All of the examples in each scenario are actual transactions.
Purchase of Performing and Non-Performing Notes
The Problem: An estate with 9 heirs holds a note. This requires the estate to split the monthly payments 9 ways on a continuous basis.
The Solution: We bought the note from the estate, which allowed the estate to close and distribute all funds immediately.
The Problem: An institutional lender has one or more non-performing notes which appears each month on their reporting – internally or for regulators
The Solution: We entered into an agreement with the Lender to either (a) purchase the note for cash or (b) we bring the note current and continue the workout of the note with the Lender and Borrower.
Originate Non-Bankable Loans
The Problem: A Denver developer had 1,400 Acres in Nebraska under contract. The client had expended substantial amounts on soft costs related to the property. Various problems arose and when the client came to us, they were within 2 weeks of losing the purchase contract on the entire project.
The Solution: We provided $850,000 for the client to close on the property.
The Problem: A New Mexico landowner had previously entered into a loan with an impending balloon payment due. When the client came to us they were already in default and within days of the existing Lender taking all of their cattle and soon thereafter, the entire 18,000 Acres of the family ranch.
The Solution: Within two weeks we disbursed enough funds to cure the immediate default to save the cattle. Within another few weeks we disbursed another $1,000,000 to refinance the property. This allowed the Client to preserve a high value exit, later selling the property within 5 months for over $3,000,000.00.
The Problem: A Colorado casino that was already in Chapter 11 Bankruptcy was presented with an opportunity to buyout its largest lender for a sizeable discount to the $7,500,000 owed, but the Client did not have the cash to close the deal.
The Solution: We provided the cash and the deal was closed providing great benefit to the Borrower and the remaining creditors of our Client.
The Problem: A local public company was within weeks of losing the vast majority of its property to a secured lender. This would cripple the company’s further chances to raise debt or equity capital to fund its future operating and growth strategies. It had additional collateral but in its weakened state, it was too risky for conventional Funding.
The Solution: We worked with the Client to structure a voluntary Chapter 11 Bankruptcy filing, providing smaller amounts of pre-petition lending and then later over $200,000 of post-petition lendings.
Workout of Troubled Real Estate Transactions
The Problem: A major institutional lender had in its inventory a large parcel of land with a severe cloud on its title. For various internal reasons, the lender wished to divest itself of the property and problem for cash.
The Solution: We purchased the parcel of 2,600 acres for cash. The property had been in litigation for over 10 years prior to our involvement. After an additional 4 years, through various levels of courts, we secured a Quiet Title for the property.
The Problem: A major portion of a Client’s potential collateral was comprised of over 4,500 acres of patented mining claims in Utah. However, the property had never had conventional marketable title developed. Without the title problem solved, no Lender would be able to make use of the property as collateral.
The Solution: We were able to devise a means of providing preliminary lendings to fund the research needed to achieve marketable title. Once title was secured, we provided additional lending on this collateral.