How CRE Investment Managers Can Calculate Real Estate Distributions
CRE (Commercial Real Estate) investment managers help develop and enhance a business’s management model for real estate investors in the commercial real estate market. While carefully formulating and essentially minimizing previous managing techniques, CRE investment managers can help their clients keep a direct grasp on their investment return by calculating real estate distributions every quarter and with easy-to-understand processes and reports.
Commercial Real Estate Investing professionals see several issues daily. While managing their clientele’s investments and ensuring calculations of real estate distributions for gains and losses are accurate; investment managers continuously strive to provide the best-in-class performance possible.
Having to do all of this without the proper CRE investing tools to calculate real estate distributions and other important tasks can be tough.
To cut back on the time spent managing clients who invest in commercial real estate, several innovative and advanced tools have been compiled. They show CRE investment managers how they can streamline their processes, calculate real estate distributions, and utilize these technological advancements to better organize and manage their client base.
1. Stop Using Spreadsheets to Manage Your Commercial Real Estate Clients and Distributions
This should go without saying that calculating real estate distributions and managing real estate clients are not simple tasks that can be done by working on mere spreadsheets. Spreadsheets might seem like the “simple and easy” way to get what you need from the client and commercial properties management system.
However, the amount of information that can be monitored through the design of the spreadsheets ends up creating more work. Commercial real estate owners and real estate investment firms must keep the needed cash flow, CRE property, CRE investors, real estate distributions, and financial information accurate and up to date.
Switching to alternative investment programs such as Covercy, IMS, or Juniper Square will help keep all portfolios and information organized and easily recalled or updated. These tools can help you easily calculate real estate distributions. Providing you with an organized streamline of all the commercial investment business that you do.
This is particularly beneficial when making significant investment decisions that require timely and accurate information.
2. Stop Using NACHA Files For CRE Investing Management
If you’ve ever used NACHA files, you already know the struggle and probably rolled your eyes when you read the word. An outdated system has been replaced by far more advanced payment system options that will appeal to every client.
It is a time-consuming, completely manual system that provides unneeded steps in managing your commercial real estate investor business and processing payments. Inclusive management platforms complete these processes, and products, and manage reports accurately. Easing investment management’s role as account overseer.
While using IMS, a NACHA file will be required. However, the Covercy payment platform completely eliminates the need for using NACHA files. All of the payments are done through an end-to-end online. The money goes right from the source platform to the investors’ bank accounts.
3. Use a Waterfall Model That Has Been Carefully Reviewed, Then Use Automated Waterfall Calculations for Real Estate Distribution
We know, we cheated and technically gave you two steps instead of one, but that just means you get more helpful information, right? Especially for those new to investing in various property types or interested in real estate investment trusts.
Using a waterfall model that is easy to understand allows you to quickly assess return on investment values for clients, including tenant performance in their investment property. Without intricate loops to jump through to get the answer, investment managers can easily identify gains or loss values for clients, catering to the needs of many real estate investors in the ever-changing CRE market through an easy-to-use platform.
Having the model reviewed by a professional before inputting it into the management system ensures accuracy for your clients. Once approved, using an automated waterfall calculation system will generate the results you need.
Some calculations can be challenging for this automated system, such as private equity fund accounting, but other accounts related to property investing can be automated to find their calculations and input them into the system for you automatically. Consulting with a professional will help ensure your data is accurate.
4. Automatic Pro-Rata Calculations
CRE investment managers should consider an automatic pro-rata calculation tool that takes all the guesswork and stress out of the allocation of investors’ funds. The system creates value for clients that ensures accuracy every single time in the world of the commercial real estate industry.
Using a cloud-based platform that is easy to use, like Covercy would enable nearly anyone to perform pro-rata calculations and process and calculate real estate distribution payments right in the same window.
5. Having an Investor Portal with The Best-in-Class Experience and Automated Messaging For CRE Investment
We know that an investor portal is something that you may or may not have thought about adding to your management system, especially when dealing with commercial real estate properties. If not, now is the time to acquire this groundbreaking technology.
You don’t have to hire someone to manually input information each time someone messages your firm, an automated message promptly is dispatched to your client letting them know you are on the task.
Not only does this system automatically generate replies but you can also conduct all correspondence about payments, inventory, real estate distribution, or anything else in your automated reply through the platform. This approach is particularly advantageous for commercial property owners and those looking to invest in CRE.
Having this portal is going to give your company an advantage. Every investor, including many investors exploring various commercial real estate investment strategies and investment opportunities, will want to obtain their financial statistics and see accurate reports for any of their investment gains or losses.
The portal also allows the investor to manage which bank account they want their distributions to go. They can change it at any time giving them both security and flexibility.
Through this portal, you’re giving them more control, building trust, and in turn strengthening your investment relationship and potential with your clients amid volatility. It is a win-win for everyone. What’s on that investor portal?
Expecting to see complete breakdowns of all metrics, reports, market analysis, results, contacts, etc. will help clients to verify their information limiting their need for communication with their CRE investment manager. Staying connected through the portal can help eliminate some of the unknown variables.
6. Use Cloud-Enabled Tech
Having cloud-enabled technology throughout the office space is something that is going to safeguard your data. If something, anything, should happen, then you are protected.
Storing items in the cloud, especially calculations that are crucial to businesses is going to save you a lot of stress and time. Protecting your client’s sensitive information and your business’s data ensures no one suffers a loss should an unforeseen circumstance arise.
Streamline your processes by being able to save, store, and share files through the cloud, with access through any devices on the service at the same time. This helps to keep documents available to everyone in the office building but also helps to keep them protected. The cloud is one of the most secure places to store various online files.
Investing in commercial real estate can be risky. It is not a fit for everyone. While we aim to provide general information to help you better understand CRE investments, we are neither providing any investment advice nor advising for or against any particular investment.
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