Securities private placement offerings require due diligence and commercial real estate (CRE) property investment fraud due diligence is an area fraught with challenges and the potential for intentional and unintentional investment fraud risks that need to be proactively managed and mitigated. 1031-exchange CRE investment transactions (primarily Delaware Statutory Trust structures – or “DSTs”) require excruciating 10-year mandatory holding periods for the investor and this creates an unprecedented level of investment risk due diligence be conducted to provide the highest possible level of investment performance assurance. This due diligence has to extend well beyond the date of funding to provide any measure of investment fraud prevention and mitigation and yet we still see a preponderance of transactions where the underwriting and due diligence focus is on the funding event only. This is understandable because underwriting and due diligence reviews cost tens of thousands or hundreds of thousands of dollars and can require months to complete, but without the benefit of re-underwriting the transaction market opportunity, operations, financial results and execution responsibilities of the sponsor, investment fraud and loss severity risk issues only get bigger over the holding period, not smaller.
INVIZEN offers the CRE investor, sponsor, sell-side broker-dealer, buy-side broker-dealer, lender, registered investment advisor and property operations management team with the luxury of a comprehensive underwriting and due diligence review being undertaken each month of the entire investment holding period on an affordable basis. The INVIZEN program is the only end-to-end solution that provides proactive protection with up to 24 months of advance notice of problems that can lead to future investment loss events while also providing investment fraud deterrence at all levels of the transaction to prevent future CRE bankruptcy and foreclosure events from becoming everyone’s current nightmare.
INVIZEN offers the first and only end-to-end solution for helping combat these problems that focuses on both the underwriting requirements for funding, but also prevention of future losses due to the asset value being impaired by term default risk, maturity default risk and/or technical default risk.
The INVIZEN model focuses on the following key objectives being delivered in a real-time, ongoing, proactive environment for the benefit of all parties at-interest in a given transaction:
- Proactive CRE investment loss mitigation due to asset obsolescence; and
- Real-time CRE investment loss mitigation due to common forms of investment fraud; and
- Proactive CRE investment loss mitigation due to unforeseen liquidity crises that could give rise to a bankruptcy petition or foreclosure event; and
- Proactive CRE investment loss mitigation due to management execution risk; and
- Real-time CRE investment loss mitigation of market risk by providing up to 24 months advance notice of market events that could impair future asset value.
Investments in securities of commercial real estate private placement offerings provide both potential rewards and potential risks. INVIZEN offers a systemic solution for helping to keep the investment in the green and identifying future profit-taking opportunities when market conditions change and a near-term economic opportunity presents itself for exploitation.
If the sponsor or issuer of the private placement offering you are considering (or have already invested in) doesn’t have this affordable defense for your benefit, you need to ask why your needs are potentially being subordinated to someone else’s lack of due diligence and care.
INVIZEN provides commercial real estate due diligence reports and reporting services for more than 28 asset classes within the commercial real estate (CRE) vertical that include valuation program reports, market feasibility studies, underwriting analyses and due diligence reviews for both buy-side and sell-side due diligence on commercial real estate securities private placement offerings and lending. The INVIZEN Real-Time Status (or RTS) program provides proactive, real-time reporting support for managing future investment fraud claims loss risk exposure, loan loss exposure and investment loss exposure and uses the valuation, feasibility analysis and underwriting technologies that are exclusive to INVIZEN to support the achievement of this outcome.
Currently, the asset classes supported by the INVIZEN RTS program include the following commercial real estate specific intended-use scenarios:
- Multifamily Rental Class “A”
- Multifamily Rental Class “B”
- Multifamily Rental Class “C”
- Multifamily Age-Restricted Rental Senior Housing
- Multifamily Rental Independent Living Facility Senior Housing
- Multifamily Rental Assisted Living Facility Senior Housing
- Multifamily Rental Alzheimer’s Assisted Living Facility Senior Housing
- Multifamily Rental Congregate Care Senior Housing
- Multifamily Continuing Care Retirement Community (CCRC) Senior Housing
- Commercial In-Line Retail
- Commercial Single-Tenant (Retail/Commercial/Healthcare Sub-Scenarios)
- Commercial Enclosed Retail
- Commercial Mixed-Use Retail
- Commercial Office Class “A”
- Commercial Office Class “B”
- Commercial Office Class “C”
- Commercial Light Industrial Flexspace
- Commercial Distribution Facility
- Commercial Mini-Storage
- Hospitality – Resort Class
- Hospitality – Full Service Class
- Hospitality – Limited Service Class
- Hospitality – Value Class
Find out more about this proactive, real-time program designed specifically to help prevent investment loss severity risk by talking to an INVIZEN representative today at 832.663.9634.