Receivership Cost Calculator

Receivers charge monthly fees plus operating costs that eat recovery in distress workouts.

Monthly property revenue

Receiver fee %

Flat monthly fee

Legal fee / month

Duration months

Total receivership cost

$396,000

Cost as % of revenue

0.29%

Monthly overhead

$44,000

How the math works

Receiver fee = max(revenue × %, flat). Total = (receiver + legal) × months.

Max($9k, $8k) = $9k + $35k legal = $44k/mo × 9 mo = $396k cost on $1.35M revenue = 29.3%.

How to Use

Enter monthly property revenue.
Enter receiver monthly fee %.
Enter flat monthly fee.
Enter legal fee per month.
Enter receivership duration months.
Read total receivership cost.

Frequently Asked Questions

What is receivership?

Court-appointed fiduciary (the receiver) takes possession of real property from defaulting borrower, operates it, collects rents, preserves value, and ultimately sells at auction or private sale. Common in CRE defaults where lender needs operational continuity during foreclosure. Can be non-judicial (UCC Article 9) or judicial (state court receivership). Receiver reports to court, not lender directly.

Receiver fees?

Typically 5-10% of gross collected revenue, or flat $5-15k/month, whichever is higher. Large properties ($20M+): sliding scale, 2-5% of revenue. Professional receivers: Trigild, Cushman Wakefield, CBRE, Hilco Real Estate Appraisal. Legal fees (receiver's counsel): $25-75k/month typical for active receivership. Accounting/reporting: $5-15k/month. Total operating overhead: 10-20% of gross revenue.

Who pays?

Receiver paid from property cash flow first. If insufficient, lender typically advances and adds to claim. Fees approved by court via regular fee applications. Creditor committee or junior lenders may object. Excess cash after operating expenses goes toward debt service per court order. Borrower: loses operational control but not title until foreclosure completes.

When to avoid receivership?

(1) If asset is well-managed and cash flowing. (2) Short default-to-foreclosure timeline (under 6 months). (3) Small properties under $2M where receiver fees exceed benefit. (4) Personal guarantor with ability to cure default. Use instead: forbearance, deed-in-lieu, note sale, consensual sale via workout. Receivership is expensive middle-ground — only worth it when lender needs operational control to preserve value.