The market remains hot for investors seeking high-yield NNN commercial real estate property investments in 1031 exchange securities private placement offerings. NNN commercial real estate (CRE) properties offer the opportunity for current income yield opportunities due to the monthly distribution feature mandated by the trust organizational approach and the opportunity for future gains on exit. If you are seeking high yields from NNN commercial real estate property investments – especially those in 1031 exchange vehicles – there are some important investment loss risk issues you need to be aware of.
The prototypical transaction we see today requires the investor to hold the investment for 10 years due to taxation issues. That 10-year holding requirement creates significant investment loss risk as the odds are the markets will change dramatically over the ensuing 10-year period following the day you make your investment. Those odds do not work for you.
The typical NNN commercial real estate property investment comes with a variety of conflicts-of-interest where the sponsor has multiple opportunities to profit at your expense. Those odds do not work for you.
The commercial real estate industry functions, by and large, off of financial leverage that is created using mortgages to boost the yield on equity investment capital because debt is cheaper than equity. The NNN 1031 property structure means significant exposure to bankruptcy and foreclosure comes with that financial leverage, and when this is combined with the exposure to market disruptions the risk of loss goes up.
INVIZEN offers the only end-to-end solution specifically designed to deal with the totality of these risk issues both before you make your investment and then for the entire time your money is on the table and at risk. The INVIZEN IT Real-Time Status (RTS) Asset Care Protection Program provides proactive real-time protection and monitoring of CRE NNN investments for the entire term of the investment holding period. The RTS program is intentionally designed to start the underwriting process with future investment loss risk management embedded in its process that continues each and every month.
INVIZEN offers a revolution in CRE underwriting and investment loss severity risk management that focuses on providing a comprehensive underwriting analysis and due diligence review every month – and do so in a real-time environment so that it is fast and affordable. If you are considering investment in a NNN commercial real estate property and the sponsor doesn’t offer RTS protection you should probably ask why you have to be exposed to investment risks you no longer have to bear. Whether you are concerned about investment fraud, execution risk, bankruptcy risk, foreclosure risk, yield risk, asset obsolescence risk or technology risk exposure the INVIZEN RTS program is designed to provide you with investment performance assurance monitoring that you cannot find anywhere else. Find out more about the amazing RTS program from INVIZEN by talking to one of our representatives today at 832.663.9634.