Large Balance Loan Foreclosures Abound! In over 25 years of tracking real estate foreclosures, I have never seen so many large balance commercial real estate loans in distress. Along Colorado’s Front Range, there are over fifteen (15) active commercial real estate foreclosures with loan balances in excess of $5,000,000. There are several loans with eight figure loan balances! What is driving this dynamic? There may be several factors. First, the most obvious reason, is the COVID-19 pandemic. While many residential homeowners have received forbearance agreements, commercial real estate borrowers may not be as fortunate. Secondly, all the recent large balance foreclosures have been initiated by either large hedge funds or private equity funds – none of the recent foreclosure have been filed by institutional banks. Based on our conversations with bank lenders, banks are not yet willing to file foreclosure or sell non-performing loans due to reputational risk – they do not want to file foreclosure during an “Act of God”. What does this dynamic foretell? It is hard to say, but it is reasonable to assume that if there are so many large balance loans in distress, there is also a significant amount of smaller balance commercial real estate loans in distress but have yet to appear in the public records. Institutional banks may soon have an appetite to sell non-performing loans. These distressed loans may offer extremely attractive investment returns.
WINPRO is well positioned to participate in distressed loans sales. WINPRO’s management team has over 40 years of experience in distressed loan sales. WINPRO has an extensive network of relationships with institutional lenders. WINPRO intends to leverage these relationships so to participate in this distressed market. WINPRO offers an excellent investment platform for individual investors to participate in commercial real estate debt investments!
Enjoy Bond-Like Security with Equity-Like Returns!
WINPRO Funds provide investors with a platform to participate in the exciting capital returns offered through commercial real estate debt, while enjoying the safety offered by secured, collateralized mortgage instruments. WINPRO offers its investors:
- Security – all loans secured by commercial real estate assets.
- Cash Flows – Preferred Return Distributed to investors Quarterly.
- Ten Percent (10%) Preferred Returns.
- Target Investor Returns of 18%-20%.
- Investor Splits on Loan Fees.
- Professional Management.
- Proven Track Record.
- Possible Capital Gain Tax Treatment.
Please Call WINPRO to get more information about these exciting investment opportunities. Call Stan Wood or Tony Hemminger at 720.344.1174, or visit our website at www.winprofunds.com.