Perform comprehensive due diligence on each potential investment opportunity. Assess the property’s physical condition, legal and title status, potential liens, and any other relevant factors. Evaluate the cost of repairs or renovations required to bring the property to market standards in addition to any legal and title curative measures that are needed.

Create a detailed business plan outlining value-add exit strategies to unlock the distressed credit unrealized gains. This could involve modifying the terms of the loan, foreclosing on the property, trading the mortgage, or offering “cash-for-keys”. Aim to increase cash flow income, attract higher-quality borrowers, or explore seller-financing options that align with market demands.

Develop a well-defined exit strategy that outlines the intended timeline and approach for trading, modifying, or foreclosing on the underlying properties. Continuously monitor conditions in the real estate and capital markets to identify optimal exit opportunities to safely maximize returns for investors.