The real estate market is one of the most competitive markets in the world and as a GP, this can be particularly challenging, especially if you don’t have the available capital to finance your projects on your own. As a result of this, many GPs are making use of every tool at their disposal to give themselves the chance to raise the required external funding to complete their projects from LPs. One of these tools is the increased use of CRMs, specifically real estate investor CRMs. Many of these companies are seeing increased results from using this, particularly for GPs.
What is a CRM?
A CRM is a type of software program that helps you to keep a record of the information on your customers, or investors, as well as any interactions that you have with them. This helps you to be more effective in your day-to-day operations by making sure that no task is missed.
The effectiveness of a CRM is shown by the fact that on average, for every dollar spent on a CRM, companies make $8.71 in return, with conversion rates increasing by up to 300%. Most CRMs on the market are very general and not for a specific market, however there are some CRMs specifically for the real estate investment market.
What Makes a Real Estate Investor CRM Different?
As previously mentioned, a real estate investor CRM is much more specific and is built specially for the benefit of real estate developers. Some examples of ways in which the tools differ from a regular CRM is that various important stakeholders such as accountants and lawyers can be added to the CRM to improve workflows for them.
Furthermore, some of them include the ability to automatically generate reports and send them to investors, with these reports being personalized. Features such as these improve the already clear benefits of using a CRM as a real estate GP.
How Does a Real Estate Investor CRM Help You Manage Your Portfolio
A real estate investor CRM is a great tool to use to effectively manage your portfolio, the built-in features are much more specific and fit for purpose than with a regular CRM. Now, we’ll go into more detail about some of the features that such a CRM would contain.
Streamlined Investor Portal
One of the main benefits of using a real estate investor CRM is the fact that all the critical information you need will be in one place. Furthermore, some providers have included the ability to filter information by required fields and give you improved searchability within the platform itself, which will improve its impact on efficiency as information and documents can be retrieved much more quickly. As a result of this, a user of such a CRM would have a much better view of their internal data at any given point, compared to a company that doesn’t.
Tools for Collaboration
Any project is only as effective as the teamwork that goes on behind the scenes. A real estate investor CRM helps those involved in the project process to work together in better ways. For example, a GP can assign specific tasks, related to a particular project, to an individual and they will be notified of this immediately. Additionally, workflows can be created to help standardize processes and make sure that things run smoothly throughout the whole project. Furthermore, outside agents can have tasks added in the CRM, which makes it easier to get key documents created and signed off by lawyers and accountants.
Shorten The Document Process
In real estate, documentation is one of the most important things for any project. For example, contracts between investors are routinely sent out, along with key reports on things like project progress and distributions that are owed to anyone involved in the project. Creating these documents from scratch can take time and bog you down if you have a lot to get through, a real estate investor CRM can automatically generate the required reports and documents and also send them out automatically to the required recipient.
Create Better Relationships With LPs
Many GPs, especially in the early stages of their career, will rely on LPs for external funding to complete their earliest projects. As a result of this, it’s key to maintain positive relationships with any investors that you work with as they’re key to the success of your project and maintaining positive relationships can lead to relationships with other investors in their network. The effect of this is that your real estate projects will see much more success in the long-term, and you will likely be able to advance more projects to completion in a shorter space of time.
How Much Does a Real Estate Investor CRM Cost?
Ultimately, the cost of a real estate investor CRM will depend on the complexity of the features contained in it and the company you decide to work with. As a guide, a platform that contains a real estate investor CRM and additional features to complement said CRM may set you back by more than $500.00 per month, whereas a regular CRM, without any specialist features may cost you anywhere between less than $100 per month, to more than $1000.00. This highlights the wild variety of pricing out there on the market, which means you will need to do additional market research before buying.
In conclusion, the use of a real estate investor CRM makes it much easier for GPs to raise funds for their project and more effectively manage their portfolio throughout the entire process of a project. With advanced features that reduce the time taken to complete key tasks and improve their ability to raise any additional required funds to see outstanding projects through to completion if it is required. Improved collaboration between team members also means that your projects will be run more efficiently overall throughout the entire process, which helps GPs to do good work and cultivate a good reputation for their work.