Loan Acquisitions:
AMRESCO is actively seeking opportunities to purchase pools of performing, sub-performing and non-performing commercial loans. A brief description of our buying criteria is as follows:
Size of Loan Pools: |
We are looking to purchase pools of commercial
loans with an outstanding principal balance of between $1 million
to $100 million. |
Typical Sellers: |
Most of our loan purchases occur with regional banks, insurance companies and specialty finance companies. |
Loan Criteria: |
We are interested in purchasing performing, sub-performing and non-performing commercial loans of all types. Although most of the loans that we purchase are secured by some form of real estate, many of the loan pools that we purchase do contain some unsecured business loans, revolving lines of credit secured by accounts receivable and inventory and loan participations. We are not interested in purchasing large residential real estate development loans, or in purchasing pools of consumer loans, or single family residential mortgages. |
Location: |
We purchase loans in all 50 states. |
Due Diligence: |
We start our analysis of any loan pool by requesting the seller to provide us with a data tape detailing, among other things, the date the loan was originated, the original principal balance, the current principal balance, the loan's current interest rate, the date and amount of the last payment received, the amount of money collected on the loan in the past 12 months, a brief description of the borrower, a brief description of the collateral securing the loan and the current status of the loan (e.g. performing, slow pay, bankruptcy, foreclosure, forbearance, etc.). Upon receiving the data tape, we will quickly determine the projected range of our bid for the loan pool. If the range of our bid is acceptable to the seller, we will then schedule a time to review the loan files in order to determine our final bid amount. A typical transaction takes two to four weeks to close from receipt of the initial data tape. |
Typical Purchase Price: |
Our typical purchase price for sub-performing and non-performing loan pools is 40% to 80% of the current outstanding principal balance. A performing loan pool would likely be priced higher. |
Brokers: |
Brokers will be paid a fee to be negotiated on a deal-by-deal
basis for any transaction that results in a purchase. |
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