judges, attorneys & bankers
TRANSCRIPT
Judges, Attorneys & BankersBuilding Relationships & Conducting Auctions for
the Court, Large Businesses and Banks
Presented By:
Richard Kruse
Appraiser, Realtor, Auctioneer
614-885-0020 (office)
614-774-4118 (cell)
Richard F. KruseManaging Director
Gryphon USAReal Estate – Commercial AuctionsAsset Management - Receivership
• Realtor & Auctioneer - Lic. Multiple States
• RE Since 1989 – Auctions Since 1997
• Sold over 2000 properties at auction
• State Court Receiver
• Approved Appraiser, Realtor, Auctioneer in USBC
• Commissioner, Ohio Auction Commission
Agenda
• Industry Terms
• Basics
• Contracts & Contract Terms
• Client Identification
• Prospecting
Basic CH 7 Bankruptcy Case(Federal Court)
• Party files case – usually Debtor
• Assigned to a Trustee aka Panel Trustee
• Trustee evaluates & conducts 341 Hearing
• May need appraisal
• May need BPO
• May need Realtor or Auctioneer for 363 Sale
NOTE: Generally speaking, rules are the same throughout the US, but there are LOCAL RULES.
Terms & Definitions• Bankruptcy: A legal proceeding involving a person or
business that is unable to repay outstanding debts.
• chapter 7: The chapter of the Bankruptcy Code providing for "liquidation,“
• chapter 11: The chapter of the Bankruptcy Code providing (generally) for reorganization, usually involving a corporation or partnership.
• chapter 13: The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.)
• creditor One to whom the debtor owes money or who claims to be owed money by the debtor.
• debtor: A person who has filed a petition for relief under the Bankruptcy Code.
• 341 meeting: The meeting of creditors required by section 341 of the Bankruptcy Code at which the debtor is questioned under oath by creditors, a trustee, examiner, or the U.S. trustee about his/her financial affairs. Also called creditors' meeting.
• 363 sale: The sale of assets under Section 363 of the Bankruptcy Code. Under Section 363(f), a bankruptcy trustee or debtor-in-possession may sell the bankruptcy estate's assets "free and clear of any interest in such property."
Basic Receivership(State Court)
• Party files – Usually creditor
• Motion filed for appointment of receiver
• Hearing held NOTE: No Guarantee of appointment.
• Receiver Appointed
• May need professionals
NOTE: Receivership laws very per state and Local Rules vary by county.
Code Sections- Receivership
• Ohio – Ohio Revised Code (ORC) 2735
• Indiana - IC 32-30-5
• Michigan - Mich. Comp. Laws Section 490.233
• Other states – Google “Receivership Laws in ...”
REMEMBER YOUR LOCAL RULES ARE
DIFFERENT FROM LOCATION TO LOCATION
Find More Info on Insolvency
• www.bankruptcydata.com
• www.google.com
• www.turnaround.org
• www.abiworld.org
Contracts & Protocol
• Listing Contracts – Special Terms– Listing, App to Employ, Affidavit, Motion to Sell,
Motion for Payment of Fees
• Requirement of Bonds & Specific Ins.• Court Approvals
– Retention approval– Approval of sale– Approval of fee payment
• Sale Protocol– Commercially reasonable– Documented actions
Finding the Commercial Bankers
• Bankers– State Bankers Associations
• CBOA – Community Bankers Assn. Ohio
• OBL – Ohio Bankers League
– Ask Around• REO Officers – Post foreclosure
• Workout Department – Pre-foreclosure
• Special Assets Group (SAG) – Pre-foreclosure
NOTE: Commercial & Residential TOTALLY Different
Finding the Attorneys
• Call BK Court for list of trustees
• Martindale Hubbell – www.martindale.com
• www.Lawyers.com
• State & Local Bar Associations– Columbus, Ohio – www.cbalaw.org
– Indianapolis, IN – www.indybar.org
– Detroit, MI – www.detroitlawyer.org
• Search – Debtor, Creditor, Banking, Bankruptcy, etc.
Finding the Judges – State Court
• Google for website of county courthouse
• General Matters Judges & Magistrates
• Probate Judges & Magistrates
• Identify other staff– Staff Attorney
– Bailiff
– Secretary
• Ask to be on the “List”.
• Be involved politically
Finding People Thru Linked In
• Go to www.linkedin.com
– Search Keyword
• REO
• Special Assets
• Probate
• Divorce
• + Area
• Recommend getting enhanced account
• Send InMails to connect.
Prospecting & Retention in this NicheHow I Do It – It Takes Effort
• Review your websites for prospect contact info.• Build database. I use simple spreadsheet.• Call and ask for a meeting
– This is the easiest and most cost effective way to get noticed.
– Ask for early meeting or late afternoon meeting. You are not a billable client or billable TO a client yet.
– YOU Bring the coffee and bring the good stuff.– Schmooze the secretary or assistant. Ask his/her
name when calling or arriving and call them by name whenever possible. Bring them coffee too. Many times THESE people make the decision.
More Prospecting
• Send Direct Mail
– Minimum of once per month + ALL Sale Bills
– www.magnum-press.com
– www.purepostcards.com
• Send Emails
– Minimum of once per month (opposite direct mail dates) + ALL Sale Bills + All PR Notices
– www.constantcontact.com
More Prospecting• Send PR
– Obtain Statewide List from National Auctioneers Association (Free to members)
– Merge emails into eBlast program
– PRweb.com is expensive but good
– PRUnderground.com is cheaper alternative
• Blog, Tweet, Facebook
– Buffer – Free for up to 3 profiles. I use FB, LinkedIn and Twitter
More Prospecting
• eLance / Upwork
– Use for research, writing, etc. Inexpensive overseas (usually) labor.
• Archagent Power Dialer – Best for buyer outreach
– Outreach to prospects
– Follow up calls to interested parties
– 125 to 200 calls per hour possible
– Leaves personally recorded message if you go to VM
More Prospecting
• Sell services of a seasoned auctioneer using the word “We”• Attend Bar Assn. meetings• Attend Banker League Conferences• Offer to speak at same• Offer free evaluation – Careful here***• Be involved politically.
– Work Reelection campaigns– Get with your county party and volunteer– Be a donor if you can
• Throw parties. Yes, I said parties. I do 2 big ones a year. Bloody Mary Bash on New Years Day and BBQ in the fall.
