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BALSAM MOUNTAIN PRESERVE
Sylva, NC
Court appointed receiver by holder of senior loan (Fall 2009)
SITUATION:
Balsam Mountain is an equestrian and golf community with 234 of 354 lots sold. Sales had stagnated, the HOA had budgeted approximately a $2 million deficit for 2009, and necessary capital expenditures had not been achieved.
THE PLAN:
RDS immediately prioritized an action plan to position the property for sale and took the following actions:
RESULTS:•Developed a 2010 budget for the Homeowners Association, the Golf Club and the Development reflecting minimal services. Additionally, RADCO created an a la carte budget in order to selectively add services.
•Began the process of prioritizing approximately $1.5 million in overdue accounts payable. RADCO is in the process of negotiating outstanding AP at a reduction with key vendors.
•Met with the homeowners to understand and manage their expectations through the receiver process.
•Developed a business plan to maximize the lender’s value through the receivership period.
Currently working through The Plan.
