Getting funding for real estate projects is one of the most challenging parts of running a real estate business, especially currently, as investors are wary of what projects they’re investing in. This is why it’s critical to use every method possible to enhance your likelihood of raising capital.
A game-changer in real estate project launches, real estate fundraising software is revolutionizing how things work. This article dives into how these tech advancements are making fundraising smoother, engaging investors better, and boosting project success in real estate development.
The use of real estate fundraising software has exploded in popularity as users are seeing drastic increases in investor engagement and total fundraising from using such software. Software, in general, is taking center stage in many avenues of the real estate market, with the real estate software market expected to grow from $10.54 Billion in 2022 to $22.88 Billion by 2030.
What Issues Do GPs Have When Fundraising for Projects?
Real estate GPs face numerous challenges in raising funds for their projects, and one of the most prominent is figuring out how to make your project visible to the right investors. Because if nobody sees your project, you won’t be able to raise funds. The competition for investment is becoming more fierce due to external economic factors, particularly the rising cost of building-related expenses.
Investors are simply becoming more selective with the projects that they fund. Furthermore, even if you do land a deal, the process of bringing it to completion can be slow, with documents being manually signed and sent via email, for example.
What is Real Estate Fundraising Software?
Real estate fundraising software is a SaaS platform that is designed to increase the number of investment prospects you receive and also helps you close them into tangible investments. The features are specifically designed to help you and your team overcome some of the most common and yet demanding issues that prevent you from receiving funding.
Real estate fundraising software streamlines the process of raising capital for real estate projects through digital platforms. This innovative software facilitates communication between developers and investors, automates fundraising tasks, and provides tools for tracking investments and managing documentation.
Many of them also include features targeted at optimizing the workflows of your team, allowing you to work efficiently on a greater number of projects and prospects. Overall, it is a must-have for any modern real estate GPs to stay ahead of the competition and have their projects meet their funding goals.
How Does Real Estate Fundraising Software Transform Project Launches?
Depending on the platform, there are numerous different features built into real estate fundraising software that, if used effectively, can transform your project launches and significantly increase the amount of funding that you receive. Here are some of the most beneficial features that can be found in such software, particularly the more advanced offerings that are available:
- Speed up your deal process using custom subscription flows and binding electronic signatures.
- Make your projects stand out by creating bespoke brochures and data rooms, which can be sent to specific investors or displayed on your website.
- Easily track and manage new leads and the stage that they’re at in your pipeline.
- Get notified when deals move to new stages and when an action is required at your end.
- Utilize a custom dashboard highlighting the key KPIs for your project fundraising so you have full visibility into your fundraising activities.
One feature that is starting to become increasingly common for real estate software platforms is the use of automation to streamline workflows and free up time for GPs and their team to focus on more value-adding tasks. These tasks can include discussions with investors and project planning. This also makes sure that essential tasks are not missed, ensuring smooth day-to-day operations.
What are the Costs of Implementing Real Estate Fundraising Software?
As you’d typically expect, the price of this software can vary greatly depending on the vendor and the type of plan that you decide to purchase. Despite this, it’s still possible to give a range of costs that you can expect to pay so you can evaluate your options based on your budget.
Furthermore, not every platform may transparently display their pricing, which can make budgeting more difficult. At the bottom end, you can expect to pay anywhere from $175 per month for a single user all the way up to more than $700 per month for more advanced software packages.
Real estate fundraising software is helpful in making operations easier for real estate practitioners worldwide. When used correctly, real estate businesses are capable of massively increasing the number of funding opportunities that they close, and generally speaking, these deals also close with larger values. This is particularly useful if you’re a newer practitioner and you don’t have a large existing portfolio to entice new investment prospects.
It’s critical to make sure you do research into the various platforms that currently offer this software, as the functionalities and costs can vary significantly. Real estate fundraising software can radically transform project launches, and it’s likely that a massive increase in its adoption will take place in 2024.