OUR PROCESS

Our Four-Step Asset Acquisition Process

1. Indicative Bid

  • Receive Asset Data - the acquisition process starts with the analysis of a data file provided by the seller, which offers basic descriptive and financial data on each asset.

  • Pricing Model - the data file is uploaded into Shelving Rock's pricing model and different stress-test pricing scenarios are run. This initial pricing occurs within 24 hours of the receipt of the data file.

  • Commitment Letter - the seller receives the indicative bid in the form of a commitment letter outlining the price and terms under which Shelving Rock will acquire the assets.

  • Initial Contract - along with the commitment letter, Shelving Rock may provide its version of a Purchase and Sale Agreement or the seller's version can be used as a starting point.

2. Due Diligence

  • Loan File Review - all pertinent origination and servicing documents are reviewed to obtain a clear picture of the borrower and the property.

  • Pay History/Servicing Review - all key information from the servicing of the asset, including the pay history, is reviewed and key data is collected.

  • Asset Valuation - Shelving Rock will perform a valuation of the asset securing the loan when applicable. This may include broker price opinions, appraisals, site inspections, automated valuations and other methods.

3. Final Pricing and Contract

  • Final Pricing - all information collected during the due diligence process is entered into the pricing model and reviewed to derive a final price. This price is communicated to the seller for final acceptance.

  • Final Contract - based on due diligence and the original commitment letter, Shelving Rock works with the seller to develop a mutually acceptable final Purchase and Sale Agreement.

4. Closing and Servicing Transfer

  • Collateral Files - the loan files and legal documents are reviewed and boxed by Shelving Rock personnel prior to the funding of the transaction.

  • Servicing Transfer - Shelving Rock works with the seller to complete a smooth transfer of servicing. In some instances, sub-servicing may be kept with the seller.

  • Closing - Purchase and Sale Agreement is executed, purchase price is wired, and collateral files are shipped. A successful transaction is completed.