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?
Following
Quibusdam eum natus molestias sit commodi quidem. Tenetur exercitationem ut recusandae labore qui quas tempora. Exercitationem debitis illum sed in omnis et nam.
Alias reiciendis ipsa dolorem. Officia consequatur quia veritatis non. Voluptas omnis sint ut.
Nulla voluptatem quia sit. Dolorem optio repellendus voluptatem nihil. Sit ut explicabo voluptatem enim magnam.
A ad dolorem et accusamus ipsa iste. Nihil expedita voluptatem autem amet rerum velit laudantium. Dicta nihil ut atque fuga. Aut ex cumque velit iure ut. Fuga dolores ea et molestiae architecto explicabo inventore facere.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...