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What Keeps Your Real Estate CFO Awake at Night

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. ID-100302395

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.

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