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This page briefly describes the
protocol used by Cherokee Equities to harvest the value from an illiquid real
estate equity, such as a Tax Sale Certificate, Mortgage, or REO. We use
essentially the same process whether we're working on our own assets, or on
behalf of a client.
Listen:
When working for a
client, the first and most important step is to listen. What are the client's objectives, and
situation?
Is maximum recovery, or maximum speed, more important? (If anyone says you can
have both, you should quickly walk away). This business is sometimes as much art
as science.
Analyze
With an understanding of our client's needs and desires, and an Engagement
Agreement completed, we land running:
1.
We start by conducting an exhaustive analysis of each individual asset to
determine Net Present Value ("NPV"). This includes an analysis of the
lien, the collateral, and the other interested parties (collateral owner, other
lien holders, etc.)
For example, if we were representing a tax certificate holder on a property
where the mortgage was upside down, our strategy would be different than if our
cert was third in line on a tainted property in a distressed community.
2. We determine the optimal work-out plan
for each individual asset.
3. We submit our portfolio analysis results
and proposed work-out plan to the client for approval, and receive an expense
draw if applicable.
Process & Monitor
After agreeing on a
recovery plan, we start the process:
4. We promptly begin the work-out, using all
legal and responsible means to expedite the process.
5. We attempt negotiations with other
interested parties concurrent with the foreclosure process. Pragmatic
cooperation facilitates more expeditious resolutions.
6. We redeem subsequent and subordinate
liens and encumbrances when it protects and enhances the value of our own asset.
Conclusion: Liquidity
The end result of our
recovery operations is either a cash redemption, or getting title to the
collateral real estate:
7. If the foreclosure recovery process
results in the lien (whether a tax certificate or mortgage) being redeemed, the
funds are placed into an escrow lockbox account. We provide a complete
accounting, and the proceeds are disbursed in accordance with the Engagement
Agreement. Liquidity has been created.
8. If the foreclosure (mortgage) recovery
process results in a court-ordered Sheriffs Sale, we use all ethical means to
expedite the event and insure a complete recovery.
9. If the foreclosure (tax certificate)
recovery process results in a court-ordered default, we use all responsible
means to quiet and clear title to the real estate. In this event we then
calculate the amount our client would have received had there been a redemption,
and Cherokee buys the real estate from the client for that amount, immediately.
Thus, Cherokee's client is guaranteed a "liquidity
event" regardless of how their asset recovery is resolved. This guarantee
is one main point of differentiation between Cherokee and straight law firms or
other asset recovery firms.
To
learn how this methodology can create liquidity for you, please contact:
Jay
Wolfkind, at:
Cherokee Equities, LLC
133 Maple Avenue
Red Bank, NJ 07701
(732) 741-2000
Fax (732) 741-2009
Click here to send Jay Wolfkind an email
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