Keeping track of all critical documents can be time-consuming and tedious for real estate investors and syndicators. Not only do you need to ensure compliance with legal documents and meet certain requirements, but you also need to ensure all documentation accurately portrays the terms of your real estate deal.
This is where document management software can be useful. In recent years, we've seen sponsors migrate toward online platforms that take the entire document management process off their hands, saving time and money, and reducing the clutter of physical documents. There are many available options to choose from, so choosing the right document management platform can be challenging for the busiest real estate professionals.
In this article, we’ll take a closer look at the differences between SponsorDocs and traditional real estate document management systems and what to consider when choosing the best system to meet your needs.
How to Organize Real Estate Documents
Organizing real estate documents often begins with sorting and prioritizing the contents of each document. Maybe you already have a checklist of what’s required or specific deadlines marked on the calendar to help you stay on track which is a great start, yet is still taking your valuable time.
Organizing documents such as the Private Placement Memorandum (PPM), Offering Memorandum (OM), Operating Agreement (OA), and syndicator’s fee schedule inside folders based on a property's name, type of document, and date of creation will allow you to easily find a document later.
However, storing electronic versions of documents using real estate document management software makes business processes easier for everyone who is a part of the deal to search and access critical information when needed. Document management solutions are generally comprised of several components that work together to manage documents effectively and this includes:
- Capturing and indexing
- Document workflow management
- Security and permission control
- Document retrieval
The Difference Between CMS and DMS
A Content Management System (CMS) is mainly used to create and manage content online and is typically offered by vendors like Adobe or Sitecore. A CMS helps businesses store, manage, customize, and publish content in digital formats.
While both systems have some similarities, a CMS and Document Management System (DMS) each cater to distinct purposes. Real estate professionals should consider real estate document management software to help store, organize, and manage electronic documents, including important legal forms.
Simply put, Document Management Software (DMS) is used for regulatory compliance and document management, while a CMS may be useful for storage, publishing, and retrieving web content (HTML and PDF files) and digital files.
Furthermore, a document repository is another common option to consider, as this mainly serves as a location for storing digital documents and files. A document repository has limitations though, since it does not provide valuable insights, automated data extraction, and permissions control like a document management system.
While a repository is merely document storage, document management software provides many more features to manage and utilize real estate documents.
What Makes a Great Document Management System?
A great DMS must have a user-friendly interface and provide helpful features to make each real estate transaction process run smoothly.
Look for valuable features such as software that provides:
- Indexing, searching, and access control
- Customizable real estate workflows
- Remote access
- Legal expert oversight for documents
- Ensured data security and integrity of stored processing documents.
In addition, a great system should have seamless integration with other existing systems to help you grow your business faster.
Which Software Is Best For Real Estate Syndicators?
There are several options when it comes to choosing a software system to manage real estate documents, but each option does not provide the same level of value. Some of the top DMS software for real estate syndication include SponsorDocs, PandaDoc, Dropbox, Google Drive, and SharePoint.
When choosing a system for your needs, consider factors like ease of use, core features, cost, scalability, and support. Be hands-on and consider setting up a demo or speaking with a representative via phone or web chat to ask questions and see how the software will benefit your specific real estate deals.
How SponsorDocs Helps With Real Estate Document Management
SponsorDocs is a great option for real estate agents, as it is designed specifically for real estate businesses and offers advanced features, including custom metadata, premium legal documents, customer relationship management, and most of all secure user permission settings to meet General Data Protection Regulation (GDPR).
SponsorDocs also sets itself apart by partnering with a leading securities attorney to help ensure compliance, limit risk, and protect your investments. Customers receive legal documents that are ready to be customized to fit the terms of the deal in as little as two business days. Another highlight is that SponsorDocs members tend to save an average of $7,500 working with their document creation system.
Upgrade Your Real Estate Business With the Right Software
As real estate syndication evolves with modern times, a real estate document management system is essential to save time and streamline processes in your real estate business.