The Importance of Property Software for Investment Managers
GP How-tos
Efficient Property Software Will Help You Focus on the Big Picture
The commercial real estate industry is well-known for its staying power. The market is experiencing significant growth, and is expected to show an annual growth rate of 2.96% between 2024–2028. In a post-pandemic world, however, the industry has gotten increasingly volatile. Subject to outside influences like fluctuating interest rates, increased vacancies, supply chain issues, global financial instability, and other key demographic shifts, it’s no secret that CRE firms are bustling to keep up with the changing landscape. Now more than ever, efficient property software for investment managers is needed in order to reach the revenue and growth goals you have for your firm.
What GPs and Investment Managers Need in Property Software
Property software plays a vital role in more effectively streamlining operations. You need to be able to manage all assets in one platform, regardless of type — whether it’s a traditional asset class or an alternative one. Investing in multiple platforms to manage these assets would take time and money — resources that can be better spent on reaching your firm’s revenue goals. A single-solution, centralized hub is vital to grow your assets and portfolio. Let’s dive into some key aspects that investment managers need in property software.
1. Automate Distribution Payments
It’s important to be able to set up deal structures for each asset. For instance, a waterfall structure is used to determine how profits are distributed to stakeholders. Typically structured in a series of tiers, the stakeholders involved in the distribution waterfall are the general partner (GP) who manages the investment, as well as the limited partners (LPs) who contribute capital. These calculations can prove to be complex. Investors want to know that their payments will arrive on time and easily. Delayed payments or incorrect payments will result in unhappy investors, which means more stress for you. You need to find a property software that can easily manage those payments.
2. Raise Capital Quickly
Property software for investment managers also needs to be able to fundraise and conduct capital calls quickly and efficiently. CRE firms need to be able to raise capital quickly, so software should track investments and manage profit distribution. Property software can also automate many tasks associated with raising capital, like sharing documents such as investment agreements, and managing investor relations by keeping them informed and engaged.
3. Track Transactions
Tracking transactions, like vendor payments, quarterly distributions to investors, and other document history, is also important because it makes for a more flexible, efficient, and secure platform. Investors will appreciate the privacy and ease that comes with document sharing, while investment managers will love the organization and control that certain software provides. You should be able to choose who sees what. That flexibility is key for creating an organized and efficient system.
4. Streamline Reporting in an Investor Portal
A successful property software will also be able to automate reporting and provide self-service to investors. This means that investment managers should rely on software that streamlines the reporting process so that stakeholders can make informed decisions about key performance metrics, like rental income or vacancy rates. Similarly, it’s important to provide an investor portal where LPs can easily view portfolio performance, assess their holdings, manage documents, and communicate with investors. This property software tool can lead to better communication and increased efficiency, which means increased investor satisfaction.
Set Yourself Up for Success with Covercy
It’s obvious that the commercial real estate industry is complex and ever-evolving. At Covercy, we understand the importance of streamlining operations in order to create a more efficient and successful business for you. Our platform is unique in that it offers automated distribution payments, an elegant investor portal, scalable central management, as well as CRE banking features which allows GPs to stay organized and manage their finances quickly and easily.
