Market Feasibility Studies

Full-Scope

Underwriting requirements for market feasibility studies typically require the market feasibility study be produced on an arm’s-length basis as a condition precedent to the underwriting and due diligence review process and not during or after the underwriting and due diligence review process.  INVIZEN offers best-in-class market feasibility studies based upon price, speed and content.

The production of a study can be more art than science and every market feasibility study consultant does things a bit differently because everyone has their own opinion as to what factors have to be considered.  These factors are empirical assumptions and that is where the problems start.  Everyone has their own opinion and that means what you believe to be an important assumption may be relatively immaterial to someone else.  This critical issue leads to underwriters routinely rejecting market feasibility studies and the sponsor/promoter/borrower is stuck with the rejection as a result.  The only logical way we are aware of to try to help put an end to the controversy that empirical assumptions routinely cause is to require the empirical assumptions used in the production of market feasibility studies to be tested to see if a reasonable basis may in fact exist for their inclusion and use in the production process of the market analysis.  This approach is uniquely used in the INVIZEN proprietary program model, and while it does not guarantee an end to future controversy, it does provide the basis of effectively arguing the assumptions have a factual basis that was tested, and are not just a naked opinion.

INVIZEN offers buy-side and sell-side commercial, multifamily, hospitality, health care, senior housing, industrial, retail and other property market due diligence services as part of our end-to-end solution for controlling loss severity risk exposure for CRE income-producing properties that starts with pre-closing underwriting and due diligence reviews and continues post-funding to help prevent bankruptcy, foreclosure and other asset investment performance loss events for the full term of the investment holding period.  This means our market feasibility analysis is undertaken under the assumption INVIZEN will be responsible for the future outcomes by monitoring actual conditions and not walking away after the deal funds and hoping you have a good outcome.

The INVIZEN approach provides the first proactive, real-time solution that is designed to focus on the technical default issues while providing advance notice of potential market disruption events that could lead to future investment impairment and/or total investment loss.  The RTS system includes our exclusive business planning suite that optimizes execution risk management on a rolling basis each month based upon the output of the feasibility analysis and underwriting/due diligence review.  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.

CRE Investment Loss Severity Risk Prevention Program
Real-Time Status Asset Loss Program Operations Real-Time Phases

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.

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.

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.

Find out more by contacting INVIZEN today at 832.663.9634 to learn more.