Unwinding the Complicated & Conflicted Compliance Conundrum

The regulators are after still after you.  Whether your business is being beat up by FINRA regulations, the Basel III  Accord or some other regulatory body, the desired impact is all the same – the regulators are here.  They are tired of dealing with the investment fraud complaints, the lack of reporting transparency that allows investment fraud to thrive, and they are going to take a pound of flesh. … More Unwinding the Complicated & Conflicted Compliance Conundrum

INVIZEN IT Announces Second Quarter Results: $635 Million+ Underwriting & Due Diligence Assignments

INVIZEN IT provides real-time investment loss severity risk management and mitigation on a proactive basis for the entire term of the investment.  The INVIZEN IT program design focuses on providing the following component services that support the proactive, real-time approach to investment/loan loss prevention … More INVIZEN IT Announces Second Quarter Results: $635 Million+ Underwriting & Due Diligence Assignments

Due Diligence Disclosures: We WILL Find Out

If you are going to undertake a securities sale for your company – either issuing equity securities or being the maker of a loan – you have to disclose the risks involved in the investment to protect the interest of those who may wish to purchase the securities as well as protect yourself against future accusations of investment fraud for having failed to do these disclosures fully, completely and honestly.  Having said, it never fails to surprise me when our due diligence review finds a disclosure issue that nobody thought would either be relevant or just didn’t want out there because it would reflect poorly upon the company’s prospects for a successful outcome. … More Due Diligence Disclosures: We WILL Find Out

What Exactly is a Business Plan? Clear the Air on Financing Due Diligence

The key elements of the business plan of operations revolve around the concept of understanding what would likely happen if the promoter (or any other employee of the business) is no longer with the business.  Does the evidence suggest the person stepping into the position will cause the capital investors to suffer a potential loss due to delays or errors in decision-making due to having no clear instructions on what to do or not?  This is the core issue that directly bears on whether execution risk has the potential to be a materially-significant condition precedent to loan/investment loss severity risk or not.  … More What Exactly is a Business Plan? Clear the Air on Financing Due Diligence

An End to Relevancy: Credit Reporting & Risk Management in CRE Transactions

Real-time market event reporting provides the logical alternative solution to the inherent shortcomings of credit risk management practices that focus on subjective decision-making criteria in light of data pertaining to the conditions and events that would drive detrimental credit outcomes.  In short: you now have the choice of addressing the cause or the effect, which makes better sense to you? … More An End to Relevancy: Credit Reporting & Risk Management in CRE Transactions

Going Proactive to Manage Investment Loss Severity Risk in Commercial Real Estate

he promise of artificial intelligence has allowed our firm to realize the means to provide proactive forecasting based on the only thing that matters – what is happening right now in the near-term future in a commercial real estate property’s local market in terms of advancements in technology and innovations that create the conditions that lead to declining performance and asset obsolescence with the potential for foreclosure and bankruptcy petitions being mitigated before they have the opportunity to become a real issue.  This approach allows us to support an investment for the full term of the asset holding period and the cost is peanuts both in terms of its relative cost to the transaction itself (less than 1.5% over a 10-year subscription period) and in terms of the costs associated with investment loss severity risk that apply in its absence. … More Going Proactive to Manage Investment Loss Severity Risk in Commercial Real Estate

CRE Investment Loss Prevention: Time for a Plan?

Yes, it is the end of the month and we are facing the reality of having to make the monthly report and put lipstick on the pig.  CRE investment losses are as real as death and taxes but an opportunity exists for a different outcome. The opportunity comes in the form of market analysis and … More CRE Investment Loss Prevention: Time for a Plan?