If you’re a CRE developer in the midst of planning a project, or already well into construction, chances are you’re working closely with at least one or two financial partners. You already know how integral those relationships are to the success of your project - funding is key - but maybe you wonder if there is more you could be doing to fortify those connections.
Building a lasting partnership could mean the difference between consistent, secure funding from a trusted source on future projects, and the inability to finance your next big thing. Check out these five easy tips to keep your financial partners happy and your projects running smoothly.
1. Provide Timely Updates
Your financial partners are lending you a precious commodity: money. Rightfully so, they’d like to keep a close eye on how those funds are being allocated and if things are on track for a decent return. Make sure you are providing your partners with the most clear, up-to-date information at month’s end - without straining your staff. Pull together your monthly cost report without spending days or even weeks compiling the necessary information. Even better, empower your team to share timely updates with them throughout the month, showing key progress metrics so they can rest easy knowing the exact status of a project.
2. Share Clear, Easy to Understand Reports
Make it very easy for your partners to review key project financials. Quickly share clear, comprehensive, yet high-level executive summaries with descriptive data visualizations. Make it very easy for partners to review hard and soft costs, what’s been invoiced to date, and key changes from the previous period, so they aren’t left scratching their heads or asking you multiple clarifying questions. They feel informed and you’re able to continue focusing on driving your project forward.
3. Offer Easy Access to Real-time Information
This goes hand in hand with tips one and two, but be sure that you’re always sharing real-time information. For most financial partners, this won’t be a replacement for monthly reports, but access to real-time dynamic information builds trust and allows for more productive conversations. Sharing relevant information keeps financial partners engaged in high-level strategic thinking instead of in the weeds wondering what they missed or questioning accuracy.
4. Engender Trust and Confidence with Unparalleled Accuracy
Show partners that you are a forward-thinking, sophisticated organization that values innovative technology and solutions. A central benefit to leveraging modern software is the increased level of accuracy you’ll achieve in your project reporting, cost tracking and forecasting. Using modern tools - and leaving static, disparate spreadsheets in the past - will establish consistency, enhance transparency and reduce human error. Top financial partners already demanding precision and accuracy within their own organizations want to work with similarly savvy project teams. They are more likely to trust you, form a longer-term partnership and believe you to be a good financial steward if you prioritize accuracy, constantly strive to enhance current practices and embrace modern processes to efficiently deliver complex projects.
5. Deliver an Attractive Return on Investment
This one is straightforward and mutually beneficial. On real estate projects, controlling costs is as important a factor as income generated from a completed, stabilized asset. Bringing data to every step of cost management -- change order negotiation, vendor procurement, forecasting costs, etc.-- is a critical step toward achieving more predictable outcomes and reducing costs. Having the best technology to accomplish this helps. The more efficient you and your team are, the more likely you’ll be able to beat the market and secure an attractive return for your investors. By leveraging the most sophisticated tools and technology, you’ll ensure your project team is operating at its fullest potential to deliver projects on-time and on-budget - and make your financial partners happy.
Do these tips resonate with you? If you’re curious to learn how to take your project team to the next level and really impress your financial partners, you should check out Northspyre. We’ll supercharge your ability to make proactive, data-driven decisions to more effectively deliver projects on-time and on-budget. Empower your team to succeed and lap the competition. Upgrade with Northspyre.