How to Simplify CRE Banking Across Assets and Accounts
The More You Grow, The Harder Banking Becomes
As a GP for a commercial real estate investment firm, you know how complex and time-consuming it can be to manage CRE banking for your assets. On average, the typical GP has anywhere from three to four accounts per asset and anywhere from 10 to 20 assets. Even on the low end, that’s 30 separate bank accounts that you or your team have to manage. And when your transactions — investor distributions, capital calls, and vendor payouts — pick up, that administrative hassle only gets heavier. But the challenges don’t end there, unfortunately.
Even if you already have these accounts established (or have a process for establishing and managing them), it can be difficult to understand the financial performance of a single asset or account at any given time. This is because of the sub-accounts that can be connected to an asset. You might have separate CRE banking accounts for capital expenditures, operations, legal needs, marketing, investor management, fundraising, and other functions. Each time you have a new deal, you’ll have to open more of these accounts.
But the key challenge today is the technology solutions that CRE GPs use don’t streamline this process. Indeed, most don’t offer a CRE banking solution whatsoever. This means you’re left to manage this tedious process — account creation, ongoing account management, and pulling financial data — manually or with a separate solution. More than ever, you need a solution for real estate investment management that streamlines not only managing properties and investors but also CRE banking elements.
At Covercy, we’re committed to creating the solutions GPs need in a single platform. Our technology is the first solution that combines investor management, fundraising, and automated payments while adding a seamless banking component — further maximizing what you and your team are able to tackle in one technology platform. Let’s explore some of the benefits of our CRE banking capabilities and how they benefit you.
Beyond banking: See how only Covercy automates and streamlines investor distributions.
CRE Banking Advantages That Only Covercy Provides
Banking Accounts — Covercy has partnered with Choice Financial Group to provide full-service banking services. Within the Covercy software platform, you can open accounts under your fund or asset names to automate the processing of capital calls, distributions, and vendor payments. You can do all these real estate specific banking functions while you earn interest on your checking accounts. These accounts are completely secure (FDIC/FFIEC insured, U.S. only). Because these accounts are opened for you and managed under one platform, you’ll have complete visibility over and into the financial details of all of your assets on a single platform. Whenever you do a capital call, those funds are deposited directly into your accounts. Covercy also integrates with other accounts, ensuring that we’re simplifying your existing workflow — not further complicating it.
Hierarchical Organization — As we mentioned above, most GPs have anywhere from 3-4 accounts per asset. Navigating these is challenging, especially if those accounts are with separate institutions. With Covercy, you get a complete hierarchical view of all of your accounts, starting at the organizational level. From there, you can drill down into specific assets to view a total balance for that asset as well as drill down into asset sub-accounts to check the account balances for operations, expenses, vendors, and more.
Cross-Account Transaction Tracking — For each asset under your management, you’ll be able to view all transactions starting with the most recent. The account tied to the transaction, the type of transaction (contribution, distribution, rent, operations payment, renovation, and more), who the applicable recipient was, and the amount. All transactional information is sortable and filterable to help you quickly find the information you need.
Helpful Breakdowns — Asset-level banking dashboards provide you with a number of different financial data points such as a liquidity projection using transactional and reporting data, as well as monthly payment breakdowns and your largest investors.
Asset Sub-Account Types — Informative overviews are available for different account types, such as CapEx accounts (where you can view the progress of renovations and the impact of those renovations on rent collection) and asset management (where you can view capital call commitments and contributions, distribution information, and vendor payments). Easily filter and analyze data as needed to understand how your assets are performing over time.
Vendor Payments — We’ve already mentioned this a few times, but issuing payments to your vendors through our accounts is fast and simple. Whether it’s a payment for renovation work, accounting services, legal support, property managers, or any other need, you can pay your vendors and log those transactions in the system. Whenever needed, you’ll be able to filter and sort those transactions to understand where you’re at with any vendor and how those payments impact the asset as a whole.
In-Depth Reporting — Understanding how your assets are performing and the activity of your investors is important to making the most informed decisions possible. With our CRE banking features, you can look deeper into how investors are contributing to individual or multiple deals — allowing you to understand who your most active investors are and dedicate future fundraising efforts toward those investors in the future.
Go deeper: Explore the full capabilities of Covercy here.
Experience the Best in CRE Banking with Covercy
No other real estate investment management software offers the level of flexibility and capability that Covercy does. With more and more GPs signing up to streamline their processes, automate investor distributions, conduct more efficient and intelligent fundraising, and more, there’s never been a better time for your CRE firm to do the same. Skip the administrative hassles and time-consuming practices that have prevented you from dedicating more time to building relationships with investors and managing properties. Put Covercy to work for your firm today.
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Covercy is not a bank. Banking provided by Choice Financial Group; Member FDIC.
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