Negotiating Distressed Real Estate Debt Transactions

About the Course:

Negotiating distressed real estate debt transactions is extremely complex and requires attention to a multitude of nuanced variables. This session slices and dices a host of factors that can have dramatic consequences for such negotiations. Among these factors are:

  • Negotiating to acquire loan portfolios vs. individual loans
  • Competing for distressed real estate assets via auctions vs. negotiated deals
  • Negotiating to acquire debt covering commercial property vs. residential property vs. land
  • Negotiating to acquire performing loans vs. non-performing loans
  • Negotiating to acquire construction loans vs. permanent loans
  • Negotiating to acquire whole loans vs. A/B notes or participations
  • Negotiating to acquire senior loans vs. junior/mezzanine loans
  • Negotiating with healthy sellers vs. failing banks or the FDIC

The following are among the issues discussed during this highly informative session:

  • How does understanding the loan history enable you to negotiate more effectively?
  • What are the risks to investors who fail to obtain Pre-Negotiation Letters?
  • What key terms are usually negotiated in connection with Letters of Intent?
  • While negotiating to purchase non-performing loans, what is more important than the economic terms?
  • How might 'bad boy' carve-outs affect lender recourse?
  • How can a buyer get a seller 'pregnant' with a deal?
  • What are the risks in the seller accepting 'lost note affidavits and indemnities'?
  • What are the risks and consequences of the seller alleging fraudulent transfers of the loan?
  • How might foreclosure procedures and 'one action rules' affect the lender's ability to realize on the collateral?
  • What is the difference between judicial and non-judicial foreclosure?
  • How do taxes impact closing costs, foreclosure bidding and foreclosure transactions costs?
  • What are examples of hidden value that may arise in connection with acquiring distressed real estate debt?

Course Leaders:

Danny Guggenheim is a Senior Associate in the Los Angeles office of Pircher, Nichols & Meeks in 2007, which he joined in 2007 after several years in the Real Estate Group at Sidley Austin LLP.

Mr. Guggenheim has experience representing mortgage and mezzanine lenders, commercial and residential developers, and opportunity and hedge funds in all aspects of transactional real estate, including acquisitions and dispositions of real estate and related debt instruments, workouts, development projects, and debt and equity financings. He is the co-author of "Important Issues in Purchasing and Resolving Distressed Real Estate Debt," BNA Inc. Real Estate Industry & Law Report (March 2009).

Mr. Guggenheim received his J.D. from the University of Southern California (USC) Law School in 2004, and his bachelor's degree in Political Science (International Affairs) from Columbia University in 2000.

Chad Buelow is a Co-Founder and Managing Principal of Verona Capital Markets Inc., a boutique real estate investment banking firm located in Los Angeles. Mr. Buelow advises owners of commercial real estate in connection with the placement of debt, equity and structured financing and also represents financial institutions in connection with the disposition of REO and performing and non-performing loans.

Prior to forming VCM, Mr. Buelow was a senior associate at Pircher, Nichols & Meeks, where he specialized in the representation of lenders and borrowers in connection with real estate financing transactions. While at Pircher, Nichols & Meeks, Mr. Buelow was involved in the closing of hundreds of loans throughout the United States involving all property types and myriad financing structures. Before joining Pircher, Nichols & Meeks, Mr. Buelow was an associate in the Mergers & Acquisitions Group at Cooley Godward LLP. Mr. Buelow received his J.D., cum laude, from Harvard Law School in 2000.

Course Length: Approx. 1.5 hours

$295.00 PER USER

Purchase Now:

Need help purchasing this course? Please contact Neomi Barazani at 609-919-1895 ext. 100 or at