REO Leasing Solutions Unveils Suite of Services
Houston-REO Leasing Solutions LLC (R2L) has introduced a suite of services to assist property investors with leasing distressed residential assets and reinstating value to those troubled assets.
Utilizing a consumer-focused approach to handling single-family assets either in default or taken over by the lender, R2L's asset retention methodology enables borrowers to stay in their homes, investors to continue receiving a return on their investment and local municipalities to maintain a tax revenue stream.
"When loss mitigation efforts have failed and the numbers do not justify selling or retaining the asset, it's time to consider leasing the property," said Alan Paylor, president of REO Leasing Solutions.
The new company is a wholly owned subsidiary of RMS (also in Houston).
"We have created a business model that uses a network of local brokers and property managers who help us return real value to investors and borrowers alike," says Marc Helm, chief operating officer of RMS.
"Moving from a secured debt instrument to landlord tenant law presents many, varied challenges and we have just the right professionals and technology to meet them."
Mr. Paylor, an industry veteran with over 30 years experience in the real estate and financial services industry, says there are two critical aspects of R2L's solution.
The first is to provide an investment option to investors of distressed assets, such as hedge funds, domestic and foreign investors, even auction and buyer clubs. The second is applying the leasing model to ongoing loss mitigation of a secured debt. "It should be clear to most in the market today, that a non-income-producing or vacant property serves no purpose. Investors should consider a borrower-retained option or a new resident leasing the property."
The company recently expanded its management team including Jay Prasifka, a business development executive in national sales, and Jessica Hensarling, who will manage operations with primary responsibility for the R2L's CRM program and resident systems. Susan Chaney will head up finance and accounting as well as analytical modeling for investor performance matrices.
Mr. Prasifka formerly was a vice president of national account sales with Stewart Lender Services, Houston. Ms. Hensarling was with Coldwell Banker's property management division in San Antonio, working with the single-family residential portfolio. Ms. Chaney has directed a broker and agent network for Re/Max and Century 21.
Mortgage bankers, investment banks, hedge funds and asset managers- for everyone involved in the switch from mortgage to lease on a REO or pre-REO, the change is severe, adds Mr. Paylor.
"If the tenant has a lease option to buy the house, he has a strong incentive to keep the house up. He will mow the lawn, fix the window, without calling up the lender." at night.