CRE Bankruptcy Risk Reduction & Management

Commercial Real Estate (CRE) bankruptcy risk reduction and management has been largely a reactive exercise to control loan and investment loss exposure using Big-Data and various analytics tools.  At a fundamental level, however; CRE bankruptcy risk reduction and foreclosure event management systems require a proactive approach to the task, as the chief causal element seems to almost always be tied back to forecasting local property market conditions where market disruptions serve to reduce revenues that lead to the liquidity crisis that ends in a bankruptcy petition.

Typical 2-Year Life Cycle of Commercial Real Estate Market Disruption Event Impact

The opportunity comes in the form of market analysis and forecasting with a focus on market disruption events that play out in the form of changes in consumer purchasing preferences.  In the end, the consumer’s purchasing preference is the deciding factor on whether or not a given innovation or advancement offers a value proposition that is sustainable.  As the innovation or advancement gains market share it eliminates existing competitors’ market share in most cases.  This is a natural process that is the hallmark of a healthy market economy.

RTAF Technical Report ScreenshotINVIZEN’s intuitive program design capitalizes on this simple dynamic that plays out every day in every market, not just the CRE income-producing property vertical.  INVIZEN offers an end-to-end solution that is specifically designed to provide up to 24 months of advance notice of a market disruption event that could cause serious problems.  INVIZEN does this as part of a comprehensive underwriting process that is undertaken each and every month of the investment holding period to provide proactive, real-time management of loan and investment exposure to term default risk, maturity default risk and technical default risk.  This affordable approach is without precedent and is now available for most properties valued at $7.5 million or more.

RTAF Summary Report Screen ShotThere 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

Find out more about the amazing INVIZEN technology by calling us today at 832.663.9634.