Whether you are a sponsor, developer, broker-dealer, lender or registered investment advisor, commercial real estate multifamily housing private placements offerings of securities present some interesting challenges and outstanding opportunities to create economic opportunities, jobs and real wealth. The key is understanding the due diligence burden* requires that we have a sober appreciation of the fact that multifamily housing is a mature industry and is subject to significant market risk in the form of increased competition over time, as well as advances in technology that we see routinely play out in the local market areas. This risk requires the production of business plans that demonstrate these risks can be proactively managed. These issues figure prominently in our approach to multifamily housing private placement offerings to help developers and sponsors obtain the capital financing they need faster and more efficiently than other legacy approaches that still plague the capital markets.
For sponsors and developers seeking capital financing (i.e.: commercial real estate ADC financing) INVIZEN offers a complete end-to-end solution that helps you get to the capital markets quicker and more cost-efficiently than ever before. Our Real-Time Analytics system includes the following component reporting program elements that work in concert to provide the due diligence support necessary to sustain multifamily housing private placement offerings of both equity securities and debt securities:
- INVIZEN RTA Intended-Use Valuation. The first step in every assignment is to make sure we are not missing other opportunities that may in fact have the potential to generate a higher future income stream than the given intended-use scenario under consideration. The INVIZEN system runs up to 30 of the most common alternative intended-use development scenarios all at once and compares the resulting return potentials in relation to the market opportunity the local market supports to provide a basis for considering the ideal use for that ideal market; then
- INVIZEN RTAF Feasibility Analysis. The second step in every assignment is to complete a comprehensive market and financial feasibility analysis of the project and market to provide the requirements for capacity and collateral underwriting risk reviews. The INVIZEN system completes this tasking in a real-time setting, saving money and time on a scale previously unforeseeable. The INVIZEN system takes this to a whole new level by testing the empirical assumptions of the market feasibility analysis and the findings in a pro forma financial presentation; then
- INVIZEN RTU Underwriting. The third step is a comprehensive underwriting analysis and due diligence review of the proposed transaction that is fully supported by the requirements of Basel III, Dodd-Frank, FINRA, CREFC guidelines and capital market investment preferences. More importantly, the INVIZEN system utilizes the criteria of the INVIZEN model to conduct each underwriting review in light of the requirements necessary for bankruptcy, foreclosure and investment fraud prevention for the entire term of the investment holding period; then
- INVIZEN RTS Investment Monitoring. The outflow of the INVIZEN approach is to provide proactive, real-time monitoring and protection of the investment (or loan as the case may be) for the entire term of the investment holding period to provide the highest level of investment performance assurance by helping safeguard against execution risk, asset obsolescence risk, yield maintenance risk, bankruptcy risk, fraud risk, foreclosure risk and competition risk.
Advances in technology and other forms of increases in competition will directly impact the future revenue capture opportunity of all kinds of commercial real estate property operating businesses and this means that proactive measures have to be taken before the close of escrow and then after the close on an ongoing basis. This is the only way to provide a sustainable level of investment performance assurance and help prevent the future investment loss claims from becoming a constant reality. Contact us today to discuss your needs.