Real estate investments, in many cases, comprise a significant portion of the portfolios in many Family Offices and Wealth Management organizations. Legacy systems however are lacking in their reporting capabilities and functionality as it relates to those investments. As the title of this post suggests, in today’s fluid and dynamic business environment, what these organizations need is instant real estate consolidation for better visibility into those investments. Is this even possible? The answer is a resounding YES!
KPI’s are critical for real estate investors. ROI, Debt to Equity, Value to Purchase Price, to name a few, are vital indicators for each property owned. That said however, it is also crucial to know how the portfolio is doing in aggregate. And it is this “view” that many real estate investors are lacking (in more cases than not, legacy system limitations are the culprit). Knowing ROI, Debt to Equity etc., at the organizational level is a key indicator of the overall health of the real estate portfolio. It is an absolute “must have” in the reporting arsenal. No complex processes to run, no exporting to Excel and combining data (that in and of itself is strife with pitfalls and worthy of it’s own article). Just a consolidated view of all real estate investments at the click of a button. The Dashboard below is just such an example.
If organizations want to be on the leading edge of investing then it is crucial that all this information also be real-time. Otherwise it may not be actionable given the pace of today’s investment environment. In today’s world, a deal really can be here today and gone tomorrow.
Opinions on what constitutes a competitive advantage today are as varied as the number of opinions. What is not in dispute however is that not having up to date, real-time and actionable information will definitely put that investor at a disadvantage. Having all relevant information at hand dramatically improves decision making…period. Opportunities for improvement can be quickly identified when all the information is at our fingertips.
As a senior financial executive, is my consolidation process (assuming one exists) a source of value creation or a barrier inhibiting greater strategic contribution?
This link is to an article that may help you determine where you stand – Click here.
