Leveraging Investor Management Software to Overcome Market Shifts
The CRE industry is constantly evolving, and technology, such as an Investor Management software, continues to be an agent of this change. As the market continues to shift, tedious tasks such as identifying new opportunities or monitoring a portfolio’s performance can become even more arduous. Now, more than ever before, upgrading a firm’s tech infrastructure has become an important factor in being able to effectively monitor and optimize portfolio performance. Unsurprisingly, 87% of executives believe technology will be needed to keep up with the industry’s evolution. As these changes occur, commercial real estate professionals must be open to adopting new technologies and adapting their current processes to reflect the market’s ongoing shifts.
Today, investors are demanding frequent engagement, regular communications, easy access to their data, and transparency about their investments from the sponsors and firms with whom they invest. During times of economic uncertainty, investors’ desires for consistent communications and on-demand 24/7 access to their existing investment deals will only increase.
Read ahead to learn why leveraging an investor management software is a critical factor for both firms and investors in successfully moving forward in an everchanging market.
Actionable Insights for Data-Driven Decision Making
Today, data analytics can be used by investors and investment managers to manage risks and complexities more effectively than ever before. By extracting and leveraging data, firms can more quickly identify patterns and opportunities to better and more accurately predict future scenarios. Forward-thinking firms are aware that access to data-driven insights can greatly impact the investment process. They also realize that leveraging technology to provide data to investors can enhance their relationships and increases the chances of securing repeat investors.
For investors, access to data enables them to better monitor and manage risks, resulting in faster decision-making, lower transaction and operational costs, and more efficient portfolio optimization. Therefore, in the midst of downturns in the market, investors’ expectations and demands for actionable data and insights as well as accurate assessment of risks becomes even more essential. During this time, investors review their portfolios’ performance more frequently to determine the best actions to take.
Leveraging real estate investment software to extract data and insights allows firms to gain an economic, situational, and/or market advantage. As a result, executing faster on change and identifying portfolio opportunities becomes more manageable tasks for both firms and investor.
Monitoring Performance and Protecting Returns
Although monitoring the performance of a portfolio is important during each stage of the investment lifecycle, in times of volatility extra attentiveness to how investments are performing becomes even more critical. While some investors may have forgotten that risk-management matters, history shows us that it is the effective preservation of capital in the face of market shifts that truly drives successful long-term investment outcomes.
Providing Trust and Transparency
As the market continues to shift, investors’ demands to receive frequent updates and unrestricted access to the details and performance of their portfolios will drastically increase. Having 24/7 on-demand access to performance insights ensures increased control over their investments, creating comfort and confidence amidst any potential unpredictability and the risk that comes with investing.
Because the data and insights that are collected and stored by firms often contain highly valuable and sensitive information, including investment data, investors’ personal contact info, and private bank account information, transparency is a critical component of a healthy relationship between sponsors and their investors. CRE technology tools, like an Investor Dashboard, provides investors with convenient, secure, and unlimited access to data. Additionally, tools like an Investor Portal can be used to securely store and access important documents. This unlimited availability creates an opportunity to showcase a firm’s commitment to transparency even during times when stakes are high.
The adoption of an investor management platform, such as RealPage IMS, makes it easier than ever before to be transparent with investors. Particularly, when the market shifts, fostering an open exchange of information facilitates a smoother transactional process. Additionally, openly sharing insights with investors to aide them in making more informed investment decisions is critical in the midst of today’s evolving market. Ultimately, firms who use investor management technology during a time when investors expect and demand it most are positioned for present and future success.
You may also be interested in reading 4 Top Performing Assets to Consider During Market Shifts.