investment property. This may involve repositioning a commercial investment property in the local market, restructuring the terms of the loan, such as adjusting interest rates, extending the repayment period, or modifying the loan agreement to better align with the borrower’s financial capabilities.
If these discussions fail, David can recommend other non-conventional financing alternatives that may be better suited to address a client’s investment goals.
Based on the Workout Resolution Counselor assessment of options, a Workout Resolution Counselor can assist clients in crafting a comprehensive workout plan tailored to their specific circumstances. This plan outlines the steps to be taken to improve a property’s performance and mitigate potential risks. It may include timelines, milestones, and performance metrics to track progress and ensure accountability.
Through collaborative effort, a Workout Resolution Counselor, an owner, an investor, or lender, can work together to devise a realistic and achievable roadmap for resolving the challenges associated with the troubled property or loan.
In many cases, successful workouts require negotiation with various stakeholders, including creditors, investors, and regulatory authorities. A Workout Resolution Counselor leverages their expertise and industry insights to facilitate these negotiations on behalf of their clients. This may involve advocating for favorable loan terms, mediating disputes, or seeking concessions from other parties. Effective negotiation skills are paramount in achieving mutually beneficial agreements that support the interests of all stakeholders involved.
The counseling process does not end once a workout plan is implemented. Workout Resolution Counselor continue to monitor an owner’s progress and the performance of an owner’s commercial investment property, recommending adjustments as necessary to ensure its success. This may involve periodic reviews, financial analysis, and proactive intervention to address any emerging issues or challenges. By maintaining ongoing communication and support, a Workout Resolution Counselor can help clients stay on track towards achieving their financial objectives.
A Workout Resolution Counselor can play a crucial role in counseling clients during the workout of issues contributing to troubled and underperforming commercial property performance and troubled loans. Through thorough assessment, relationship-building, and collaborative effort, a Workout Resolution Counselor can assist owners in navigating through financial distress and finding viable solutions.
By providing guidance, negotiating on behalf of clients, and monitoring progress, a Workout Resolution Counselor contributes to the resolution of challenges and support the long-term financial health of their clients. Effective counseling not only benefits individual borrowers but also strengthens the overall stability and resilience of the commercial real estate market in total.
Typical Workout Resolution Counseling report summary:
Review Contracts and Project Specific Conditions:
Conduct a comprehensive analysis of the commercial real estate property contract provisions, loans, local regulations and the overall condition of a property.
Evaluate the financial performance of the properties, market conditions, and borrower’s financial status to determine the extent of the workout required.
Risk Evaluation:
Assess an asset’s afforded resources and limitations associated with each ‘at-risk’ property including existing loan/debt, current position within the market and its potential positioning following restructuring, owner and investor expectations, and an owner, investors, ability to enlist the resources needed to implement change.
Determine the owners, investors and lenders and other related party exposure and potential losses in case of default.
Recommend An Action Plan:
Collaborate with internal stakeholders, owners, investors, lenders, credit risk managers, legal advisors, and other real estate experts, to devise effective workout strategy tailored to each property scenario.
Explore various options such as market repositioning, loan modifications, refinancing, partnerships, an asset trade, redevelopment or asset sale.
Plan Implementation:
Secure that all impacted parties have plan buy-in and are mutually committed to the plan of action.
Maintain open communication channels with owner, investors, and lender. Ensure that all parties understand their role(s), the underlying challenges, constraints, anticipated scheduled milestones and the final goal(s) that are intended through implementation of the plan.
Plan Administration and Reporting:
Ensure compliance with all legal and regulatory requirements governing loan workouts and potential foreclosure processes.
Engage legal counsel to draft workout agreements and documentation to protect the client’s interests.
Protecting Asset Value:
Implement strategies to maximize the value of distressed assets, including property management, leasing, and renovations if necessary.
Monitor market trends and adjust asset management strategies accordingly to optimize returns.
Plan Monitoring:
Continuously monitor the financial performance of the distressed assets and evaluate the effectiveness of the workout strategies.
Prepare regular reports for client, providing updates on the progress of the workout process, asset valuation, and potential risks.
The duties and work outline for a commercial real estate workout involves a multifaceted approach encompassing a broad range of analysis, risk assessment, strategy development, negotiation, legal compliance, asset management, financial analysis, and reporting.
Successful execution of these tasks requires collaboration among various stakeholders and a thorough understanding of financial markets, real estate dynamics, and regulatory frameworks.
By diligently navigating through the workout process, Workout Resolution Counseling can mitigate losses, preserve asset value, and maintain healthy relationships between owners, investors and lenders.
