How ADEx Maximized a Global Real Estate Company’s Potential

The Challenge

Real estate portfolio companies are accustomed to the copious volumes of paperwork, but that doesn’t mean the daily manual processing of such documents isn’t tedious and strenuous for real estate professionals. In addition to the slow due diligence process, it’s truly disappointing when your company makes the decision to invest its hard-earned profits in a document processor that turns out to be substandard, failing to deliver on accurate, worthwhile document processing.

A global real estate portfolio company with over 4 billion in revenue faced these challenges and put its faith in AI to help. In return, the company gained 4x their ROI, obtaining qualitative data faster for profitable financial analyses and streamlining the due diligence process to reduce manual processing costs.

Here’s how:

The Solution

ADEx is a cognitive document automation solution with extensive real estate experience. ADEx has processed over 7 million real estate documents and is equipped to handle over 2,000 real estate document types and 4,000 data points.

ADEx’s AI goes beyond basic keyword extraction and uses natural language processing and deep experience with previous document types to capture and standardize critical data points. This intelligent AI processes both structured and unstructured real estate documents, comprehending and capturing every element of documents including images, graphs, and tables.

By automating real-estate workflows with ADEx, their professionals cut their due diligence and evaluation time in half. Our processor helped the company quickly retrieve and organize data points for evaluation, informed in-depth financial analysis, and profitable portfolio management. The following documents were just a handful of many ADEx processed for the aforementioned global portfolio company.

1. CRE Comparables

ADEx utilizes natural language processing to determine how real estate documents relate to one another and groups them together. In this instance, ADEx automatically pulled together the company’s property and sales documents to capture and organize complete data points such as the price, date of sale, cap rate, property information like square footage, zoning, and more, to create comprehensive CRE comps. ADEx even comprehended graphs in their sales documents, loading in crucial property tax data into their CRE comps.

The generated CRE comps were used to compare and contrast prices on similar properties for sale in the area to determine if the real estate portfolio management company should invest. This resulted in an impactful data-informed decision where the company seized the opportunity to invest in a profitable property for a fair price.

2.  Letters of Intent and Offering Memorandums

Prone to handling a multitude of letters of intent for a single property, the global company was burdened by the overwhelming amount of documents. Manually processing LOIs became tedious, but with automation, they would be able to make comparisons between offers much easier.

Furthermore, without an in-depth report capturing relevant data such as price, cap rates, initial deposit, utilities, staffing, payroll, and more, their brokers struggled to obtain a proper scope of the market’s overview. And, of course, manually generating these data reports for LOIs and OMs from scratch and organizing the heavy flow of documents proved to be too much of an extensive, time-consuming process.

Then, ADEx swooped in. Our AI ingested their LOIs and OMs to capture data and input it into a structured database, fed the captured data into their CRM, and generated it into a report while populating it automatically in a shareable online file.

Once the report was generated, the real estate portfolio management company was able to compare their offers, as well as track deals made in specific markets and their prices, analyze organized data, and have their team easily refer to an organized report. This empowered them to strike while the iron was hot, accelerating their decision-making process for future deals to come. That’s the power of an AI-powered document solution.

3.  Lease Abstraction

ADEx’s AI goes deeper than other IDPs for lease abstraction–it doesn’t just find values and keywords in a document; it abstracts lease information including rent, dates, terms, and even goes as far as gathering stipulations.

For example, in a complete, fully automated lease abstraction performed by ADEx, a lease managed by the company stated, “rent increases in any 12-month period no more than 5% plus the percentage change in the cost of living (CPI)”. ADEx was able to fully interpret the statement to calculate CPI and create a thorough rent roll for the company. Overall, ADEx improved accuracy, reduced costs, and streamlined risk management with automated lease abstraction.

4. Rent Roll Processing

Speaking of rent rolls, the real estate portfolio management company was eager to determine if there were any actionable insights on any of their rental properties. ADEx’s ability to extract critical datapoints from leases, such as tenant, rent amount, expiration date, renewal date, security deposit and payment history, as well as calculating projected rent increases based on the % and CPI stated in the lease (something that your average IDP does not understand how to do without training) and automatically formatting the data into a rent roll table allowed them to get a scope of their rentals performances, catching the fact that their annual expenses for a set of properties were close to reaching an all-time high.

5.  Trailing 12 Months Calculations (TTM)

As a global company that manages different types of properties, including multi-family properties, a trailing twelve months is one of many necessary reports for due diligence. Furthermore, the document helps every real estate portfolio management company oversee cash flow over the course of the year.

ADEx extracted the necessary financial data such as rental income, utility charge-backs, expenses, concessions, and more from the company’s monthly income, balance, and cash flow statements to create a comprehensive T12 document, giving visibility to the strengths and weaknesses of their multi-familial property portfolio.

The Benefits

• Qualitative data extraction and organization
• Organized documents and reports for easy access and future use
• Time for portfolio management and strategic decision making
• More accurate, profitable financial analysis thanks to key data points
• Streamlines due diligence
• Eliminates management by paperwork
• Reduces human error and requires little to no manual intervention

Features of ADEx

• More accurate, complete document processing
• Cognitive document automation equipped to handle structured and unstructured documents
• Rich processing capabilities that calculate and deliver relevant data points beyond basic keyword extraction (such as CPI driven rent increases, vesting schedules, % based late fees, for example)
• Extraction of tables, graphs, images and signatures
• Smart folders for greater organization and overall efficiency
• Automatic grouping of relevant documents
• User-friendly dashboard 
• Integration with top management, accounting, BI, and ERP platforms

ADEx AI—Your Cognitive Real-Estate Document Processor

By using ADEx for more accurate, complete, and cognitive document processing, real estate portfolio companies can either reap the benefits of ADEx’s total extraction or ADEx’s experience and understanding with a plethora of real estate documents to eliminate manual steps required by your average intelligent document processor.

It’s time to retrieve substantial qualitative data faster and use it to your advantage to make profitable, quality, data-informed financial analyses and decisions for your real estate portfolio.

Schedule a demo today to learn more.

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