Three years ago, Green River Capital was a privately held asset management company riding the wave of real-estate owned properties. Enter change manager Tim Reilly, who re-engineered and transformed Green River from a one market, one product organization into a multifaceted real estate company.
Green River Capital has quickly become a dominant player in the single family rental space. Since SFR securitizations began nearly two years ago, Green River Capital has performed all of the valuation and property-level diligence on all 21 single-borrower deals — more than 425,000 valuations and over 1 million individual component services related to SFR collateral.
The West Valley City, Utah-based company is also getting a piece of a newer sector, multiborrower deals, by building out a surveillance tool and a valuation product that provides stakeholders detailed performance data information on securitizations as well as managers, borrowers and properties.
“Our challenge was how does an REO asset management company in a declining market take the expertise that has been built within the framework of an REO process, and re-organize and transform the company to look for opportunities in our market,” Reilly said. “That’s what we’ve been doing since I got here. We’re constantly transforming.”
In 2012, all of Green River’s revenue came from REO assessments. In 2015, that number dropped to 30% of revenue.
Reilly was recruited to Green River in 2012, just after Clayton Holdings purchased the company, providing access to additional clients and opening the door to the SFR space. In 2014, Radian Group Inc. acquired Clayton, resulting in Green River’s status as a wholly owned subsidiary of a publicly held company.
Prior to joining Green River, Reilly used his re-engineering talents at subprime lender BankUnited, which ended up rising from the ashes after a 2007 crash. He’s also held executive positions in default and asset management with Deutsche Bank Securities, Impac Cos., ABN-AMRO and Fairbanks Capital Corp.
“My story is about change management,” he said. “I like the excitement and I like staff to be engaged and excited about what they do; it’s energizing. An organization is like anything else, it just can’t sit still or it will become irrelevant.”
Reilly applied his bank discipline to what he calls a “very entrepreneurial company” and began putting processes in place to make the big changes necessary to stay relevant.
“It’s great to be a fast-moving company, but as we’ve seen even since 2008, fast moving doesn’t necessarily give a long-term tenure,” he said. “We want to make sure we’re doing right by our clients by ensuring our processes are sound and efficient.”
Reilly said he is building on the company’s former REO successes with clients to translate that into new business. One of the company’s largest clients is Freddie Mac, which went through a selection process to wind down the assessment companies it uses and counts Green River among its top, and only, two.
Other clients include the government sponsored enterprises, national and regional banks, servicers, private equity firms and credit unions.
“Our core will always be REO, we can do that, but there’s a lot of opportunity assisting the permanent rental class for many years to come,” he said, adding credit is going to be tight for “quite some time,” creating a large class of renters.
Around the office, Reilly likes to tell the story of Kodak, which was among the first to invent the digital photo but sat on the technology and later filed for bankruptcy.
“We will never be that company. That’s not just (coming from) me, but our parent company, Clayton, and Joe D’ Urso who hired me,” he said. “We’re opportunistic and we will succeed in another changing market.”