When projecting profits for current or future real estate holdings, having the proper real estate finance software is essential. Such programs are complex and involve numerous inputs; if you enter poor data, your results may not be to your liking.

Despite the potential for error, most commercial real estate companies could not function without real estate financing software. When purchasing the best real estate software for your company, consider how many users and licenses you need, what function(s) you expect the software to perform and how much you can afford to spend. The best “bells and whistles” software packages cost big bucks, but many companies consider the price inconsequential to the programs’ usefulness.

When purchasing the best real estate software for your company, you most likely will buy a program geared toward one of the following main areas:

1. Real estate accounting software
2. Real estate appraisal software
3. Real estate analysis software.

Action Steps
The best contacts and resources to help you get it done

Decide if your company would best benefit from real estate accounting software

If your company prefers to keep its books in the same program that manages real estate data, a program designed for both accounting and management purposes may suit your firm. Discounted cash flow equations and revenue projections can be part of such software programs.

I recommend: Two real estate accounting software providers include REALedger (includes listings, sales, agent, accounts payable, bank, payroll and general ledger modules) and Timberline Office (performs both accounting and real estate management software functions).

Explore the features of real estate appraisal software

If your company performs appraisals for others, or you frequently communicate with companies that provide real estate appraisals, it may help to purchase real estate appraisal software to help improve productivity and data retention. These programs include features such as cash flow monitoring, integration with accounting systems such as QuickBooks, fax and client email capabilities, data integrity checkpoints and payroll functions.

I recommend: Research real estate appraisal software offerings until you find a program that best matches your company’s needs. Programs for sale include eTrac, a la mode and ClickFORMS.

Consider purchasing real estate analysis software

If your company needs to estimate variables such as hypothetical market conditions, rent collections percentages, occupancy projections or inflation, commercial real estate software is your best bet. These expensive programs require a high degree of expertise from their operators, but the data that companies glean from such calculations is invaluable. Companies use this type of software when deciding to purchase or sell a building, get a loan or build new office space.

I recommend: The mother of all real estate analysis software companies is ARGUS. Other options include Microsoft Project (not specifically real estate software, but it can be adapted to a variety of uses, including real estate) and the ROI Forecaster.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Make sure you adequately train your employees on real estate financial software. Uneducated users can wreak havoc on a company's fiscal projections.