Technology has had a massively drastic impact on the real estate market, just as it has done for a number of industries globally.
The methods used for fundraising are rapidly changing, with crowdfunding being an example of a recent development in fundraising.
In this article, we’re going to go through the role of modern technology and how it is impacting commercial real estate fundraising, which is occurring in multiple ways. This is helping more businesses to get the funds they need for their real estate projects.
Communicating with Investors
One of the ways in which technology is changing the landscape of modern commercial real estate fundraising is that it is making investor communication easier than ever. Real estate investor portal software allows investors to be contacted instantly and automatically updated about the progress of any real estate project they are involved with, compared to managing channels of communication previously.
This also makes it easier to get the initial investment that you need to get your project off of the ground. This is particularly important due to the fact that current projections for investments in the commercial market for 2023 are projecting further stalls in the market.
Raising funds is effectively the most important aspect of any real estate project. Without having access to funding, you’re not going to be able to purchase land or property and you’re not going to be able to make developments either. The majority of people and companies do not have the capital to do all of this on their own. This is why technological solutions to support commercial real estate fundraising are incredibly important. There are real estate platforms dedicated to marketing your investment opportunities to potential investors through physical and digital channels, which will make you more likely to get the funding you need from LPs in real estate and GPs .
Document management solutions are one of the most exciting technologies currently in the real estate market. With these solutions, real estate companies are easily able to send contracts to investors and other parties with the click of a button. Signatories can then sign their agreement electronically, where they will then be saved and sent to each party for further use. This makes the administration process of running projects and managing investors much easier and a range of financial reports can even be instantly generated and sent across for viewing by the required parties, such as tax authorities or investors.
Distributing funds to investors can be incredibly tricky, especially if you have a large number of them. You have to figure out how much they’ve put in and how much they’re entitled to. Despite this, companies are innovating this process.
Some investor portals now have the capability to automatically identify the distributions that are owned to investors, which allows them to be distributed when agreed by contract, or at the request of the investor. There are also automated payment solutions for goods and supplies, which makes sure that you’re going to get the materials you need to bring success to your real estate project.
Improving Your Reputation
This comes from a combination of factors, but utilizing effective technology solutions in your real estate company is going to lead to an improvement in your reputation. For example, if you use payment solutions to make sure investors and other creditors are always paid when they’re owed, then you will be viewed more favourably than companies which are less efficient with paying.
Furthermore, having effective communication channels with your investors will have a positive impact on your reputation as they see you as a safer bet when you update them.
In closing, technology is having a massive impact in modern commercial real estate fundraising. Technological solutions are making it easier and more streamlined to get access to funding through improved investor communication, the rapid and accurate distribution of profits from projects.
Furthermore, when investors actually agree to invest in a project, documents are now able to be sent digitally for rapid signing, which removes bottlenecks in the investment process. Overall, businesses that are embracing technology and digital solutions are seeing much more success in their investment efforts than companies that aren’t.
The role of technology in modern commercial real estate fundraising