The CRE industry is constantly evolving, and technology continues to be an agent of that change. Forward-thinking firms that embrace integrated technologies are better positioned to streamline their processes, gain better intelligence from their data, and transact faster with investors than their counterparts. With 80% of investors indicating that they would specifically choose firms that prioritize and leverage tech, adapting to the industry’s technological disruption is critical for firms that desire to acquire new investors and raise capital faster.
IMS recently partnered with Adam Hooper, CEO of RealCrowd, to discuss how firms can use the industry’s technological disruption to their advantage and gain new investors and raise capital quicker and more efficiently.
Providing Transparency Through Online Transactions
CRE technology is transforming the way that the commercial real estate industry conducts business, develops strategies, and engages with clients. As the industry’s standards evolve, investors’ expectations are also changing. In particular, investors expect sponsors to provide transparency concerning the information, data, and insights that they share. In fact, 60% of investors cite degree of transparency as being an important consideration for their investments. With the help of technology, satisfying evolving investor expectations is streamlined and more efficient.
By using a CRM with an Investor Dashboard, like IMS, firms can provide 24/7 on-demand access to investment data, establishing trust and enabling more regular and efficient communication with investors. Online transactions not only allow investors to review, commit, and invest in a deal, but also to monitor their past or current investments.
Additionally, as the rise of new technologies and a younger generation of investors advances, leveraging technology will be key in acquiring this new class of investors. With over 80% of Millennials wishing the process of investing in real estate were easier, firms that are able to provide this cohort with the technology and data that they desire are likely to find it easier to attract this audience of investors.
Driving Investment Opportunities through Crowdfunding
CRE technology provides a distribution mechanism in which sponsors can leverage various technology-based forums to acquire investors. With an estimated 125 to 150 real estate crowdfunding websites, access to these online platforms drives opportunities for both sides of the marketplace. Investors can use the platform to find and monitor investments and firms can leverage the platform to seek out investors.
Crowdfunding allows sponsors to tap into a larger investor pool than the traditional way of raising capital. With 60% of CRE executives reporting that their firms are using or exploring online investment marketplaces and crowdfunding platforms, the idea of using crowdfunding as an effective tool to diversify capital sources and grow the investor base is undeniably gaining traction and driving opportunities within the industry.
Streamlining Onboarding for Investors
An investor management platform, like IMS, simplifies the process of raising capital and growing your investor base through streamlined onboarding for investors and a seamless data integration with a crowdfunding platform, like RealCrowd. For firms, having a smooth, end-to-end process for raising capital online and managing investors creates opportunities for attracting a larger group of investors.
Today, 87% of executives believe technology will be needed to keep up with change, while only 44% believe their firms are preparing for the digital disruption. As this disruption continues to impact the CRE industry, understanding how to effectively leverage technology to scale the business and grow the investor base is critical for a firm’s success.