Carlton Hybrid Auction Loan Trading Platform (CEX MLS) – Your One Stop Shop for Loan Sales
August 4, 2010
Dear Potential Client,
I am writing to encourage you to consider utilizing Carlton’s loan sale advisory services to value, structure and competitively sell your non-strategic mortgage and note assets.
In business since 1991, Carlton is one of the country’s foremost loan sale and REO experts, having sold billions in loan & REO assets overall. Overall, we have closed in excess of $50 billion in equity, debt and loan sale transactions since 1998.
We are creative, aggressive and fierce client advocates, determined to maximize recovery for you. We typically sell loans in one of the following ways:
1. Negotiated Loan Sale – This is where we quietly access appropriate buyers for particular assets (these are generally large individual, one off commercial assets).
2. New CEX MLS Hybrid Auction Loan Bid – This is Carlton’s new proprietary conventional loan trading system, which has resulted in hundreds of millions of dollars of asset sales in 2010 alone. CEX MLS is an auction hybrid loan sale process, where loan and REO assets are listed on Carlton’s proprietary password-protected loan trading website, on a First-Come-First-Serve BID NOW basis. The CEX MLS is a seller-advantaged process, which connotes a “positive psychology,” and allows you to accept or counter a bid as you deem appropriate. Unlike auctions, which typically signal a distressed or “fire sale” connotation, CEX will help you get the best price through a competitive process that encourages urgency and emotional bidding to drive prices higher. Furthermore, similar to a conventional listing, CEX will negotiate bids on your behalf, until you either accept or counter prequalified bidders. This process is confidential and only the client and CEX see the bids.
3. Sealed Bid – This is a more traditional loan sale process, where there is a 6-to-8 week marketing period, which culminates in a two-tier initial and final bid deadline. Bidders are encouraged to view all due diligence, which is contained on the CEX website, and make a hard bid with a completed asset sales agreement. Bidders post a 10% deposit within 24 hours of bid acceptance.
4. Bulk Sales / Pools – This is where groups of assets are sold in bulk or mini-pools, based on a loan and/or REO stratification agreed to between CEX and the client. CEX has received great pricing selling assets on an individual basis, but can also execute bulk transactions, where efficiency and expediency is required.
Valuation Expertise– No loan and/or REO sale can be successful, unless both the advisor and client are on the same page with respect to the asset valuation and anticipated recovery. Carlton has highly sophisticated valuation techniques, which will provide sellers with an accurate assessment of anticipated recovery prior to launching a loan sale.
The benefits of a Carlton Loan Sale include:
- 100,000-Person Investor Database – As a product of the billions of completed loan sales transactions mentioned above, Carlton has one of the largest and most comprehensive buyer databases in the industry. This database is continuously updated to reflect the most aggressive loan and asset buyers in the secondary market today.
- Personal Interaction by CEX Professionals – The CEX trading website is a tremendous tools which allows bidders to efficiently conduct due diligence and go to one concise location where all of the appropriate asset information is contained for them to make an investment decision. However, the CEX site is supplemented by a team of Carlton professionals who follow up and call virtually every bidder that responds to make sure that all questions are answered and to encourage investors to bid aggressively for a many assets as the can afford. CEX trading professional interaction with bidders is invaluable in getting the deal done consistency with the seller’s objective.
- Balance Sheet Liquidity at Competitive Market Rates – Sellers are able to create liquidity for their own account and investment plans by shedding non-core or non-strategic assets from their balance sheet. Through the competitive sale process, clients will be achieving maximum, market prices on their dispositions.
- “Turn-Key” Operation – Carlton will conduct all of the necessary pre-sale due diligence, website preparation, advertising and marketing promotion, and closing coordination between all buyers and sellers.
- Carlton Experience – Carlton has sold in excess of $20 billion in commercial and residential loan and REO sales in primarily competitive sale formats. As a result, Carlton professionals are extremely knowledgeable and proficient at conducting the sealed bid sale process, and will deliver maximum proceeds to sellers with date-certain closings.
In sum, Carlton has been in the loan sale business since 1991, and is one of the country’s oldest and most successful loan and REO advisors. We know how to value your assets, and then put together a customized marketing plan that will access investors who will pay the highest price for your assets. We encourage you to contact us today, so we can provide you with a confidential valuation or loan sale strategy to maximize the value of your assets.
Sincerely,
| Howard L. Michaels
Chairman (212) 716-5607 |
