Overcoming Common Pain Points in Multifamily Real Estate Investor Management

Multifamily real estate remains a popular asset class in ALTs investing, yet effectively managing a portfolio of properties can be a complex endeavor. The challenge only increases as investors grow busier, an inevitability for growth-minded investors.

There are a multitude of technology pain points that can hinder optimal performance. These limitations impact scalability and resource allocation for growing alternative investment firms. Following are common technology sticking points we hear often from new clients.

Lack of Flexibility

Multifamily real estate is a dynamic sector; market trends shift, tenant needs evolve, and investment strategies require constant adaptation. Yet, many traditional investor management tech solutions struggle to meet these needs. Their rigid structures lack the flexibility needed to customize and drive much-needed efficiencies.

One key limitation lies in data customization that is lacking. Inflexible platforms that offer a limited set of data fields can make it even more challenging to meet compliance and reporting obligations—or even to conduct more in-depth analysis. Investors that want to capture additional information and metrics are left with cumbersome manual workarounds, or simply without valuable insights that could inform future investment strategy.

Inefficient Fundraising Workflows

Fundraising workflows that rely on a combination of manual processes and disparate systems create bottlenecks that impede efficiency and can even lead to missed opportunities. Investors that want capitalize quickly on attractive investment opportunities can’t always count on spreadsheets, email strings, and manual data entry to work quickly and in-sync without delays or missteps.

The frustration can extend beyond inefficiency when transparency and real-time communication ability are hampered, too. Firms become unable to make quick decisions, keep everyone on the same page, or effectively build trust and confidence during the fundraising process.

Limited Reporting Capabilities

The world of multifamily real estate investing is increasingly data-driven, but many reporting systems haven’t kept pace. Limited reporting capabilities force investors into manual data manipulation that not only eats away at valuable time, but also introduces a high risk of errors. Juggling spreadsheets and trying to piece together a comprehensive picture is a problem for strategic decision-making. Even when it “works,” it raises concerns about data integrity.

Firms must be equipped to report timely, accurate information to investors—at a minimum. Reporting capabilities should also enable them to identify trends, optimize operations, and make data-backed decisions to maximize returns. Too much time-consuming manual work gets in the way of what truly matters: leveraging insights to unlock the full potential of their multifamily real estate investments.

SPI Advisory Reimagines Investor Relations and Fundraising

Strategic Property Investment (SPI) Advisory was experiencing every one of these pain points—and more—when they embarked on an extensive evaluation of more than 20 different technology solutions.  Ultimately, their selection centered on which platform was versatile and robust enough to meet the spectrum of their specific needs today, and grow with them into the future.

“I selected Dynamo because I could see it was a flexible platform that would give us as the business full access to configure not just background settings but database fields, the user interface, workflows, and features to fit our specific business needs,” said Jennifer Warder, Principal of SPI Advisory.

Using the Dynamo platform’s CRM, Investor Portal, and Fundraising modules, SPI Advisory quickly saw key improvements that included:

  • Custom fields and reports. SPI easily added custom fields across the Dynamo database and investor portal to streamline data capture for compliance requirements. The setup time was minimal.
  • Enhanced fundraising workflows. A revamp of the fundraising process allowed for the collection of necessary data upfront. Existing investors experienced a dramatic reduction in submission times, from 30 minutes to two, thanks to auto-populated subscription booklets.
  • Intelligent distribution process management. The monthly distribution process was greatly streamlined by eliminating manual rounding errors and accurate ACH instructions from the Dynamo system. This shortened the monthly distribution time from 1.5 weeks to just 2 days.
  • Tax preparation efficiency. Customizable reports cut down the three weeks spent manually adjusting raw tax data to just 3 days, ensuring more precise K-1 data delivery to CPAs.

“Dynamo has had a vast and nearly incalculable positive effect on our team’s efficiency and quality of work life,” Warder said. “We find new ways to utilize Dynamo every day. The gift of efficiency has allowed us to work on projects that grow our company rather than staying mired in mind numbing, critical workarounds. The effect has been so electric, we are about to expand Dynamo to assist us in areas beyond investor relationship management.”

The Right Technology Partner for Real Estate Investment Firms

It’s possible to handle high volumes of financial transactions and investor engagement with agility and precision. To learn more about how SPI Advisory unlocked new levels of productivity with Dynamo’s flexible and comprehensive platform, read the case study with more detail.

SPI Advisory Success Story

 

Donna Parent is the Chief Marketing Officer (CMO) at Dynamo Software. Donna is responsible for the corporate brand, demand generation strategies, and go-to-market initiatives for promoting Dynamo’s end-to-end cloud-based platform to the alternatives ecosystem. She is focused on fueling lifelong relationships with consumers, businesses, and strategic partners. Connect with Donna on LinkedIn.