Given the current liquidity crises, when a real estate loan comes to maturity or a property fails to meet lease-up/absorption targets and cash flow projections, the best course of action may not be apparent. Whether prior to or after a restructuring/foreclosure, Brandlin & Associates' team of experienced real estate specialists and investigative accountants provide a fresh and objective perspective to evaluating opportunities for a real estate asset.

Occupied properties, vacant buildings, partially constructed buildings and permitted and unpermitted vacant sites all are candidates for review in light of the uncertain economy. For instance, with limited refinancing opportunities, a lender cannot be lulled into complacency by a borrower's ability to tap into a remaining interest reserve to stay in compliance. Similarly, an owner/occupied property can quickly become a non-performing asset if the business operating on the site fails.

With consideration to current market conditions, we provide the information you need to make knowledgeable decisions to optimize asset recovery.

Sponsor/Borrower Evaluation (if not REO)

1. Determine the Sponsor/Borrower's capabilities to redevelop or re-position the property

2. Assess the Sponsor/Borrower's reporting capabilities to ensure that the lender is receiving reliable and accurate information

Asset Evaluation

1. Cash flow projections:

• Evaluation of property's "as is" cash flow
• Evaluation of alternative uses and/or additional revenue sources

2. Market assessment

3. Sensitivity analyses assuming:

• Leased property (i.e. existing tenant survival evaluation)
• Lease-up or re-tenanting possibilities
• Reposition/Redevelop the property to meet current market requirements
• Divest property "as is"

Asset Recovery Plan for Owner-Occupied Real Estate

1. Cash flow projections

2. Market/Industry assessment

3. Management assessment

Workouts & Chapter 11 Restructurings

1. Cash flow analysis & projections

2. Market assessment of alternative uses:

• Tenant improvement/lease-up costs
• Cash flow projections
• Appraisal to divest asset "as is"

3. Asset divestiture strategies and implementation

Fee Developer for REO Properties

1. Determine alternatives for property

2. Establish asset recovery plan

3. Obtain necessary permits and entitlements

4. Complete development/redevelopment

Contact Jeff Brandlin at (310) 789-1777 for more information.

Brandlin & Associates is an exclusive provider of accounting due diligence, financial consulting and strategic consulting services. We pride ourselves on offering superior technical expertise, years of practical experience and unparalleled service to decipher financial and operational performance metrics. As a result, our clients are able to make informed decisions in a timely manner.

email: news@brandlin.com

phone: (310) 789-1777

web: http://www.brandlin.com