How to Find an Expert to Serve as a Court Appointed Trustee

As an asset or portfolio manager, there are times that you need to take action against a delinquent borrower, who is an apartment owner. You decide the next step is to file for foreclosure. You need to act quickly. How do you go about finding a local expert that can
serve as a trustee or property manager? Better yet, how do you find an expert that can serve in both capacities?
1. Internet or References.
You may be able to locate an expert who serves as a trustee and/or property manager from searching the Internet or asking your local attorney for referrals.
2. Trustee’s Credentials
It is helpful if the trustee is an attorney by background. Attorneys understand the legal issues involved concerning the appointment. They have the composure and experience to handle any type of situation that may develop. Attorneys can assist the lender or owner’s attorney in preparation of their case. They know what reports and schedules the court expects, and how to ensure their accuracy.
3. Trustee’s Experience
Property managers recognize the practical financial condition of the asset. They will need to immediately assume management of the property, transition current management staff, obtain adequate insurance coverage, set up deposits for utilities, etc. They should
quickly develop a 60-90 days cash needs report. This report should include immediate working capital needs as well as future cash needs.
4. Risk Management Issues
An experienced property manager will be able to identify any immediate risk management issues at takeover. Examples of items potentially needing immediate attention include asphalt or concrete deterioration, lighting, water penetration, door locks, and other safety issues as assessed.
5. Management Plan
An experienced property manager should provide a business and management plan within 90 days of appointment. The plan should include current paying residents, rental revenue, projections detailing monthly occupancy absorption, and a marketing and
leasing plan to increase occupancy. The plan should include projected income, expenses, and future capitol needs.
6. Web Based Financial and Operations Reporting
Property managers must have state of the art accounting and operations technology. Asset or portfolio managers must be able to access this information 24/7 in real time. Rent payment solutions must be available for renters and should include electronic e-check, ACH, and credit or debit cards.
7. Communication
Finally, property managers should provide weekly operations and financial information.