You can’t just run in, buy distressed and make a billion dollars. You can’t just say, I can get it for X percent of what its value is, and I’m going to come in and I’m going to make a killing. You really need to understand the business side, the economics, the asset type, where it is located, and what you can do with the property.
When buying distressed debt, a buyer needs to have full knowledge of the loan and the asset.