Loan & Real Estate Underwriting
The success of the realisation of a non-performing-loan portfolio backed by real estate depends essentially on the value of the property, but also crucially on the correctly implemented realisation strategy. Loan underwriting usually includes not only pricing, but also legal, commercial and technical due diligence. The values determined within the framework of underwriting are updated after the acquisition of the assets and should ideally be subject to a permanent target-performance comparison.
When purchasing larger individual loans, and in particular loan and real estate portfolios, a cash flow scenario and a future sale value on the market are calculated for each individual asset as part of the underwriting process from a size specified by the client or recommended by us. This requires special procedures for each asset class in order to adequately consider the respective opportunities and risks.
The minimum underwriting requirements for direct real estate investments generally include a property analysis and a market analysis. In the case of commercial real estate financing, the inherent risks of the loan, the market and liquidity are also considered and assessed.
For larger portfolios, underwriting can be limited to a selected sample in order to save time and money. These parameters are used to calculate an assumed value for each asset, which together with the values of the other assets and other value-determining assumptions forms the price for the portfolio to be acquired.
In the next step, the cash flows and future cash flows determined from underwriting also serve to structure the appropriate financing of the asset purchase, as this is generally not financed entirely from equity. The better the data from the financiers is prepared, the faster and with better conditions the buyer can act in the underwriting of the financing for the buyer.
Our comprehensive practical expertise in the handling of non-performing real estate, in the repositioning of real estate and real estate portfolios and, last but not least, in NPL underwriting therefore flows into your due diligence.
Range of Services
Within the scope of underwriting and due diligence in the purchase phase, we offer you the following services:
- Structuring, execution and ongoing monitoring of the underwriting process
- Analysis and review of the documents provided for completeness and possible risks
- Creation of standardised templates
- Presentation and evaluation of workout alternatives with regard to revenue opportunities, costs and time
- Preparation of decision memos for the presentation of the results to the Investment Committee
- Holistic support of the new business process from approval to disbursement as part of the financing consultation
- Support in drafting contracts together with external/internal legal advisors
In addition to loan underwriting, we are also happy to support you in managing your loans (loan servicing), in the transaction management of loans and in reporting:
We provide comprehensive credit management services for real estate loans, from initial analysis and ongoing processing through to workout. In particular, we are specialised in the value maximising realisation of distressed (sub-performing and non-performing) loans.
We sell real estate collateral for our clients both in bidding processes and off-market. We are also happy to structure the sale of your real estate loans according to your preferences.
Reporting & Analysis
Conception, transformation and aggregation of real estate and credit related reporting. We help you with sensitivity to structure your reporting obligations in such a way that each party receives the information they need quickly and, above all, easily.