1031 Exchange Syndication Financing for Commercial Real Estate Sponsors

The 1031 exchange marketplace continues to boom and commercial real estate sponsors seeking capital for acquisitions or recapitalization of existing properties, and sponsors/developers seeking development financing take-outs need to consider what 1031 exchange syndication financing can provide.  The key benefits of 1031 exchange syndication financing for commercial real estate (CRE) sponsors are:

  • Financing is fast.  Underwriting can be done in a few days and syndication capacity is huge.  This translates into reduced capital risk and cost for the developer or sponsor seeking the 1031 syndication financing outcome.
  • Market Cap Rates.  Cap rates are very favorable and that means profit-taking can be maximized so the sponsor or developer can squeeze out every last nickle for the benefit of their own shareholders.
  • Performance Assurance.  The INVIZEN Real-Time Status (RTS) program provides post-funding monitoring of the property and market opportunity in a unique way to prevent bankruptcies from occurring and heading off those common administrative foreclosure issues that can lead to real problems.
  • Post-Funding Opportunities.  The INVIZEN system leaves the sponsor (or developer) engaged in the property on an ongoing basis if they like.  This means once you have an asset, you can have the opportunity associated with that asset continue into perpetuity.

INVIZEN offers the only end-to-end solution specifically-designed to help end loan and investment losses in CRE securities private placement offerings by addressing the totality of the underwriting and due diligence issues in a real-time, proactive environment that only gets started with pre-closing due diligence.  The INVIZEN RTS program is designed to help prevent the key risks from becoming future asset impairment problems while also proactively managing and/or deterring investment fraud, management performance and foreclosure default event exposure.

INVIZEN was purposely built to provide underwriting and due diligence reviews with one singular goal in mind: preventing future loss on capital investment made today.

To understand the INVIZEN value proposition is to understand the basic processes that attend the underwriting goal of using independent information to determine the value of an income-producing business asset.  INVIZEN automates these processes so the cost of underwriting drops dramatically and the speed of processing increases dramatically as well.  The underwriting happens in real-time and that means we can give CRE NNN property investors the luxury of future investment performance assurance by re-underwriting the transaction each and every month of the investment holding period to give you up to 24 months of advance notice of changes in the market, the asset or operations that may have an impact on the future income-generating capacity of the market, property and site.  These notices can be both good and bad.  INVIZEN has artificial intelligence at its core and computers don’t care if you have trash, it will still be another man’s treasure.

There is so much more to the INVIZEN Real-Time Status Asset Care Protection Program that INVIZEN was intentionally designed to support:

  • CRE Developers & Sponsors.  Developers and sponsors seeking capital financing have the advantage of a systemic solution that provides the support needed to increase the odds of a successful capital financing outcome.
  • Investors & Lenders.  Investors and lenders seeking to participate in commercial real estate securities private placement offerings and other credit instruments have the advantage of a systemic solution that provides the highest practical investment performance assurance we can contrive.
  • Broker-Dealers & Registered Investment Advisors.  Securities broker-dealers and registered investment advisors on both the buy-side and sell-side of the transaction have the advantage of a reporting system that provides FINRA compliance support, protection from future investment fraud claims, increased transaction velocity and the opportunity to increase their operating margins – all in one package.

Find out more about these opportunities and the proprietary INVIZEN technology that makes it all possible.  Please call us today at 832.663.9634.