DST commercial real estate private placement offerings (and other 1031 exchange structures) place a heavy burden on due diligence. DST due diligence reviews and underwriting analyses that focus only on the issues at the time of funding are a thing of the past.
In today’s world, the need is for real-time, proactive due diligence that goes beyond the funding event to manage investment loss severity risk that accompanies commercial real estate investments for the full term.
The focus is on the DST financial due diligence disclosure outcome and the issues that play into that disclosure requirement.Whether you are a developer, sponsor, promoter, investor, lender, broker-dealer, registered investment advisor, owner/operator or other key commercial real estate participant, the due diligence burden on commercial real estate private placement offerings has become increasingly burdensome and complex. FINRA, buy-side broker-dealers and liability insurance carriers are particularly exposed to future loss risk due to investment fraud claims stemming from a lack of due diligence disclosures.
Rainmaker Analytics is listed in the FINRA Compliance Vendor Directory and our firm takes things up to a whole new level for complex securities private placement offerings for the CRE and alternative investment verticals.Failure to observe proper due diligence procedures is fraught with danger.
The result has been telling: a restriction has been placed on capital financing access for commercial real estate ADC projects and commercial real estate private placement offerings are becoming even riskier as a result. The INVIZEN approach applies to both the buy-side (those seeking capital financing and underwriting the requests) and the sell-side (those investing capital and underwriting the requests) of the commercial real estate private placement offerings spectrum including multifamily housing, senior housing, commercial office, light industrial, NNN single-tenant, retail, mixed-use, hospitality and other property types.
The INVIZEN Platform was conceptually designed to support the end-goal of preventing investment losses from being realized on commercial real estate loans and investments.
The INVIZEN Platform design construct offers an end-to-end approach that engages the project or business at whatever life-cycle stage the given project or business may be currently found to be operating within. The INVIZEN Platform is designed to provide a progressive sweep of the entire due diligence spectrum of issues with every review. It starts with the valuation of the transaction opportunity.
Collateral underwriting is important but the reality is that collateral underwriting really only comes into play for EAD calculations and insurance risk mitigation. The value of the opportunity is the real issue and the Verifier Report from INVIZEN directly addresses this issue in terms of determining if the proposed transaction is priced at a discount to market based upon the specific risk profile presented by the project, the project’s business and the project’s market. That’s the Verifier Report.
Market Risk Management
First Look is our real-time market feasibility analysis reporting system for which there is no peer. The next-gen analytics design of First Look provides testing of the empirical assumptions and findings of the market feasibility analysis to determine if a reasonable basis exists for their inclusion and/or use in the resulting report that includes detail you just can’t find anywhere else. That’s the First Look Report.
Financial Risk Assessment Underwriting
Final Check is the crown jewel of the INVIZEN Platform. Final Check provides full capacity risk underwriting, collateral risk underwriting, credit risk underwriting and default risk underwriting financial risk assessment data and findings that is backed by a post-funding monitoring program that prevents the most common causes of credit and default risk events from becoming your loss severity risk realities. That’s Final Check and there is just nothing like it.
The outflow is then matched into our unique credit risk management platform that ties credit risk (again, think hard about managing CECL) and default risk prevention program known as iCREDIT.
This unique system provides real-time forensic auditing of every transaction event and generates an entirely new set of GAAP financial statements for the benefit of all financial partners that can be accessed in real-time.
Financial reporting transparency risk, execution risk, default risk and all of the associated risks are now within the scope of being proactively managed. That’s the INVIZEN approach that makes the difference in everything we do.
We provide opportunities in the form of distressed asset acquisition opportunities for sponsors and developers that meet the specific underwriting standards and requirements of the specific funds and institutions we support.
Our compliance services focus on FINRA (we are a FINRA Compliance Vendor) and supporting broker-dealers, banks (FASB Topic 326 compliance opportunities regarding CECL), credit unions, community banks, advisors, family offices and institutions that are seeking something more than reactive data and mitigation as being the only likely outcome.
INVIZEN is about reaching your peak opportunity efficiency level and having the freedom to focus on transactions that are profitable; transactions that have the likelihood of actually closing.
Clear up your backlog of time-sensitive opportunities.
Reduce your loss reserve calculations.
Turn CECL into a competitive advantage.
Exceed expectations of regulators when it comes to compliance with FINRA, SEC, OCC or the several states.
When you engage with Rainmaker Analytics you are engaging with a team and a system that is designed to make the financial instruments your firm engages in become a matter that is manageable, less frustrating and more profitable.
Your new path forward starts with that first phone call and confidential consultation.