Salt Lake City-based SilverLeaf Financial, a private equity firm that purchases pools of non-performing, first deed of trust notes from the FDIC for the purpose of prompt monetization,
Salt Lake City-based SilverLeaf Financial, a private equity firm that purchases pools of non-performing, first deed of trust notes from the FDIC for the purpose of prompt monetization, has been awarded another loan pool from the latest FDIC offering, Security Pacific Bank.
Pool 85, which contains three loans with a total face value amount of USD11.9m and an aggregate appraised value of USD17.5m, comes on top of two recently-awarded loan pools from the Silver State Bank offering.
Pool 20 consists of one loan with a face value amount of USD6.15m and an appraised value of USD8.7m, while Pool 150 contains four loans with a total face value amount of USD9m and an aggregate appraised value of USD15.2m.
Prior to making a bid to purchase pools from within an FDIC offering, the SilverLeaf Financial team underwrites and analyzes each loan in order to determine the value in a potential acquisition. Pools that do not fit the SilverLeaf criteria for profitability are not bid upon.
Those pools that are selected and bid upon for purchase have an associated plan of action ready for implementation. This ensures prompt liquidation once the bid award is obtained.
SilverLeaf has placed 87 bids with the FDIC, having been awarded 11 pools consisting of 17 loans. Seven of those 11 acquired pools have been worked out successfully, and one other is currently under contract to be refinanced.
"All things considered, it’s remarkable the progress SilverLeaf has made relative to the current market conditions. We’ve found a niche-oriented alleyway within the financial marketplace that has proved to be very profitable, despite the economic recession," says Trevor Linton, SilverLeaf’s director of acquisitions.
Shane Baldwin, SilverLeaf’s founder and chief executive (pictured), adds: "Within the current state of the market, we have discovered a method to do that which most should do, but haven’t been able to, in buying low and selling high."
