How Technology Is Revolutionizing CRE Investing
Commercial real estate investing is a growing industry; and in a time of emersion into digital technology, creating and maintaining personal relationships are vital. According to National Real Estate Investor, professionals often build these relationships in meetings and at networking events. Most importantly, however, these relationships act as a crucial determining factor for decision-making regarding CRE investments and sales.
While sponsors and investors typically exchanged information without reliance on technology in the past, this formality is now outdated as we begin to move towards the apex of a tech-driven revolution in CRE. The proliferation of technology can, at times, be daunting by inhibiting older professionals who are digital neophytes. Luckily, the experts at Hunt Mortgage Group offer expert tips to remain successful during the modernization of commercial real estate investing through technology.
The JOBS Act
The traditional CRE investment process can be tedious. In fact, regulatory compliance restrictions often limit a sponsor’s network of investors to the people they already know. Fortunately, the JOBS Act sponsors can now market investment opportunities through a general solicitation of accredited investors. This is most beneficial as commercial real estate property listings are now available online, opening up partnership opportunities to a wider audience. Numbers don’t lie because according to the Securities and Exchange Commission (SEC), more than 12 million U.S. households qualify as accredited investors.
The Jumpstart Our Business Startups Act (JOBS Act), signed into law by President Barack Obama in 2012, offers different crowdfunding functions. According to Crowdfund Insider, the JOBS Act requires the SEC to adopt rules to implement a new exemption that will allow for crowdfunding. The JOBS Act states that offers or sales generated from securities relying on the crowdfunding exemption would be unlawful. But under the federal securities law, regulatory groups deemed it appropriate.
Expanding Contacts Through Social Networking Platforms
Real estate sponsors need not feel intimidated by industry changes; instead, they must embrace modern technology as a fulcrum to reach top investors. Through technology, Hunt Mortgage Group foresees CRE investing transforming into an expandable, transparent industry filled with valuable long-term relationships amongst builders, investors, borrowers and other lenders. With some help from email blasts and social media, investors can catapult their opportunities across multiple channels, even connecting with sponsors to obtain leads for major financing and investments. Everything investors must know is now readily available at the click of a mouse, including managing online databases and CRMS; a process that never existed in CRE investing. Hunt Mortgage Group foresees countless investors and sponsors anticipating a large turn around on investments and borrowers by switching to digital CMS.
Less Risk With Minimal Surprises
Investors have a better opportunity to understand the past, present, and future regarding properties they show interest in. Technology now allows sponsors to distribute digital information accordingly. By providing listing packets, which explain in-depth information on a property’s history, location, tenants and surrounding market, sellers can market properties to the public online. Furthermore, online platforms provide a sales tool for sponsors to share client testimonials, provide investment insights, and express their value propositions using live video streams YouTube or other social media platforms.
Merging Technology With CRE Investments
CRE investments allow for new business ventures to move forward while allowing previously established businesses to expand. What better way to foster growth than to utilize new technology and digital media platforms? As we embark on this digital revolution, only time will tell how technology will continue to reshape the industry. Needless to say, investing in CRE now makes for a more exciting, unpredictable future. For the best CRE investment opportunities, contact a top financial advisor from Hunt Mortgage Group near you today.