You Already Have Enough to Worry About
Dealing with administrative burdens and process complexity shouldn’t be among those concerns. If you’re launching 2024 commercial real estate planning soon (and even if you’ve already completed such planning), it’s never wrong to step back and evaluate how you’re going to make the year ahead an advantageous one for your firm and the investors who trust you — despite what industry headlines might predict.
Here, we’ll explore a few recommendations that can help you enter the new year on strong footing and remain productive, focused, and impactful.
Recommendations to Make Your 2024 One for the Books
- Explore Alternative Asset Classes — This approach has already been in play for well over a year as firms and investors watched traditional asset classes tumble. With a variety of alternative classes available, all that remains is for you to decide during commercial real estate planning which are aligned with your firm’s capabilities (current or future) and the interests of your investors. Learn more about alternative asset classes in this overview.
- Streamline Investor Relations and Service — Managing relationships with investors is important, and face-to-face meetings and conversations still matter. But look for ways to make other work around these relationships more efficient. Do you have a database of investors that enables more rapid communication, pitching, or capital calls? Are your investors able to access the documentation and reporting they need when they need it?
- Get Formidable with Fundraising — With the cost of capital continuing to impact dealmaking and negatively influencing cap rates, winning the funding needed for new deals is harder than ever. Whether you’re working with private equity firms, debt lenders, private investors, or other sources of funding, it’s important to compress the timeframe for pursuing and collecting capital. Knowing where you stand at any given moment will be critical, and ensuring complete accuracy in ownership structures will be essential.
- Make Banking Better — Managing funds for your assets is itself a complex part of your work. As part of your commercial real estate planning for 2024, make a commitment to reducing the complexity and risk associated with banking. Right now, you’re likely managing dozens (if not more) accounts for all of your AUM. If that’s caused headaches for you before, it will continue to do so unless you make a change. Learn some ways you can streamline this for the better here.
- Ditch the (Physical) Documents — As you well know, there’s a lot of documentation in commercial real estate transactions and deals. Managing all of this is a significant undertaking, which adds more risk to your daily work. From reports and summaries to deal pitch decks and tax documentation, prioritize using a document management solution that both digitizes and automates the creation and movement of this material throughout your firm and to your investors.
- Lead with Conviction — Remember, the success of a deal ultimately comes down to you and how you manage it. Investors more often than not invest in you more than the asset itself, so whether you continue to pursue traditional assets or break out and try something new, ensure you have a vision and believe in it. Moreover, make sure your investors know that vision and that they have confidence in your ability to execute. The technology and tools you use to manage each deal opportunity will play a significant role in that.
Cover All of Your Bases with Covercy
Covercy is the first real estate investment management platform that integrates banking, fundraising, capital calls, investor management, and more into a single platform. This reduces the need for multiple tools, reduces technology costs, and — above all — streamlines your workload while reducing administrative burdens.
While much still remains uncertain in the road ahead, one thing is certain: the old ways of managing assets and related functions no longer have to slow you down. Make your work easier in 2024 with Covercy — get a tailored overview of our platform here.