Registered Investment Advisors and dual-licensed Broker-Dealers wake up every day and go to bed every night worrying about how to reduce investment loss severity risk. Investment loss severity risk creates investment fraud loss claims and investment fraud defense costs – all of which conspire to increase operating costs on multiple levels. Revenues are expected to continue to coast downward while operating costs continue to their upward march at an accelerated rate. An astonishing leap forward in technology now offers a solution to contracting operating margins and the headaches that asset management advisors routinely face.
It’s called INVIZEN IT. The premise is simple, but the potential impact for asset management is profound.
The INVIZEN IT Asset Care Protection Program provides the one solution the industry has always wanted but could not have – the luxury of having an affordable way to re-underwrite a commercial real estate property business each and every month of the asset holding period to maximize investment performance assurance and proactively manage investment loss severity risk.
Think about it for a minute.
How many commercial real estate investments or loans has your firm underwritten that have failed? It happens, right? But how many of them have failed in the first few months after underwriting? Not many – if any, right?
INVIZEN gives you that set-up and more. Our proprietary programs and technology operate in real-time to provide a proactive approach that focuses on the one risk that we all take for granted as being “baked into the deal” – market risk. INVIZEN’s proprietary program helps manage market risk so that the inevitable creative destruction caused by market disruptions in a health market economy can be recognized for what they are, up to 24 months in advance. That advance notice gives you time to do something proactive and INVIZEN takes it a step further by not only providing warning of pending market events that could lead to asset value impairment, but also provide real-time alternative use scenarios, re-development scenarios and/or disposition scenarios so that investment loss severity risk can be reduced to a level that may not even be materially-significant.
And it is definitely affordable…
Use a $25 million CRE asset as an example. The cost of having INVIZEN monitor the asset for a full 10-year period is less than 1.5% of that $25 million asset value and that 1.5% is amortized over that 10-year enrollment period. You know as well as we do that if the deal cannot afford 1.5% in additional operating costs spread out over a 10-year period, the deal is a flat rejection anyway, so the cost is not materially-significant to the investors, but it is to the asset advisor.
What would happen to your insurance premiums if your loss severity risk were manageable?
What would happen to your buy-side broker-dealer operations if you could now aggressively go after those lucrative CRE assets that the insurance underwriters are now routinely excluding?
What would happen to your profit margins if your investment fraud defense claims were reduced?
What would happen if your competitors have INVIZEN and you don’t?
Find out more about INVIZEN by contacting one of our representatives today at 832.663.9634 to find out about all of the amazing things this breakthrough in technology is bringing to the CRE finance vertical.