FINRA Private Placements

INVIZEN provides broker-dealers participating in Direct Participation Program private placement offering securities sales (buy side or sell side) are required by FINRA with broker-dealer due diligence services designed to provide heightened levels of compliance with the FINRA private placement rules regarding disclosure.  More importantly, the INVIZEN program is designed to lower the broker-dealer’s investment fraud claim severity risk exposure by helping eliminate the source of the problem – CRE property bankruptcy and foreclosure events that create CRE investment loss severity risk.

It’s a simple proposition when you think about it.  How many properties go into bankruptcy or foreclosure the month following the close of the private placement offering?  What about six months?  A year?  Two years?  The reality is the loss severity risk exposure compounds as time goes on because underwriting can only realistically be said to have an impact on the near-term (i.e.: 2-year) forecast window.  Beyond that we are all just guessing.  INVIZEN harnesses this liability of the underwriting industry in a unique way – we offer a technology that allows us to affordably re-underwrite the investment each month of the asset holding period.  That process involves a constant reforecasting of the market opportunity window 2 years out so that market disruptions that could lead to asset impairment (and therefore, claims) can be identified and the asset be re-positioned, redeveloped or an orderly exit strategy executed before the losses become large enough to create problems.  Along the way, we monitor property level operations so that the most common causes of administrative default event foreclosures can be avoided.

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.

To find out more about this amazing advancement in technology that has the potential to change the entire CRE finance vertical, please contact our offices today at 832.663.9634.