defendants and judges often oppose
“broad powers” OARs.
Don’t just accept any OAR handed
to you in the name of taking on business. The OAR is your bible and in
many ways it determines your success as a receiver and how lucrative
a case might become. Work with the
party nominating you as the receiver
to create an OAR that benefits your
business before the court formally
appoints you as the receiver.
s Tay on ThE righ T pa Th
The receivership process is actually
very simple and follows common
sense standards. In many states only
a handful of statutes or codes govern
receiverships. In addition, these cases
are shaped by the precedents set in
prior similar cases in relation to the
powers in the OAR.
One of the credos of receivership
administration is too get “the best
business advantage for the estate,” and
considering our IREM credentials,
how hard can that be? Still, receivers can find themselves in trouble if
they get caught up in trying to make
a buck acquiring business, instead of
just taking care of business in an ethical and transparent fashion.
In the property management world,
you are used to bidding and agreeing
with clients upfront about fees in a
typical fee management engagement.
In the receivership world it’s dif-
ferent. Basically the receiver—as an
officer of the court—truly stands in
the middle, and while accepting input
from all parties, takes specific direction from none-other than the court.
lasTing imprEssions
While midway through my first case, I remember thinking that this gig will
never last.
Now into my third economic down cycle, including some 500-plus cases
nationwide over almost three decades, I can say with confidence that the job
has not only lasted, it has provided a source of story material to augment my
property management experiences.
While the core of the business is real estate-related, the range of my cases
has included everything from running a squid fishing/production company,
house of ill repute, diamond cutting/sales operation, a number of golf country
clubs and even a couple of equestrian boarding/training facilities. I have valued
and liquidated everything from diamonds, helicopters, jet aircraft, cattle and
almonds.
Excitement aside, it has also provided income. However, it’s not necessarily
easy money. When faced with a crime-ridden “crack house,” an uncooperative
defendant and daily pressures from code enforcement, legal-aid tenant lawsuits, and utility shut-offs, you realize the “best business advantage” is hiring a
management entity that is fully equipped to deal effectively with all situations
in real time and receive compensation commensurate with the engagement at
the same time.
The poor physical and fiscal condition of most receivership properties dictates the need for an increased level of services and expertise to properly con-
IREM
ContInue the ConversatIon on receivership with Ben McGrew,
CPM®, CCIM, at the IreM iCon conference this october in orlando. turn to
page 48 to read a description of Ben’s session, “troubled assets: Financial
Crisis evolution.” visit www.IREMiCon.com to register for the conference.
