The 5-Day Distressed Acquisition

Written By Jey Arul

The Challenge: Institutional Red Tape An experienced local investor found an incredible off-market, deeply discounted single-family home in a prime Edmonton neighborhood. The catch? The property had been stripped of its copper wire, and the furnace was missing.

The investor’s traditional bank immediately denied the mortgage, citing "unlivable condition" and high "construction risk." With multiple backup offers waiting in the wings, the investor had exactly 7 days to remove their financing conditions or lose a highly profitable deal.

The AJS Solution: Underwriting the Asset The investor called the deal desk at AJS Capital. Because we underwrite the "dirt and bricks" and focus on the After Repair Value (ARV), a missing furnace wasn't a deal-breaker—it was the exact value-add opportunity the investor was looking for.

We immediately reviewed the investor's rehab budget, verified the ARV comps in the neighborhood, and issued a formal term sheet within 24 hours.

The Result: Fast Liquidity

  • Time to Fund: 5 Days

  • Loan Structure: 75% of the Purchase Price + 100% of Rehab Costs

  • Outcome: The investor secured the property, completed the heavy rehab in 8 weeks, and refinanced with an institutional bank at a significantly higher appraised value. One deal saved, one neighborhood improved.

Have a distressed asset under contract that the banks won't touch? Submit your deal today for a 24-hour quote.

Jey Arul

Most people who advise on buying and selling businesses have never actually done it themselves.

I have — on both sides of the table.

Over the past 20+ years, I’ve worked as a Commercial Banker, Investment Banker, and M&A Advisor, and I’ve personally advised on and closed 90+ small and mid-sized business sales and acquisitions across Alberta.

I’ve structured deals.

I’ve sourced capital.

I’ve negotiated with buyers, sellers, lenders, and investors.

And yes — I’ve also built, bought and sold my own businesses.

That last part changes how you see everything.

It means I don’t just understand deals academically or from a fee-based advisory lens. I understand:

- The emotional side of letting go

- The fear of “Did I time this right?”

- The risk of picking the wrong buyer

- And the very real difference between a paper valuation and a closed transaction

My career has lived at the intersection of:

- Commercial banking & credit structuring

- Private lending & capital stacks

- M&A and business sales

- Owner-operated, main street and lower mid-market businesses

I’ve helped owners:

- Raise growth capital

- Buy competitors

- Refinance and de-risk

- And exit businesses they spent decades building

Today, through AJS Capital, I work with business owners who are thinking about selling, partnering, or buying — and with advisors and brokers who want to level up into real commercial and M&A work, not just talk about it.

I’m originally from Singapore and have been based in Edmonton for over 30 years. I bring a global perspective with very local, very practical execution.

If you’re a business owner thinking about an exit, a buyer looking for the right deal, or a broker who wants to step into serious commercial and M&A transactions — let’s connect.

No hype. No fluff. Just real deals, done properly.

https://www.ajscapital.com
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