A Change in Technology Helps to Offset Industry Challenges
With many assets across the country experiencing difficulties with vacancy and other economic factors continuing to keep the industry on its toes, commercial real estate (CRE) fund management software might not be one of the most pressing items on your agenda.
However, GPs and related professionals have a distinct opportunity to differentiate their firms when the next opportunity arises by leveraging a more streamlined solution that allows them to effectively do more with less — and faster.
How does a CRE fund management software solution do that? Well, consider the current state: Even today, many firms lack technology to handle essential CRE functions. Banking activity is handled and managed manually. Distributions to investors are executed using outdated file types that take time to prepare. GPs handle fundraising efforts in person without any tracking mechanism, and capital calls are manually prepared and issued.
And, all of the assets and accounts for which these tasks are executed exist in disparate systems that don’t speak to one another and don’t allow you to streamline many of the day-to-day efforts to keep assets operational or report on them.
An effective CRE fund management software solution won’t transform the industry, but it will make your financial activity, asset management, tracking and reporting, and investor engagement more efficient and effective — allowing you to spend more time focusing on what matters most and maximizing value for your investors. And that can go a long way in supporting your growth.
Let’s dig into a few specific reasons why you should consider a CRE fund management software solution to enhance your firm’s operations and support your investors.
1. Speed to Impact
Right now, you need to show your investors that you can execute on your vision for each new deal that comes your way — and do it quickly. Remember, your LPs invest in you more than they invest in the deal, so it’s critical to not drop the ball.
- How CRE fund management software helps: The right tool allows virtually every step that an investor would need to take with a new deal to be streamlined or automated. They can see the deal, indicate their interest, make an investment right away online, and keep tabs on fundraising progress. For you, you can more effectively track that progress, filter transactions, communicate with investors, and, once the deal closes, begin issuing distributions in a matter of clicks.
There just isn’t enough of it. As we mentioned earlier, many of the tasks that GPs manage on a daily basis are done in a manual, inefficient way. You might already have tools in place, but do they speak to one another? What if you could handle the majority of those tasks in a single system — where that data carries over across assets and funds and can be accessed, filtered, and analyzed in a matter of clicks? How much time, effort, and hassle would you save for you and your team?
- How CRE fund management software helps: Just as you want to make an impact sooner for your investors, you also need to make an impact in your firm. The right system will take many — if not most — of the daily administrative and financial tasks off of your team’s plate, allowing them to better prioritize the work that will move the needle (building investor relationships, handling financial activity, communications, managing the asset daily, and so on).
Last but not least, with so much pressure existing in the industry today, it’s critical that you and your team dot your i’s and cross your t’s. There can be no room for error or mistake. But if you’ve been paying attention, there is currently ample opportunity for error in the industry today with firms handling work manually that could be automated, consolidated, or streamlined via a CRE fund management software solution.
- How CRE fund management software helps: There are a number of metrics and data points that need to be analyzed at various intervals as time goes on with the assets in your portfolio. Additionally, you need to be able to share that information with the right audience. With the right CRE fund management software, you can build streamlined reports using data right from the system. Asset updates, tenant updates, cash flow reports, and much more can be generated in just a few clicks.
Make the Road Ahead Easier with Covercy
This is just the beginning of what an effective CRE fund management software solution can do for you and your firm. At Covercy, we’ve built the first real estate syndication platform where banking meets investment management. Our platform helps GPs and LPs save time with automated investor distributions, capital call payment processing, fundraising capabilities, an intuitive investor portal, and more. And with Covercy Wallet, you can generate industry-leading interest from your capital funds. It’s everything you and your team need to make the most out of every opportunity.