Investment Managers Need Quick Access to Information

Many real estate investment companies are taking days or even weeks to get debt information on more than a single property, potentially increasing investor risk. That’s one of the findings Needham, MA-based Resolve Technology shared during a webinar on debt management.

The company surveyed real estate organizations to determine attitudes and practices related to debt management. CEO Eric Forman said most real estate investment companies view debt ratios as important to financial and operational decision making, but often take too long collecting information related to debt management. “Debt has put the world’s largest financial institutions at risk,” Forman said. Taking days or weeks to get the data needed to manage it is “unacceptable and puts companies in compromised situations.”

In the first of a two-part webinar, Forman focused on technologies designed to help companies “take command of their debt.” In the second webinar next month, the company will focus on mitigating risk and increasing profitability.

The webinar coincided with the company’s release of an updated version of Portfolio Maximizer, a product designed to analyze historical and forecasted fund performance, evaluate multiple “what-if” scenarios and optimize investment strategies. The update “provides new capabilities to help investment managers address investors’ demands for a more systematic and pro-active approach to real estate investment management,” the company said.

Forman described technology as a key to weathering the current economy. “Everyone is talking about the debt crisis, its affect on the economy and the bailout,” he noted. But fewer are taking effective steps to manage debt, including exploring new technologies.

“Demand for information is significantly higher and debt information is critical, yet getting this information takes longer than most real estate investment managers would like. So there is a disconnect between what investment managers need and what they actually do–and I believe a lot of it has to do with the fact that Excel is the tool that most of you use to manage debt,” he said.

The survey found: