How do you extract value from NPLs?Subscribe
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?