DIRECT NOTE PURCHASE
If you need to quickly sell a loan that is secured by commercial real estate, A10 Capital can make it happen. Using our own balance sheet, A10 Capital has the ability to buy commercial real estate loans on a one-off and portfolio basis. Because we have unregulated capital, we can make quick loan purchase decisions to meet bank deadlines and minimize the use of bank resources.
TYPICAL LOAN PURCHASE CHARACTERISTICS
- Performing loans
- Special Mention or Sub-Standard rated loans
- "Scratch and Dent" loans
- Non-Performing loans
- Lender fatigue has set in - multiple extensions granted
- Commercial construction takeouts – when a newly constructed commercial property is not leasing up as quickly as expected
- "Orphan loans" picked up from a prior bank acquisition that are either criticized, classified, or don't fit into the portfolio strategy
TYPICAL LOAN PURCHASE PARAMETERS
- Secured by commercial real estate
- $500,000 to $10 million individual loan sizes
- We consider exceptions to these parameters on a case-by-case basis.
DIRECT NOTE PURCHASE BENEFITS FOR BANKS
- Certainty and timeliness of closing
- Potential for reasonable discounts
- Frees up capital
- Helps manage reserve requirements
- Reduces criticized and classified assets
- Appeases regulators
- Frees up workout / special asset department resources
- Due diligence to close in less than 30 days