Whether you have one or 30 properties in your portfolio, you need a Real Estate Asset Management professional or team to guide you through the acquisitions, dispositions, or simply the day-to-day operations of the business. An asset manager would have the long-term goals in mind to put together a plan that is not real estate heavy or poor. With the real estate market fluctuating so heavily over the past few years with stabilization a modest hope on the horizon, management teams are focused on risk, restructuring, people, market reporting, regulation, and operations to improve portfolios.
There is no simple way to get into the real estate market for investing, and the risk is greater based on the market valuations placed on the property. The meltdown in the real estate investment sector over the last decade has led to a more monopolized market where governance and risk management factors are large for the individual owner. Getting protection in your investments is what an asset management professional can help you oversee.
It is just not the real estate sector that has had to face restructuring within its investing strategies, but it lies with the people as well. Performance is measured monetarily, and an asset manager who is worth their salary will have the numbers to prove their weight in the industry. There should be no end to the reporting figures that come with any management team you are looking to hire.
Regulation has become a keyword in the industry, but the fact remains that the real estate funds still fall under the watchful eye of the Alternative Investment Fund Managers Directive. As with any government or federally watched program, the codes and compliance of those codes are monitored differently. Strict adherence to these codes is what an asset management team is required to do.
The daily operations of the Real Estate Asset Management team are to be as transparent as possible; in fact. this should be a top priority. In wake of the credit crisis and the number of failed mortgages in both the residential and commercial sector, having a visible reporting system on the daily operations is imperative to grow a strong portfolio.
