Acquiring distressed assets is a complex endeavor due to the different motivations of all parties, the impacts on 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.
Unlike a normal asset acquisition, in the acquisition of distressed assets, we focus more on unrecorded liens and perform additional due diligence on the landlord and tenant obligations. As a potential distressed asset buyer, you should prepare your team to act quickly and decisively. See below the services we include on the "Distressed Asset package":
Distressed Asset Acquisition
Commercial Lease Template Creation
Critical team members for real estate investing
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Ron has helped developers raise foreign investment funds through the EB5 program and represented foreign investors from China, Hong Kong, United Kingdom, and India.
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 is a leading expert on real estate investing.
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.
Is your entity forfeited existence from the Texas Comptroller's office?
This video 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 (link in video)
Type in your entity name and click search.
This process may apply to other states.
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.
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.