Ability to Purchase Distressed Assets and Do
It at the Right Price
CFA prides itself on its ability to pay a fair price for assets and understands the importance of accurate timing of “Exit Scenario” projections. There have been hundreds of assets available that the company did not attempt to purchase due to Sellers’ expectations being too high. These elevated expectations are often based on overstated appraisals, improperly perceived market conditions, risk factors, and inadequate familiarity with this business and, more importantly, the actual front-line recovery process and timeline.
It is important for a Seller to realize that CFA is buying distressed assets which come with a high risk factor, due to which the Seller has not be able to liquidate them himself and may end up stuck with management of the property for an extended period of time. On the other hand, it is important for CFA to understand the Seller’s loss and to attempt to provide the maximum fair price, so that Seller will continue to offer CFA their future problem assets as their preferred exit strategy.
CFA’s Acquisition & Due Diligence team has many years of expertise that came from hands-on experience in the distressed loan review and collection arena, and not just from accounting, real estate, or with an analytical spreadsheet. This has created the formula for a dependable projection of ultimate recovery and the amount (time and cost) of effort to get there. When coupled with our proprietary methodologies resulting from years of good (and bad) experiences, CFA has created a continuing source of professional expertise as the solution to Sellers’ problem accounts.
The firm utilizes a sophisticated, proprietary software system for management of acquisition opportunities, Investors and Sellers. This allows CFA to match Investors to specific products that match his skills and industry expertise.
