As the private real estate debt market has grown in the wake of the 2008 housing crisis, so has the need for a technology solution like DealCloud that can differentiate lenders from their competition. According to S&P Global, global fundraising by private real estate credit funds has grown from $5.1 billion in 2010 to $33.3 billion in 2017 and the number of funds launched has increased from 28 per year in 2009 to 62 in 2018. Many of these new funds come from equity real estate investors and private equity firms expanding their offering. As the market gets more crowded and borrower defaults inevitably increase, a purpose-built deal and relationship management platform will be the difference between success and failure to achieve higher returns.
Using the Deal Details dashboard in DealCloud, users can view all relevant information related to each deal.
DealCloud’s technology ensures clients are capturing actionable relationship insights and driving efficient due diligence processes. Emerging private real estate debt funds need the ability to overcome established fund sponsors, with prevailing lending relationships. With data-based insights, dealmakers have a more thorough understanding of relationships — from conversations to current and past deal flows.
Users can store all relationship data directly in the DealCloud platform.
Existing funds are facing a higher level of competition for fundraising from limited partners and for deal origination from borrowers. DealCloud’s real estate investment and development CRM centralizes key deal information, market information, and financial models, so dealmakers can streamline their operations, provide transparency to investors, and ensure their reporting capabilities are up-to-date and accurate.
Clients leveraging DealCloud will be able to come out of the pandemic as winners by navigating the challenges in their existing loan portfolios. DealCloud enables private lenders to manage their relationships with borrowers, limited partners, brokers, developers, other lenders, architects, tenants and other external parties involved in the deal and mortgage service lifecycle. Having an intuitive platform driving automations can help your firm quickly address situations with complex requirements and offer innovative solutions in a rapid manner.
Lenders require a solution that not only will help automate reporting in their day to day internal meetings, but also drive quicker processes with borrowers and other external parties. These can include Environmental Disclosure Forms, Borrower Loan Applications, etc. DealCloud can enable your firm to efficiently track these documents and the data within them in a central database and allow you to generate automated reports such as pipeline reports, screening memos or LOIs.
Fund managers with best-in-class technology infrastructure will have an easier time fundraising, from what may be a smaller pool of capital allocating towards loan origination strategies. As limited partners begin to look for higher yields, managers will need to prove their pipeline and deal execution processes are as efficient as that of competitors if not higher. DealCloud powers the deal lifecycle from origination through underwriting and closing so that members of the deal team are always up to date with the latest piece of information. Deal teams can measure their progress against critical dates and see comparable properties/loans to the deal in diligence. While the originators, underwriters, analysts, and mortgage administrators are closing, passing, and evaluating deals, the investor relations team can easily pull reports on completed deals, passed deals, and active deals within a fund. The ability to use deal execution data as a business development tool is essential for lenders that want to maintain high spreads and win in a competitive market for borrowers and investors.
Now is the time for real estate professionals to get serious about their technology needs. The DealCloud platform is designed specifically for the real estate industry and optimized for each firm’s unique needs. To learn more about DealCloud’s state-of-the-art deal and relationship management, schedule a demo.