Vacation Ownership Interest Mortgages

PORTFOLIO

RESIDENTIAL MORTGAGE LOANS

Willow Creek purchases distressed performing and non-performing residential loans secured by real property. Our firm targets acquisitions of performing loans at discounts to unpaid principal balance and the underlying asset value.

Willow Creek seeks to accomplish one of the following with the performing portfolio:

  • hold for cash flow;
  • obtain an early payoff through a refinance; or
  • sell loans.

If a loan becomes delinquent or is purchased as non-performing, we will attempt to:

  • restructure the loan into a performing loan;
  • negotiate with borrowers to accept a deed in lieu of foreclosure;
  • complete a short sale transaction;
  • foreclose on the real property that secures such loans; or
  • sell such loans.

With real properties acquired or loans that are converted to real properties by the methods noted above, Willow Creek seeks to resell the real properties for a substantial profit, in some cases improving the real properties before selling them.

VACATION OWNERSHIP INTEREST MORTGAGES

Our highly-specialized knowledge and expertise in the timeshare receivable space makes Willow Creek a trusted partner in timeshare mortgage portfolio analysis and lending.

Willow Creek provides hypothecation financing to Vacation Ownership Interest (VOI) mortgage loan originators for loans issued to consumers with FICO scores below 620 and who are not readily financeable by the established VOI bank hypothecation lenders or the public ABS market. This financing is provided at substantially reduced collateral advance rates (40-50%) to normal VOI hypothecation facilities (85%) and at higher interest rates (10% versus 5%). Payment mechanics of the hypothecation facility are exactly like a bank facility, with a third-party servicer acting as an independent lock-box agent for all monthly cash flows. Willow Creek works directly with the timeshare companies our firm has a relationship with to originate these hypothecation facilities.

Vacation Ownership Interest Mortgages
Structured Debt/Equity & Asset Investment

STRUCTURED DEBT/EQUITY & ASSET INVESTMENT


Non-Performing Debt

Willow Creek invests in credit receivables and individual loans, which are purchased from banks, credit unions, municipalities, specialty finance companies, retailers and other providers of credit. Licensed and bonded intermediaries under contract with Willow Creek acquire receivables and work to generate returns through collections activities. Receivables are acquired at a deep discount and a variety of techniques are then used with the goal of collecting a multiple of the price paid per receivable.

Direct Lending to Businesses

Willow Creek makes direct loans to U.S.-based businesses. For example, loans to a small- to medium-sized business to meet seasonal working capital needs that are repaid directly from cash flows. These loans could be repaid weekly or monthly, including a guaranteed income amount to manage prepayment risk.

Redeemable Convertible Preferred Investments

Willow Creek invests in redeemable convertible preferred investments in medium- to large-sized businesses with or without existing performing and compliant term debt. These businesses often need additional capital to expand their operations or to make an acquisition. Preferred investments are only compelling if the company has a defined equity liquidity pathway such as a public offering or a sale.  Preferred securities are paid weekly or via monthly dividends and can be repaid just like a loan by the company, or Willow Creek can opt to convert them into company equity at a pre-determined valuation rather than be repaid.

Direct Asset Acquisition

Willow Creek will directly acquire assets and manage the associated cash flows. Willow Creek is open to the type of asset it will acquire as long as the cash flows are long-term and highly stabilized. Our firm focuses on assets that do not require leverage at outset to generate suitable returns.

Vacation Ownership Interest Mortgages

PORTFOLIO

RESIDENTIAL MORTGAGE LOANS

Willow Creek purchases distressed performing and non-performing residential loans secured by real property. Our firm targets acquisitions of performing loans at discounts to unpaid principal balance and the underlying asset value.

Willow Creek seeks to accomplish one of the following with the performing portfolio:

  • hold for cash flow;
  • obtain an early payoff through a refinance; or
  • sell loans.

If a loan becomes delinquent or is purchased as non-performing, we will attempt to:

  • restructure the loan into a performing loan;
  • negotiate with borrowers to accept a deed in lieu of foreclosure;
  • complete a short sale transaction;
  • foreclose on the real property that secures such loans; or
  • sell such loans.

With real properties acquired or loans that are converted to real properties by the methods noted above, Willow Creek seeks to resell the real properties for a substantial profit, in some cases improving the real properties before selling them.

Vacation Ownership Interest Mortgages

VACATION OWNERSHIP INTEREST MORTGAGES

Our highly-specialized knowledge and expertise in the timeshare receivable space makes Willow Creek a trusted partner in timeshare mortgage portfolio analysis and lending.

Willow Creek provides hypothecation financing to Vacation Ownership Interest (VOI) mortgage loan originators for loans issued to consumers with FICO scores below 620 and who are not readily financeable by the established VOI bank hypothecation lenders or the public ABS market. This financing is provided at substantially reduced collateral advance rates (40-50%) to normal VOI hypothecation facilities (85%) and at higher interest rates (10% versus 5%). Payment mechanics of the hypothecation facility are exactly like a bank facility, with a third-party servicer acting as an independent lock-box agent for all monthly cash flows. Willow Creek works directly with the timeshare companies our firm has a relationship with to originate these hypothecation facilities.

Structured Debt/Equity & Asset Investment

STRUCTURED DEBT/EQUITY & ASSET INVESTMENT


Non-Performing Debt

Willow Creek invests in credit receivables and individual loans, which are purchased from banks, credit unions, municipalities, specialty finance companies, retailers and other providers of credit. Licensed and bonded intermediaries under contract with Willow Creek acquire receivables and work to generate returns through collections activities. Receivables are acquired at a deep discount and a variety of techniques are then used with the goal of collecting a multiple of the price paid per receivable.

Direct Lending to Businesses

Willow Creek makes direct loans to U.S.-based businesses. For example, loans to a small- to medium-sized business to meet seasonal working capital needs that are repaid directly from cash flows. These loans could be repaid weekly or monthly, including a guaranteed income amount to manage prepayment risk.

Redeemable Convertible Preferred Investments

Willow Creek invests in redeemable convertible preferred investments in medium- to large-sized businesses with or without existing performing and compliant term debt. These businesses often need additional capital to expand their operations or to make an acquisition. Preferred investments are only compelling if the company has a defined equity liquidity pathway such as a public offering or a sale.  Preferred securities are paid weekly or via monthly dividends and can be repaid just like a loan by the company, or Willow Creek can opt to convert them into company equity at a pre-determined valuation rather than be repaid.

Direct Asset Acquisition

Willow Creek will directly acquire assets and manage the associated cash flows. Willow Creek is open to the type of asset it will acquire as long as the cash flows are long-term and highly stabilized. Our firm focuses on assets that do not require leverage at outset to generate suitable returns.