John is a former Wall St banker and is currently an SVP at REDC (auction.com), his clients are top tier banks and he sells non-performing notes and REO for his bank clients.

There are two keys to John’s calculation the first is knowing the banks Allowance for Loan and Lease Losses (ALLL), or Loan Loss Provisions for short. The second is knowing the approximate percentage of Unpaid Principal Balance (UBP) that the market will pay, or if you’re the buyer what you will pay. This method is most effective with the smaller local and regional banks.

Listen to this short podcast episode to learn how to estimate potential non-performing note deal size.

If you have questions about this or other podcasts in the professional podcast series please leave a comment in the box below. If you’re an expert and you’d like to share some of your expertise with other professionals in the distressed asset community please contact us and let us know what you have to offer. This website gets very highly targeted traffic and is visited by thousands of professionals looking for distressed assets, REO, non performing notes, data, and expertise.

In this episode John (a former Wall St banker and mortgage backed securities trader and investor) talks with me about the FDIC Loss Sharing Agreements and how these agreements will affect the flow and sale of distressed assets to the market. We discuss:

• The ins-and-outs of what the loss share agreements say
• How loss sharing agreements will affect the flow of distressed assets to the market
• Some tips on how to satisfy the FDIC and get assets covered under Loss Share’s sold

This episode runs for about 20 minutes.

As I mentioned in a previous post there are new reporting requirements that demand that banks with loss sharing agreements report in detail on the assets covered. We’re anticipating having all of that ‘loss share’ data available in BankProspector within the next 7-10 days.

If you’re an expert in your field we’d like to hear from you. If you have opinions or information about loss sharing agreements in particular please leave a comment below. If you work with banks in some capacity servicing, selling, or buying their distressed assets and you feel you have something to offer the distressed real estate community contact us about being featured on our site.

Thousands of distressed property professionals and bankers visit this site every month.

For this series I interviewed John McCaffrey. John knows so much about the business that we actually talked for about an hour and forty minutes and probably could have talked a lot longer. John works with Auction.com in, 2010 they did more than $2 billion dollars and 42,000 units in distressed asset transactions. John is a 3rd generation mortgage banker who has worked on all sides of the mortgage business you can find his

Rather than subject you to a 1:40 long recording I broke it up into 3 chapters’ or sections, they are:

1. The Loan Sales Process: John walks us through exactly what he and his firm do to package, present, market, and close loan sales for, primarily, bank sellers.
2. FDIC Loss Share Agreements: How they impact distressed asset sales at a bank, what it means for this business going forward, and some tips on what you need to do when you’re working with banks that have assets covered under loss share agreements.
3. Loan Loss Provisions: John walks us through this important FDIC call report item tells us what it is, why we care, and how we can use loan loss reserve figures to form a simple ‘back of the envelope’ calculation to determine potential deal volume at with any bank.

I’m lining up other experts to talk about the different aspects of the distressed real estate business. If you think you have something to offer, if you have some success behind you, and if you know what you’re talking about I’d love to hear from you (especially if you’re a paying member! though you don’t have to be). In exchange for your time and sharing your expertise you’ll expose your business and brand to hundreds and often thousands of readers and subscribers in a very, very narrow niche.

Congratulations to Todd Strine who was our Annual BankProspector Subscription Winner.

Todd Strine is a Philadelphia-based real estate developer who successfully partnered with The Related Group to build luxury condos in Florida prior to the real estate downturn. His current Bank Building Residences project in Philadelphia is bringing new life to a historic landmark office building on Independence Park. As the real estate market recovers, he intends to use BankProspector to identify distressed assets with similar potential for adaptive reuse. Strine is currently raising a fund to focus on such opportunities in South Florida and the Northeast.

Ken was a key player in the Wang Towers deal, probably the most famous distressed commercial property transaction in New England during the late 80′s early 90′s real estate bust. The four principals in that deal went on to net approximately $15 million each from a $25,000 initial investment – yes, you read that right.

Ken later became an SVP at CBRE Whitier Partners where he founded their Retail Advisory Group. He has sold or leased nearly $500 Million in commercial real estate. Ken has developed and owned a number of retail sites with partners and JVs and he has developed more than 4 million square feet for a major national retail tenant.

In this episode of the Distressed Property Professional’s Podcast series, Ken and I talk about:

• How the Wang Towers deal went together
• Differences and similarities between opportunities in the 90s and now
• How to put together effective distressed assets networking groups
• What banks should do to minimize their commercial real estate losses
• A forecast for the future of distressed CRE opportunities

The following content is available to non-members until January 27, 2010

Distressed Assets Mastermind Groups (142)

I recently caught up with Greg Trotter (see Greg Trotter REO Experience (264) resume), President of Commercial Building Consultants, a commercial property project management firm. Greg has an impressive background in REO and distressed asset management and members have been asking me for exactly this kind of information.

Greg provided me with a tremendous amount of background information, but I’ll just give you a sample of some of the recent REO workouts and projects his company has been responsible for:

• 510 Unit Condominium Conversion Project located in Miami, Florida
• 150 Unit Luxury Apartment Complex located in Orlando Florida
• 652 Unit Apartment Portfolio located throughout the State of Indiana
• 404 Unit / 18 Story partially constructed Condominium-Hotel Located in Orlando Florida
• 806 Unit Multi-Family Apartment Complex located in Baltimore Maryland

Greg’s clients range from local and regional banks to national lenders and special servicers.

When Greg and I spoke he was in his office in Florida having just returned from halfway across the country looking at an assignment. We were lucky to have him available for this so I hope you find it informative.

The following content is available to non-members until January 21, 2010.

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Podcast Transcript | Commercial Property Receivership Challenges and Opportunities (88)[/amprotect]

Join the conversation. Are you a proven professional in the distressed property space? We want to talk to you. We’re looking to talk to note sales and consulting professionals, note buyers, private equity investors, asset managers, special servicers, bankers, workout officers and others. Click here to contact us if you have something to contribute.

Opportunities and Challenges in Commercial Property Receivership

Greg Trotter

Greg Trotter is President of Commercial Building Consultants based in Orlando Florida. He has been involved in commercial property receivership and distressed asset management for more than 10 years. He came to this career after more than 20 years in construction and has spent most of his career in commercial property preservation, distressed asset management, and asset preservation. Greg’s been involved in more than $200 Million in successful commercial property workouts with a focus on multifamily assets.

In our interview we talk about:

• 1980-82, 1990s, and now what’s different and the same?
• The mechanics of successful receivership assignments
• Working with banks and bankers
• Challenges and opportunities in commercial property and receivership

6 Critical Components for a Successful Distressed Assets Funds

Warren Kirshenbaum

Warren has been the lead attorney in assembling and structuring distressed assets funds, and creating the equity raise strategies for 4 separate distressed asset investment funds in 2009.  The funds have ranged in capital size from $1.5 million to $10 million.  Fully leveraged, the fund size that Warren has been working on range from $3 million to $35 million.   The funds have ranged from those seeking single family homes to 3-6 family homes and to commercial properties, both retail, industrial, flex, and multifamily.

Warren has a law degree from New England Law and a Masters in corporate law from NYU.  He practiced in New York both in-house for a Wall Street investment house and in private practice for a law firm.  He was the General Counsel to a large real estate developer, manager, and builder based in Texas, and now uses his corporate/securities background and real estate/tax background to great benefit in the structuring of distressed assets funds.

In our interview we talk about:

• 6 Key Components to Assembling a Successful Distressed Assets Fund
• Raising Money For a Distressed Assets Fund
• The biggest mistake would-be investors make in starting a fund

How to Setup and Run Distressed Asset Mastermind Groups

Ken Hecht

Ken has been in the commercial real estate business since 1986. Ken’s recent experience has been as founder and President of The Hecht Company, a Retail Brokerage and Development firm founded in August of 2001. Currently the firm is involved in over 4 million square feet of Retail Development.

Prior to founding The Hecht Company and then Hecht Development in 2006 , Ken rose to SVP and Partner at CB Richard Ellis Whittier Partners, the largest commercial real estate services firm in the world where he founded the Retail Advisory Group, selling and/or leasing over $500,000,000 worth of commercial real estate including over $100,000,000 of retail assets.  He has also completed a number of complex joint ventures, 1031 tax-deferred exchanges, long term ground leases, land sales for hotel development and leasehold interest sales.

In our interview we talk about:

• Ken’s involvement as the broker on the famous Wang Towers deal in the 1990s and the details behind it
• The differences between the last crash and this (forthcoming) one
• How he sets up and runs successful distressed asset networking (aka Mastermind) groups
• The commercial real estate challenge facing banks today and what they can do about it
• Forecast for the commercial real estate market

We’ll be releasing these podcasts and transcripts each week this month.

Join the conversation. Are you a proven professional in the distressed property space? We want to talk to you. We’re looking to talk to note sales and consulting professionals, note buyers, private equity investors, asset managers, special servicers, bankers, workout officers and others. Click here to contact us if you have something to contribute.

Bob is the owner of Turnstone Property, a Boston based firm that offers debt and asset management services for individual assets and portfolios, including loan portfolios and REO. Bob’s website goes on to say that Turnstone principals have extensive experience identifying, planning, underwriting, and executing complex projects. Particular expertise in repositioning and disposition of under-performing and nonperforming assets, adaptive re-use and urban infill.

In this interview we talk about:

• Workout strategies for distressed commercial and construction loans
• Preemptive strategies for performing loans
• Distressed asset opportunities for investors
• And more…

Learn from other real estate professionals on the front lines of the distressed commercial property wave to learn more about how you can be successful with investing in distressed assets or servicing those lenders who need your help in this shifting market.

Download information about Bob’s company here.
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