How to Handle Distress Without Losing the Deal - or Your Name

It’s Not Just About Value. It’s About Trust.

When you’ve got 20 properties and 2 are sinking — what do you do?

Leo Jacobs answers live questions from developers, investors, and syndicators facing the harsh realities of today’s market. From cross-collateralized portfolios to general partners who refuse to fold, this episode brings the real talk that’s rarely said out loud.

Lead with Process, Not Panic

What do you do when bankruptcy seems inevitable?

Leo shares the strategy:
Don’t file. Prepare.

• Prepare your petition
• Engage your broker and financial advisor
• Educate yourself and your team

In many cases, simply presenting the petition — or even just the first page — can open a new line of dialogue with your lender and save your entire position.

You Don’t Start With Leverage. You Earn It.

Leverage works best when it comes last, not first.
Start with the asset value. See if the deal’s worth saving. Then renegotiate terms.
Only if those fail do you introduce your legal position — and even then, sparingly.

As Leo puts it:

“Just because you have a winning argument doesn’t mean you have a winning case.”

Talking to LPs Is a Skill — Not a Crisis

One of the hardest questions came from a GP in the audience:

How do I tell my LPs the deal is failing — without burning bridges forever?

Leo’s advice?
Transparency from Day One.
Lay out the risks before they materialize. Share what might go wrong, and how you’re working to prevent it.

If they lose money, they’ll remember how you handled it. That’s how you get a second chance.

You Don’t Need to Win Alone

This episode is packed with practical frameworks for:

• Navigating internal disputes among GPs
• Letting go of toxic assets without litigation
• Standing in front of a lender — without flinching
• Preserving LP relationships through trust, not excuses

Leo reminds us that real estate is emotional, relational, and often irrational — especially in distress.

But there is a path through the chaos.
And it starts with leadership, honesty, and strategic calm.

📌 Watch Now

If you’re facing tough calls - bankruptcy, default, or partner disputes - this episode is a must-watch.

🎧 Watch ReDeal Episode 05 now
See what it really takes to navigate distress - and come out stronger..

PODCAST - Confronting the Impossible with Leo Jacobs.

Leo Jacobs, Founder and CEO of Jacobs PC

Known for finding creative, expedient solutions to complex and high-profile cases, Leo excels in matters including distressed investment and asset management, real estate law, corporate law, dispute resolution, business divorces, negotiation, and more. Leo’s extensive expertise in debt and equity structures enables him to employ a full spectrum of legal tools to achieve swift, optimal results for clients. His practice, Jacobs P.C., bridges commercial litigation, corporate transactions, and financial rehabilitation, handling cases across federal, state, and bankruptcy courts, as well as administrative tribunals.

If you would like to join the podcast email requests to pr@jacobspc.com