Our Four-Step Asset Acquisition Process

1. Indicative Bid

  • Receive Asset Data: the acquisition process starts with analyzing 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. 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 our client will acquire the assets.

  • Initial Contract: along with the commitment letter, Shelving Rock may provide a client-approved Purchase and Sale Agreement; the seller's version can also be used as a starting point.

2. Due Diligence

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

  • Servicing Review: key information from the servicing of the asset 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 on our client's behalf for final acceptance.

  • Final Contract: based on due diligence and the original commitment letter, Shelving Rock works with the seller on its clients' behalf 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 before the transaction's funding.

  • 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: the Purchase and Sale Agreement is executed, the client wires the purchase price, and collateral files are shipped. A successful transaction is completed.


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