The world of real estate investing is changing as rapidly as the changes in technology.
Investors want more and more information and there is a heightened level of reporting required. This, I believe, is partly as a result of the recession from 2008 through 2013 as well as the advancement and availability of big data.
Jennifer McLean, the Chief Financial Officer of GFI Capital Resources Group, Inc., a provider of a wide array of brokerage services including investment sales, commercial real estate financing and retail leasing, shares with me her concerns about the changing marketplace.
Jennifer’s top concerns are:
- Investors are looking for more transparency in the reporting requiring a higher level of integration between various investor technology platforms.
- From a dealflow perspective, particularly in multi-family, “there is a lot of money chasing deals” there is a challenge finding deals that fit with an investor’s return ratio.
- Raising new capital outside of current and well known investor groups or stated another way, how do you find new money.
Reporting has become very “laborious”, particularly if you have a lot of investors that you are working with. Now, every investor group wants their own reporting which invariably is not integrated into the fund managers accounting and data system. Developing a portal that investors can download information so that they can do reports as they need appears to be the next step in integration.
Ultimately, I believe that everyone would benefit from standardization of systems that would allow for both flexibility and consistency in reporting so that a comparison of performance is achievable in an affordable way.