The question of how to get capital financing for a commercial real estate development project inevitably turns to the problem of financial investment leverage requirements and how to get higher LTV ratios for commercial real estate development financings. This page provides information on a new way to beat the odds and not be part of the more than 4 out of 5 projects that fail to get capital investment.
You think you have a great project opportunity. You think you have timed the market perfectly. You think you have the market opportunity that will create real economic opportunity.
Yet the capital markets have failed to respond and recognize your creativity and achievement in promoting this opportunity. It comes down to changing the risk versus reward proposition, doesn’t it?
Imagine telling potential capital investors that each month of the holding period of their investment the entire investment will be re-underwritten, backed by a fresh project feasibility study, and supported by a full-scope site/market opportunity analysis to provide the highest assurance possible that a liquidity crisis ending in a bankruptcy petition will have very little chance to occur, if any. Imagine telling them this level of investment assurance will be proactive, affordable and happen in a real-time setting.
This approach may not score the winning points with every investor, but you know that reasonably-conservative capital investors will definitely want that benefit and that changes the risk versus reward calculation, doesn’t it?
Introducing the INVIZEN Real-Time Status (or “RTS”) system – the world’s first real-time, proactive end-to-end solution for managing loss severity risk (the key risk!) in commercial real estate investments for the most common types of commercial income-producing properties. The RTS is extremely affordable (e.g.: our longest term enrollment period is 10 years and the cost for monitoring every month costs less than 1.5% of the total transaction value over that entire term for assets of at least $10 million in value!), its proprietary technology operates in a real-time data setting that provides proactive liquidity assurance against market disruptions, asset value impairment and common default risks. RTS tells you when something needs to be addressed. RTS provides advance warning of pending market disruptions that could impair asset value so that an orderly exit may be contrived (instead of waiting to be told the train wreck has already happened). RTS even provides notice of profit-taking opportunities when conditions turn out better than you planned on the day the financing closed.
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 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.
The RTS system is available from INVIZEN as a subscription service. To learn more talk to an INVIZEN representative today at 832.663.9634