Placing a property in Receivership is an important decision, one which only you can make. You have questions and we have answers. Below are the most common questions we are asked when lenders contact us about their distressed properties. Remember, we are available to answer ANY questions you may have about your specific case. Simply contact R. Michael Alt TODAY to learn how a Byron Reed’s Receivership Management can work for you.
Why Receivership Management?
Byron Reed’s Receivership Management is a means to protect collateralized assets by third party appointment from a court. Our services act as an agent of the court to protect properties from becoming further damaged and devalued. A Receivership Management solution provides the lender peace of mind that the value of a distressed property will be protected during legal loan default and will continue to be a viable asset because professional property management is in place.
How do I protect the value of our collateral?
The idea of managing a distressed property may seem daunting, that is why lenders are choosing a smarter way to protect their collateral assets. Rather than reallocating internal resources and losing valuable time, smart lenders are using Receivers to protect the collateral associated with nonperforming loans.
Byron Reed Company’s Receivership Management allows lenders to control devaluation of properties. Putting the property into Receivership will typically yield a higher sale price on the property, if title is gained by the lender, or allow the loan to be sold at less of a discount. Either result is financially beneficial for the lender.
Property Management will pay for itself through the higher values of the property!
The cost of Receivership Management is similar to professional Property Management for any income producing property. A well managed property is more valuable than one in distress. Lenders with professionally protected and managed collateral maximize its value. The most expensive route a lender can take is choosing NOT to place a distressed property in Receivership and trying to manage the property in-house.
How long does it take to appoint a receiver?
The time lapse between a loan default and appointing a Receivership varies case-by-case. Many times the lender’s decision process to place a property in receivership is the longest time period.
A lender motivated to put a distressed property in Receivership can have a Byron Reed Property Assessment and Proposal within 24 hours. Once adopted, the legal process is dependent on filing through a hearing and being assigned on the court docket.
Special circumstances, such as damage to property, failure to pay taxes or wages, or potential loss of a franchise, may allow the lender to shorten the notice period to a 24 hour timeframe.
The decision is yours. Once made, most of our clients have had their property in Receivership and protected within a few short weeks.
What about transitions?
From the beginning, Byron Reed will be able to give you a fast, professional opinion to the question, “How bad is it?” We will immediately assume management and protect the rent revenue stream, tour all vacant units, inspect and prioritize for make-ready status and have apartments ready for prospective tenants. All leases and related documents will be audited and all occupied units inspected within days of our appointment. New management and operational procedures will be in place and current tenants will be reassured the property will be maintained and their concerns will be addressed.
Byron Reed can also work with local brokers and real estate agents in the local market to sell the property at the highest possible market value, during the stabilization process. As soon as the note is cleared through all legal channels, the property will be sale-ready.
Byron Reed’s Property Management can be seamlessly continued or transitioned to new management, after the Receivership period.
How long is a property usually in Receivership?
Receiverships are typically short-term, from 3-6 months. We develop a plan that works in the best interest of all parties to assure the value of the loan is preserved.
From day one, a Byron Reed Receivership will empower lenders to gain control of waste and abuse of a distressed property. During this time, the Receivership will assure constant upkeep and maintenance, manage bills and liens, and prevent tenant abuse or ownership misuse of revenue, while maintaining constant communications with the court and lender.
After the initial transition, properties are maintained through distress to show-and-sell ready. Byron Reed’s Receivership can manage the property to the finish line and beyond with on-site management to assure proper care and maintenance, restoration of tenant confidence and management of all day-to-day activities. We can even act as a broker or recommend a local broker to list the property.
Why choose Byron Reed?
Property Management is our ONLY Business. Byron Reed Company is the most experienced Property Management Company in the Omaha and Lincoln metro areas. We’ll bring a fresh prospective to your distressed property and protect property values during a loan default.
The appointment of Byron Reed’s Receivership Management services will assist the lender from liability and manage the receivership estate, including revenues and cash flow, and protect against the borrower from diverting assets from the property. We will begin immediate assessments, repairs and marketing of the property to ultimately generate higher returns for the lender. We will do everything we can to make the transition a fast and seamless one for the lender while protecting the best interest of the property.
Finally, a Byron Reed Receivership will typically pay for itself through a higher sale price on a property or higher sale value of the note.
The decision is yours and the sooner the better. Contact R. Michael Alt and learn how easy it is to stop the devaluation of a defaulted loan TODAY!