Solutions
Loan Workouts
It may be possible to re-negotiate the terms of a loan with the current lender, even if the loan is in default. In fact, in June, 2023, a formal policy was put in place by the Federal Reserve, FDIC, the Office of the Comptroller of the Currency and the National Credit Union Administration to guide financial institutions on commercial real estate loan workouts. A loan workout can result in more favorable terms, increased cash flow, or a lower payoff amount. With our extensive experience representing lenders, White Knight Real Estate Solutions possesses valuable insight into their operations, allowing us to effectively leverage our expertise for the benefit of our clients.
Refinancing
Borrowers in today's market face significant challenges when it comes to refinancing their loans. Lenders are requiring additional cash from borrowers to meet conservative loan-to-value (LTV) ratios, purchase interest rate caps, or fund interest reserve accounts. At White Knight Real Estate Solutions, we have established relationships with lenders who specialize in refinancing difficult loans, even ones in default or foreclosure.
Rescue Capital
Rescue capital can bring borrowers a necessary cash infusion without requiring the borrower to take on additional debt or sign a personal guaranty. Rescue capital can be used for a "cash-in refinance", balancing with their lender, capital projects, business operations, or any other use agreed upon by the parties. White Knight Real Estate Solutions has a network of high net worth individuals, family offices and funds that focus exclusively on rescue capital.
Sale-Leaseback
For owner-occupants, a sale-leaseback can be a way to reduce debt and generate cash while continuing to operate in your property. White Knight Real Estate Solutions can help you unlock the equity in your property and ensure you receive favorable lease terms so you can focus on operating your business.
Purchase the Note
Purchasing the debt from the current lender is an option, even if the loan is in default. In some instances, the debt may be purchased at a discount, meaning you as the borrower could owe less money to a new lender. White Knight Real Estate Solutions works with many private investors who specialize in purchasing bad debt on the secondary commercial mortgage market.
Sell the Asset
Selling your asset to capture the equity or avoid further liability on the loan can be a great option, especially with so much uncertainty over the next few years. White Knight Real Estate Solutions works directly with pension funds, insurance companies, and family offices who are active buyers in today's market. We also have strategic partnerships with top real estate brokers across the country who can get top dollar for your asset.
Combination
It may be possible to combine one or more solutions to achieve the best possible resolution for you as a borrower. White Knight Real Estate Solutions has the experience and knowledge to assess your unique situation and determine all possible options.