Lesson Tag: FIN126NY-BR

The Workout is not a bad word.  It’s a process of getting an asset from nonperforming to performing.  In this brief lesson, you will review a summation of the real estate workout as provided by lenders.

Lesson Learning Objective: By the end of this lesson, you will be able to identify the significance of a real estate workout.  

Most lenders usually now necessitate pre-negotiation agreements.  In this lesson, you will review the basics of the pre-negotiation letter.

Lesson Learning Objective: By the end of this lesson, you will be able to recognize the significance of the pre-negotiation letter.

Throughout this course, you have learned that a loan workout is a plan of how to reorganize debt when an investor is challenged with foreclosure on a real estate asset. The process is similar when it involves a home owner. In this lesson, you will receive an overview of the homeowner’s experience with the loan workout.

Lesson Learning Objective: By the end of this lesson, you will be able to understand the significance of a real estate workout to a home owner.

Some Lenders are also Operators.  As a result, they are in a unique position to provide solutions to borrowers quicker than if they were only Lenders.  Insight into this unique position is shared within this lesson.

Lesson Learning Objective: By the end of this lesson, you will be able to identify several benefits an Operator-Lender provides.

Photo by John Unwin/courtesy of Unsplash.com

During COVID, the red flag was that much of the business and real estate in the world shut down.  In this lesson, trends or characteristics seen as red flags, tell tale signs that a workout is needed and lenders approaches when having a problem asset will be explored.

Lesson Learning Objective: By the end of this lesson, you will be able to identify loan red flags and lenders’ approaches to problem assets.

The COVID pandemic intensified the situation of hotels struggling to fill rooms and retail centers fighting to keep tenants afloat, in these real-world situations, a workout loan seems like the best possible scenario for owners/borrowers. In this lesson, you’ll continue the experience of receiving great information from industry experts.  Topics discussed include the lender perspective, the real estate workout not always being a golden parachute, advice to borrowers, additional workout considerations for lenders and borrowers and the acquisition side of real estate.

Lesson Learning Objective: By the end of this lesson, you will be able to understand the potential pitfalls of the real estate workout.

Photo by Mikita Yo/courtesy of Unsplash.com

The COVID-19 pandemic has wreaked havoc on the economy generally and with respect to many asset classes of real estate. The general consensus now is this unfortunate situation will not abate for some time in the future. Not surprisingly, with businesses closed, employees furloughed, and revenue streams severely challenged, many owners of real estate and their tenants are simply not making rent and debt service payments. When that happens, the value of the real estate is reset, leaving the equity and possibly some of the debt impaired.

Lesson Learning Objective: By the end of this lesson, you will be able to link the significance of tax consequences to distressed real estate workouts.

Predictably, many real estate asset classes were negatively impacted by the Covid-19 pandemic.  The following lesson will give you some insight into the catalysts that made Real Estate Workouts particularly necessary for retail and hospitality property (owners/borrowers).  Additionally, hear why the Covid-distressed multifamily sector is an interesting case study to monitor.

Lesson Learning Objective: By the end of this lesson, you will be able to identify the initiating catalysts of workout necessities.

In this lesson, Understanding the Process, methodology and progression of the workout is explored.

Lesson Learning Objective: By the end of this lesson, you will be able to comprehend the process, methodology and progression of the real estate workout.

In a post-COVID world, real estate lenders have become helpful creatives to borrowers by utilizing real estate workouts when borrowers are at risk of defaulting on loans.

In this lesson, Real Estate Workout Defined, you will learn the definition of a real estate workout and will gain knowledge of what a real estate workout is and what it is not. 

Lesson Learning Objective: By the end of this lesson, you will be able to define a real estate workout.