Yardi’s Investment Management Industry Principal, Chris Barbier, has a few insights on the secret to satisfying today’s tech-savvy, sophisticated, and inquisitive real estate investors. According to Barbier, today’s investors are not only seeking more information, but they also want lightning-fast, reliable access to it.
While the purpose of investing in real estate remains unchanged, the investment process is rapidly evolving. As Barbier points out, investor priorities have remained consistent over time, such as optimized returns, timely capital allocations, constant communication throughout the investment lifecycle, and accurate determination of distributions. However, what’s changing is how those priorities are being met.
Barbier notes that investors’ expectations are increasing as technology advances, replacing paper reports, back-and-forth emails, and spreadsheets with the online and remote convenience that real estate investors experience in other aspects of their daily lives. Investors today keep a close eye on both value and income production, and the scope of reporting has expanded beyond financial performance as investors realize that property operations impact cash flow and, ultimately, asset value.
To meet these new demands, investors increasingly turn to technology platforms that offer “full visibility” across a portfolio of assets. As Barbier explains, a single connected investment management platform is the technology of choice for many real estate investment managers as it creates one “source of truth” for real estate asset operational and financial data. This gives investors greater clarity into their holdings and identifies risks.
These systems can assimilate property prospecting, preliminary underwriting, rent and expense data, loan abstracts, maturing debt by property and owner, asset ratings, valuation tracking, occupancy trends, and more. Furthermore, advanced investment management technology provides insight into property-level operations such as maintenance status, open accounts receivable, and energy consumption.
Barbier emphasizes that the best-of-breed solutions cannot manage an investment asset through its lifecycle, which begins with identifying the opportunity and continues long after the deal closes. An integrated technology platform continuously collects data related to facilities maintenance, construction options, energy consumption, and other operational details that impact asset value. This generates vast data for evaluating an asset over a years-long investment lifecycle.
According to Barbier, this approach results in faster and better-informed investment decisions. As a result, he notes that successful real estate investment strategies in 2023 and beyond will depend on advanced connected solutions that automate the entire investment lifecycle.
To manage all aspects of the investment lifecycle, deliver timely and accurate information, and minimize risk, Yardi can provide help. Visit yardi.asia to learn more.