How to Prevent Investment Losses for Commercial Properties

The Real-Time Status RTS Investment Loss Prevention Program is designed to help eliminate investment losses for a commercial income-producing property investments of all kinds, including commercial office space properties.  Investment losses worldwide exceed hundreds of billions of dollars each year.  Nobody seems to have a way to stop these investment losses.

Current solutions focus on data analytics from the viewpoint of giving the customer a mountain of data to consider. Data without context really doesn’t mean that much and the results prove it. The losses keep mounting.

RTS is the first investment loss prevention program specifically designed to put an end to CRE investment losses – be they loans or equity investments is not relevant. RTS is the investment loss prevention program that is designed to put an end to investment losses and notify all parties of the current status on a monthly basis.

Summary of How RTS Does Its Magic

Everything we do today in CRE investment loss prevention is, more or less, reactive in nature. FICO credit scoring was introduced in the late 1980s as the means to end bad investment decisions, yet bad investment outcomes keep showing up with horrifying frequency because FICO credit scoring tells us what happened months ago. Underwriting tells us what is happening as of today, after that, the value of the underwriting report starts to decline rapidly and within a month or so, really has no value at all as it looked at things in the more recent past. Analytics is data and data can be real-time, meaning less than 90 days old, it can be legacy data, meaning data up to a year old, or it can be years old, like Census Bureau data, so the value of data is only as good as when it was collected. The older it gets, the less germane it is. What would the perfect solution be? In a perfect world, every investor in any business would want their investment re-underwritten every month so that they would know if the financial opportunity still existed, was becoming doubtful, was getting better or was reaching the point when it was time to get out. This would prevent them having to pick up the pieces once the proverbial train wreck had already occurred and their investment had become worthless. That is what the RTS accomplishes with an ongoing investment loss prevention program that offers a comprehensive end-to-end solution. The problem is that, up until now, underwriting usually takes 3 to 9 weeks to complete and is cost prohibitive. By the time the underwriting report is received, the market may have already changed again, thus rendering it rather useless. RTS changes this paradigm. A complete underwriting takes no more than a couple of days in almost every instance.   The advantage is the 24/24 Rule: we look 24 months ahead and we enforce a 24-month liquidity standard that has the result of preventing the property from having a cash crisis that would result in a bankruptcy filing within that period of time. Accordingly, we completely re-underwrite the market opportunity and resulting economic opportunity that market opportunity presents each and every month, so the forecast is on a rolling basis. RTS means the ideal solution and is now within our grasp. RTS is sold on the basis of a subscription service that has an underwriting requirement, an enrollment fee and then an ongoing monthly monitoring fee for the entire term of the investment.  To learn more about investment loss prevention contact your INVIZEN Representative today or call 832-663-9634.