Why every real estate sponsor should (and will) adopt an investment management & investor portal solution

Sometimes I can be very straightforward. Once I walked into an interview with a candidate I wanted to hire and the first thing I told him was “I’m not here to interview you, I’m here to pitch you on joining Janover Connect.” This blog post is one of those times. I’m here to pitch why you should adopt a real estate investment management software & investor portal solution. So, here are the top 3 reasons.

Reason Number 1 - Delighting your investors is essential and the biggest lever you can pull to grow your business

It might be anti-climatic to start with the outright most important reason why you should adopt Janover Connect. But let’s stick to being straightforward.

Outside of your team, your LP relationships are your business’ most important asset. The growth you’ll see from an expanding investor base will compound by earning repeat investments, growing average contributions, and gaining referrals.

An investor portal is a major tool in the ‘LP investor delightment puzzle’ because your investors crave transparency, updates, convenience of investing online, and reporting they get from other asset classes. Don’t let these desires go unfilled; bring your investors along for the ride and use an investor portal to out-hustle your direct competition and the complacent mega-investment firms that rely on their track record and extensive manpower to win over LPs.

Reason Number 2 - Elevate your brand and build more trust

This is an opportunity to promote and enhance your brand at every investor interaction, by showcasing the professionalism and maturity you want to convey. At the end of the day, you can break down what drives investors to say yes into just a few pillars. Trust is one of them. An investor portal is a great tool to help you build trust with your LPs.

Reason Number 3 - Being left behind is imminent

I had to think twice before publishing this one. I don’t want it to come across as a scare tactic. But the reality is that if you don’t have a portal you’re already being left behind, and I think it’s important for you to know that.

Here’s an adoption curve of new technologies, from the book “Crossing the Chasm” by Geoffrey Moore.

According to what I see while analyzing proprietary data from our marketing and sales efforts, we’re currently at the beginning of the “Early Majority” phase and accelerating. Five years ago, a handful of syndicators had an investor portal. In July 2019 I looked at a sample of 500 real estate syndicators, and 9% of them already had a solution in place (yes, I manually looked at 500 syndicate websites, one by one, while doing prospecting work to set our sales team up for success). Fast-forward 18 months to a study we ran in March 2021 with 300 syndicators, and 22% of them had adopted a real estate investment management software and investor portal.

Cost-benefit of a real estate investment management software

The market is sprinting through this curve. We estimate that within the next 2 years we’ll cross the 50% mark of syndicators that provide their LPs a superior investment and reporting experience through an investor portal. The relatively light investment cost in a solution is an obvious cost-benefit analysis win because as a new or growing business fighting for your market share, you feel it would be better not to be a laggard.

Bonus Reason - Why you should choose Janover Connect

I’ll keep this one the most straightforward reason. Did you see the “Chasm” in the image above? That’s where many companies bringing a new technology to the market fail. While we are not the only company offering software for a real estate investment management to have crossed that chasm (see Juniper Square and IMS-Real Page), we are the only company that crossed it that is catering to the growing segment of new and small Syndicators. We grew by 275% in 2020 and our team went from 6 to 21 in the past 16 months. The point is that it’s wise to choose to work with a company that will ultimately still be around two years from now. This is something you can see in our growth, in our constant product innovation, and outstanding customer commitment beyond the tools.

I’m very excited about where our market is going and what we’re accomplishing together in contributing towards a flourishing economy that will lift all boats. I’m proud to see a new wave of syndicators who entered the business in the recent years or are entering it right now, and I’m looking forward to all of your great success stories! I invite you to connect with me on LinkedIn here and to keep in touch with Janover Connect by subscribing to our newsletter here below to receive resources that will help you along your syndication journey.

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