Commercial real estate developers live for high LTV ratio commercial real estate development bank financing but are frequently thwarted due to the risk issues owing to the local market, their own experience, capital market limitations, and the asset’s development profile, just to name a few. Obtaining high LTV commercial real estate development bank financing requires an underwriting approach that clearly demonstrates the following key benefits:
- The lender’s exposure to default risk has been minimized – this means a comprehensive loan and project progress monitoring solution that can demonstrate confidence is a requirement of the default risk underwriting review.
- The lender’s exposure to commercial real estate collateral issues has to be eliminated – this means the transaction has to stand on its own two feet and demonstrate the collateral value will be protected for the entire term of the investment.
- The term risk must be demonstrated to be manageable as term risk management eliminates maturity risk default.
If you look at these previous statements, you will find they all speak to the same issue – the exit strategy for the lender or investor. Without a viable and completely believable exit strategy scenario the answer is always going to be a rejection.
INVIZEN offers the ability to create sustainable take-out scenarios because the INVIZEN Real-Time Status Asset Care Protection Program design concept was created with these issues in mind. By monitoring market conditions, property conditions and the capital markets on an ongoing and proactive basis, the INVIZEN approach is designed to keep the take-out scenario a sustainable reality by providing proactive reporting and alternatives that may be necessary to help prevent asset impairment from becoming a material issue over the entire term.
INVIZEN makes this possible by virtue of our real-time underwriting program called – you guessed it – the Real-Time Underwriting (or RTA) system. The problem with underwriting has always been that it can take months to complete and is way too costly. The RTA program accomplishes this tasking in real-time, so underwriting is a day or two. The practical benefit of this incredible advancement in technology is that we now find ourselves in the situation investors and lenders have always wanted, but have not been able to contrive – the ability to have their investment re-underwritten every month of the investment holding period to provide the highest level of performance assurance that is possible.
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.
For the CRE developer, embracing this technology means they now have the opportunity to demonstrate that capital investment will be carefully managed for the entire term and that opportunity for economic gain will be maximized, thus making the funding proposal a much safer bet than those that do not.
Find out more today by talking to an INVIZEN representative at 832.663.9634.