Financial Big Data Analysis: What Makes a Project Successful

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The process of project management requires agile big data analysis during every stage. The mezzanine finance property development will pass through many capital funding stages: planning, development, construction and sales. Other projects could involve a new clothing line, beverage or the merger of two companies.

Financial analyst programs allow you to compare the debt, risk and cash flow for different projects. Learn how this software can be beneficial to project managers. There will also be a list of five free financial analyst software programs that can help you manage your capital, project and workforce.

How Big Data Improves Project Management

Project managers can use big data to gauge the financial impact of various construction decisions, such as material, labor and equipment costs. Adjustments to lower risk could be quite beneficial in the long run by making more capital available at a lower price. The financial performance analysis project report allows all stakeholders access to the same big data. Furthermore, adjustments can be made in real-time as risk parameters change.

Mezzanine Finance Property Development

Land development has become extremely sophisticated with many partners working together to provide the financing, expertise and logistics needed for success. Mezzanine financing allows real estate developers to raise the necessary capital by offering an ownership or equity interest in the development. This debt tends to be subordinated to senior lenders.

A high quality financial analyst is becoming as essential for real estate developments as a bookkeeper or accountant is to a small firm. A financial analyst might be categorized either as an 1. All-Around Renaissance Professional or 2. Specialist. The process of project management may require a combination of both analyst types.

Aggregating Data & Notes

During the planning stages for your mezzanine finance real estate development project, your financial analyst should identify which data should be collected by your staff. The data, notes and statistics should be sent to your data entry team for deposit in your database. Real-time data processing, tracking and analysis can ensure that the bottom line profit goals are met.

Avoid “Garbage in Garbage out” = GIGO

The quality of your reports will only be as high as the data inputs. A good computer database allows you to store all your construction data and financial management notes for usage later. The experienced financial analyst can pick-and-choose which is relevant for each report.

Finance for construction will be more readily available when you can quote your financial figures off-the-top-of-your head. Improve your construction finance by giving your decision makers the real-time data processing tools needed for success.

Criteria for Selecting Financial Analyst

The right financial analyst will create detailed reports, deliver real-time data and notify the decision makers of any important changes in the financial health of the real estate project. Cash flow, risk management ratios and occupancy rates are some of the important statistics that must be tracked. Here are some key criteria for selecting the best project financial analyst:

  • Connection to Lenders
  • Scalable Capital Requirements
  • How accurate are their forecasts?
  • Conflicts of Interest
  • “What have you done for me lately?”

Some financial analysts may have a banking background. This connection may open doors to help your project raise capital down the road. The best analysts will have high accuracy rates for their forecasts. Ask for a sample of the financial analysts work.

There may also be potential conflicts of interest. In the lucrative property development field, some analysts might want to become investors and vice versa.

What have you done for me lately?

The property market is fast-paced. Some skills become out-dated quickly. Determine if the financial analyst has been working on the most important land projects recently.

Two Financial Analyst Software Programs

Financial analyst programs offer quite a range of functions: basic number crunching, displays, reports and trend identification. Different projects might prefer one over another. Here are two of the top financial analyst programs:

  1. ReadyRatios: Upgrade from Microsoft Excel with a software program that provides the proper templates for satisfying International Financial Reporting Standards (IFRS) with the free ReadyRatios software. This allows users to analyze and report on more than 40 general real estate ratios, indicators and values. This is best for international land projects.
  2. RealData: The free RealData Real Estate Investment Analysis Software Version Professional Edition 17 allows financial analysts to identify trends and forecast future potential for cash flow, risk and capital investments. Since 1982, RealData has been providing this tool for decision-making, reporting and analysis. Add your company logo to your reports with RealData. This latest version is ideal for international property developments.

Each project has its own characteristics requiring a different type of graph, report or analysis. Find a good financial analyst program for your project and let the system crunch the numbers for you. Learn what make a high quality finance specialist who can give your project the leverage its needs to be successful.

Sarah Smith

Sarah Smith

Sarah is a part of writing team of HoldenCAPITAL, a Brisbane-based specialist finance group who successes in deal structuring and sourcing of debt and equity solutions. Sarah is currently learning about financing, using the internet. Aside from working on her full time job, she likes to use social media, and read travel books.

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