CREATING OPTIMAL OUTCOMES FROM DISTRESSED DEBT

AMICABLE SOLUTIONS FOR BORROWERS AND LENDERS

EquiTrust’s passion for real estate extends beyond the acquisition, development, and management of its diverse and extensive property portfolio, and into debt instruments collateralized by landholdings and property. Having real estate to back up these financial instruments provides security in the event of default, as there is a claim on the underlying property to fall back upon. EquiTrust Receivables is the division focused on acquiring, servicing, restructuring, and disposition of these instruments, providing us with yet more opportunities to develop and implement creative solutions for even the most elaborate real estate-related problems.

About EquiTrust Receivables

EquiTrust Receivables specializes in the acquisition of mortgages and other debt instruments collateralized by real estate. Our team of seasoned real estate investment and finance professionals have a broad range of experience in debt acquisition, due diligence, work-out, asset management, and disposition. We have the ability to underwrite and structure complex transactions in-house giving us the ability to swiftly close a transaction.

Our acquisitions include both single notes and large portfolios of performing and non-performing notes with collateral spanning multiple asset classes. We acquire senior and junior lien positions and we have a history of working with notes that have incomplete records or unperfected liens. Although we are located in Houston, Texas, we acquire debt all over the continental United States. Whether you represent an individual note seller tired of managing a note or a large institution looking to dispose of a portfolio of notes, EquiTrust Receivables has a history of working with a full spectrum of organizations and individuals.

EquiTrust Receivables is a subsidiary of EquiTrust Management, LLC. EquiTrust is a Houston-based, privately held investment company with an emphasis in real estate development and holdings as well as distressed real estate and debt acquisition. EquiTrust owns and manages a diverse portfolio of properties throughout Texas and Louisiana. The partners of EquiTrust have a combined experience of over 50 years in the Texas and Louisiana real estate markets.

Banks and Lending Institutions
Banks and Lending Institutions

EquiTrust has worked with several national banks and lending institutions throughout the United States and understands the complexities and intricacies of purchasing debt from such institutions and banks. From financial analysis to legal due diligence, our in-house team has the experience and expertise to swiftly complete a transaction. It is our utmost priority to maintain the highest standards of statutory and regulatory compliance. Our legal team is familiar with the Dodd-Frank Consumer Protection Act and other regulatory matters to ensure all components of the transaction are within federal and state laws and regulations.

Private Equity Funds
Private Equity Funds

EquiTrust has worked with several private equity funds to acquire debt portfolios. Since entering the debt market, private equity funds have changed the market landscape by making large portfolios of debt into smaller manageable portfolios of debt available to medium sized firms such as EquiTrust. This availability of manageable debt portfolios has allowed EquiTrust to increase its acquisition volume and market penetration. EquiTrust understands and values this synergistic relationship and looks forward to expanding business with private equity funds. Private equity funds can rely on EquiTrust’s expertise as we have an experienced in-house team of real estate finance and legal professionals to conduct due diligence and underwriting to ensure a simple and streamlined transaction.

Guaranteed Commitment
Individual Note Holders

EquiTrust prides itself in providing solutions to individual note sellers. We have worked with hundreds of individual note holders and understand their needs. Managing a note can be very stressful with constant worrying about IRS regulations, collection hassles, and collateral devaluation. We buy notes in any situation including delinquency, bankruptcy, deceased borrower, or damaged collateral. We always offer a fair price; often very close to the notes face value. It is our commitment to make the transaction as smooth and hassle free as possible.

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Security in Debt Diversity

The real estate-backed debt instruments managed by EquiTrust Receivables include, but are not limited to the following categories:

  • Mortgage Loans
  • Real Estate-Backed Loans
  • Bonds Issued by Real Estate Investment Trusts
  • Mortgage-Backed Securities
  • Collateralized Debt Obligations

EquiTrust Receivables’ portfolio consists of both performing and non-performing debt. Performing debt refers to debt obligations where the borrower makes regular and timely payments of principal and interest as stated in the loan agreement. The borrower is fulfilling their repayment obligations, and the debt is considered current and in good standing. 

Non-performing debt, also known as distressed or delinquent debt, refers to debt obligations where the borrower has failed to make payments as per the agreed terms. It signifies a situation of default or late payments. Non-performing debt can occur for various reasons, including financial hardship, cash flow problems, or other difficulties faced by borrowers. While considered far riskier than performing debt, it is in non-performing debt that EquiTrust finds the most rewarding challenges and opportunities to demonstrate our ability to solve problems.

Finding Win-Win Situations for All

EquiTrust Receivables’ specialty is in acquiring such non-performing debt from banks, financial institutions, private equity funds, and individual debt holders with the goal of restructuring them to find amicable solutions for both borrowers and lenders. This can include renegotiating the terms of the existing debt agreement, extending the maturity rate of the debt, or consolidating multiple debts into a single new loan with reworked terms. By doing this, we maximize the return on these financial instruments while giving borrowers another chance to settle their obligations.

Creative Solutions

FOR FINANCIAL DISTRESS

At EquiTrust, our deeply-rooted passion for real estate has driven us to expand our horizons to include real estate-backed debt instruments. In bringing our knack for devising creative solutions to non-performing debt, we provide relief to creditors, an opportunity for borrowers to discharge their debts, and a chance for us to realize value that would have been lost otherwise. If you or your company are managing any receivables, collections, or judgments on any debt instruments collateralized by landholdings and property, then perhaps we can provide you with the assistance you need. Give us a call and set an appointment with us today!