Internal Financial Asset Analysis:
First we evaluate the relevant financial information, including your current income and expense report, current rent roll with lease expiration dates for all tenants, profit and loss calculations, any past or recent appraisal, etc. We analytically and systematically model your financial information to get an overall picture of your asset's performance and potential.
External Competitive Analysis:
Contemporaneously we research industry forces and competitive conditions specific to your asset and geographic location. We perform a due diligence review of market rents, sales prices, vacancy rates, absorption rates, and lease terms for comparable properties.
Performance Milestone #1:
Property Positioning Report - The Internal Financial Asset Analysis and the External Competitive Analysis provide the basis for the Property Positioning Report created by our team of experts.
Strategic Analysis Conference:
The Property Positioning Report is then reviewed by our Senior Management during a Strategic Analysis Conference focused solely on your property. During this discussion, all the intelligence collected and the documentation provided is examined to create the most value driven strategies for workout with your loan servicer. The most practical and beneficial workout solutions will be presented as recommendations in a formalized letter.
Performance Milestone #2:
Workout Solution Proposal - A Consulting Session is then scheduled with the Property Owner to present the key discoveries and most prominent strategies resulting from our research and findings. The Property Positioning Report and the recommended solutions letter from the Strategic Analysis Conference combine to create the Workout Solution Proposal. The Workout Solution Proposal is then provided to the Property Owner for consideration and authorization for Alliance to advance with the workout solution.
Performance Milestone #3:
Workout Package - Once the Strategic Approach to Workout is firmly defined, Alliance will submit to your loan servicer the complete Workout Package which includes a Hardship Letter regarding the asset, financial data and models demonstrating the strategy, a Modification Plan, and a carefully formulated request for a Workout Solution. The Workout Package will also include documents and information from the Workout Solution Proposal perfected for submission to the loan servicer.
Alliance has successfully established working relationships with various loan servicers and our experts are experienced in negotiating positive workout solutions on behalf of our clients. Our experts are familiar with the various tactics used by lenders and servicers and know how to handle any difficulties that arise during the negotiation process. Our experts work with determination to obtain the most advantageous workout agreement in an efficient time frame for our clients.
When the workout terms have been approved and agreed to by the loan servicer, a Solution Agreement is reached. A Solution Agreement may feature an extension on interest only payments instead of principal and interest, a forbearance agreement, a complete restructuring of the debt, a waiver of fees, a discounted payoff, or a deed in lieu of foreclosure. All Workout Solutions are crafted to accommodate each individual case, and are appropriate and beneficial for the client's particular circumstances.
The workout agreement documents will be crafted by the loan servicer's legal department and will then be reviewed and edited by Alliance's counsel before the Agreement is signed and finalized. Once the servicer's counsel and Alliance's counsel agree on the workout documents, the finalized agreement will be presented to the client for review and signature.
Once the agreement is executed by the parties, the new restructured terms of the loan will take effect and the workout is complete.