Commercial real estate development equity finance underwriting reviews have to include the potential for utilizing mezzanine capital financing. Mezzanine capital financing is a hybrid form of equity capital, but the “investor” retains creditor rights as well as potentially having equity options or rights in the case things work out. Mezzanine financing relies upon a combination of collateral value and earnings potential (i.e.: capacity underwriting results) as a precursor to qualification. Mezzanine financing also involves a higher level of risk-taking that must be managed.
But it doesn’t end there.
Obtaining mezzanine capital financing for commercial real estate development projects requires the developer (or sponsor) to demonstrate the project and management outcomes would in fact present a lower overall loss severity risk profile because the developer/sponsor is seeking to replace their own equity investment requirements with additional debt leverage.
INVIZEN offers the only end-to-end solution specifically-designed to help end loan and investment losses in CRE securities private placement offerings by addressing the totality of the underwriting and due diligence issues in a real-time, proactive environment that only gets started with pre-closing due diligence. The INVIZEN RTS program is designed to help prevent the key risks from becoming future asset impairment problems while also proactively managing and/or deterring investment fraud, management performance and foreclosure default event exposure.
INVIZEN was purposely built to provide underwriting and due diligence reviews with one singular goal in mind: preventing future loss on capital investment made today.
To understand the INVIZEN value proposition is to understand the basic processes that attend the underwriting goal of using independent information to determine the value of an income-producing business asset. INVIZEN automates these processes so the cost of underwriting drops dramatically and the speed of processing increases dramatically as well. The underwriting happens in real-time and that means we can give CRE NNN property investors the luxury of future investment performance assurance by re-underwriting the transaction each and every month of the investment holding period to give you up to 24 months of advance notice of changes in the market, the asset or operations that may have an impact on the future income-generating capacity of the market, property and site. These notices can be both good and bad. INVIZEN has artificial intelligence at its core and computers don’t care if you have trash, it will still be another man’s treasure.
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.
- 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.
- 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.
This means you need a compelling story to qualify your project for serious mezzanine financing consideration. INVIZEN IT offers an underwriting system to help you do just that. The INVIZEN IT Real-Time Status (or RTS) program not only underwrites the project in a real-time environment (saving time, money and reducing capital investment risk for the sponsor), but follows the project thru the post-funding stage and helps manage loss severity risk and prevent asset impairment. Imagine having the advantage of saying their investment will be monitored and protected for the full term against bankruptcy and foreclosure events with up to 24 months of advance notice of pending market disruptions and other events that could lead to a loss.
You need every arrow in your capital finance quiver you can get and the proprietary technology and network of INVIZEN IT is here to help. Find out more today by talking to an INVIZEN representative at 832.663.9634.