- Who We Serve
Real estate developers talk a lot about the pre-construction phase, from land purchases to environmental site inspections and pre-construction planning. But soon after, laying foundations, tilting walls and topping off rightfully occupy a developer’s attention and budget.
While the ensuing construction phase of a new property is complicated—it’s why Northspyre has created tools to help developers manage pre-construction— the post-construction phase is just as important. After the property is complete and the doors are open, developers face a new challenge: to stabilize and sell the property.
The exit strategy is different for every developer and every project. Some developers might choose to hold onto a property for a longer term, while others aim to execute a lease-up campaign to support a swift sale. Whatever your strategy, when it comes time to sell the property, you will want to utilize the best tactics to attract top quality buyers and capture the best return possible.
New technologies can augment a traditional brokerage strategy to ensure a profitable and successful exit from the investment. After all, this is the time when the long development process pays off. Here are five technology-backed solutions to help you complete your exit strategy and move onto your next big project.
Smart Lead Generation
Traditionally brokers leverage a vast internal network of investors to market a property and pinpoint prospective buyers. New technologies are helping to accelerate this process and generate compatible leads beyond the broker’s network. Smart CRMs use automation and robotic intelligence to capture leads that align with your deal. Using automation can expand a broker’s marketing reach and networks and pinpoint prospective buyers who are best fit for your property. Generally, smart CRMs can also deliver buyer profiles with a detailed investment criteria to improve execution.
Predictive analytics tools can also help to improve lead generation. They can analyze investment trends and investor habits to help form an impactful marketing strategy and appeal to the needs of active buyers in any given market.
Some buyers may stray away from auction platforms for fear that they won’t deliver optimal pricing, but data shows that when leveraged strategically, auction sites, like Ten-X, can help to amplify a marketing program, create a buzz around a property and connect with new buyers. According to data from Ten-X, traffic on multifamily pages on the auction site are up 42% year-over-year, showing that buyers are actively looking for deals online. Used strategically, brokers can also use auction sites as an opportunity to generate leads and ensure execution. Auction platforms were once seen as a broker’s competition, but today, savvy brokers are using it as a tool to maneuver through market challenges and find the right buyer for a particular deal.
Current economic headwinds have made buyers increasingly cautious. Today, investors are particularly thorough when analyzing a potential investment. Developers that have adopted automated management software like Northspyre will be able to ease concerns by producing a detailed recording of all property financials, from the beginning of the development through stabilization. This record gives prospective buyers ease in moving forward with a purchase and can also serve to expedite the due diligence process, speeding up the deal timeline. While financial records can be kept manually, Northspyre’s automated financial reporting and invoicing reduces human errors that are frequently found in spreadsheets, producing cleaner financial records with less administrative work.
Investors are flocking to stabilized, well managed assets that provide a dependable income stream. They want to ensure that they’re buying a deal with a quality reputation that will continue to attract interest from tenants after the purchase closes. As a result, a property’s branding and lease-up campaign are proving to be critically important when buyers vet a new development deal. A social media campaign can help to create brand identity and awareness of the new property as well as help to drive a leasing campaign. Developers often overlook social media as a tool, but it provides a powerful opportunity to introduce new properties to the community, build renter interest and create property recognition. As a bonus, a successful social media campaign can be used as a marketing and sales tool when showing the property to prospective buyers.
Digitize the Leasing Platform
A strong leasing strategy is vital to a successful property sale. To create a strong leasing campaign and increase foot traffic from prospective tenants, digitize the leasing platform. Prospective tenants want to get information about a property online, take a virtual tour of available units, and schedule an in-person visit seamlessly.
All of this can happen directly on a property’s website, giving would-be tenants an opportunity to engage directly with the property on their own time without the pressure of a leasing agent. A digital leasing format is an opportunity to show off property features and available units. Smart locks further enhance a digital leasing experience by giving prospective tenants direct access to a unit for a self-guided tour. Even better, it can be seamlessly transferred to the new buyer so there is no pause in leasing during the property sale.
But “the Before” Is Still Important
Each of these strategies will support strong leasing traction and a successful sale, but the best way to ensure a strong exit and achieve your goals is through a well-managed development from start to finish. By leveraging automation and machine learning tools during construction, you can keep your development on schedule and on budget—and there is no better way to enter the exit phase of a development. Northspyre, for example, has been shown to reduce overages by as much as 60% and trim the overall development budget by 6%. In addition, projects backed by Northspyre are more likely to stay on schedule. When you get to the finish line on or under budget and on schedule, you have a lot more flexibility to pursue a quality leasing and sales strategy without trying to make up for earlier losses.
It is no easy task to transform an empty plot of land into an occupied commercial building. While the construction phase will rightfully take the most time and attention, utilizing the right technologies will ensure a successful project from start to finish.
Looking for the right tools and strategies to effectively scale your real estate business? Download Scaling Teams: A Real Estate Developer's Blueprint to Success to access your playbook to achieve scale and effectively build up your team.
Tag(s): Real Estate Technology
Other posts you might be interested inView All Posts
September 28, 2022
Real Estate Development
How Does Your Real Estate Sustainable Development Policy Stack Up?Continue Reading
May 10, 2022
Real Estate Development
3 Ways For Real Estate Developers to Streamline Vendor ProcurementContinue Reading
May 12, 2021