Mitigated Losses and Minimized Property Damage through Better Reporting Technology for a Private Equity Firm
•Provided collateral and asset management focused specifically on ~45% of assets in cold-weather regions
•Empowered a private equity firm to reduce costs and mitigate risk on its REO portfolio by customizing reporting technology
A leading private equity firm that invested in residential real estate had a costly and frustrating issue across their 750 real estate owned (REO) properties. In cold-weather regions, homes were not always winterized, resulting in damages ranging from a few thousand to $100,000. Insurance policies were often ineffective in covering the losses, as it was impossible to pinpoint an exact time the incident occurred. To prevent further losses, the investor wanted to assess when and how issues occurred and create a standard maintenance protocol during foreclosure. However, neither the loan servicer nor the asset manager had the capability to report on the damage to the investor. Thus, the firm needed to find a partner to accurately track and report on property damage to facilitate insurance compensation and prevent future losses.
The client sought out SitusAMC to manage the disposition of assets owned through foreclosure or deed in lieu, providing all necessary maintenance activities, from mowing lawns and maintaining pools to performing repairs and renovations and mitigating code violations. SitusAMC's MyQ technology eliminates the need for costly IT development, allowing users to create fields, capture data, and design customized reports in an efficient and cost-effective manner. Moreover, SitusAMC collaborated with the investor to identify data requirements and develop a series of customized questions in its Q Capture software that agents would respond to upon first inspection of REO assets.
SitusAMC provided a tailored reporting solution to quickly identify and reduce risk, as well as facilitate more informed decision-making. With Q Capture's customizable design, SitusAMC was able to add the necessary questions to the client's reporting table in a mere 15 minutes. The data collected then allowed the client to pinpoint when the issue typically arose, and consequently, to implement a more effective maintenance protocol going forward. The solution not only gave clarity to existing REO assets, but also set a precedent to guide the client's future foreclosed properties and ensure more efficient decision-making.