Commercial real estate non-performing loans and investments are expected to exceed $500 billion worldwide for 2018. That’s quite a tidy sum of money – larger than the GDP of the world’s 26th largest economy; not exactly a small problem to be dismissed. CRE non-performing loans hurt lending capacity which means they hurt earnings and stock values. That tidy sum of money seems to be growing exponentially on us.
INVIZEN offers a proactive, real-time solution for commercial real estate non-performing loans and investments – an affordable, real-time monitoring program that is an end-to-end solution. The solution starts with our exclusive suite of pre-funding underwriting and due diligence on market opportunity and default risk issues, and then provides the suite of post-funding underwriting and due diligence services that follow the loan or investment for the full term.
What makes this different from the mountain of roaring Big-Data programs, platforms and analytics out there today? Consider the following:
- INVIZEN is designed to provide up to 24 months advance notice of market disruption events that could impact asset value and adjust liquidity maintenance requirements, accordingly to maximize the opportunity of preventing a bankruptcy petition being the result of an unforeseen liquidity crisis.
- INVIZEN provides property-level operations monitoring so those pesky administrative default issues and events have the smallest possible chance of being administrative foreclosure issues.
- INVIZEN seeks economic opportunity – this means market monitoring and analysis is a continuous process to recognize alternative site use adaptations, re-positionings, re-development scenarios and/or disposition opportunities to maximize future cash flows from the property (or provide an out-of-the-box workout solution for properties that are already failing).
FINRA Regulatory Notice 10-22 makes it really clear the government wants the CRE finance industry to clean up the property due diligence processes attending CRE securities private placement offerings pursuant to the Direct Participation Program. NNN property due diligence requires more of us now than just verifying the lease and making a guess about subjective measures such as “tenant quality”. Sears, ToysRUs, Caldor – the list goes way back in time and yet the losses have continued.
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 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
INVIZEN is the affordable answer (check our pricing on this website and see for yourself) for non-performing investments in the CRE vertical. Find out more today by contacting INVIZEN at 832.663.9634 to learn what we can do about your portfolio and earnings prospects.