You’ve got questions – we’ve got answers!
As a flexible consulting firm and court-appointed receiver, Florida Receiver can provide the resources to meet your needs. We provide comprehensive services for some of our clients, while others use us to augment their current staff to meet emerging demands. Our services enable clients to meet increased demands without the need to increase headcount.
President and founder, David Legault answers some of the most common questions about our services at Florida Receiver:
What does a Court-Appointed Receiver do?
A court-appointed receiver steps in between the borrower and lender to manage the asset during a litigation process.
Is this a service that you provide?
Yes. Under Florida law, only bonded, experienced, court-appointed individuals can perform this function.
What are your responsibilities?
My primary responsibility as a court-appointed receiver is to limit liability for the lender & borrower and preserve the asset.
How do you mean ‘limit liability’?
We make sure the asset is secure, insured, and maintains the base value determined and does not deteriorate further.
What actions do you take?
We step into the shoes of the distressed borrower and take over running the day-to-day operations of the real estate and/or business. Some of these actions may include repairs, maintenance, hiring & firing personnel, leasing, and dispositions of real and/or personal property.
What sort of assets do you handle?
Normally real property, sometimes commercial enterprises and operating businesses like golf courses and medical clinics.
How many assignments have you handled?
Over 500 throughout the Southeast. We currently act as court-appointed receivers through Florida, Georgia, and Tennessee.
Who appoints you?
A judge appoints us based on the lender’s need to preserve the asset and limit their liability by appointing an arm’s length independent third party.
Whom do you report to?
We report to the judge that appointed us as the receiver.
Who pays you?
We’re compensated based on an hourly fee plus expenses. Our fees are funded from the income stream of the property or if not adequate we have lien right against the property to ensure that we are paid.
What is your background?
I am a CPM (Certified Property Manager), CCI (Certified Commercial Inspector) with an extensive background in construction, real estate brokerage, tenant representation, and mortgage brokerage.
Do you do all the work yourself?
No, I am more of an expert generalist that brings together specific skills to solve problems from a variety of experts.
How long does an assignment last?
The assignment continues until the borrower and lender resolve their legal issues or the asset is sold.
What happens after the foreclosure sale?
When the asset is returned to the bank we advise the lender on a disposition action plan.
Do you also list and sell properties for your clients?
Yes, our clients sell properties from time to time and we help them locate purchasers that can close at the highest price in the shortest amount of time and with minimal grief and aggravation.
You also secure financing, right?
Yes, we can arrange debt and equity capital. We structure acquisition financing and refinance income-producing properties. We’re in the market every day, arranging financing and developing our network of lenders. This network will do high leverage, non-recourse loans at low rates that close quickly and efficiently. We have access to hundreds of national lenders, not just people we know through church or the local chamber of commerce. We create an auction environment for our clients to get them the best blend of rate, term, and leverage. We’re also not shy about asking for non-recourse financing.
Isn’t it unusual to be both a real estate brokerage company and mortgage brokerage business?
Yes, it is rare to wear both hats, but necessity is the Mother of Invention! As a real estate broker during the recession of the early 1990s, I had several deals collapse because the buyer’s financing fell apart at the 11th hour. I rolled up my sleeves and found new sources of financing to hold the deal together. Because we can fund both debt and equity, our closing percentage increases every year.