Zero Coupon DST Investments & Alternatives

DST Investments & Alternative Higher-Yielding Structures for Accredited Investors

Sophisticated investors, accredited investors and 1031-exchange investors are big participants in the alternative investment marketplace, with both constant-coupon and zero-coupon DST structures and other alternative investment structures providing the vehicle for opportunities for long-term holdings, tax-advantaged investing opportunities and their attending risks.

Special Bulletin on Capital Financing

The SEC has released Final Rule 33-10884 that includes landmark changes to Regulation A, Section 4(a)(6) – “Regulation Crowdfunding” or “Reg. CF” – and Regulation D private placement securities offerings, together with new rules and guidance on securities offerings for small and medium size issuers and commercial real estate developers. This new final rule creates fundamental changes in how our capital markets will function in the future and how entrepreneurs, businesses and CRE developers can access capital financing for their business ventures. We are in the process of updating the website to reflect these incredible changes (and their associated new opportunities) and urge you to review the new rules and regulations with your legal counsel before undertaking further capital financing activities as you have in the past. Please feel free to contact us to discuss your proposed capital financing needs. In the meantime, we suggest you read some of the relevant information already posted on our website (start here).

Developments in Alternative Investments

CRE securities offerings, including zero-coupon DSTs, are classified as being “Alternative Investments” that involve a higher degree of investment risk for the holder of these securities and interests. DSTs are vulnerable because the investment comes with a mandatory 10-year holding period that is baked into the tax code provision that allows for deferred capital gains. Recent developments in investment vehicle structuring, combined with the changes due to the so-called “Trump Tax Cut” have created an entirely new market opportunity that combines risk controls with higher-yielding investment capital gain opportunities. These new vehicles have opened the door to investors participating in new kinds of investment pool participation opportunities that include the higher end of the value creation chain that coincides with new construction projects and distressed asset acquisition transactions for new construction projects.

Higher Yields Create Higher Risks?

All investments involve risks. Technological advancements now allow for the opportunity to deploy superior risk management programs that focus on prevention instead of mitigation (mitigation is what happens after the loss event has occurred – cold comfort at best). Learn more about these opportunities with an initial consultation with Rainmaker Analytics regarding risk controls, pool structures and the opportunities your transaction may create.

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 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.

Asset Monitoring for Performance Assurance You Can Afford

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.

Due Diligence You Can Use

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.

Investors, Family Offices & 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.

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.

The INVIZEN Platform Concept

Rainmaker Analytics operates the INVIZEN Platform.  The INVIZEN Platform is a collection of unique intellectual property programs that interact in a proprietary manner to create a systemic solution to investment risk. 

Rainmaker Analytics operates the INVIZEN Platform.  The INVIZEN Platform is a collection of unique intellectual property programs that interact in a proprietary manner to create a systemic solution to investment risk.  The issue is confidence; confidence that the decision to deploy capital is going to be made in light of the knowledge that risks that were heretofore thought to be “baked into the deal” (i.e.: unavoidable risks that are a condition predicate to investing) are now manageable for the benefit of all of the financial stakeholders in the transaction.  To accomplish this outcome, the INVIZEN Platform was developed over the past 14 years to provide the only true end-to-end solution that includes a seamless services program that provides both pre-funding due diligence services as well as post-funding monitoring programs and systems that are designed to prevent investment risks that conventional wisdom suggests cannot be avoided, therefore; any given investment is extremely risky and requires a higher risk premium be paid at the expense of all parties.  The resulting platform provides near real-time services and reporting that previously required 6 to 9 weeks to undertake and in form and depth that conventional systems cannot hope to offer.  The end-result of the deployment of the INVIZEN Platform created the benefits of best-in-class content, best-in-class pricing and best-in-class delivery that make INVIZEN the stand-out in the financial services and commercial real estate industries.  These benefits directly reduce the costs of obtaining capital by developers, promoters, and sponsors, while also providing proactive risk controls and risk elimination opportunities for commercial lenders, registered investment advisors, securities broker-dealers, institutional investment entities and regulators, alike.  Rainmaker Analytics is listed in the FINRA Compliance Vendor Directory.

The INVIZEN Platform of Services

The INVIZEN Platform of services is designed to make the processes of accessing capital investment and deployment capital investment more efficient.  Decisions can be made with confidence and in a much timelier manner.  The issues of not being able to make an investment decisions due to a lack of independently supported due diligence documentation or future execution risk controls are taken off of the table.  INVIZEN reduces the decision to the simple issue of the risk premium and eliminating the greed reflex in the process because every transaction is assessed against the totality of risk issues it demonstrates and provides a direct comparison of the transaction’s value to the investors being solicited for capital to the value the capital markets as a whole would place on that exact transaction in the public markets.  This is possible because the INVIZEN Platform provides an integrated transaction opportunity valuation in advance of underwriting, together with the component feasibility studies, underwriting reports, business due diligence documentation and securities offering documentation to provide all of the necessary elements to allow for expeditious investment decisions to deploy capital.  Once capital is deployed, the process continues with a completely new underwriting review every month of the asset holding period together with the world’s only fraud and embezzlement elimination system that comes at a net zero cost to the user.  These services make the value proposition of INVIZEN as unique as each client transaction.

There is so much more going on at INVIZEN and we welcome the opportunity to share even more with you.  Please feel free to contact us today to learn more about what our underwriting, asset monitoring and default protection program services can do for your prospects to gain capital funding.  Call us at 832.663.9634. for more information.