Unpredictability, The Greatest Challenge to Tech CRE

Unpredictability is the biggest challenge to utilizing technology in commercial real estate investment. Investing often has moving parts and changes along the way, and at times, technology relies on predictability and logical forecasting. However, tech investment companies are making strides to make technology compatible with the flexibility needs of investing.

“Without a doubt, the dynamics of investments are one of the greatest challenges,” Jeff Holzmann, CEO of IIRR Management Services, a crowdfunded investment management firm, tells GlobeSt.com. “The issue is that very few things work according to original plans, and issues come up that no one could have foreseen. Examples include investors that passed away, investments that didn’t pay as projected, amounts that were entered in error, and so on.”

The caveat to investing is that each deal is different and, even with a strict strategy in place, deals are analyzed on a case-by-case basis. “Having worked on hundreds of deals across the country and in all CRE categories such as multifamily, industrial, self-storage, parking, office, and more, we learned how each deal is different and how the technology needs to be built to accommodate the specifics of each situation,” says Holzmann. “We also work with thousands of investors from all over the world, so we’ve learned what people expect from an IT system that manages billions of dollars of investors’ money.”