Empowering General Partners (GPs) with comprehensive deal flow management,
Covercy streamlines commercial real estate transactions from sourcing to closing.
What does “deal flow” mean?
“Deal flow” is a term used across various industries, including commercial real estate syndication, to describe the rate at which business proposals and investment pitches are being received.
In commercial real estate, this could refer to the volume of transactions, including purchases, sales, leases, and developments, that an investor, broker, or real estate firm is exposed to and handles over a given period of time.
What is a typical deal flow in commercial real estate?
Source of Deals: Deal flow can come from various sources, such as brokers, partnerships, agents, digital platforms, networking, direct mailing, cold calls, or referrals.
Analysis and Due Diligence: Not all opportunities received in a deal flow will be pursued. Each opportunity must be analyzed for its potential return on investment, risk, and fit with the firm or individual’s strategic goals.
Negotiation and Closing: If a property passes the analysis and due diligence phase, then negotiations for the terms of the deal can begin. Once terms are agreed upon, the deal can be closed.
How can deal flow be measured?
The quality and quantity of deal flow can be an indicator of the health and vitality of a business. A robust deal flow means a business has plenty of opportunities to choose from. Conversely, a slow deal flow could mean fewer opportunities and potential stagnation.
In the commercial real estate market, having a strong and consistent deal flow is essential to finding lucrative opportunities.
Manage end-to-end deal flow, from sourcing to closing, with Covercy.
By embedding banking functionality within the investment management platform, Covercy gives commercial real estate GPs a unique way to manage deal flow process and investor communication. Choose from three investment management software packages based on your firm’s needs.
Deal rooms & deal pages explained
A “deal room” or “deal page” is typically used in the context of mergers and acquisitions (M&A), real estate transactions, fundraising, or any other situation where a deal involves multiple stakeholders and a significant amount of information that needs to be reviewed and shared.
What is a deal room? Is it different from a deal page?
Deal Room: Also known as a “data room” or “virtual data room” (VDR), a deal room is a secure online repository for storing and distributing sensitive documents. In the context of a deal, these documents could include financial statements, contracts, property information, and due diligence reports. These virtual rooms offer secure access controls, allowing different stakeholders to access specific documents at specified times. They also provide auditing capabilities, giving administrators the ability to track who has accessed what information and when. In commercial real estate deals, GPs often use deal rooms software to share important deal information with specific limited partners or prospects only.
Deal Page: A “deal page” is typically a part of an online platform used for deal-making, like a crowdfunding or investment platform. It’s a dedicated page that provides detailed information about a specific investment opportunity or deal. The page may include information about the business or property for sale, financial projections, investment terms, risk factors, and more. Potential investors can review the deal page to make an informed decision about whether to participate in the deal. Deal pages tend to be used to advertise an available investment opportunity to a higher volume or prospective investors.
Both deal rooms and deal pages are designed to facilitate deal flow by providing a centralized place for information sharing and collaboration. They increase efficiency, enhance security, and provide transparency, thereby reducing the risk of misunderstandings or missed details.
Deal flow software, also known as deal flow management software or deal pipeline software, is a type of software designed to help manage and track investment opportunities from initial contact through due diligence to closing. It’s commonly used in industries like venture capital, private equity, investment banking, and commercial real estate.
Contact Management
Allows for organization and tracking of all contacts related to a deal, including leads, investors, fund administrators, intermediaries, lawyers, and more.
Deal Tracking
Tracks the progress of deals from sourcing to closing. This may include status updates, notes, and reminders related to each deal.
Pipeline Management
Provides a visual representation of all deals in the pipeline, showing what stage each deal is at, such as initial contact, negotiation, due diligence, or closing.
Task Management
Allows for assignment, scheduling, and tracking of tasks related to each deal. This ensures all necessary actions are taken in a timely manner.
Deal Marketing
Features for creating and sharing deal marketing materials, such as online deal pages, email campaigns, and virtual data rooms.
Investor Portal
A secure portal where investors can view deal information and documents, make commitments, track their investments, and access reports.
Reporting and Analytics
Provides insights into the deal flow process, such as the number of deals at each stage, the average time a deal spends at each stage, conversion rates, and more.
Integrations
Capable of integrating with other software systems like CRM, marketing automation, ERP, accounting, banking, email, calendar, and more.
InvestNow: Powerful Deal
Marketing for GPs
Covercy gives real estate GPs and investors modern conveniences with powerful InvestNow marketing features. InvestNow serves to facilitate the investment process for accredited investors interested in working with a GP using Covercy. Here’s how it works.
Deal Listing: An investment opportunity (e.g., a new commercial real estate project or property) is listed on the Covercy InvestNow platform, complete with all relevant details – project description, financial projections, risk analysis, terms of investment, etc.
Investor Accreditation: Before being able to invest, users typically need to go through an accreditation process on the platform to verify that they meet the financial criteria set by regulatory bodies (like the SEC in the U.S.) for accredited investors. This usually involves providing proof of income, net worth, or professional experience in finance or related fields.
Investment Decision: Once verified, the accredited investor can browse through the listed deals. If they come across a deal they are interested in, they can further examine the details provided on the deal page.
Commitment to Invest: When an investor decides to move forward with an investment, they can click on the “Invest Now” button. This typically takes them to a page where they can specify the amount they intend to invest and review the terms and conditions.
Due Diligence and Finalization: After committing to invest, there might be further due diligence processes, like anti-money laundering (AML) and know-your-customer (KYC) checks. Once these are cleared, the investment is finalized, usually involving digital signatures on investment documents and arrangement for fund transfer.
Post-Investment Tracking: After investing, the investor can use Covercy to log into their investor portal to track the progress of their investment, receive updates, view returns, etc.
The “Invest Now” feature streamlines the investment process and makes it more accessible for accredited investors, providing a convenient way to invest in commercial real estate deals. By reducing friction in the investment process, it encourages more investors to make commitments and helps real estate firms raise capital more efficiently.
With Covercy, you can automate many of the tasks involved in managing deal flow, reducing errors associated with manual work and increasing efficiency.
Covercy provides a clear view of all deals in the pipeline, helping businesses prioritize their efforts and identify bottlenecks.
Covercy helps real estate firms manage an increasing number of deals as they grow, without needing to significantly increase their administrative resources.
Efficiency & Accuracy
With Covercy, you can automate many of the tasks involved in managing deal flow, reducing errors associated with manual work and increasing efficiency.
Visibility
Covercy provides a clear view of all deals in the pipeline, helping businesses prioritize their efforts and identify bottlenecks.
Scalability
Covercy helps real estate firms manage an increasing number of deals as they grow, without needing to significantly increase their administrative resources.
Bringing together investor communications & deal flow management
Covercy is the first real estate platform where banking meets investor communications & deal management.
Covercy is the only investment management platform on the market with end-to-end functionality, from deal sourcing to distribution calculations and payments back into investor bank accounts. With Covercy, GPs have a robust toolbox of deal flow tools that streamline the complex process of commercial real estate syndication all in one place.
Bringing capabilities such as investor management, fundraising, automated distributions, and more into a single platform, Covercy also provides GPs and their teams with the ability to open, manage, track, and report on bank accounts and activity tied to their assets, funds, investors, and more. GPs and LPs who open accounts through Covercy are eligible for high-yield APYs on all cash held, generating a whole new revenue stream for real estate firms.
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How to Find the Best Real Estate Deals
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