Part 2
By Adrian Evarkiou, Sierra Consulting Group, LLC

Receivership cases can be incredibly complex, with each stakeholder hoping to walk away with as little damage as possible. This means as a receiver you have to be a legal expert, financial advisor, and property developer; however each and every case starts in the accounting department. A receiver will start by getting a good grip on the bank accounts in order to start creating value for the property and start collecting the rent. From there you make real estate decisions (like a developer) based on the information provided from the accountants. If there is no money, it impacts the decisions. We need to know where the business truly stands to make sound decisions based on reality.

We utilize our past experience to take a holistic look at the financials as well as the marketing of the property, and the future use opportunities. In some cases, we will step in and create the deals to get the building occupied. With the funds available in the receiver’s account, we can enhance the project’s value. The receiver takes over the debtor’s bank account, manages the money that is there, and utilizes it on the project for the good of the project and to bring in additional income.

Stay tuned for Part 3 – Asset Managers for our multi-part posting of Receiverships as Solution Providers.  If you have any questions or would like more information, do not hesitate to contact us at 602-424-7001.