Independent Broker-Dealer Business Models

Recent history has not been kind to the independent broker-dealer community and the pressure for independent broker-dealers to create new independent broker-dealer business models of operations that can reduce operating costs and increase margins is being driven by the large houses who can spread the cost basis over a very large basket of income and sources.  On this page we will discuss the opportunity for independent broker-dealers to create a new business model that will restore them to parity with the wirehouses.  It’s not just about talent – talent will only take you so far.  You need a big gun to hunt down and kill the wirehouse elephants and INVIZEN is here to provide you with an exotic weapon that none of the wirehouses have and give you the opportunity to create more market share along with other IBDs.  The good news is that it comes in a form and operates in a way that the wirehouses would not even consider giving thought to, as they have the big fish to fry (or so they think).

That gun starts with the buy-side and is aimed at the lucrative Direct Participation Program market for private placement offerings focused on commercial real estate property businesses.  I know, it’s too risky, the insurance is too high, the due diligence costs are so high only the wirehouses can really do these deals and survive the inevitable avalanche of E&O claims that come with this vertical.  You need a game-changer.

Here’s your game-changer and it doesn’t look like what you think…

INVIZEN IT has created the first and only end-to-end solution that provides the means to virtually eliminate the IBDs exposure to investment fraud claims stemming from securities sales in commercial real estate property business private placement offerings.  Here is a brief review of the underpinnings of this new business model support system:

  • INVIZEN is a real-time program so a FINRA-compliant review of the critical business, market and financial plans and forecasts that only the wirehouses have, heretofore been able to afford to do right, is within your grasp.  It’s very affordable (it can be cost-free on the buy-side) and it operates in real-time, so it’s not a matter of weeks to get the underwriting analysis, market review and valuation analysis KPIs done, it’s now 2 to 3 days.
  • INVIZEN uses this program to create an underwriting model for every CRE property asset that meets our enrollment standards for our exclusive Asset Care Protection Program.  The Asset Care Protection Program is designed with one thing in mind: it virtually eliminates the potential for a bankruptcy petition to result from an unforeseen liquidity crisis over the entire term of the investment holding period, so now you have a near-term window solution for your soaring insurance costs.
  • INVIZEN focuses on capitalism and the evolving nature of markets, so our system gives the investor and lender exactly what they have always wanted and couldn’t get – the luxury of having their investment/loan re-underwritten each and every month of the term to provide the highest level of performance assurance and protection against asset impairment.
  • INVIZEN uses proprietary predictive analytics in combination with real-time data, legacy demographic data, industry data and local market data to create a forward-looking “Forecast Zone” that provides up to 24 months of advance notice of a pending market disruption, supply/demand imbalance, and help prevent the most common causes of administrative foreclosures.  This means you have up to 24 months of advance notice of a problem or an irrevocable default that needs to be addressed.  In the case of an irrevocable default the INVIZEN system also provides a re-positioning plan, redevelopment plan or asset disposition plan so that an orderly exit can be contrived instead of a fire sale exit that is guaranteed to generate litigation.
  • INVIZEN also creates the opportunity for the IBD to forego their long-term focus on getting more clients in favor of getting more assets.  Under the INVIZEN approach, once you do a buy-side transaction on a given property or portfolio, the buy-side broker-dealer gets our notifications of opportunities for that property before anyone else in the capital finance sector, so you have the opportunity to keep that continued source of business into perpetuity.
  • INVIZEN gives you the ability to get to market faster because the due diligence reviews we conduct that used to take weeks take only a couple of days in most cases.  This means the sell-side of the house can aggressively market before the wirehouses can get into the act.
  • INVIZEN also gives you the opportunity to profit when things do not work out on a CRE deal by virtue of how our proprietary system works.  In the end, this is just about money and INVIZEN is geared directly towards creating win-win scenarios where all the parties at-interest have the opportunity to get what they said they wanted or what they were promised.  Not a guaranteed outcome, but doggone as close as it gets.

The practical application of these benefits would be reasonably-expected to generate the following outcomes:

  • Buy-side negotiations can be more aggressive, because we have your back.  The INVIZEN system focuses on liquidity and market opportunity, so if the market opportunity is there, then the ability to make money will be there – whether it is with the current intended-use operations or with another and INVIZEN will tell you about that, too.
  • Investors will get a higher level of satisfaction knowing they have the luxury of having their investments re-underwritten each and every month to maximize the opportunity to get what they were promised.  Their satisfaction will result in them talking to other investors and you can believe a scenario where some contact you instead of the wirehouses.
  • Operating cost increases will start to decelerate and your profit margins will start ot get larger, making you even more competitive with the wirehouses.

And it just keeps getting better because our market-disrupting technology makes INVIZEN the affordable solution that you just can’t say no to unless you like the idea of being the buggy-whip guy facing his first encounter with the automobile.  We will be happy to explain it all, so please take a few moments and find out what we can do for your business model today in a way you never thought possible.  Call INVIZEN at 832.663.9634 to get all the details.