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The Proven ROI of Real Estate Investment Management Software

By Mike Sebastian December 16 2022 min read
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In today’s increasingly volatile interest rate and investment environment, you need all the advantages you can get in managing your firm’s financial and operational data.

Automation is one way you can control costs, scale, and grow your portfolio and assets. It can help you to outperform competitors. Investment management software is the way to automate your firm’s work, giving you insights into your day-to-day and longer-term, strategic decisions.

Spreadsheets and manual preparation of investor statements aren’t a good match for the fast pace of today’s real estate investment environment. Investors are used to accessing instant banking and financial information: 24 hours a day, 7 days a week, anywhere in the world.

Having control of your financial data and providing a seamless experience to your investors doesn’t just make good sense from a customer service perspective, it also helps to protect your firm from unnecessary risk.

“Excel and word aren’t what we’re doing anymore. We need a platform.”  – Morris Groberman, Principal, NWCREI

There’s never been a more crucial time to invest in CRE software that can help you to manage, grow, and scale your real estate investment business. Relying on manual, outdated processes means you will be leaving money on the table by taking more time to communicate with investors than is necessary. You run the risk of being outperformed by competitors, who are able to streamline their processes for communicating with investors and maximize their efficiency and performance when it comes time to raise funds.

Leveraging purpose-built investment management technology yields measurable results.

Our team at AppFolio Investment Management has been working with the real estate industry for over a decade, and we’ve surveyed high-performing real estate investment managers about the ways that software enabled them to increase returns even in unfavorable economic conditions. Here are some of the results:

Quickly scale and grow

Time spent working on spreadsheets or manually creating and emailing K-1s is time that your staff can’t spend scaling and growing your business. 100% of AppFolio’s current customers said that the software allowed them to scale and grow their business at the same time as they lowered overhead costs.

Customers who have used the software for over a year have an average increase of 70% in Total Equity Under Management.

“It’s just a great value and it’s helped me raise millions of dollars.” – Morris Groberman, Principal, NWCREI

Execute faster fundraises

AppFolio’s customers said that it took them 59% less time to fundraise for new deals after using AppFolio’s investment management software. And, when working on individual deals, over two-thirds of AppFolio customers reported saving 4 to 10 hours per deal.

“Ultimately, we’ll be able to raise more capital through fewer investment vehicles.” – Jeremy Tarr, Chief Risk Officer and Partner, Argo Property Group

Impress and attract investors at scale

With real estate investment management software, you can also grow the way you want and meet the needs of your current and future investors. Streamlining investor communications and offering a personalized Investor Portal attracts new, qualified investors who will be exploring your firm and its offerings.

Over 70% of customers reported they saw a 10 to 40% decrease in investor inquiries after implementing the Investor Portal.

“We are able to save time and get repeat investors because of the Investor Portal.” – Al Bazan, VP of Accounting, Capital Fund 1

Save time and reduce costs

Adopting technology can drastically reduce operational expenses and give you time back so you spend less time on manual tasks. Over 97% said it is easier to do their day-to-day job since using AppFolio’s software.

“Using the technology to maximize efficiency and productivity means we do more, with a lot less overhead.” – Ricky Flandez, Winstar Properties LLC

The cost to evaluate software during this time is free, and the benefit could dramatically improve your performance despite market conditions. Speak with our team to learn more.