Commercial real estate investors are taking a big risk when they place their trust, and their dollars, in a CRE sponsor, and they want to feel confident that they are making the right decision. As investors become more and more tech savvy, they are investing in crowdfunding platforms with the ability to look at deals and navigate a much larger real estate sponsor base than in the past.
Now that investors have more information and investment options, sponsors have to work harder to build trusting and meaningful relationships and to exceed investors’ expectations. Studies show that having the right tech stack is one way to exceed these evolving expectations. In fact, 80% of investors say they specifically choose firms that prioritize and leverage tech and 63% of new investors say they would be more likely to invest in CRE if there were technology available to make the process easier. Thus, having the right tech stack in place can be the difference between gaining or losing a potential investor.
Read ahead to learn why the right tech stack is critical for satisfying investors’ evolving demands and expectations.
Enhancing Trust and Transparency
Tech stacks increase data security, boost transparency, provide investors with better access to information, and much more. Without a complete tech stack, investors may experience having their personal information at risk, a lack of trust and transparency, or limited data accessibility. Tech stacks are also recession-proof, meaning they drive efficiencies and provide value regardless of the state of the market. Therefore, trust and transparency is likely to remain strong even during potential downturns in the market.
Creating Seamless Integrations
Investors expect fully integrated technologies that present a unified, user-friendly interface. There are many CRE tech providers that are partnering to allow for seamless, end-to-end integrations that do not disrupt the investor. RealPage IMS combines the features of many independent technologies to address both sponsor and investor demand for ease of use while supplying all-inclusive value-add features like CRM, investor dashboards, and K-1 distribution.
Providing Instant Gratification
Investors who are accustomed to technology expect real-time data access, fast transaction speeds, and responsiveness from their sponsor. A fast-paced, consumer-driven culture has created an environment that requires little waiting, resulting in a population with dwindling patience. Investors don’t want to wait for an update on their investments. They want the same convenience they get from a self-check-out kiosk or from fiber internet: minimal disruption and maximum productivity. A carefully-selected and well-integrated tech stack can help to amplify the efficiencies of investor management software, enabling investors to access information on the go, and driving additional value for investors.
Because of the industry’s slow adoption, firms that leverage tech gain a competitive advantage and become somewhat immune to the future challenges that may arise for those who have not yet done so. These challenges could include a loss of data due to disparate systems or a lack of significant data aggregation caused by using a system that is not capable of processing heavy volumes of data. With the right tech stack, firms can avoid future problems and focus on scaling their business.
You may also be interested in How to Build a Winning Tech Stack: Unlocking Back-Office Efficiencies.