Switching Lanes
Traditionally, asset managers and property agents offer advice based on industrial expertise, yet the winds have begun to change. We now live in the digital age where technology and data have become necessary components for thriving in the competitive market.
Unfortunately, technological adoption poses a significant challenge for many real estate firms, putting them at a severe disadvantage. Confident and successful portfolio management goes beyond placing a finger on the pulse of market movements.
The modern asset manager needs to recognize the essential nature of data and convey exclusive information to the most valuable investors. It is a necessary trust-building exercise where technology serves as the prized vehicle.
The big question remains: is the real estate market ready for tech?
Why Some Firms Are Out of Touch
Historically, firms faced the issue of tech adoption for one primary reason—prioritization. Asset managers handle tons of paperwork (though now mostly digitized) and manual tasks that occupy most of their professional lives.
Additionally, as with many other industries, real estate professionals have grown comfortable with their default workflow. More traditional firm managers might sell themselves short by declaring that AI cannot match their team’s knowledge and expertise.
It becomes almost disruptive to initiate a digital/tech transition that requires reorganizing tasks into new systems. Some firms would rather wait it out before a given tech becomes an industry standard. Yet, a reactive business strategy restricts portfolio optimization and compromises investors’ trust.
With some research, it is easy for savvy investors to discover a firm’s shortsightedness and jump ship to a better-equipped competitor. Therefore, the best way forward is to implement a tech-driven system that empowers real estate investments.
How Tech Changes the Real Estate Landscape
Fundraising is one of the biggest challenges in the real estate industry: getting from point to point and chasing investors for a close is a familiar notion. The disruptions from the earlier pandemic phases proved that asset managers needed to take their operations online with greater efficiency.
Modern firms can benefit from maintaining client relations on a reliable investor management platform. Specifically, the program should offer automated capabilities that guide managers through various stages of the investor pipeline.
Through a tech-assisted platform, professionals can spend less time sifting through investor portfolios and avoid subscription lapses.
Detailed Reporting and Assessments
While investors usually trust that asset managers have their best interest at heart, it is necessary to present the relevant data for a fact check. Well-documented reports should outline the latest local, national and market insights to provide investors with a comprehensive breakdown of potential risks and returns.
Aside from optimized report generation, firms need a reliable means of assessing investor response and behavior to tailor the best recommendations. Therefore, it is integral to ask questions such as:
- What are the priorities of my investors?
- How can I present relevant information most clearly?
- Are investors engaged with the reports?
A real estate CRM makes it possible to address and resolve these questions, providing investors with the confidence they need to maintain and expand a portfolio.
Optimized Communication
Real estate asset management is ultimately a people-first process. A conventional approach to investor communications involved juggling various contact points resulting in undelivered emails and poor data management.
Advanced technology fixes the problem by enabling asset managers to communicate with investors through a one-source channel. Consider it as firms running their discussions from an online HQ, where they can quickly blast emails, retrieve investor details and enhance investor-firm relationships.
The Future of Real Estate Asset Management
The real estate market remains one of the most popular and practical investment avenues. Research projects a market growth from $2687.35 billion in 2020 to $2774.45 billion in 2021 at a compound annual growth rate (CAGR) of 3.2 percent.
For the most part, there is a constant opportunity to accrue a consistent income—with the right level of research and understanding of the market. That is where an asset management firm comes in to tabulate the risks and opportunities for investors, to help them secure the best outcomes through the most volatile scenarios.
While real estate professionals may overlook the importance of tech, now is the time to be ready for it. 78 percent of respondents in the joint survey, Emerging Trends in Real Estate Europe, believe that there will be an uptrend in tech use within the next three to five years.
Author: Bar Mor is the CEO and Co-Founder of Agora, a fintech/SaaS company that has developed advanced real estate investment management software. They help companies raise and preserve more capital by automating their back-office operations, increase their investors’ satisfaction, and provide them with advanced tools. Bar is 27 years-old and lives in Tel Aviv. He was recently recognized as an Emerging Real Estate Leader.
