Distressed Asset Investing
In today’s economic climate assets have become “distressed” due to many factors. Real estate assets have become distressed due to above-average vacancy rates, inability to refinance existing debt, depletion of reserves, and disrepair. However, there as assets of all types that are distressed, attracting potential buyers. While these assets are now more affordable, the capital funding needed to acquire, rehabilitate and reposition these assets is more difficult to obtain.
Consequently, in this field legal advice and consultation at every step is advisable.
Potential buyers in some circumstances seek to create a Fund, or a pool of capital to buy distressed assets either individually, or as a portfolio. As the laws, disclosure requirements, structure, operation and particulars of each Fund will be different, a great amount of detailed analysis, planning, and advice is warranted.
These assets are more difficult to obtain.
How we help you set up Distressed Asset Investment Fund
Financing an acquisition of distressed assets is more difficult –we help with a strategy that includes successfully completing a private equity offering into a Fund-type entity that will utilize its assets to acquire, rehabilitate and reposition distressed assets for cash flow (rentals) and residual proceeds (sales).
Meet the requirements of the 1993 Securities Act, and the applicable state securities statute – wecan help you to prepare a set of offering documents that clearly lay out your plan, the risks involved, work with you or your financial professionals in completing your financial assumptions, the projected returns that investors could achieve, disclosure of all relevant financial data, as well as series of full and adequate precautions ensuring that the investors are appropriate for the particular investment.
Investment documents – we make sure that you have a full and legally adequate set of offering documents, and that you are presenting the investment to accredited investors that have a clear understanding of the investment, your business plan, the risks involved, and whether or not investors will be able to have access to their capital.
Rehabilitation, refitting, and repositioning process – we help draft contracts that define the process, the payments, and the job. We can assist in creating a compliance/administrative operation- legal assistance, for both purchases and sales of assets, as well as for leasing, eviction issues, disputes, insurance issues, injuries, and other daily property management concerns.
Cherrytree Group, LLC
Address:
233 Needham Street
Suite 402
Newton, MA 02464
Tel: (781) 325-8485
Fax: (617) 431-2270
E-Mail:
info@cherrytree-group.com