There are clear advantages in using virtual data rooms for Real Estate transactions. These include:
However, there is another often compelling reason, as to why some transactions do not use a VDR – the price. Online collaboration platforms, email and even USB sticks are often substituted for data rooms to save money and some might even say to save time.
In choosing a different way of sharing information with interested parties, are you doing either? Darren Levy, iRooms Product Manager, believes that companies all too frequently come to that conclusion – at the expense of both.
In using anything other than a specialised VDR provider for a Real Estate transaction, you may well spend more time maintaining a system that is not built to securely collaborate with users. The risks in doing so are highlighted below:
These risks are not solely for the end client. They very much concern the clients’ advisors as well, as they are heavily involved in the deal process.
For this reason, respected real estate advisors are using virtual data rooms as their default choice:
“As a group we already have extensive experience with iRooms, as they have managed numerous data rooms for us so far this year. By setting up a Master Service Agreement (MSA), we benefit from a consistency of approach to secure file sharing, a simplified user interface and demonstrating to our clients that we have a Best Practice Solution.” - Cushman & Wakefield
Indeed, it could be argued that administrators could spend far more time managing the deal process by not having a virtual data room system in place, countering the perceived price benefits of not doing so to begin with.
To further underline this point, the iRooms platform has placed a heavy focus on reducing the time an administrator spends managing the data room. We offer:
In choosing a virtual data room provider, you will be choosing a best-in-class solution, created specifically for the occasion. It will also allow you to spend less time managing the content of your transaction and give you more time in closing the deal.