INVIZEN provides DST sponsor risk management solutions for the prevention of future investment non-performance, future property bankruptcy prevention, conflicts-of-interest resolution and administrative foreclosure default event elimination that works because it is the only end-to-end solution today that is designed to address the core issues that create problems for investor beneficiaries in DST commercial real estate private placement securities offerings. Those core problems all amount to the same thing and the singular goal of INVIZEN – the reduction and/or elimination of investment loss severity risk for commercial real estate property business operations.
There are some great DST sponsors out there to be sure and 1031 exchange investment opportunities in commercial real estate properties are growing by leaps and bounds, but DSTs and other 1031 exchange investments represent a special category of risk for the investing-public. One of the most important challenges stems from the fact that investors in DSTs seeking to shelter capital gains have a conflict-of-interest with the other investors in the deal who are not seeking to shelter capital gains. To make matters worse, most of the DST sponsors are vertically-integrated companies that not only sponsor the private placement offering, but may also provide property management, asset management, development management and asset disposition services that create yet another layer of conflicts-of-interest. Combined with the previous conflict-of-interest challenge, this is a recipe for potential disaster that requires careful consideration be given to monitoring the investment for the full 10-year holding period and providing transparency at all levels.
INVIZEN helps thread this needle by providing a real-time reporting system, that has as its centerpiece, a proprietary program that continually re-underwrites the entire investment each month of the asset holding period and does so affordably (check our pricing and see for yourself). The INVIZEN Real-Time Status (or RTS) Asset Care Protection Program is designed to prevent investment non-performance for the entire term of the investment holding period and this is of critical importance in DST investments because the investor is stuck in the deal for 10 years whether they want to be or not. What do you think the odds are that a market disruption will occur over that period of time? Just about 100% and INVIZEN is designed to detect market disruptions as far as 24 months in advance and provide warnings of problems and notices of profit-taking opportunities to help maximize the opportunity for DST beneficiaries to get what they are entitled to and hopefully even more.
DST due diligence reviews and underwriting analyses that focus only on the issues at the time of funding are a thing of the past. They just won’t do. 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.
Find out more about this amazing technological advance and then ask the DST sponsor if INVIZEN is backing their proposed private placement offering. The answer will tell you all you need to know whether you are a lender or an investor. If you have questions please call us at 832.663.9634.