Real Estate Syndication Software

How to Choose the Best Real Estate Syndication Software

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Real estate syndication software plays a pivotal role in enabling multiple investors to pool their funds to invest in commercial properties successfully. If the software performs as expected, it can help syndicators raise funding efficiently, automate several critical functions, and ensure a seamless and glitch-free experience for users.

While several excellent real estate syndication software options are available, you need to decide which is the most suitable for your requirements. In this post, we will look closely at what real estate syndication software has to offer. These details will help you understand the product and make an informed buying decision.

Choosing the Best Syndication Software – What to Look for

The main features that real estate syndication software provides can be categorized as follows:

1. Fund-Raising Capabilities

This essential function will allow General Partners and syndicators to raise funds to buy, renovate, or develop commercial properties. The software should enable you to disseminate information to prospective investors quickly and efficiently. Additionally, it should be able to accurately record commitments and track them until contributions are made. When evaluating the software, look for an option that promotes faster capital raising from a broader investor pool.

2. Communications with Investors

Transparent and timely communication with investors is critical to the success of real estate syndication. Any person who has invested in a commercial real estate venture would like to know how the funds have been deployed and whether the investment is on track to provide the expected level of returns. Therefore, when you are evaluating the options before you, look for one that offers these capabilities:

  • The current status of the investment
  • An update on the documentation
  • Performance reports that provide detailed, up-to-date information
  • Distribution details

3. Document Maintenance

Keeping track of documents and accessing them easily and quickly when needed is crucial. You don’t want to face a situation where you struggle to locate an investor’s KYC documents or proof of accredited investor status. Test the software to see how the documentation maintenance module works and verify that it is right for your needs.

4. Distribution of Earnings

Check whether the software provides the facility to process payments to investors. Automated distributions will lessen the administrative burden, reduce errors, and ensure faster payouts. This capability can have positive long-term benefits as it will instill confidence in investors and encourage them to participate in future projects.

5. Generation of Reports

Look for software that allows investors to generate and download comprehensive reports that provide exhaustive details about their investments. Ask the vendor for a demo and see if the portal provides the following:

  • Financial Dashboard: An investor should see a quick summary of the investment’s performance and the project’s IRR.
  • Details about the Investor’s Account: What is the sum invested and the distributions made to date? The portal should also furnish automated distribution notifications.
  • Property Details: An investor should be able to see comprehensive information about the commercial property, including occupancy rates and rent rolls.
  • Communication Logs: Complete records of the communications between the syndicator and the investor should be available with a single click.

6. Simplicity of Use

It is easy to get carried away with software that provides many features. But what is the point of all the bells and whistles if nobody uses them? It is of paramount importance that the software has an intuitive design. A non-technical person should be able to navigate the interface effortlessly.

Test the software yourself, or better still, get a colleague to play around with it. A little time spent on this exercise could provide a great deal of information about its usefulness.

7. Integration with Other Tools

Can you connect the real estate syndication software with other applications? When you ask this question, bear in mind that you would like to integrate the syndication software with the applications you already use. A representative list of applications that you could integrate with the real estate syndication software you buy:

  • Accounting software
  • CRM 
  • Banking application
  • Gmail, Google Sheets, and Google Calendar
  • Slack
  • Trello

8. Security Features

Get an expert to verify the security features that the syndication software offers. Here are some of the questions that you should ask:

  • Does the software use two-factor authentication?
  • What is the encryption technology used?
  • What are the other security features that the syndication software vendor provides?

Finally, ask the software provider about the support you will get if you become the victim of a cyberattack. 

9. Customer Support

It is critical to remember that the quality of the software and the level of customer support provided by the software supplier are two distinct factors that should be evaluated independently.

The first hurdle, of course, is to find real estate syndication software that has all the functionalities you need and is reliable. After you have done that, take a close look at the support features that will be provided. 

The software vendor should offer each of the following: 

  • Phone support
  • Email support
  • Online chat support

Which days of the week is the support available? What are the working hours? Does the vendor promise to respond quickly? Ask for the response time for each category of support. One of the best ways to verify the level of customer support is to speak to some of the vendor’s existing customers. Ask pointed questions and analyze the replies carefully.

The Bottom Line

It is hard to evaluate the functionalities of a software program unless you try it out yourself. Most vendors providing real estate syndication software will allow you to book a demo to test their product. Take advantage of this offer and review the features in the context of your requirements. Doing this will give you hands-on experience and practical insights about the software and allow you to select the product that best meets your requirements.

Also Read: How Home Staging Can Improve Real Estate Sales

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