Equity Recovery Advisors was formed by Corbeil of Corbeil Associates, Inc., a loan work-out specialist; Greg Pando of Pando Associate Inc., an architectural firm; and Dave Dirubbo of Acella Construction Corp., a developer. The mission of their firm is as "the lending industry's collaborative solution for assessing new loan requests and mitigating the impact of distressed assets throughout New England."
"A lot of the banks I've been dealing with with Corbeial Associates have been looking for a full-service company," Corbeil tells GlobeSt.com. The banks are looking for work-outs where, in addition to the monetary necessities, they want to have a value-added general contractor and a value-added architect to value engineer the projects that they're taking back, he says. "We formed this company when we collectively saw the need for a firm that could provide workout solutions for financial institutions that may have troubled assets on their books," he says.
The main point driven home, as apparent in this economy as any other, is that banks generally want these unfinished projects with outstanding loans off their books, but the problem for banks, as Corbeil explains, is a simple one: "They're not landlords, they're not developers."
With the additions of developer and architectural input, the work-out can be a top-to-bottom affair. The additional elements can be brought to the table by altering part of the construction or installing less expensive appliances or counter-tops, for example. These things, in the long-run, will save the lenders money, which is the ultimate goal.
Corbeil admits, "[Lenders in these situations] will never get back to what they're owed to give them par, to make them even. They are going to write something off." The point is to help retain "as much earning back to the lender as humanly possible," he says.
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