Multifamily housing development lending, acquisition financing and securities offerings all require the sponsor to provide a third-party multifamily housing project market feasibility study. The question that always comes up is whether it is credible enough to satisfy the lender, FHA, HUD, SBA, a private lender, an institutional investor, family office, etc. Only a full, complete and tested market and financial feasibility study has the opportunity to answer this issue, so why not go with best-in-class. INVIZEN offers the First Look Market Feasibility Study that offers best-in-class analytics assessment technology, best-in-class processing time (one business day) and best-in-class pricing (the snapshot report is only $1,000). That’s best-in-class. The First Look Market Feasibility Report is specifically designed to address the issues that are frequently left unanswered because most so-called “consultants” don’t even know what the purpose of the market feasibility study in fact is.
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).
The Goal is to Determine if Enough Market Evidence Exists to Justify the Sponsor’s Deployment of At-Risk Capital
In order to justify the deployment of the highest-risk tier capital, the developer/sponsor has to have a reasonable expectation of knowing the resulting internal rate of return of the transaction would in fact exceed the expectations of capital market investors to a degree that would allow the developer/sponsor to garner their return expectations (all other things being equal).
A market study that does not test the empirical assumptions and findings in a pro forma financial model that is fully integrated leaves these important matters open to contention. By testing the empirical assumptions and findings in the financial feasibility model, a reasonable basis for their use/inclusion in the feasibility study can be proffered to the funding partner. That doesn’t guarantee an end to contention but it does provide you with the opportunity to demonstrate third-party evidence supporting your feasibility study.
Get to the Head of the Line – Go Full Underwriting Review
INVIZEN also offers the Verifier Report series. We can complete a full capacity, collateral, credit and default risk underwriting review based on current capital market data, our exclusive transaction valuation analysis, the market analysis and the supporting due diligence documentation. Same timing, same price, same analytics. That’s best-in-class and you should demand no less.
Take the Next Step With Full Support
Have you looked at our iCREDIT program? iCREDIT may be the answer to getting shaky investors or lenders onboard your opportunity because iCREDIT ends fraud, ends vendor disputes, provides real-time financial reporting and a proactive defense against default risk – that one risk that trips up most transaction opportunities at the finish line. iCREDIT provides ongoing reporting and underwriting reviews, market intelligence and does it all on a net zero cost basis. Take a look and see for yourself. Click here.
Find out more about this process by contacting our offices and getting the documentation you need.