Despite rising interest rates, multifamily properties and industrial properties are continuing to see increased attention from investors.
These asset types served investors well throughout the pandemic. Today, they’re receiving more attention thanks to strong rents, low vacancy rates, and high demand for more units — particularly in Class-A type properties. Just a few months ago, multifamily property sales increased 22% year-over-year while commercial property sales decreased. Coupled with the fact that newer properties are benefiting investors more than older properties (which historically wasn’t the case), it makes sense that the market is booming — and why GPs must prepare with a multifamily investment software solution.
Case in Point: The Atlanta Multifamily Market
Throughout 2021, the Atlanta multifamily market saw significant performance in terms of rent growth — well above the national average. While that growth slowed a bit in early 2022, a slowdown in rental prices doesn’t mean that growth has come to a complete halt. Atlanta multifamily metrics — along with those of other top-performing southern markets such as Orlando, Nashville, Charlotte, Dallas, and others — are looking positive thanks to a strong rebound in the economy. This rebound is due to increased employment across multiple sectors in the region as well as company expansions, which are expected to further boost economic growth.
Whether your organization is considering a move to one of these high-performing markets or is already managing assets in them, it’s clear that opportunities will continue to abound for GPs and their investors. However, more opportunities equate to more challenges — both while navigating the deal early on as well as post-close once you begin managing the property and the numerous activities involved with it. Because of this, it’s critical to utilize multifamily investment software in order to accomplish specific goals.
Reducing the Administrative Hassles of Multifamily Asset Management
At a high level — fundraising, tenant management, long-term financial performance, and the daily operations of your firm are more than enough to keep you busy. The last thing you need to be dealing with as a GP is exponentially increasing administrative responsibilities with each deal you pursue. With a multifamily investment software tool, most — if not all — of these tasks can be integrated into the platform to avoid dealing with them manually while also automating many of them.
- The result: You and your team are able to dedicate more focus and time on the work that matters most and produces the best results.
Raising the Capital Needed from Investors to Close the Deal
Before most of the work mentioned above even begins, you need to raise capital from investors. You might already have investors you’ve worked with before, or you might need to spend time building additional relationships (or both). Either way, you need to approach fundraising strategically and efficiently to share the deal opportunity with investors, keep them engaged, market the opportunity, prepare and manage agreements, share decks and other resources, and more. It’s a lot to undertake, but multifamily investment software ensures you’re able to centralize all of these functions into one system while gaining insight into the investors that are most likely to move forward.
- The result: More intelligent, automated efforts lead to faster fundraising thanks to better targeting, communication, and resource sharing.
Maximize Returns Through Streamlined Banking and Asset Oversight
Banking and distributions are some of the most time-consuming and frustrating activities on GPs’ plates today. With each asset requiring multiple accounts for different purposes, as well as GPs still leaning on inefficient distribution methods today, multifamily investment software is more essential here than ever. Implementing a CRE banking solution allows for fast and easy account creation while giving you greater oversight of the many different types of transactions you’ll be navigating. Additionally, an automated distribution platform saves you countless hours dealing with outdated NACHA files and other manual efforts.
- The result: Investors receive their distributions more efficiently and with less effort on your end. All financial activity associated with assets — and across multiple funds — is accessible in one spot.
Provide Best-in-Class Service to Your Investors
If you’re looking to increase your activity in the multifamily market, you’re going to need strong relationships with investors in order to quickly raise the capital needed to close. Providing a strong, automated, and self-service solution for contracts, financial activity, reporting, and more ensures investors are pleased with their experience and results (remember, they’re investing in you as a GP just as much as they’re investing in the deal).
- The result: When an investor is satisfied with the process of learning about a property, investing in it, and accessing their information, they’re more likely to continue that relationship on future opportunities.
Experience the Best in Multifamily Investment Software with Covercy
Covercy is designed to simplify and streamline work for GPs and the overall experience for investors across all of the areas explored here. We are the first and only platform to allow automated distributions to investors while also offering an embedded finance solution for banking. With multiple self-service tools for investors as well as intelligent fundraising, property marketing, document management, and more, we provide one of the most complete platforms for GPs to grow.
If you’re ready to take your multifamily strategy to the next level, we’re here to help.
Covercy is a financial technology company. Banking provided by Choice Financial Group: Member FDIC.