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  • Writer's pictureMelissa Safak

5 Must Have Real Estate Fund Metrics for Successful Investment Management

Updated: Mar 20

Have you ever considered how to guarantee the success of your investment management activities?

It is essential to monitor and evaluate the performance of each project to ensure that it is successful. To do this effectively, you must keep track of various project metrics. Although this may seem challenging, the digital age has made it more accessible and efficient to achieve your project goals quickly. In fact, with the emergence of Proptech in the UK's Commercial Real Estate industry, you can now have real-time data visibility and a complete overview of your project's health faster.

In this blog post, we outline five critical metrics that you can track using leading real estate software – fu3e. - to manage your investments more effectively. So, let's get into it!

Monitor Project Progress

Tracking project progress is one of the most critical metrics to measure project success and meeting planned key milestones is often indicative of this. Monitoring project progress in real time is essential to efficient fund management. It enables your team to quickly identify deviations in the project timeline and through digital tools like fu3e., you can monitor progress seamlessly and make data-driven decision

How can you monitor it?

Use the real-time project tracking features in fu3e. to monitor progress, milestones, and key performance indicators. This ensures that your projects stay on track.

Evaluate Project Profitability.

Ensuring project profitability is fundamental to successful fund management. Tracking profitability provides insight into whether your investments are generating the expected returns. With tools like fu3e., you can assess your project's profitability with ease.

How can you evaluate it?

Use fu3e. to track project finances, and how the project is performing against the approved business plan. Calculate key financial metrics like return on investment (ROI) and profit on cost (POC) to assess profitability.

Manage Project Risks 

Project risks can significantly impact your fund's success. Effective management of these risks is essential, whether it's market volatility, regulatory changes, or unforeseen delays. Modern investment management software solutions can assist in identifying, assessing, and mitigating risks to protect your investments.

How can you manage it?

Implement risk assessment and management features offered by fu3e.. Continuously monitor project risks, develop mitigation strategies, and update your risk assessment as the project evolves.

Monitor Project Cashflow

Maintaining the planned project cash flow through the construction of the development is essential for fund monitoring. Drawing too little cash often serves as a precursor to potential project delays. Leveraging digital tools can simplify this tracking process, ensuring that projects remain on schedule and within budget.

How can you monitor it?

Leverage investment management in fu3e. to track project cash flow in real-time. Create financial forecasts and compare them to actual cash flow to detect discrepancies and take corrective actions.

View Environmental, Social, and Governance (ESG).

In today's investment landscape, ESG factors have become paramount. Investors are increasingly interested in projects that align with sustainable and responsible business practices. Tracking ESG metrics not only attracts socially responsible investors but also ensures that your fund management contributes positively to society and the environment.

How can you view it?

Develop and maintain a set of ESG criteria, such as CRREM and GRESB and metrics specific to your industry and projects. Regularly report on your project's performance against these criteria and consider ESG factors in your decision-making process to enhance investor sentiment and compliance. In conclusion, by tracking these five key metrics - project progress, profitability, risks, cash flow, and ESG - you can enhance your real estate fund management efforts and increase the likelihood of project success. Leveraging digital tools and real-time data visibility, such as the Proptech solution, fu3e., mentioned in this blog post, can significantly simplify the process of monitoring and managing these metrics, ultimately leading to more effective fund management. With the right tools and data at your fingertips, you can navigate investment management challenges with confidence and precision.

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