For sell-side commercial real estate private placement offerings of securities under the FINRA Direct Participation Program, RIA due diligence compliance has become a potential nightmare. The liability insurance costs and lack of faith on the part of the investing-public just add to the misery. RIA due diligence compliance is complicated because commercial real estate property operating businesses have massive investment loss severity risk that only increases as time passes after the investment is made. Subjective financial investment risk – especially market risk owing to market disruptions over the course of time due to advances of technology that occur in a healthy market economy have conspired to create unprecedented levels of investment fraud claims risk for RIAs, broker-dealers and asset managers that are driven by the technology age we find ourselves in today.
INVIZEN IT offers the first and only true end-to-end solution for CRE investment loss severity risk management that offers RIAs the following potential service benefits:
- Reduction of the potential for claims of investment fraud by reducing the source of those claims – future non-performing CRE investment outcomes; and
- Reduction of operating costs owing to due diligence compliance for the most critical due diligence function of all – the analysis of the future investment loss severity risk owing to market, financial and business operating events; and
- Increased transaction velocity and sales; and
- Reduction of due diligence compliance risk associated with regulatory oversight.
And that is to just name a few of the potential benefits waiting for you at INVIZEN IT.
FINRA Regulatory Notice 10-22 makes it really clear the government wants the CRE finance industry to clean up the property due diligence processes attending CRE securities private placement offerings pursuant to the Direct Participation Program. Property due diligence requires more of us now than just verifying the lease and making a guess about subjective measures such as “tenant quality”. Sears, ToysRUs, Caldor – the list goes way back in time and yet the losses have continued.
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 execution performance and foreclosure default event exposure.
Take a few moments and learn more about:
- How and why INVIZEN reduces investment loss severity risk owing to CRE private placement offerings of securities for the full term of the investment holding period.
- How the INVIZEN RIA due diligence services suite works; and
- How RIAs can create a competitive advantage using INVIZEN to create a whole new set of potential outcomes for the benefit of RIAs, investors, lenders and sponsors.
You can also just take a few moments and call INVIZEN to learn about this amazing new technology that has the potential to change the way the CRE vertical operates and the way it is financed forever. Our team is ready to help, so please call us at 832.663.9634.