FAQ's ABOUT A10's SPECIAL ASSET CONSULTING SERVICE
What types of loans does A10 provide special asset consulting for?
Many of our special asset consulting assignments are for distressed commercial real estate loans. However, our team also has extensive experience in working out restaurant loans, equipment loans, aircraft loans, agricultural loans, and C&I loans.
How does A10 typically staff each special asset consulting assignment?
At a minimum, each special asset consulting assignment will have an A10 team comprised of (1) a relationship manager, (2) a lead workout professional, (3) a legal professional, and (4) a financial/market analyst. This team structure is expanded for larger special asset consulting assignments.
What does a typical special asset consulting assignment entail?
Our loan workout assignments are typically broken into two phases:
- Initial assessment of the loan and development of the workout strategy. This phase includes full file review, documentation review, collateral assessment, title and lien search updates and evaluation, loan workout plan preparation, including engaging and overseeing any necessary thirdparty reports (i.e., appraisal, environmental, etc.), and preparation of a detailed workout plan.
- Execution of the agreed-upon loan workout plan.
You're welcome to hire A10 for either or both phases listed above. Our menu approach gives you the option to choose the type of services that best fit your needs.
How much does it cost to hire A10 for special asset consulting?
The cost depends on the complexity of the situation and what you are asking us to do (assessment, plan preparation, and/or plan execution). Because of our experience in handling problem loans, we are usually able to achieve higher recoveries in a shorter period of time than our competitors. In addition, our loan workout services eliminate the opportunity costs that result from having to pull a sales professional off the line to handle a time-consuming loan workout. Accordingly, our results more than pay for the cost of our services in most cases.
How does A10 keep banks informed of the progress on a special asset assignment?
A10 can communicate as frequently or as infrequently as you prefer. At a minimum, we provide status updates for each special asset on a quarterly basis.
What about reporting and review of the workout for regulators?
Our special asset team has extensive experience working well with regulators. The resumes of our workout professionals and the execution of our detailed workout plan typically provide regulators comfort that our clients are proactively working towards an effective resolution. We can tailor our reports to your needs and are willing to meet with any examiner at your request to discuss our analysis and progress.
Can A10 lease up and sell my property?
Yes. A10 Capital will bid out your property to a number of commercial real estate brokerage firms to ensure you get the highest quality and lowest price service. By design, we don’t internally handle the leasing and selling of properties to avoid any conflict of interest.
How does A10 keep banks informed of the progress of the loan sale?
A10 can communicate as frequently or as infrequently as you prefer. At a minimum, we will provide weekly updates on the progress of the loan sale process.