Obtaining commercial real estate capital financing has become even more challenging than just a few short years ago due to COVID-19. The reality is that commercial real estate (CRE) capital financing transactions come with a myriad of investment risk issues that require proactive management and mitigation that extends well beyond the date of funding for the full term of the investment holding period.
Special Bulletin on Capital Financing
The SEC has released Final Rule 33-10884 that includes landmark changes to Regulation A, Section 4(a)(6) – “Regulation Crowdfunding” or “Reg. CF” – and Regulation D private placement securities offerings, together with new rules and guidance on securities offerings for small and medium size issuers and commercial real estate developers. This new final rule creates fundamental changes in how our capital markets will function in the future and how entrepreneurs, businesses and CRE developers can access capital financing for their business ventures. We are in the process of updating the website to reflect these incredible changes (and their associated new opportunities) and urge you to review the new rules and regulations with your legal counsel before undertaking further capital financing activities as you have in the past. Please feel free to contact us to discuss your proposed capital financing needs. In the meantime, we suggest you read some of the relevant information already posted on our website (start here).
Does your business plan reflect these realities? On the other side of the equation, the investment preferences of the capital markets have created a whole new level of financing opportunities for developers and sponsors of commercial real estate transactions that are seeking Acquisition, Development & Construction (ADC) Financing that have fundamentally changed the way we go about funding transactions, the timing of these transactions, the costs of these transactions and the capital risks these sponsors and developers have to manage.
INVIZEN offers the way forward with a unique value proposition to the commercial real estate finance vertical.
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 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.
Take a few moments and find out what INVIZEN means to your funding or investing prospects in the CRE envelope today by talking to an INVIZEN representative today. Please call us at 832.663.9634 to learn more about our unique program.