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.

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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

DO YOU NEED AN LLC TO INVEST IN REAL ESTATE?

Sit down with Daniel Hyman, CPA and Ron Rohde, JD as they discuss one of the most common questions from new investors in single family residential (SFR). We cover tax deductions, S Corp benefits, liability risk and due on sale clauses.

How to Reinstate Your LLC (3 simple steps online)

Is your entity forfeited existence from the Texas Comptroller's office?

This video by Ronald Rohde Law will walk you through the 3 simple steps to reinstating your LLC (or other legal entity) with the state of Texas. There are two primary agencies to deal with if your entity has been terminated for failure to file an annual franchise return. Failing to file a franchise tax return or pay the fees due is the most common reason why Texas LLCs are out of good standing. The easiest way to check is to look up your entity at the Texas Comptroller website https://mycpa.cpa.state.tx.us/coa/

Type in your entity name and click search.

You'll need to login to the Texas Comptroller's Office to determine what documents or taxes are missing. Complete and submit these forms online and pay any fees (can be with a credit card).

Request a tax clearance letter from the Comptroller. Receive it immediately via PDF if all requirements have been satisfied.

Submit Tax Clearance Letter to Texas Secretary of State.

That's it! You're back in good standing and able to transact business in the State of Texas. This process may apply to other states.

REAL ESTATE INVESTING IN STUDENT HOUSING

In this video, Ron sits down with Clint, a real estate investor based in Austin, Texas who has built an 8 unit SFR portfolio of #studenthousing​ within 1 mile of the Texas A&M campus in College Station, Texas.

Join us as we discuss his background, what led to the investment, advice to his younger self, and other legal issues investors face in 2020.

Industrial Warehouse Investment Purchase Walkthrough

Have you wanted to invest in industrial warehouse commercial real estate? This is one of the hottest asset classes which has been tremendous gains in occupancy and rent appreciation. Join us as we walk through a property in Plano, Texas.