Risk Management Services

Loan Reporting & Inspection Services

Base10 provides an independent review of existing commercial real estate loans. Standard Loan Reporting & Inspection Services include a physical property inspection, interview with management and completion of reporting requirements. Reporting is completed using either industry standard or lender specific formats together with an internal valuation where appropriate.

Why Outsource Reporting & Inspections?

Allow your staff to focus on revenue generating deal origination. Avoid delays often experienced in the completion of reporting due to peaks in new deal flow. Outsourcing provides a dedicated resource to complete administrative duties in a timely manner at a fixed cost.

Benefits of an Independent Review by Base10

Base10 provides a proactive, independent and objective approach that is based on fact and leverages a variety of data sources and relationships in local markets. This allows us to identify the trends that will have the most impact on the performance and value of your loan portfolio.

Base10′s Value-Added Approach

Base10′s expertise and complete range of services are readily available to further analyze and deal with any issues identified through our Loan Reporting & Inspection Services. Managing loans proactively gives lenders greater flexibility to mitigate loan losses and preserve the value of your underlying security.

Proactive Portfolio Risk Assessment

When a potential risk has been identified, either by the lender or through Base10′s Loan Reporting & Inspection Services, Base10 can apply its local market and property knowledge to dig deeper. Base10 will provide a more comprehensive assessment of those market and property specific risks, and their potential impact on debt serviceability and security values.

Detailed Asset Review and Financial Assessment

Base10 will undertake a detailed financial review to assess the status of a particular risky asset. A thorough analysis of financial statements, operating cash flows, capital expenditure requirements, and an assessment of the global security package will be combined with Base10′s working knowledge of local real estate markets. This provides the lender with a complete assessment of financial and real estate risks with a given asset.

Portfolio and Loan Level Stress Testing

Stress testing is a technique used to evaluate the potential effects on an institution’s financial condition, of a set of specified changes in risk factors specific to the commercial real estate loan portfolio. What impact would a future change in property or portfolio cash flows, due to increased vacancy, decreased lease rates or changed expenses, have on debt service capability, loan-to-value ratios and potential loan losses? Base10 has the local market knowledge necessary to test for the impact of a realistic range of scenarios on your loan portfolio.

Workout & Restructuring Services

Early development and implementation of a workout strategy that deals efficiently with high-risk loans is critical to maximizing value. Base10′s professionals are experienced in structuring senior debt, mezzanine debt and private equity capital. We will forecast and model the financial effects of each available workout option to identify the risks, return and probability of success. This provides lenders with the resources to efficiently deal with complicated, time-consuming troubled loans while allowing revenue-generating personnel to maintain focus.

Asset Management

In default, troubled or distressed situations where you have lost confidence in your borrower’s ability to manage a property effectively, you may require new management resources to replace or supplement existing management. The same may be true in a foreclosure situation. Base10 acts on your behalf to develop and implement tailored asset management strategies designed to maximize property value.