How do you extract value from NPLs?

hey, my native country has a lot of NPLs coming online. I am trying to position myself for these assets. It won't require that big of a cheque and I think I can buy them at 20 of the face value. I do have 2 years of experience as a fig analyst in a BB (though I wasn't that good LOL)...I am going to try for secured NPLs though their pricing may be competitive. Quick questions for those who've looked at this space.

  • If there's collateral involved (real estate, machinery, equipment), I presume that instead of just applying a haircut to the values on the firm's balance sheet, you actually bring on-board a third-party expert who can do the appraisal and calculate how the value of the assets will evolve over the next few years and whether there'll be enough demand/liquidity to purchase from me?

  • Some firms like Cerberus / LoneStar pride themselves on having a strong servicing platform. So I guess by servicing they mean being able to collect loans. How have these firms built such platforms? What differentiates a great servicing platform? Are they harassing (and stalking) companies/people to pay off the loans? How can I build a strong servicing platform (do I employ thugs and all)?

  • how does one evaluate unsecured NPLs? You look at borrower history, outstanding credit history, and what assets they currently own?

  • Anything (or things) in particular that I should be conscious of?

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