Did you know that commercial real estate firms that are slower in embracing technology are getting left out? Commercial real estate has grown into a business that involves many functions, some running simultaneously. Imagine having to deal with bringing together investors, raising capital, and recording and analyzing manually. You’re most likely to take more time to go through certain processes and have errors in your data, not to mention burn out.
However, with the arrival of real estate investment management software, your company can handle all of its operations on a single platform. With the right software, you can enhance your company’s productivity, asset management, and make better decisions.
So, what are the indicators that show you need to invest in effective management software? Below are five signs. Read on.
1. Errors in Your Books
Errors have been around for as long as spreadsheets and record-keeping have been in existence. Even when we try as much as we can to be accurate, spreadsheets have been known to feature at least one error. Look at it this way; spreadsheets give us results of data that was entered manually.
Humans aren’t 100% accurate when entering data. This doesn’t necessarily mean that we don’t know how to do our calculations. A simple type-error can render an entire document inaccurate. This can have dire consequences on the firm or investors.
Investment management software helps eliminate errors in your financial data and books. The software eliminates risks associated with spreadsheets by automating calculations and formulas.
2. Manual Tasks are Starting to Feel Tedious
A majority of real estate firms and investors still use spreadsheets to record their data manually. Outdated means of recording and analyzing your data can take a lot of time to complete. You might spend hours trying to complete simple tasks, such as generating reports, answering and sending emails, and updating investor information. This is the time that could otherwise be spent on more productive activities.
With real estate investment management software, your data is updated automatically. This saves you a lot of time and improves efficiency for your firm. For example, you can dispatch emails and messages to all your members at once, rather than send one at a time.
You can generate annual and even monthly reports by just clicking a button. This gives you full control of your financial data and the company at large.
3. Concerns About Data Security
Did you know that the value of real estate intellectual property could be approaching the value of its physical assets? Violation of data in the real estate industry is real and could have serious ramifications on your firm.
The risk associated with recording and keeping your firm’s data in spreadsheets cannot be downplayed. Your data is always prone to theft and unauthorized intrusion. In most cases, spreadsheets are managed by professionals with no IT background. They usually don’t have an understanding of cyber-security.
While the real estate industry hasn’t been as targeted as other industries in the past, the amount of sensitive data you record and store daily should be enough to convince you to get a secure alternative. Think of all the details that are involved during an investment deal. They include personal information such as emails, physical addresses, and even bank details. Imagine what would happen if all these fell into the wrong hands.
When you use property management software, you store all your information online. However, don’t be deceived that all solutions are secure. Remember that nowadays, hackers can gain access to any data and network. That’s why you need a solution that has sealed any loopholes that may put your data at risk.
You should especially be on the lookout for solutions that offer data encryption. This adds even more security. Also, be on the lookout for a wire transfer that is secure. Under no circumstances should you wire money through emails.
4. You Feel the Need to Manage Relationships
How you manage investor relationships is key in any business. Your success in the real estate industry is heavily reliant on the relationships you build. Investors in any real estate firm demand better communication, transparency, and customized services. Your firm could struggle with keeping up with such demands or spend a lot of time and labor to satisfy your investors.
Investor management software avails dashboards for your investors. This means that they can access any information at any time of the day, from any location in the world. This enables transparency and a top-notch user experience.
Further, it helps improve communication within your firm because the email and SMS feature allows you to reach clients upfront and communicate about any investment opportunities or updates. Investors can also access the performance of their investments on their dashboards.
5. You Are Not Able to Access Investor Activities
Are you able to determine which investors are most likely to invest when a new opportunity arises? Can you classify your investors based on criteria such as the size of the investment, location, or type of assets? Upon securing a deal, can you tell which stage your investors are at regarding documents and funding? If your answer is no to all these questions, you need real estate investment management software.
When you don’t have an insight into investor activities, you significantly slow down the equity raising process. The software enables you to raise equity faster by providing insights that help you determine the investors who’d be most suitable for certain projects. You can then go to the next step of inviting them to the project via email.
Real estate investment management software has a myriad of benefits for firms that are ready to adopt the technology. It would help if you strive not to get left out of this wave. Several indicators show you it’s time to invest in property management software.
They include finding constant errors in your financial records and reports, not having an insight into investor activities, and spending a lot of time doing manual tasks that can be automated. You should also get a software solution if you don’t have any measures to keep your data secure.
Justin Malonson is the Founder of LyfeLoop a 16+ year tech innovator, investigative media researcher and host of the Freedom Not Control Podcast live on Voice America. Justin is a highly sought-after tech entrepreneur, industry speaker and winner of the coveted Business Achievement Awards “Top Digital Marketer” award. With 16+ years of demanding experience, Justin has worked with over 3,000 businesses including amazing clients such as Blue Cross Blue Shield Association, Sotheby’s International Realty, Duke University, White House Black Market,Tiffin Motorhomes, Bass Pro Shops and Beazer Homes USA.