The relationship you foster with your investors is core to your business’ success. However, many investment managers are falling short when it comes to offering their investors the type of relationship they desire. Based on a survey by AppFolio Investment Management, nearly a third of investors struggle to find a good investment manager. Today’s investors expect more than a just professional and trustworthy relationship, they also want access to on-demand technology that allows them to manage their investment from anywhere, on any device. Here are 5 ways you can attract more investors, strengthen your current relationships, and stand out from the competition.
Expertise in finances and real estate is a key requirement for real estate investment managers. According to the AppFolio survey, 59% of real estate investors choose investment managers based on their ability to demonstrate financial and market expertise. While you may already have this knowledge, investors could still question your expertise if it isn’t apparent. One way to prove your expertise as a strategic partner is to provide your investors with insights into your firm’s overall performance, including statistics on real-time performance stats, as well as historical performance. In addition, you can regularly share details on upcoming investment opportunities, so they can see you’re at the forefront of the latest market trends.
Investors expect a high level of transparency when they partner with a real estate investment company. In fact, on a scale of 1 to 5 investors gave an average rating of 4.31 when asked how important transparency was in choosing their investment management company. By continually providing your investors with clear information on their investments and answering any questions, you can improve transparency and bolster their confidence. Tools like an online investor portal can help streamline communications and give your investors access to real-time information around the clock.
According to the AppFolio survey, over 75% of real estate investors take a hands-on approach to their investments. Rather than paper quarterly reports, today’s investors expect to be able to access information on their investments from anywhere and on any device. A customized investor’s portal, like in AppFolio Investment Management, gives investors instant access to a range of documents — from quarterly reports to K1s — so they can stay informed and make better decisions. In addition to providing investors with on-demand access to their information, this solution also minimizes the number of requests your team receives.
Create a Tangible Experience
Investors enjoy the experience of transforming buildings and other structures. It gives them a sense of pride in how their investments benefit a community. Findings from the AppFolio survey indicate that the majority of investors have a positive outlook, with 96% planning to maintain or increase their real estate investments in the future. While 73.3% consider themselves growth investors, meaning they’re seeking opportunities that promise substantial growth regardless of current price or performance. These investors want information that goes beyond standard performance metrics. If you provide investors with in-depth details and information, including photos and videos, you can improve their satisfaction and create the tangible experience they desire.
Easy access to information is important to investors, but investment managers must make sure information is secure. Storing documents electronically is inherently more secure than paper methods. However, you have to be sure you’re using an online platform that can be trusted. Cloud-based software, like AppFolio Investment Management, requires two-factor authentication and all information is encrypted, which ensures file-sharing remains secure. By implementing this type of technology you can give investors access to all their documents in one place, without compromising on security.
If you make these simple changes to your business processes and implement the right technology tools, you can significantly strengthen your firm’s investor relations. Give your investors the high-quality service and technology they desire, and you’ll be in the best position to attract and retain them in the long run.