DST sponsors, asset managers, broker-dealers, investors, lenders and professional liability insurance carriers concerned about DST buy-side due diligence and future investment loss prevention have a big job to do. DSTs represent a special class of risk and regulators have come down hard on buy-side due diligence in a vain attempt to stem the tide of future investment fraud complaints. Buy-side due diligence obviously requires more than opinions and mountains of data. DSTs have a mandatory 10-year holding period and that virtually guarantees the beneficiaries will be exposed to significant investment loss risk due to market disruptions due to changes in competition, potential administrative foreclosure default events and a general lack of transparency because all of the concern is before the close of escrow. After escrow closes everyone moves on and assumes the risks are not manageable. No wonder liability insurance carriers are starting to exclude commercial real estate and alternative investment securities private placement offerings from liability coverage altogether.
INVIZEN offers the first end-to-end solution that is specifically designed to address the totality of issues facing Direct Participation Program private placement offerings of securities in commercial real estate property businesses – both before the money changes hands and then after the money changes hands and on until the end of the investment holding period. The INVIZEN Real-Time Status (or RTS) Asset Care Protection Program provides a proactive, real-time solution to a host of due diligence and investment loss severity risk issues with a suite of investment loss reduction and mitigation services. The key benefits of our system are:
- Enrolled properties go through a complete re-underwriting of capacity, credit and collateral risk each month of the entire holding period because INVIZEN is the only system that provides a real-time underwriting capability (i.e.: instead of weeks or months to complete underwriting, INVIZEN does it in 2-3 days). Imagine the luxury of knowing the investment is being re-underwritten every month to give you the highest possible level of investment performance assurance.
- INVIZEN provides up to 24 months of advance notice of market disruptions that could lead to an unforeseen liquidity crisis that would otherwise have the potential for a bankruptcy petition being filed.
- INVIZEN provides proactive execution risk mitigation via required operating disclosure verification to help deter fraud and prevent transparency from being a reporting issue that becomes an execution risk issue.
- INVIZEN provides monitoring to help prevent administrative foreclosure default events from occurring that would otherwise place the asset value at risk.
- INVIZEN provides reporting on triggering Springing, LLC strategies and alternative use valuations in real-time so that Trustees don’t have to wait until after the “train wreck” happens to make a change, and then have the opportunity to institute a new plan that may include an enhanced profit-taking opportunity instead of losses.
There is so much more to INVIZEN, including the fact it is affordable (check our pricing and see for yourself). If you have questions contact us at 832.663.9634 for more information.