View our most recent webinar, where Dan Linder, Sr. VP of RealINSIGHT, shares advanced techniques for managing private equity commercial real estate loans and presents a live demo of our premier asset management technology–RealINSIGHT.
Transcript:
We appreciate everybody’s time today. We are going to go through, our latest RealINSIGHT webinar. This webinar is focused on private equity funds, private equity companies, and overall fund structure and how RealINSIGHT manages that process and why clients find RealINSIGHT helpful. My name is Dan Linder and I run sales, client services and marketing for RealINSIGHT. We are going to focus on how people use RealINSIGHT to manage, surveil and report on different fund structures for those who are joining us for the first time.
What is RealINSIGHT?
RealINSIGHT is a web-based cloud-based life of the loan, solution spanning origination, underwriting asset management, and any kind of special servicing default management and disposition. It is a true life of the loan platform. When you think about RealINSIGHT, you know, we say asset management, we say loan origination. We talk about underwriting and, and the life of the loan, but, in essence, RealINSIGHT is three specific things.
Data centralization – Compiling all your data from multiple different places (internal and external)
Database – Once all that information is centralized , clients can make their data actionable and use that information, make decisions, manage their portfolios, and funds as they grow.
Reporting
So you have the data input, you have the data in the database, and then you have the output in your, you know, do you want to output ASRs, QARs, pipeline reports, fund investor reports, all that gets outputted directly from RealINSIGHT.
Uniquely positioned, RealINSIGHT is a good tool for private equity firms, for firms with fund structures, for debt funds, depending on what your structure is, who your partners are, where your data resides, and if is it securitized? Is it of a primary servicer? Is it being submitted to you in non-standard formats from borrowers? Is it in an accounting system? RealINSIGHT, can centralize all the information from institutions and debt funds and have their information in a lot of different places, you have that ability to see in real-time. Additionally, you might be involved in CMBS. You might be involved in bridge loans. You might be involved in construction. You might be involved in agency loans and RealINSIGHT can manage any of these types of loans.
Viewing your exposure
Additionally, we will show you that not only can you view information, in these various different debt structures, but you could actually roll everything up and see your exposure to everything across all funds.
All portfolios, by specific geography, property type, etc. which I think is important.
RealINSIGHT is also very flexible when defining business processes. Large firms might have different processes when dealing with different property types. For example, they might be involved in investing, holding, or selling off REO. Or they might have different asset classes, RealINSIGHT is uniquely positioned to manage all of those debt structures.
Data Visualization
Making your data actionable is difficult. But RealINSIGHT has developed tools to make it easier.
For example, we have these two funds that we set up kind of the bucket of information, where we could say this direct lending fund that’s for the balance sheet loans, construction loans, the bridge loans, and then a separate securitized fund.
Any type of bond or deal that is basically showing you is something in a CMS deal, is it in CRE CLO? You have the ability to very quickly look at that information and get to the underlying information. It’s very easy to look at the loan data and drill down to that granular information.
You can view and analyze the data on all the loans, the properties, the bonds, and the positions, and then roll it up and look at everything together.
The data in RealINSIGHT can be pulled internally and externally. For example, we can pull information from your primary servicer, the balances or the reserves, direct lending component, or if we’re pulling the information directly from Intex, where we pull the monthly written maintenance report. If I wanted to understand my portfolio just quickly, what’s my stratification of debt service. Where am I? And where is my portfolio from a maturity perspective across my portfolio? In RealINSIGHT we have dashboards that pull this information together. It is very user-friendly, and everything can be exported to Excel.
Integration with Excel
Excel is something that everyone uses, and we understand that, and we don’t want people to just have to relearn something completely. Within RealINSIGHT, you have the ability to export anything into Excel. It is a linked kind of part of the system called an Excel integration, which creates a nice user experience for the client.
As you’re looking at information, you can look at the loan status and make sure there are no hold ups, and you can view anything that you care about. These are just pre-created potentially canned reports or dashboards. We do understand what real estate professionals care about, but we also can completely customize your screens.
Capital Stacks
RealINSIGHT is a really good tool for firms with very complicated debt structures, capital stacks, and various holdings with a lot of different investors and partners. We can show this hierarchy that you can then roll up the data. For example, we have this portfolio, and you can view the structure and the capital stack. The roll-up of the loans and the properties could have multiple loans. You could have multiple properties and an equity piece if that came into play in the financing.
As a client, you set up the structure at the point of implementation and match it to whatever the client structure and RealINSIGHT gives you the flexibility to add more loans, add more properties, and add a securitized piece, etc.
Now I’m going to jump into a more complicated capital stack. When you click on a capital stack all the data comes up. We understand that everybody’s capital stacks are a little bit different, so our system is flexible In this example look at the fund structure and who is the senior and junior positions on the loan and see clearly the ownership structure.
When we talk about a centralization tool or data warehouse, you do need to have all this information set up to flow into the system. This is part of our process at implementation. Not only will we pull the information, and create an API’s or some form of file transfer with various technologies, databases, or data providers, but we also set up the capital stack and account for whatever your structure is.
Deal Financing Software
As with all screens in RealINSIGHT there is complete flexibility. This screen shows you how the loan got originated, how the deal got done, and what was involved. You can see that you have a credit facility that was committed. You unfunded committed the principal balance credit facility two here’s the equity piece. And then, and then it’s rolled up. And again, this is highly customizable. This is just taking the capital stack to the next level to determine and show how this deal was financed and what is involved.
When you look at a platform and differentiate between what is an asset management platform, what is a portfolio management platform, and what can manage the life of the loan you can see the difference.
It doesn’t matter what your property structure is or what the chart of accounts looks like. We can literally map to any chart of accounts, and I’ll just show an example. If I wanted to pull out just a standard operating statement or template for data input or output, we would just standardize it in a template that uses logic. This is kind of the beauty of the system. It knows to use a specific format based on the property type and structure.
Now we’ve been looking at use of the data in RealINSIGHT and keep coming back to this report. If I have a large portfolio across multiple different sectors, property types, and debt structures, if something happens, I want to know about it. So, we set up upfront and our clients can set them up on the fly. These alerts are telling you if a lease is going to expire or just expired. If a covenant got tripped and failed, a business plan needs to get created. If you have not received an operating statement or rent role from the borrower in a specific amount of time, all of these prompts will fire off when triggered by the rules within the system. These can be customized depending on the user’s role, department, etc.
By limiting roles and departments you can specify the data that each group or department sees. This cuts down on the noise. It creates a level of simplicity with all this information that is constantly flowing into RealINSIGHT from so many different places on top of the business side.
CRE Loan Origination Software
Here is a group of dashboards that have to do with loans that are in process or are proposed or are in the origination process. For example, here’s a dashboard of loans in closing sowing their status, origination, rejected, started, submitted, underwriting, etc. It lets you see where your team is at any point in time.
The data is populated by templates, like the operating statement, a data feed coming over from a servicer, or securitized information coming over from Intex. Up-to-date information is critical. We have a large data team who handles this for our clients, and also trains them on how to update information. But what we are doing here from an origination perspective is essentially we are taking our client’s pipeline report or other types of underwriting models or whatever it is that they use in their origination process, and we are mapping all of that and linking it. When you’re moving to a platform, you’re taking some of the pain out because you’re keeping your process and then improving it.
If I wanted to create a new loan we will map to the data points in the system, and now you’re just filling it out so you can kind of see, we just created that loan here’s information on this deal. So you have the ability to enter it manually or upload a pipeline. Whatever your process is from an origination perspective, we will map to that process. If you just want to use a pipeline and enter information so that you can centralize it in the system, our system will work with that. But we do have this level of detail from an origination process.
Software for underwriting commercial real estate loans
Commercial real estate loan origination isn’t just about data entry. Underwriting is also needed, and we have an underwriting module. If you have an underwriting model in Excel, you account for different property types and you have different rules and assumptions, and processes around each one. We would take that information and internally through our content team, map that into our system.
The power of RealINSIGHT is that we really understand that our clients have some extremely, structured, complicated, platforms and underwriting models and reports. Everyone’s process is different and, no matter who the technology provider is, you’re never going to use a canned model. You have too many loans that you’re looking at too many structures, too many rules, too many property types. We build in logic into our underwriting model, into our Excel template based on your logic.
Commercial Real Estate Technology Onboarding
Our content team sits down with the underwriters, and the originators, and they build out this process. The model will account for the property type in the structure of the deal that you are trying to underwrite. If there are multiple loans it will account for it and then create some form of standardization from an underwriting perspective.
We understand that origination, and underwriting is not something everyone just wants to do in Excel, but we do provide a format to get that entire life of the loan for our clients. If that’s something they choose to do on top of asset management, special servicing, and disposition. You don’t want to have different technologies for origination, one for underwriting, one for asset management, one for portfolio management, one for accounting, you try to centralize as much as possible.
Custom Reporting in CRE Finance Software
We also offer customized reporting in RealINSIGHT allowing you to pull detailed, custom reports at the touch of a button. Both internal and external reporting can live in RealINSIGHT.
White label reporting is standards and your logo is on every report.