As a byproduct of the 2008 financial crisis and new reserve requirements, many lenders are deleveraging portfolios through the discounted sales of loans secured by real estate.
Many borrowers, who underwrote transactions at the height of the last business cycle, are currently unable to service their debt; further, real estate value may be less than loan value. Banks that lent with overly aggressive assumptions and/or with inadequate capital reserves may be under pressure- by executive directive, corporate governance or regulatory enforcement- to dispose of performing and non-performing loans.
Within the area of note purchase opportunities, Bridge Partners is primarily targeting acquisitions of loans secured by newly constructed assets with cash-flow or maturity setbacks. Bridge Partners pursues these opportunities direct from banks or via our extensive network of broker relationships. The investment opportunity is to acquire performing and non-performing notes at a sufficient discount to par to compensate for the risks associated with being a lender and pursuing the real estate through a foreclosure or a deed-in-lieu. With the demonstrated ability to evaluate opportunities quickly, Bridge Partners can close a loan purchase within 14 days.