Banks Getting More Aggressive With Outsourced Loan Sales, Says Workout Specialist Douglas Wilson Companies
SAN DIEGO-(Business Wire)-September 9, 2009 - Banks are now more assertive in managing, resolving and selling troubled loans and other real estate they have taken back and held in their own portfolio, says Michael Cain, managing director of asset sales and advisory for Douglas Wilson Companies.
“Some banks are beginning to aggressively move assets in combination with raising capital to improve their capital ratios and position themselves to start lending again,” says Cain. “Banks need to begin developing strategic plans with a focused approach to lending profitably. Otherwise, equity investors have no interest in investing into a deteriorating loan portfolio without a plan to generate future earnings for shareholders.”
According to Cain, who has 25 years of experience with real estate lenders, financial institutions and real estate companies, banks will find it difficult to sell these assets as one-offs: “These loans need to be realistically underwritten, bundled, pooled and sold in order for banks to grow and lending to be fully revived.”
Cain’s team at Douglas Wilson Companies has been engaged to handle asset management and the ultimate disposition of several sizeable portfolio projects for a number of regional and national banks.
“One of the banks we’re working with just hired us to place a small loan balance pool out in the market. We spent extra time making sure the valuation was accurate, and marketed the pool to a smaller but targeted audience. Because of that, the bank has received multiple offers at a price they were more than satisfied with within a week on the market,” says Cain.
In order to get the most value from these banks’ loan portfolios, Cain’s team at Douglas Wilson Companies reviews the pool in detail, recommends how to group assets together for the best execution, and creates an implementation plan for handling that loan book.
Bob Richley, president of Douglas Wilson Companies, sees lots of situations where an outside valuation could be useful: “Whether banks are just trying to liquidate, looking to get on a larger bank’s Top 10 takeover list, or seeking to buy some time and keep off the radar, DWC can help them de-leverage, get capital ratios up and prevent certain triggers from drawing regulatory attention.”
According to Cain, who witnessed the last real estate downturn, “There’s plenty of equity out there but not everyone is convinced we have seen the bottom. Buyers need to know that the valuation they’re seeing offered is accurate, and backed by an experienced third party.”
Douglas Wilson Companies is headquartered at 450 B Street in the financial district of downtown San Diego. It also has offices in Atlanta, Las Vegas, Orlando, Miami and San Francisco. For further information, call 619-641-1141 or visit www.douglaswilson.com.
ABOUT DOUGLAS WILSON COMPANIES
Founded in 1989, San Diego-based Douglas Wilson Companies is one of the largest firms of its kind, providing a wide range of specialized business and real estate services to law firms, state and federal courts, corporations, partnerships, pension funds, REITS, financial institutions and property owners nationwide.
Services include workout and problem resolution, crisis/force majeure response, asset management, consulting, business planning, receivership, development, entitlement, and construction management. To date, the company has provided problem resolution for more than 500 projects involving assets valued in excess of $7.75 billion.
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