CRE Finance Council, Miami Beach Hotel, Miami
Promissory Note Sales
R.W. Kline Companies provides the expertise to handle both sides of a note sale. If you are a lender wishing to market and sell commercial loans or a buyer aspiring to purchase a note, RWK can effectively serve as your intermediary ensuring the transactions occur professionally and all parties are competently served. Whether we are marketing, or negotiating note sales, RWK brings together sellers and buyers using Kline Loan Match™, RWK’s marketing and sales resource tool. RWK has successfully worked with any "paper" that will finance commercial properties including permanent, bridge, mezzanine and structured debt instruments. Today, RWK works with nine funds on a routine basis and we meet with additional investors as new opportunities arise.
Kline Loan Match™ provides these critical, value added services for our loan sellers and buyers: secure loan site, vetting of prospective buyers, indicative, best and final bid analysis, loan documents review at three critical levels, FDIC compliant loan site, portfolio marketing and advertising, regulatory reporting, portfolio analysis, loan level analysis, asset summaries, closing and funding management and document imaging and redaction. Additionally RWK’s Team regularly interfaces with the lender, creates workout proposals and handles all negotiations until a mutually beneficial middle ground is reached by all parties. A note sale can be a complicated process. Generally, a better outcome is achieved with the help of an experienced professional guiding you through the process.
Short-term: Loan Sale
Loan sales are optimal when an institution desires liquidity, reduction in non-performing loans or other concentrations, or a targeted risk based capital metric. The RWK Team evaluates 3 options: sell the loan, workout the loan, or foreclose and sell. Sales can happen in less than 2 months and strategies range from selling the most valuable loans at the highest prices so that an institution can concentrate resources on the more high-yielding difficult loans, to selling the more difficult loans immediately to get them off the books.
Short-term: Property Sale
Property sales are typically appropriate for real estate owned properties with income or sales out of receivership. RWK sales professionals throughout the country work with other RWK professionals to sell properties.
Long-term: Asset Enhancement/Sale
Many times the optimal strategy is to stabilize and then sell the asset. Unfortunately, many lending institutions do not have the resources to effectively harness these asset management and sales resources in a meaningful way. RWK accomplishes this by engaging asset management professionals throughout the country to create a plan to lease up the property, complete deferred maintenance and position the property with the sales professionals for an optimal sales execution. Timing can range from 6 - 36 months, depending on the market and the asset's physical and financial situation.