Deal Talk: Trends and Opportunities for Real Estate Investment Managers
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In the latest episode of AppFolio Investment Management’s Deal Talk series, our panel of experts discuss recent research conducted on real estate investors, and how their findings could shape the way we think about investor relationships in the future. The results show investor expectations have changed, and nearly ⅓ of investors are now struggling to find an investment manager that meets their needs. It’s more important than ever to rise to investor expectations: our research also uncovered that 73.3% of investors are growth-minded and seeking new opportunities to invest more. Watch this webinar to see how you can use these learnings to create an elevated experience for your investors.
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Deal Talk: Trends and Opportunities for Real Estate Investment Managers
- 1. DEAL TALK Trends and Opportunities for Real Estate Investment Management
- 2. Submit your Questions Type questions and comments in the questions pane
- 3. Nat Kunes Senior Vice President Lenka Keston Principal User Experience Designer Chris Rovell Senior Product Manager Today’s Panel
- 4. The AppFolio Real Estate Investor Report
- 9. How Investors View Investment Companies
- 11. Question for the Audience Which do you think is the most important to your investors?
- 14. Information Ecosystem in Real Estate Investing
- 18. Smarter Tools for Modern Investment Management • Easy to Use, learn, and train new employees • Impress Investors with a portal that keeps them updated, informed, and engaged • Manage Fundraising. Promote new opportunities and track interest of prospective investors • Ditch the Spreadsheets. Organize assets in one central hub to increase efficiency and mitigate risk
- 20. Q&A
- 21. Thank You!
Editor's Notes
- Thanks for joining us for this episode of AppFolio Investment Management’s “Deal Talk” series, where we sit down with a panel of experts and discuss important topics affecting the Real Estate Investment Management industry. In this episode, we’ll be taking a look into some recently released research and see how it’s findings reveal key trends and opportunities for real estate investment managers.
- Before we start, I’d like to cover a few logistics. On the right-hand side of your screen is the GoToWebinar control panel. We’d like to keep the webinar interactive so please submit any questions or comments you have in the questions pane as shown here outlined in red. The webinar is being recorded and we’ll email it out to everyone in the next few days.
- It’s my pleasure to introduce this episode’s panel of experts. Nat Kunes is Senior Vice President, Real Estate Investment Management. Nat has been lending his leadership to the property management and real estate industry for years and is a contributor on the Forbes Real Estate Council. He now leads the team as they provide software that supports the success of real estate investment managers while delivering an outstanding customer experience. Lenka Keston is the Principal User Experience Designer at AppFolio Investment Management. [insert bio] Chris Rovell is the Senior Product Manager at AppFolio Investment Management. Chris has been serving our property management, and now investment management, customers for over 8 years now, guiding development teams in building products our customers love.
- Our panel is here today to discuss The AppFolio Real Estate Investor Report. The team set out to understand how to upgrade the overall investor experience. They conducted research on over 100 real estate investors to gain insight into the relationships real estate investors currently have with their investment management companies, their goals, and the concerns they have about the industry. Over 100 individual real estate investors were surveyed for this research. Survey respondents met the following criteria: - Live and invest in the United States - Currently invest through a real estate fund and/or syndication - Have at least $25,000 invested in real estate - Receive K-1s The sample was diverse, and included individuals with different backgrounds, levels of expertise in the industry, investment amount, age, and region.
- Let’s get started with a dive into what Today’s Investor looks like: their priorities, values, and outlook on the industry.
- Key Findings from this data Most investors are in real estate investments for the long run. Real estate is an important part of the classic portfolio mix. There may be a need for managers to specialize in a specific investing strategy. How this can help investment managers Since the majority of real estate investors are in it for the long run, investment managers need to build lasting customer relationships. This can be accomplished more easily through the use of an effective Customer Relationship Management (CRM) tool within an overall real estate investment management solution.
- Key Findings The vast majority of investors describe themselves as growth investors. Few investors are price-sensitive (value investor). Not many investors adopt a hands-off approach (index investor). How this can help investment managers Investors in the real estate space we researched tend to be more aggressive in their approach, much like those who bet on innovative companies and tech startups because of the potential for high returns, regardless of the risk.
- Key Findings Investors are generally optimistic about the future, and very few plan to decrease their investment. How this can help investment managers With abundant real estate investment opportunities available, intelligent software that tracks prospective investors and effectively communicates with them can help managers capitalize on growing demand.
- Opportunity to highlight relationship between fundraising and expertise Finding the format to show your expertise as the GP will give the LP the experience they’re looking for Key Findings Market and financial expertise, and professional property management are the top three reasons investors invest through an investment company. Investment managers can showcase their expertise by finding new properties, being knowledgeable about their investment market, and keeping up on industry trends. How this can help investment managers Investors expect expertise and professionalism. Providing them with a system that easily shares critical information on current investments and new opportunities will strengthen trust.
- How of this list, which do you think is the most important to your customers, investors? Customer Service Deal Structure Reporting Transparency of Information Performance Use of Modern Technology Ok, let’s share the results
- Contrast with poll results investors want everything The bar is high It’s about the way you deliver this list. “Modern technology” isn’t the product the GP isn’t delivering, it’s the expectation Technology helps you deliver on all of these is a sustainable and scalable way Key Findings Investors expect high levels of service and performance without any trade-offs. All of these areas are important for investment managers trying to stay competitive. How this can help investment managers An online investor portal can provide transparency about performance, as well as convenient access to reporting. This allows managers to offer great customer service without having to be overly hands-on with each individual investor.
- You’ll have a mix of involvement, but these days expectations Opportunity to change the narrative that high involvement = high maintenance. Through various technology tools, you can give them the feeling of high involvement in a way that is scalable and sustainable for you (goes back to customer service as #1 priority). Key Findings Over 75% of investors take a hands-on approach when it comes to managing their real estate investments. The level of involvement is related to the amount of money Investors have invested. Higher spenders are often more involved, and lower spenders may tend to be less involved. How this can help investment managers While 75% of Investors report that they take a hands-on approach, they do not necessarily want to spend large amounts of time managing their investments. An online investor portal allows managers to share distribution history and reports with investors. Investors are able to easily access whatever information they need without unnecessary involvement.
- Tie back to credibility building “Where do you want your investors to be getting their information from?” Key Findings Most investors turn to media outlets to stay up to date on real estate industry news and trends. Investment managers are seen as a trusted source of information by their Investors. How this can help investment managers While face-to-face conversations are critical in building business relationships, there is opportunity to utilize technology to facilitate and scale communication with customers. This is especially true when it comes to sharing industry news and trends.
- Key Findings Investors want to know about the overall performance of their real estate investment management company, and not only the performance of their own portfolio. This helps to give them confidence that they’ve made a good decision in choosing their investment management company. About 40% of investors also want to receive information about real estate industry news and trends from their investment managers. How this can help investment managers Utilizing investment management software allows managers to easily share information with investors, and can become a one-stop-shop for all things related to real estate investing.
- Key Findings Viewing performance metrics is the primary reason investors use their portal. This demonstrates the importance of managers making this information readily available to their customers. How this can help investment managers Managers should use investment management software that provides as many features shown here as possible, so that they will be able to provide whatever their investors want and need.
- Before we move on to the Q&A, I wanted to spend a minute talking about Appfolio’s new Investment Management Solution AppFolio Investment Management is a modern real estate investment software that saves time and money enables real estate investment firms to better manage their investor relationships by increasing transparency and streamlining fundraising, reporting and communications. It’s an easy to use cloud solution Let's spend the last 2 or 3 minutes on Q & A
- Following the webinar you’ll be presented with a survey where you can tell us how we did and let us know if you would like to learn more about Appfolio Investment management. You’ll also receive a follow up email with a link to the recording of today's webinar. I’ve also just posted a link which you’ll see in your questions pane to the page you see on the slide. If you’d like to get a demo of the product, you can fill out the form and one of our specialists will be in touch. Ok, let's spend the last few minutes on Q & A. Thanks to all who submitted questions
- Q: