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Asset Sales

Frequently Asked Questions

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Topic	Questions and Answers
Asset Sales - General	How can I buy furniture or equipment from the FDIC? The FDIC sells various items such as furniture or office equipment in two ways—as the leftover assets from a bank failure or through liquidation of old FDIC-owned property. For information about failed bank items, please visit Other Assets from Failed Banks.
Asset Sales - General	How can I buy loans from the FDIC? The FDIC conducts loan sales with the assistance of loan sale advisors. When the FDIC has loans available for sale, it markets them on one of the four loan sale advisors’ websites. To participate in a loan sale, please contact each of the loan sale advisors and register on their respective websites to receive sale announcements. First Financial Network (FFN) John Morris (405) 748-4100 Mission Capital Advisors David Tobin (212) 925-6692 The Debt Exchange (DebtX) Bill Looney (617) 531-3400 Newmark & Company Real Estate, Inc. John Howley (703) 918-0246 Prospective bidders may also provide contact and investor status information and identify the types of financial assets, loans, and loan-related assets they are interested in purchasing by completing the Prospective Bidder Information form and delivering the completed form electronically to: prospectivepurchaser@fdic.gov. Prospective bidders that submit the form will have their names included on a list to receive sale announcements that match their expressed interests. Additional information on the loan sale process can be found at Loan Sales.
Asset Sales - General	Do you have historical information on FDIC property sales? Closed Real Estate Sales is a searchable database with real estate sales results from January 1, 2010 to the present. Closed Loan Sales provides data on pools of loans sold from January 1, 2010 to the present.
Joint Venture Transaction	Is a joint venture transaction an appropriate investment for me? Every interested party, based on its own circumstances, must determine whether participating in a joint venture transaction is a suitable investment. Prospective purchasers must have the financial sophistication and resources sufficient to evaluate and bear the economic risks of this type of investment as well as the requisite expertise to manage the venture.
Joint Venture Transaction	How do I receive notification of FDIC joint venture transactions? Parties interested in joint venture transactions must complete the Prospective Bidder Information (PDF) form, including their investor status, in order to receive notice of upcoming transactions.
Joint Venture Transaction	What types of loans are included in joint venture transactions? The most common loan types in these transactions are loans secured by commercial or residential real estate, including acquisition, development, and constructions loans.
Joint Venture Transaction	What criteria does the FDIC consider when pooling loans to be conveyed into a joint venture transaction? Typically, a joint venture transaction contains a large volume of loans with a substantial aggregate unpaid principal balance (e.g., in excess of $100 million) with similar characteristics or that meet specific criteria. Pooling considerations may include performance status, loan type, loan size, and collateral type and location.
Joint Venture Transaction	Is a ‘joint venture transaction’ the same as a ‘structured transaction’? Yes, the FDIC previously used the terminology ‘structured transaction’ to describe what is now referred to as a ‘joint venture transaction.’
Joint Venture Transaction	How does a joint venture transaction work? The receiver forms a limited liability company (LLC), or other entity, and conveys assets from one or more failed bank receiverships to the LLC. In exchange for the assets, the receivership is issued all (100 percent) of the equity interest in the LLC. The winning bidder, also known as the private owner, purchases from the receivership a portion, typically ranging from 20 to 40 percent, of the equity in the LLC. The actual percentage is specific to each transaction. Depending upon how the transaction is offered, the LLC may be leveraged, in which case the receivership will receive debt issued by the LLC in addition to the LLC’s equity upon the conveyance of the assets to the LLC. In certain cases, the receiver may make borrowing facilities or pre-funded accounts available to allow the LLC to fund construction draws with respect to the assets and meet its working capital needs. Cash flow from the assets, after deducting the monthly management fee, asset-related expenses, and other eligible expenses, are allocated first to pay off any notes issued by the LLC to the receiver in a leveraged transaction and any other debt outstanding to the receiver and, then, to the receiver and the private owner, in accordance with their percentage interests.
Joint Venture Transaction	How does a leveraged transaction work? Leveraged transactions include financing in the form of either amortizing or non-amortizing notes issued by the LLC as partial payment for the assets conveyed by the receiver. The notes may be guaranteed by the FDIC, in its corporate capacity, in case the receiver should decide to sell the notes in the secondary market. Financing terms are determined by the risk and cash flow characteristics of the joint venture's underlying pool of assets. Generally, the notes must be paid off before the equity owners receive any distributions.

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Last Updated: June 7, 2024