The INVIZEN Broker-Dealer Buy-Side Support Program is designed with the idea of creating perpetual deal pipelines for broker-dealer buy-side transactions where the securities broker-dealer is seeking to close placement agency services agreements with sponsors and issuers seeking capital financing on the most efficient and riskless basis we can contrive, while at the same time creating layers of opportunity for full compliance with FINRA Rule 2310, FINRA Regulatory Notice 10-22 in a way that creates continuing opportunities for yet more sales and reducing the broker-dealer’s risk exposure to allegations of investment fraud stemming from sales of securities in commercial real estate Direct Participation Program private placement offerings.
So how does it work?
It all started with the creation of the real-time INVIZEN due diligence reporting system – the only end-to-end solution of its kind that is specifically designed to reduce and/or potentially eliminate loss severity risk owing to loans and investments in commercial real estate property businesses over the full term of the investment holding period. INVIZEN accomplishes this task by virtue of its proprietary technology that generates a comprehensive underwriting review and component due diligence analysis of a given property, site and market in real-time and uses this technological advance to make underwriting and re-underwriting affordable. The practical outcome is to give the parties at-interest (i.e.: sponsor, property management, investors and lenders) what they have always wanted and could not otherwise obtain: the luxury of having their investment re-underwritten each and every month of the investment holding period to provide the highest level of performance assurance and protection against bankruptcies resulting from unforeseen liquidity crises. The unique artificial intelligence programming at the core of the INVIZEN Asset Care Protection Program provides up to 24 months of advance warning of problems or potential market disruptions that could result in an impairment of the investment’s value or asset value, as well as provide notice of changing market conditions that would support early profit-taking (sale or recapitalization) in cases where things work out even better than the original underwriting forecasts.
The realization of this fundamental program goal creates the perpetual pipeline opportunity for buy-side broker-dealer sales that would not otherwise be possible in the absence of INVIZEN.
Understanding that INVIZEN monitors operating and non-operating events, markets and the purchasing preference changes of consumers/end-users of the CRE property business operations is the key. We will know pretty much what is going on and that means the broker-dealer will also know what is going on because the broker-dealer is in the reporting chain because: (1) they were responsible for the original placement; and (2) they have FINRA Rule 2310 compliance requirements with respect to ongoing monitoring. INVIZEN thus creates the outcome wherein the following scenarios are supported:
- The broker-dealer has effective control of the future capital finance opportunities owing to the property into perpetuity – not the client. Clients come and go, but real estate is forever. If you control the real estate environment, you place the broker-dealer in the driver’s seat with respect to the future capital finance transaction sales opportunities every CRE property will evolve into with the passage of time and the creative destruction that takes place in a market economy.
- When the INVIZEN system issues a WARNING FLAG event notice INVIZEN is saying it is time to either re-position, redevelop or dispose of the asset in an orderly fashion before the asset impairment risk becomes materially-significant. When INVIZEN issues a WARNING FLAG it also issues a solution proposal that is predicated upon our real-time site opportunity valuation and analysis program that can test up to 28 different asset class intended-use scenarios all at once to determine, all other things being equal, which asset class would make the best fit for that site and market. The redevelopment program will involve a new round of capital financing that the broker-dealer has in their hands to immediately respond to before the transaction becomes the subject of the sponsor’s capital marketing aspirations. If the issue is disposition, the INVIZEN system provides a full-up capital finance underwriting analysis that demonstrates the sale value and the resulting capitalization requirements the broker-dealer can utilize to continue to control the asset and the future income stream for investment banking it will present.
- When the INVIZEN system issues an OPPORTUNITY FLAG event notice INVIZEN is saying that things are going so much better than the original plan that it is now time to consider profit-taking in the form of a recapitalization or sale to the market, and again, the broker-dealer is in the position to take full advantage of this advance information and continue to control the asset and future income stream for investment banking it will present into the future.
Obviously, you want to know more and find out how this amazing advancement in technology can give your broker-dealer organization the edge in today’s competitive securities marketplace. Contact INVIZEN today to get your questions answered and learn about our limited time offer. We can be reached at 832.663.9634 during normal business hours.