NNN Property Due Diligence

Commercial real estate (CRE) NNN property due diligence used to be different if you were on the buy-side (sponsor-side/obtaining capital) versus the sell-side (investor/lender-side/investing capital) but that is now changing.NNN property due diligence  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 (Rainmaker Analytics is listed in the FINRA Compliance Vendor Directory).  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.

CRE Investment Loss Severity Risk Prevention Program
Real-Time Status Asset Loss Program Operations Real-Time Phases

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.

RTAF Technical Report ScreenshotThere 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.

RTU Technical Report Screen ShotCurrently, the asset classes supported by the INVIZEN RTS program include the following commercial real estate specific intended-use scenarios:

  • Multifamily Rental Class “A”
  • Multifamily Rental Class “B”
  • Multifamily Rental Class “C”
  • Multifamily Age-Restricted Rental Senior Housing
  • Multifamily Rental Independent Living Facility Senior Housing
  • Multifamily Rental Assisted Living Facility Senior Housing
  • Multifamily Rental Alzheimer’s Assisted Living Facility Senior Housing
  • Multifamily Rental Congregate Care Senior Housing
  • Multifamily Continuing Care Retirement Community (CCRC) Senior Housing
  • Commercial In-Line Retail
  • Commercial Single-Tenant (Retail/Commercial/Healthcare Sub-Scenarios)
  • Commercial Enclosed Retail
  • Commercial Mixed-Use Retail
  • Commercial Office Class “A”
  • Commercial Office Class “B”
  • Commercial Office Class “C”
  • Commercial Light Industrial Flexspace
  • Commercial Distribution Facility
  • Commercial Mini-Storage
  • Hospitality – Resort Class
  • Hospitality – Full Service Class
  • Hospitality – Limited Service Class
  • Hospitality – Value Class

Find out more by talking to an INVIZEN representative today at 832.663.9634.