By Tony Gilbert of The Real FX Group
When the real estate market is hot, good deals are snapped up quickly by those who have the financial means and the experience to recognize a good investment and act on their instincts. It’s a learned skill. Real estate advisers and novice investors alike must develop a kind of symbiotic relationship that fosters needed trust when fast action is needed.
Investment firms benefit from having a pool of qualified investors who are willing to respond based on trust and prudent information, just as investors appreciate the expertise and advice they receive from advisers who watch constantly for possibilities and identify those worth pursuing. Sometimes, however, the time it takes becomes the deal-killer.
The Right Software is a Must
With “robust” CRM software, investment firms, real estate agents and investment managers gain the kind of tools that can provide a two-way street for identification and analysis of worthy properties. This relationship-based methodology also improves customer relations and enhances professional give and take. Clients who are well-informed and who have mastered basic principles of investing feel secure in their decisions and with the financial outcomes. The dividends that accrue to both sides cannot be overestimated.
Gain the Ability to Collate Facts and Compress the Schedule
Desirability depends on a variety of factors; price is only one of them, even though it’s vitally important.
No successful investor will bid on or base a real estate investment solely on an attractive asking price. It’s equally important to analyze the full spectrum of factors that create value. They include, but are not necessarily limited to:
- Current use
- Future potential
- Rehabilitation or renovation costs
- Tax assessments, and
- Appraisal value
Any potential investment must also be evaluated in terms of its anticipated “hold time” before reselling, or the expected income stream for lease properties. Such analysis requires variable data input and projections. And all the data requires validation.
The information-gathering process alone is time-consuming. Add sufficient time for analysis and it’s not difficult to understand how a great deal can be lost because of lack of time.
Make a Difference with the Right Tools
CRM software that facilitates communication between adviser and investors offers a distinct advantage. If it also includes comprehensive reporting capability that will quickly identify likely investors, outline capital needs and ROI succinctly, and fully track the timeline- it is an extremely valuable asset.
Successful real estate acquisitions don’t happen by chance. They are the result of being in the right place, having the right knowledge and taking the right action at the right time. That same formula applies to the acquisition of information-sharing tools, particularly the kind of software that builds relationships as well as building business.