J/V Equity Financing for Commercial Real Estate Development

If you have come to the conclusion that j/v equity financing for your commercial real estate development project is now a necessity, then consider some options that could be potential game-changers before you jump on the phone and get hammered.

J/V equity financing (co-investment) for commercial real estate development is one of the specific commercial real estate finance verticals supported by the INVIZEN IT platform.  Commercial real estate development joint venture financing thru the INVIZEN IT platform CapPro program utilizes our exclusive intellectual property program to create the transaction construct designed to reduce dilution and create multiple levels of profit-taking for the commercial real estate developer, sponsor or issuer.

Ask yourself how the conversation is going to go, what you have to offer, but what you don’t have – enough liquidity to carry the deal to closing.  You know the rule, he who has the money makes the rules.  Commercial real estate development financing is tough and commercial real estate development equity financing is the reef upon which many developers inevitably are shipwrecked and lost.

Now you have the power to potentially change the outcome to something that approaches a fair negotiation because of the INVIZEN program.  Again, ask yourself how that conversation is going to go, but this time add the following to the mix:

  • My project will be protected for the entire term of the investment against investment loss because the INVIZEN system will create an independent financial risk assessment designed to re-underwrite the market and financial feasibility of the project and market every month of the investment holding period.
  • My project is the best project now, but because of the INVIZEN system, I am part of a new generation of developers who will be able to take advantage of having the site analyzed for more than 20 alternative intended-use scenarios every month of the investment holding period so that if market conditions change, my investors can take advantage of the opportunity instead of being victimized by the result.
  • My project is a complex project and to help ensure performance, operations and the financial results will be monitored to help ensure no administrative defaults occur that could endanger the investment for the full term because of INVIZEN.
  • My project will have the advantage of being completely reassessed utilizing a comprehensive underwriting and due diligence review every month to manage liquidity so that the odds of a bankruptcy occurring as a result of an unforeseen liquidity crisis on a forward-looking and continuous basis will be practically none.

Now take it to a whole new level.  The INVIZEN RTS program is designed to not only provide the financial risk assessment underwriting review and financial structure that helps maximize the opportunity for success, but we also have a complete network of joint/venture co-sponsors who understand what they are getting and are ready to work with you on terms you and they can accept.

Not every project or sponsor can qualify.  You have to have a verifiable market opportunity and be able to demonstrate your project and business have proactive execution risk management and loss event mitigation baked into the transaction.  This means you have to be able to meet us at least half-way there.  Everyone has ideas but great ideas aren’t enough.  Generally speaking, you have to have the following key elements addressed:

  • Site control.
  • Environmental.
  • Site planning.
  • Contracting.
  • Project design.
  • Program management.

If these issues are adequately addressed, then we have the basis for creating the co-investment structure that investment bankers (securities broker-dealers) routinely look for in terms of a qualified co-investment opportunity for a securities private placement offering.

What’s your future look like?  Learn more about the amazing INVIZEN system by talking to one of our representatives today at 832.663.9634.