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These investment managers bought software in 2020. Here’s what they have to say about investing in technology during economic downturns.

By Mike Sebastian November 3 2022 5 min read
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There is an insidious side effect that emerges during economic downturns that has detrimental consequences for a business, and it can be summed up in one word: inaction.

When the market slows down, we tend to become paralyzed by the unknown. Some like to package this as a “wait and see approach,” but this lack of action allows the toxins of a slowdown to seep into the cracks of your business, and the free fall will begin before you may even realize.

Smart investment managers know an economic downturn is the perfect time to act. Instead of halting progress, they see this time as an opportunity to take a hard look at their business and optimize what no longer serves them so they may propel forward. The result: while other firms are stuck standing still, they emerge stronger and better prepared for the inevitable recovery.

We spoke with a few investment managers with this mindset. When faced with unprecedented market uncertainty in 2020, they made the choice to partner with AppFolio Investment Management, a technology that promised to streamline their back office operations and improve their investor relations.

Here are their reasons for choosing to act:

“When you have a slowdown of deal activity, there’s no better time to improve your processes. It was intuitive for us to take advantage of that time and scout out a software that can help solve our problems because we were thinking ahead.” – Andrew Zimmerman, Principal, Galvanized Holdings

“We knew having a good investment management platform was critical to how we do our jobs on a daily basis. In economic downturns you want to cut back on luxury goods–and this was a necessity.” – Adam Deermount, Chief Investment Officer, Ramser Development Company

“Software is one of my best employees. It helps me keep my operating expenses–like headcount–low and reliable during economic downturns.” – Morris Groberman, Principal, NWCREI

It may seem counterintuitive to invest in your business when the market calls for frugality–that is why it is critical to select software that will drive measurable returns. To better understand how your business will uniquely benefit from investment management technology, try the AppFolio Investment Management ROI calculator for a customized consultation.

Economic downturns can be relatively swift, and this unique opportunity to strengthen your business before the best deals go to market is rapidly closing. Our team at AppFolio Investment Management recognizes this urgency and has built a quick and comprehensive evaluation and onboarding process that can get your team equipped in weeks.

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