The retail commercial real estate implosion continues to create huge headaches for commercial real estate investing participants and retail NNN transactions of private placement offering securities require due diligence be taken to a new level. The retail NNN securities due diligence process has to switch from the traditional reactive approaches routinely utilized in underwriting and due diligence reviews to a proactive due diligence approach.
INVIZEN offers buy-side and sell-side retail NNN property market due diligence services as part of our end-to-end solution for controlling loss severity risk exposure for CRE income-producing properties that starts with pre-closing underwriting and due diligence reviews and continues post-funding to help prevent bankruptcy, foreclosure and other asset investment performance loss events for the full term of the investment holding period.
The INVIZEN approach provides the first proactive, real-time solution that is designed to focus on the technical default issues while providing advance notice of potential market disruption events that could lead to future investment impairment and/or total investment loss. This approach also combines proactive documentation of subscriber verification and acknowledgement of risks, disclosures and affirmation that the investment is appropriate and desired by the subscriber in spite of the risks.
FINRA Regulatory Notice 10-22 makes it really clear the government wants the CRE finance industry to clean up the property due diligence processes attending CRE securities private placement offerings pursuant to the Direct Participation Program. NNN property due diligence requires more of us now than just verifying the lease and making a guess about subjective measures such as “tenant quality”. Sears, ToysRUs, Caldor – the list goes way back in time and yet the losses have continued.
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 that saves time, money and reduces their capital investment risk.
- 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. INVIZEN gives investors and lenders the proactive investment loss severity risk prevention and monitoring they really need, but have never been able to obtain in the past.
- 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. If your firm doesn’t have this approach, then you are still operating in an environment that will penalize your opportunity to profit and control costs.
Only INVIZEN offers the combination of elements that provide the opportunity for due diligence that has lasting value and the potential to change the way the CRE finance vertical operates forever. Learn more by talking to an INVIZEN representative today at 832.663.9634.