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NON-PERFORMING LOANS

AN “ALTERNATIVE INVESTMENT” TO STOCKS, BONDS AND CURRENCY MARKETS

VOTED “TOP 20”
MORTGAGE LENDER IN SOUTH FLORIDA

brickell capital was voted top mortgage lender by South Florida Business Journal (South Florida’s leading news outlet for residential and commercial real estate, banking, finance and business news).

Most ultra high-net-worth investors have over 50% of their portfolio assets in “alternative investments” (i.e. non-performing loans)

50% Alternative Investments        10% Fixed Income

31%  Listed Equities                           9% Cash (or Cash Equivalent)

 

The benefits of “alternative investments:

  • direct ownership of assets
  • strong income (or cash-flow)
  • reduced exposure to market volatility
  • hedge against inflation
  • treated as passive income
  • direct tax benefits to investors

WHAT IS A NON-PERFORMNG LOAN ?

A non-performing loan (NPL) is a mortgage loan in which the borrower is in default of the note or the loan documents (i.e. non-payment, etc.)  Generally, a bank shall classify a mortgage loan that is more than 90 days past due as an NPL.

WHY BANKS SELL LOANS ?

When a borrower stops making payments, the bank can initiate a mortgage foreclosure or it can sell the NPL to a private investor.  When a bank has too many NPL’s on their balance sheet, it poses a cash flow problem for the bank since it is no longer earning income from its credit business and also creates numerous regulatory banking issues (i.e. mandatory reserves, banking oversight, etc.) 

HOW WE EXPLOIT BANK INEFFICIENCIES ?

Banks are not set-up to efficiently service NPL’s, manage the foreclosure process, conduct property management or sell real estate owned (REO) properties.  It is our goal to exploit these market inefficiencies for the benefit of our clients and investors.

OUR COMPETITIVE ADVANTAGE
IN ACHIEVING FAVORABLE OUTCOMES

LOCAL BANK RELATIONSHIPS, MARKET KNOWLEDGE, FORECLOSURE EXPERIENCE AND LOAN WORKOUT ADMINISTRATION

As a direct result of federal and state regulations together with bank capital requirements, the real estate sector and the traditional banking sectors consistently allow for market inefficiencies to be exploited and value extracted in distressed (or non-performing) mortgage loans.


Our competitive advantage:

  • Local bank relationships
  • Loan workout knowledge and experience
  • Bank regulatory + capital burdens
  • Banks are focused on generating interest income
  • Banks are not set-up to manage non-performing assets
  • NPL’s create reputational risk and brand damage for banks

TARGETED NPL PORTFOLIO

Based on our experience and current market environment, the following is our targeted NPL portfolio.

 

20%  Defaulted Loans (Pre-Foreclosure Workout)
40%  Non-Performing (Foreclosure)
20%  REO Acquired Properties (Post-Foreclosure)

TARGETED PROPERTY TYPES

Our priority is safeguarding our investors and the invested capital.  We only purchase NPL’s where the underlying collateral is on the following property types.        

                

20%  Single Family Residences          20%  Residential Condominiums

20%  Luxury Townhomes                     20%  New Construction

10%  Multi-Family Apt Bldgs               10%  Vacant Land

VOTED “TOP 20”
MORTGAGE LENDER IN SOUTH FLORIDA.

brickell capital puts our client’s interests first,

because without our clients …

brickell capital would not be in business.

12% PREFERRED RETURNS

On non-performing loans, our investors net:

  • 12% Net preferred returns (on invested capital)
  • 3m to 12m investment term (avg)
  • $500,000+ minimum investment

OUR INVESTMENT APPROACH

No excuses … we delivers results

The reason for our success:

  • relationship with local banks
  • extensive due diligence
  • foreclosure litigation experience
  • defined entry + structured exit strategies

NON-PERFORMING LOANS
FOR INVESTORS SEEKING HIGHER RETURNS

 

brickell capital’s competitive advantage in achieving favorable outcomes is based on:

  • long-term relationship with banks 
  • local property market knowledge 
  • strict underwriting experience
  • borrower and collateral valuation analysis
  • adherence to value parameters
  • NPL risk score analysis 
  • detailed investor reports + statements
  • extensive foreclosure + litigation experience 
  • structured loan workout administration
  • REO management