Real estate financing is a complex and time-consuming process. In a world of shifting economic investments, it is crucial for property owners, developers, sales, and marketing teams to have a streamlined process that helps them attract, screen, manage tenants, and account for all expenses and revenue. Real estate investments deliver real financial growth and stable long-term gains when correct decisions are made. Given the condition, this urges the need to identify and access viable property finance solutions. Acumatica with Real Estate Dimensions (RED) is designed to deliver strategic insights to secure the best property financing solutions with flexible rates that help contractors, developers, and construction businesses to thrive in a customer-centric and profit-driven digital economy.
The Importance of Selecting the Right Property Financing Solution in Real Estate
Choosing the right property finance solution is essential as it can provide several benefits. Here’s why:
1. Make Intelligent Decisions
Making smart loan decisions is dependent on access to timely and accurate information. Whether understanding local market variables, identifying loan options, or leveraging assets, a solution should deliver valuable information. What should your loan-to-value ratio be? What is the entire cost of borrowing? How do you calculate your returns? It should align with the customer’s needs and expectations so that they understand all financing options and make informed decisions.
2. Determining borrowing capacity
Not all property investors or property assets are the same. In context, a real estate solution must be selected based on the attributes of each property and the investor’s assets, income, and type of loan, given its severe impact on value and growth potential. The right solution should help customers understand these factors and work out what they can afford to borrow.
3. Implementing an effective strategy
Successful property investment comes from a solid overall strategy and how it aligns with the structure of the mortgage. Understanding equity, interest rates, mortgage fees, and taxation requirements are crucial in property financing.
4. Attention to detail
Mortgage application processes and documents are tedious and full of legal jargon. Customers should understand how each financing works up to the smallest detail before signing the sales contracts.
5. Providing professional application and management
A real estate expert must be equipped with the right solution to manage the process and ensure all steps are correctly completed and efficient, as slight mistakes can be incredibly costly during the application process.
Why is there a need to adapt to these changes?
According to the article published by McKinsey & Company, “The most proactive owner/operator is to deliver compelling value propositions that go beyond a mere “four walls” to solutions that create convenient experiences and generate insights about what happens within those spaces. These owner/operators offer a digitally powered experience within a set of walls, fundamentally transforming the tenant relationship and the factors that drive leasing and renewal decisions.”
The text stated that tenants face challenges navigating this change and need owners/operators to provide solutions. They are encouraged to evolve their leasing approach and offer solutions that cater to the needs of their tenants to address these challenges. The most proactive owners/operators are even going as far as building or partnering with digital companies to develop tools that track occupancy and space usage, delivering a more convenient and insightful experience for tenants. By doing so, these owners aim to fundamentally transform the tenant relationship and influence leasing and renewal decisions.
How can Acumatica with RED, embedded with the property financing module, helps property managers manage the complexities of the real estate market with a holistic approach?
As a born-in-cloud ERP platform, Acumatica with RED is tailor-fitted to the distinct operations of the real estate industry. With its advanced features and innovative payment schemes, property managers can manage their real estate financing efficiently, close deals faster, and maximize property efficiency.
Here are a few examples of how RED can help property managers improve their operations:
Streamlined Contract Management: RED streamlines the contract management process, making it simple for property managers to generate sales contracts with just one click. It saves time and eliminates manual data entry leading to improved efficiency and accuracy.
Improved Financial Management: With a built-in financing feature, property managers can keep track of the payments and balances of their customers, regardless of the payment method. As a result, it helps property managers stay on top of their finances and improve their financial management processes.
Enhanced Customer Experience: RED’s flexible financing options help property managers respond quickly to buyer needs, leading to improved conversion rates and customer experience. Additionally, the system’s cross-referencing of customer names with due payment lists helps with compliance and risk monitoring, making the sales process more efficient and user-friendly.
Increased Productivity: RED’s user-friendly interface and ease of use allow property managers to focus on what matters most – growing their business. With RED’s advanced features and innovative payment schemes, property managers can manage their real estate financing efficiently and close deals faster, leading to increased productivity and profitability.
In conclusion, Acumatica with Real Estate Dimensions (RED) is a solution that offers a better way to manage property financing. With its key features and user-friendly interface, RED assists property managers in growing their businesses and leading with vision, driving success in real estate operations.
Resources:
- The workplace will never be the same: Imperatives for real-estate owners and operators by McKinsey & Company
- Property Development Finance: What is it and should I consider it? By Global Banking and Finance Review
- Revolutionary Ways Fintech is Boosting the Property Industry by Derin Cag
- 5 Reasons Why the Right Property Finance Solution Is So Important by Rob Edwards
