RIA Due Diligence for CRE DPPs

INVIZEN offers an exclusive end-to-end RIA due diligence services program for commercial real estate property business securities private placement offerings in DPPs that represent a quantum leap forward for the CRE finance vertical.  Regulatory compliance is only getting more complicated because claims for investment fraud from investors in failed CRE property business private placement are suffering unprecedented losses.  Your E&O insurance premiums and coverage exclusions are testimony to this fact of life.  These losses are the result of the natural creative destruction that happens in a healthy market economy where advances in technology create asset obsolescence risk that manifests itself in the form of market disruptions (subjective market risk) that directly impact the property operating businesses.  Everyone has agreed that market risk is unavoidable and this is true, but you don’t have to keep going to that movie because INVIZEN offers the first end-to-end solution that is specifically designed to address the impacts of market disruptions before they result in the impairment of asset values.

INVIZEN is the only system that can address the root-cause of the problem and help prevent future claims of investment fraud from occurring because it is specifically designed with the mission of killing CRE loan and investment loss severity risk before it can manifest to the point where it becomes materially-significant.

How is this possible?

Ask yourself how many times a CRE private placement offering has failed the month after underwriting.  What about six months?  Okay, maybe a couple.  What about a year?  Maybe more.  The truth is, the further you get in time from the date of underwriting, the greater the risk becomes for investment loss.  This is mainly due to the creative destruction caused by advances in technology that are the hallmarks of healthy market economies.  This creative destruction causes asset obsolescence and that causes reductions in revenues as consumers/end-users change their purchasing preferences.  These changes in purchasing preferences are market disruptions.  So it follows that if you had the luxury of having your investment re-underwritten each month of the asset holding period with a focus on forecasting future market disruption events, your exposure to losses caused by market events would be drastically reduced.  This reduction directly reduces (it would follow) complaints of investment fraud if you could get advance warning.  The INVIZEN system is designed to detect market disruptions up to 24 months in advance to give the sponsor ample time to re-position the asset or undertake an orderly exit so that losses caused by fire sales can be avoided.

INVIZEN supports the project and the participants the entire way with our exclusive suite of business planning services specifically designed to proactively manage execution risk because the budgets, goals and owner requirements are automatically updated and transmitted down to the line employee level through every level of management that includes tasking, productivity measurement and automated reporting.  What does your due diligence program have?

There is so much more here for the RIA than just getting a great due diligence review that includes comprehensive capacity risk underwriting, collateral risk underwriting, default risk underwriting, credit risk underwriting and analysis.  INVIZEN is a true end-to-end real-time solution for CRE income-producing property businesses and that makes it a sustainable solution for the RIA and broker-dealer on multiple levels.

RTAF Summary Report Screen ShotThere 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 that saves time, money and reduces their capital investment risk.
  • 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.  INVIZEN gives investors and lenders the proactive investment loss severity risk prevention and monitoring they really need, but have never been able to obtain in the past.
  • 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.  If your firm doesn’t have this approach, then you are still operating in an environment that will penalize your opportunity to profit and control costs.

Talk to an INVIZEN representative today for more info

Find out more with a simple phone call.  Talk to an INVIZEN representative today at 832.663.9634.