Acquiring distressed assets is a complex endeavor due to the different motivations of all parties, the impacts to the physical property, the financial concerns of a possibly insolvent seller, and the need to complete the process on an extremely abbreviated timeline.

When a seller starts to face a liquidity shortfall, they will often forgo routine maintenance. When larger shortfalls begin, they may reduce staff, cut essential vendors, and defer regularly owed payments. Eventually, these late payments will alert the debt lender who can then force a sale.

Depending on the severity of the cash flow issues, these impacts may occur in 2-3 months or may stretch over a period of years. The end result is always the same: a deteriorating building with significant deferred expenses and a lender pushing a sale to protect its interest.

As a potential distressed asset buyer, you should prepare your team to act quickly and decisively. At a minimum, we suggest the following:

  • Entity Formation (LLC)
  • Letter of Intent
  • Financial Commitments
  • Vendors
  • Inspections
  • Survey
  • Legal
  • Accounting

You must decide who will be the “quarterback” of this operation because delays of 2-3 days can cause missed deadlines and lost funds. The team at Ronald Rohde Law can play as large or as little a role as you need.

Click here to fill out a new client consultation form

Client Testimonials

See what our current clients have to say

Casey Gregersen

Ron helped us structure our residential development business, he had great advice on LLC formations, contract negotiations, and has become a trusted advisor on our most difficult real estate deals.

Jay Bhaumik

As a medical professional, our industry faces constant regulatory and compliance oversight. Ron helped my company negotiate and protect us from legal liability when reviewing employee agreements, commercial leases, vendor agreements, and almost every contract we bring him. His guidance has allowed me to reach a new level of confidence knowing I have a lawyer to represent my interests and provide that peace of mind.

Over 3,000 clients served

Ron has helped developers raise foreign investment funds through the EB5 program and represented foreign investors from China, Hong Kong, United Kingdom, and India.

Over $1 billion of real estate transactions

Ron has conducted acquisitions of commercial real estate, new construction development, and all areas of asset management for shopping centers, retail strip malls, restaurants, office buildings, industrial and warehouse assets.

Ron has helped thousands of investors on BiggerPockets where he a leading expert on real estate investing.

Latest Content

STATE OF THE MARKET POST-COVID-19 HOW TO FIND INDUSTRIAL DEALS

Today, we're sitting down with Cameron Rogers, an industrial broker in the Dallas Fort Worth area. As you know, this is one of the hottest areas for commercial real estate investing in the entire country.

We talk about how to find the best post COVID-19 deals, as well as tips for leasing and other issues that affect your industrial investment. Tune in, check out this webinar, jump to the spots you are interested in. Hit that subscribe button and let me know what you guys think in the comments.

The NBA is Getting Sued! Is the NBA bankrupt due to COVID-19?

The NBA has a recent lawsuit that has people concerned if the NBA will survive. We break down the legal issues to understand what is going on in this situation.

COVID-19 and Essential Business Explanation Webinar

In this webinar, attorney Ron Rohde walks through the current climate of county, state, and federal orders restricting business operations. We look at the rules as issued, penalties, common concerns regarding business locations, employee locations, and client locations.

COVID-19 and impacts on commercial real estate leasing

In this webinar we talk through common issues facing tenants and landlords who are trying to change some lease obligations due to drastic impacts from coronavirus. We talk about Tenant must-do, Landlord communication and a clear understanding of goals.