The real estate market relies on receiving a high volume of investment from a number of varied parties. So, at every stage of your real estate career, you need to keep your investors happy to ensure success at each stage of the project. Read on to learn more about real estate investor reporting.
Real estate investor reporting is a key element of achieving this—every legitimate real estate company already has mechanisms for reporting in place. In this regard, the advancement of technology has allowed companies to explore new and more effective approaches to real estate investor reporting.
Real Estate Investor Reporting: An Overview
When someone invests in your real estate projects, they want to be informed about the progress of the project and how likely or close their investment is to turning a profit. Essentially, real estate investor reporting is the process of generating reports for investors that detail the state of their investment. These reports are generated periodically, usually each quarter or year. They contain details like project financials and profitability metrics, or – in the case of construction – information about how close a build is to completion.
Failing to provide prompt and timely reports can damage your relationship with your investors, which can have disastrous results for your current project, including the pulling of future funding. You may also find it more difficult to get investment in the future as you will gain a reputation for being unreliable. Furthermore, you need to ensure that the information in your reports is accurate. Withholding key information or providing false information to your investors can open you up to serious legal ramifications and again impact future funding.
How Technology Improves Real Estate Investor Reporting
The obvious answer is technological solutions make real estate investor reporting faster and easier, which takes a lot of the administrative burden away from you, whilst ensuring that the reports your investors receive are accurate, timely, and presented in exactly the way they prefer them. The most effective solutions take the form of software as a service, or SaaS platforms that contain all the features required to generate and send reports and track project fundamentals like finances and build progress. There is a wide variety of similar software platforms that provide these functionalities, along with other useful features for a real estate company.
SaaS solutions tend to have users operate their investment portfolio from a dashboard, allowing users to quickly generate reports and choose who to send them to. The information that fills these reports is already contained in the system as it monitors existing financials and project progress and makes it conveniently available to the user. Companies are also beginning to use automation to ensure that investors are paid the returns from their investment on time and so that the sending of reports can be more effectively managed.
The Future of Technology in Real Estate Investment
Automation has already seen a steady introduction into real estate investor reporting. However, it is likely that the use of automation in real estate investment management will become even more widespread in the coming years. This will likely automate the entire process of reporting and distribution of funds, limiting human intervention. Automation in real estate will make way for both investors and real estate companies to have more time to manage other aspects of their business, and spend less time chasing reports.
It is also possible that companies will attempt to utilize blockchain technology in real estate investment and reporting, particularly its smart contract and security capabilities. In addition to this, we are likely to see new methods of investment and technologies develop for the betterment of investors and the real estate market as a whole.
Technological solutions have helped the real estate market by allowing real estate investors streamline their relationships with their investors. By being able to automatically generate accurate reports and send them to investors when required, real estate companies can ensure that they maintain good relationships, increasing the likelihood of reinvestment and generating a positive reputation in the property industry.
It also allows for better transparency in terms of payments, with investors being able to see exactly how much they are entitled to, along with the breakdown, and payments being made as scheduled. We are likely to see more contemporary technological solutions emerging in the future that will change the way investment and its associated reporting works in real estate.