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:
- Real estate accounting software
- Real estate appraisal software
- Real estate analysis software.
Decide if your company would best benefit from real estate accounting softwareIf 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.
Explore the features of real estate appraisal softwareIf 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.
Consider purchasing real estate analysis softwareIf 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.
- Make sure you adequately train your employees on real estate financial software. Uneducated users can wreak havoc on a company's fiscal projections.