In the midst of a fragmented investment market, new opportunities have arisen, and various entities have been formed to capitalize on this changing environment. In the Commercial Real Estate sector, many groups are raising funds to purchase properties at distressed prices, yet very few are targeting the underlying debt. Roanoke Financial Group was established to focus on this area in the market. We believe the opportunity is to acquire the debt and control the outcome of the underlying collateral.


Roanoke Financial Group specializes in the acquisition, servicing, and disposition of loans and loan pools from banks, FDIC controlled institutions, and other lending intermediaries.

Over the past two years, more than 297 federally insured financial institutions have been closed, leaving the FDIC with over $30 billion of loans it must sell. In 2009, the FDIC was the most active seller of distressed real estate loans, transacting nearly $6 billion in asset sales. The velocity of sales is expected to increase, as the FDIC still has over 850 institutions on their “watch-list” up from 700 at the end of 2009.

Many banks have refrained from selling non-performing loans. Yet, with over $1 Trillion of commercial real estate loans maturing over the next 4 years, many of which are “underwater”, there will be loan sale opportunities in the near future.

With the unprecedented flow of assets in a highly fragmented marketplace, Roanoke Financial Group has implemented strategies to qualify, invest, and capitalize on distressed debt opportunities.


Loan Sale Sources
• FDIC auctions of assets from failed banks
• Bank and Special Servicer auctions of portfolio assets and CMBS trust assets
• Off-market assets available through non-auction formats
• Special Assets Group and REO relationships


Loan Sale Products
• Single and multi-family residential, office, retail, hospitability and industrial assets, both developed and undeveloped
• Secured and unsecured business loans, C&I loans and equipment leases
• Whole-loan and participation interests in both performing and non-performing loans


Loan Sale Conditions
• Compressed timeframe: 3-4 weeks for due diligence before submitting a final bid
• Limited Information: Loan files and underlying collateral information are incomplete
• Large Volume: Each offering contain hundreds of files to filter through for critical information essential to accurately assess risk


Asset Acquisition Process
Successful acquisition of loan assets is the result of extensive collateral due diligence and obtaining a solid understanding of local market dynamics.

Onsite Property Review
The majority of assets RFG bids on, a member of the team visits the property:
• Physical inspection of property condition
• Confirmation of rent roll information, strength of tenancy
• Location and sub-market analysis.

Local Broker and Owner Information
Current local market data is essential to our collateral valuation process as well as to determine our strategy and timing for disposition:
• Operating budget forecast
• Borrower financial condition
• Current market data, including: rental and vacancy conditions

Loan File Review
• Verify that bank has perfected their lien
• Review pending tax and/or lien obligations
• Analyze payment history, cash flow, and debt coverage
• Title and credit reviews of borrower and all guarantors
• Review all reports including: environmental, planning zoning, and appraisal
• Work with counsel or third parties consultants where necessary.

Bid Price Formulation:
After completing the due diligence process, the information is compiled into a loan presentation report, with a pricing recommendation for our partners and investors to review.

The loan presentation includes:
• Preliminary net recovery values and bid pricing
• Multiple disposition scenarios

Asset Disposition Process
Disposition of the acquired loan assets require various strategies to be implemented on a case-by-case basis. Successful execution of the preferred strategy will be predetermined to yield the investment group the highest rate of return, with minimized risk exposure.

Workouts
We actively engage in direct in-person discussions with each borrower to determine if a discounted payoff or loan restructure is possible and in the best of interest of all parties.

Foreclosure and Deed in Lieu
If necessary, we will pursue a deed-in-lieu, or foreclosure action.

Asset Management
We may determine that the best course of action following a deed-in-lieu or foreclosure is to hold the property for later disposition. In these cases we will actively manage the property, which may include; new management, renovation and re-tenanting, or full re-development of the site.

Loan Sales
In certain circumstances we acquire loans and/or other assets in a pool that are more attractive to a different type of investor. In those cases, we may sell certain assets.

Roanoke Financial Group works with all types of accredited investors; individuals, family trusts, wealth managers, and private equity firms. By bringing investors together to inject fresh capital to purchase these loans, the Roanoke Financial Group creates a win/win situation for the entire investment team. We look forward to working with you soon.

Receiver /Asset Manager / Special Servicer
In addition, Roanoke Financial Group is an experienced Receiver (Real Estate & Business), Asset Manager and Special Servicer. We provide the following services:
• Strategic planning
• Market analysis
• Coordination of goods and services
• Lender negotiations and restructuring
• Dispute resolution
• Collection
• Disposition
• Servicing – Fixed or variable rates for all loan types

For further information please contact us at (info@roanokefinancial.com) or 206.420.0290.