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What Does a Real Estate Asset Manager Do

Mindful Capital Group is your choice when you need a real estate asset manager. If you are not aware of the term, then we shall explain what a real estate manager is and what they do.

A real estate asset manager is someone who manages real estate assets for a client. Clients who may need the services of a real estate asset manager can vary from:

  • Individuals
  • Private companies
  • Corporations
  • Governments

The asset manager may be hired to handle all types of investment properties, including residential, commercial, mixed-use, and vacation rental properties.

A real estate asset manager typically has the following duties:

Cash Flow Management: Many real estate investors try to earn a steady cash flow so they can finance their investments, pay off their mortgages, or boost their monthly earnings. Usually, the cash flow is generated by rent payments from residential or commercial tenants. The asset manager assists the investor in improving the cash flow from their properties by finding areas to cut costs or by creating more profitable rental agreements.

Find Lenders: An investor may need to secure financing to purchase or improve a property. The asset manager helps the investor find a suitable lender or loan.

Assist in Property Transactions: An asset manager may assist the investor with all the nuances that come with the purchase or sale of a property.

Assist in Property Transactions: An asset manager may assist the investor with all the nuances that come with the purchase or sale of a property.

Negotiate Property Agreements and Leases: The real estate asset manager may draft property agreements and leases for the owner. It’s up to the asset manager to craft leases that are appealing for tenants, but which are also profitable to the property owner.

Asset Marketing: The asset manager may be tasked with advertising a property that the owner is selling or renting. The asset manager would create listings or find a suitable realtor or property management company.

Improve Property Values: Any property value can be improved! An asset manager will determine ways in which a commercial or residential property may be upgraded to boost its value and returns. This is a critical task for real estate asset managers who are working for fix-and-flip investors.

Conduct Market Research: A real estate asset manager needs to be an expert in doing market research. The asset manager carefully studies market trends to help the investor make good investment decisions. He or she will help the investor locate good real estate markets in which to invest.

Make Financial Projections: Analyzing the data on all the property owner’s real estate investments, the asset manager will predict how much revenue the investor will earn on his or her properties, or on prospective properties the investor is looking to buy.

Develop a Budget: The real estate asset manager will develop a budget for expenses and future investments.

Develop/Revise a Financial Strategy The real estate asset manager will develop a strategy to achieve whichever financial goals the investor desires.

The Difference Between Asset Management and Property Management

There’s a difference between a real estate asset manager and a property manager. The asset manager handles the overall financial strategy for an investment property. The property manager handles the daily operations of a rental property. They’ll typically handle such tasks as:

  • Collecting rent from tenants
  • Dealing with unruly tenants
  • Enlisting contractors to fix maintenance problems
  • Ensuring the property is kept in good condition

While a real estate manager drafts the terms of rental agreements, the property manager finds tenants who are agreeable to those terms and want to sign a lease. While the asset manager chooses upgrades that will increase the value of the property, the property manager will call in the plumber when the toilet gets clogged.

There may be some overlap. For instance, a property manager might be tasked with marketing a vacant property instead of the asset manager. It just depends on the client. In most cases, though, the asset manager is focused on improving the profitability of the property and isn’t involved much with creating rental listings or signing tenants.

In some cases, it might be necessary for an investor to hire both an asset manager and a property manager, especially if the investor has a large number of rental properties. An asset manager might not have the time to keep tabs on each of the properties!


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