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Industry

Distressed Mortgage

Company Type

Acquire Discounted Delinquent Mortgages

Size

$25+ Million

Investment Type

Equity and Senior Debt

Overview


Revolve Capital is seeking $25 million of capital to acquire pools of qualified loans/mortgages that management believes are priced well below the real estate value or total collectible balance (whichever is lower)

Direct acquisition, management, and sale of first lien distressed non-performing and re-performing mortgages secured by residential real estate


Over the past decade, the management team has successfully managed over $1 billion of non-performing loans (NPLs). Over the last 24 months, Revolve Capital and its principals have acquired over 1,000 assets at favorable prices


With access to NPLs direct from banks, government agencies, real estate funds and financial institutions, the management team has proven their ability to acquire NPLs opportunistically


Deep ties to institutional sellers of NPLs – prime position to acquire, manage and liquidate anticipated NPL flow coming to market in 2023 and beyond

Opportunity


Borrowers three or more payments past due on their mortgage are up 55% over pre-pandemic levels


Approximately 400,000 serious delinquencies today (were 640,000 remaining before the pandemic)


The forbearance moratorium has expired, and the real estate market and economy are severely challenged


Top Tier 1 banks are currently managing thousands of performing portfolios that Revolve expects to go into default and be sold


Default loan counts and associated costs of managing these assets are proving to be overwhelming for banks, with lack of bandwidth to address these issues

Solution/ Strategy


Revolve Capital plans to capitalize by leveraging its relationships with Wall Street firms and main street investors to programmatically purchase and sell delinquent 1st lien mortgages secured by residential real estate

LOAN SALES

Selling loans that can’t be modified or quickly foreclosed on to region-specific retail buyers at a margin over the wholesale price. Based on the desire for high velocity trading the company generally attempts to re-sell non-performing loans at a margin of roughly 20 to 25% over the purchase price within a 120-day period

VALUE-ADD AND RETAIN

Adding value to existing loans through various forms of modification, renegotiation or deed in lieu staging to enable these loans to be retained or sold at a premium

RENTAL OR FIX / FLIP

Hand-selected properties to provide value to eventually rent or re-list and sell at a significant mark-up

Management


Chaz Guinn, Chief Executive Officer and Founder


  • Accomplished CEO. Built and developed multiple real estate investment firms and acquired over $1 billion directly from Tier 1 banks, investment banks, large real estate funds, GSE’s, and servicers while  functioning as a market-maker in bringing institutional and Wall Street investments to Main Street investors
  • Has structured, negotiated and raised over $250 million from high-net-worth accredited investors, family offices, and financial institutions

Robert (Bob) Repass, Chief Operating Officer


  • 30year industry veteran and holds deep experience in the distressed mortgage marketplace
  • Over the course of his career, he has overseen the purchase, management, and sale of over 40,000 performing and non-performing mortgage loans totaling over $2.5B in market value, giving him an unparalleled track record in the industry

Ray Schalk, Managing Director


  • Over 25 years in the performing and non-performing asset industry
  • Expertise in analytics, valuation and risk analysis of fixed income assets, including residential, commercial and consumer loans, loan originations and underwriting, exit pricing strategies, conforming and specialized servicing, and capital markets operations

Angie Repass, Transaction Coordinator


  • Manages and coordinates the administrative aspects of each of the firm’s transactions to ensure a smooth and efficient process from the time an offer is accepted until the closing of the deal
  • Collaborates with various service providers, including title companies, loan servicers, collateral custodians, property preservation companies, and appraisers to ensure their services align with the transaction timeline

Learn More About Revolve Capital

Thank you for your interest in Revolve Capital.

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CONTACT US

Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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