The potential yields and tax advantages associated with 1031 exchange triple net commercial real estate property investing makes commercial real estate securities private placement offerings attractive for institutional and accredited investors on multiple levels. Triple Net (NNN) Commercial Real Estate (CRE) income-producing properties offer the potential of reduced execution risk and monthly dividend income when things go right. When things go wrong (usually more than two (2) years down the road) NNN properties become investment traps for which the only exit is thru the door marked, “Total Investment Loss Train Wreck”.
Sponsors and issuers continue to seek opportunities to attract equity capital financing for both new construction and acquisition commercial real estate projects and NNN properties are part of that opportunity matrix. Having said, investment loss severity risk can be quite high due to the mandatory 10-year holding period that 1031 exchange vehicles are required to observe for tax sheltering purposes. The practical outflow of this requirement is extreme exposure to term default risk and maturity default risk for the NNN investor because the competitive landscape will definitely change due to innovations and advancements in technology that cannot be avoided – only managed for either profit or loss.
In today’s ever-changing world, we can have choices about how and when we deploy capital that are based on something other than a gut decision. INVIZEN offers the only end-to-end solution in the CRE finance industry that includes a standardized set of underwriting requirements and reviews that are driven by the end-goal of a real-time, proactive monitoring program that helps prevent a bankruptcy or foreclosure event occurring over the entire term of the investment – and do so in an affordable manner. INVIZEN represents a technological advance that is long overdue: the simple luxury of having your investment re-underwritten every month of the investment holding period for maximum investment performance assurance and fraud prevention.
Currently, 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 about how this all can work for you – no matter which hat you wear in the Commercial Real Estate industry. Contact INVIZEN today at 832.663.9634.