Asset obsolescence risk is the risk that use or advances in technology will render the current asset less useful, thus reducing its opportunity to generate a future income stream. In commercial real estate (CRE) transactions, a lack of asset obsolescence risk mitigation is the direct condition precedent that creates market risk and investment loss severity risk. The more severe the obsolescence becomes, the more severe the investment loss severity risk potential becomes, and the more dire becomes the imperative to do something rather than wait for a total business failure to change things. The root of asset obsolescence risk is technology risk.
CRE asset obsolescence risk cannot be eliminated – it can only be managed for the purposes of creating profit-taking opportunities or reducing loss-taking opportunities. Management requires proactive monitoring and market analysis on a nearly constant basis. INVIZEN offers the only end-to-end solution that looks at the totality of the future impact of market risk, asset obsolescence risk and provides up to 24 months advance notice of it impacting a CRE property business in an affordable and proactive manner.
RTS is the only end-to-end solution for investment loss mitigation that provides:
- Proactive CRE investment loss mitigation due to asset obsolescence; and
- Real-time CRE investment loss mitigation due to common forms of investment fraud; and
- Proactive CRE investment loss mitigation due to unforeseen liquidity crises that could give rise to a bankruptcy petition or foreclosure event; and
- Proactive CRE investment loss mitigation due to management execution risk; and
- Real-time CRE investment loss mitigation of market risk by providing up to 24 months advance notice of market events that could impair future asset value.
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 information about how we can help you manage your risk exposure by calling 832.663.9634.