We are pleased to announce the completion of our new licensing program for developers, funders, investors, broker-dealers and other industry participants seeking a new level of CRE investment opportunity support. Please click on the link and learn a bit more about this program. I put together a very basic program presentation to get the points … More The New Way Forward for CRE Developers Seeking Profits
The regulators are after still after you. Whether your business is being beat up by FINRA regulations, the Basel III Accord or some other regulatory body, the desired impact is all the same – the regulators are here. They are tired of dealing with the investment fraud complaints, the lack of reporting transparency that allows investment fraud to thrive, and they are going to take a pound of flesh. … More Unwinding the Complicated & Conflicted Compliance Conundrum
Your operations business plan has to be a living document that is updated each month of operations or you face the reality that you are not being an efficient steward of capital. Updating your operations business plan takes some effort. … More Is Your Business Plan Alive & Well?
INVIZEN IT provides real-time investment loss severity risk management and mitigation on a proactive basis for the entire term of the investment. The INVIZEN IT program design focuses on providing the following component services that support the proactive, real-time approach to investment/loan loss prevention … More INVIZEN IT Announces Second Quarter Results: $635 Million+ Underwriting & Due Diligence Assignments
One of the most important objectives business have to conquer is obtaining the capital funding that is necessary to grow their business and that requires the production of a feasibility study to determine whether or not the sponsor seeking to promote the capital investment opportunity is making reasonable claims regarding the prospects for the forecast of outcomes to be realized or not, but more importantly to the sponsor/promoter of the investment, whether or not it is likely the deployment of capital by the sponsor/promoter would be reasonably-expected to create the economic outcome the sponsor/promoter requires as a condition precedent to undertaking their business. The feasibility study is prepared by a third-party who – you guessed it – makes a series of empirical assumptions to create the feasibility study. … More What’s The Market Scenario for Your Business?
High Volatility Commercial Real Estate (HVCRE) loans represented a potential problem for the banking industry. Under the Basel III international banking accord and the Dodd-Frank Wall Street Reform Act, HVCRE loans are new construction and development financing loans so classified if their loan-to-value (LTV) ratio is in excess of the Supervisory Loan-To-Value (SLTV) ratio set by the relevant commercial banking authority in the U.S. (or respective country in the case of Basel III). The issue is the loss severity risk exposure that has habitually attended loans for commercial real estate development projects (called “ADC” – as in “Acquisition, Development & Construction” loans). ADC loans represent a special class of risk due to the nature of the operations taking place – development and construction being the issue, as these are complex operations that have the potential for loss due to cost overruns and delays caused by a variety of risks that have been heretofore difficult to manage. … More High Volatility Commercial Real Estate Loans
The same principles have to apply and yet the environment is completely different in the IT world to that of commercial real estate. The challenges relating to detecting market disruptions caused by advances in technology and innovations are most acutely experienced in the IT segment and this represents a special challenge for investors and lenders seeking to reduce their risk of loss due to these issues. IT also represents the biggest and hardest potential test for the INVIZEN program and we are hitting this challenge head-on. … More Got Tech? Time to Cash In & Get Capital!
Nobody wants to watch their investment have a train wreck. Investments in securities in commercial real estate private placement offerings involve risks and the job of the investor is to assess whether or not these risks are likely to become a reality and create the potential for a future loss. The challenges come from our dynamic market economy that create opportunities for profit while applying creative destruction on what is already in operation. If we stop and take stock of what typically happens, we find clues and patterns that provide outstanding opportunities for us to insulate our businesses and investments from being part of a future train wreck. … More Avoiding Investment Loss Train Wrecks
Successful ADC commercial real estate financing outcomes in the future are going to have to address the loss severity risk issue that has chased the major banks out of the market vertical and created opportunities on multiple levels outside of the major banking operations vertical. … More ADC Commercial Real Estate Financing
The broker-dealer industry is now facing a performance crisis of its own making. Revenues for the industry are coasting downward while operating costs are skyrocketing. That tells me the market has decided this industry no longer provides a sustainable value proposition to the investing-public that the investing-public values. Security sales is a service and when the service quality goes down, the costs go up and the revenues take a long time to recover, if ever. The advancement of artificial intelligence now threatens to replace registered representatives of broker-dealers, it now threatens to replace registered investment advisors, and it threatens the commercial finance and banking industry participants on a massive scale. … More Finance Jobs That Will Likely Disappear