Real Estate Asset Management Companies


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Investing in real estate comes with a number of benefits, which is why it should be a part of any investor’s investment strategy. With well-chosen assets, a real estate investor can enjoy reliable cash flow, tax advantages, a diverse portfolio, and excellent returns. It can even be leveraged to help build wealth in the long run.

Real estate investors can make money through appreciation, rental income, and profits made by businesses that depend on the property.

Here we are going to discuss real estate asset management services: what real estate asset managers do and what the different types of real estate investment firms are.

Real Estate Investment Management: What is it?

Real estate asset management services maximize a property’s return on investment and value. There are plenty of ways a real estate manager can accomplish this, but they generally have four specific priorities: revenue forecasting, reducing expenditures, portfolio management, and risk management. [1]

These companies help find the highest and most consistent sources of revenue, meaning the properties that are most likely to increase in value. Consistent income is also very important. Experienced real estate investors look for properties that can give them the biggest possible revenue stream. Investing in rental properties and multifamily real estate is a good strategy because of this.

Real estate investment management also involves reducing expenditures. It can take a bit of money to maintain a property and keep it in good, functional condition. Investors have to think about maintenance, operational costs, taxes, and closing costs. Hiring the best contractors is an example of reducing expenditures for those in the real estate industry. [1]

Portfolio management and portfolio building are all about strategically diversifying your investment portfolio.

Finally, risk management is all about assessing risk, which is an element that is present in all types of investing, including real estate. Some real estate investments have more risk involved, so knowing which is which can help investors avoid unnecessary risk. They can also prepare a backup plan in case these risky investments do not work out.

Real estate asset management and property management are two different things and this is something investors should keep in mind.

Property management is more focused on the daily operations of a rental property, including tasks like collecting rent, dealing with tenants, handling emergencies, maintaining the property, and making sure the apartment building is in good condition. A property manager handles all of these daily operations. On the other hand, the asset manager handles the overall financial strategy for an investment property. [1]

Real Estate Investing

There are a few different types of real estate investment properties. This includes: residential real estate, commercial real estate, mixed-use real estate, and vacation rental real estate. [1]

In some ways, real estate properties are similar to stocks and bonds. You can buy them at a certain price with the goal of eventually selling them for a higher price. The only difference is that the real estate industry is a bit more complicated than your standard security. Investors and property managers need to have plenty of time and patience in order to make this investment strategy work.

Real estate investors looking for short-term profits might look for properties that they can renovate or flip. On the other hand, those who want a longer-term real estate investment should look into the real estate market for well-located multifamily properties.

Real estate assets such as apartment complexes, duplexes, and condominiums are known for their strong cash flow. This refers to the net income you get from a real estate investment after operating expenses and mortgage payments have been made. Real estate properties are able to generate cash flow, and it can even strengthen over time as you build up your equity and pay your mortgage. [2]

Tax breaks and deductions are another benefit of real estate as an investment asset. This can save you money when it is time to pay taxes. Generally speaking, you can deduct the reasonable costs of owning, operating, and managing your real estate property. [2]

Finally, real estate investments such as residential properties can help investors make money through appreciation. This is because real estate values tend to increase over time. With a good investment, you can make a profit when it’s time to sell it.

Regardless of your goals, a real estate asset management company can give you valuable investment advice. They may help with determining a property’s market value as well as the risks involved.

What Does a Real Estate Asset Manager Do?

Real estate asset managers manage real estate assets for their clients. A real estate asset manager will serve as the captain of their real estate investment company. They are experts at financial analysis, data analysis, and can identify high quality assets with ease. They also know about the real estate market and current real estate trends. Therefore, real estate asset managers can work closely with investors and use real estate to reach their investment goals. [1]

Anyone can work with a real estate asset manager, including individuals, corporations, private companies, and even governments. They can also handle many different types of investment properties, offering investment advice to those who need it.

They can take charge of cash flow management, making sure real estate properties are generating enough monthly income by paying off mortgages, finding ways to efficiently cut costs, and creating more profitable rental agreements. [1]

Asset managers for real estate can even find lenders in case an investor needs to secure financing for repairs or renovations. They can also conduct market research, make decisions based on financial analysis, and develop a budget for future investments. Their comprehensive knowledge of the real estate industry can help investors make all the right decisions.

What are Real Estate Investment Firms?

Once an investor moves towards larger multifamily assets and commercial developments, they will find that real estate sellers and buyers are no longer individual investors. Instead, they are large institutional investors and real estate developers. It is important to understand the different types of real estate investment firms as you navigate the larger world of real estate. [2]

Here are the different types of real estate firms: Real Estate Private Equity (REPE), Real Estate Investment Management, Real Estate Development, Real Estate Investment Trusts (REITs), Real Estate Operating Companies (REOCs), Real Estate Brokerage, and Real Estate Lenders. [3]

It is worth noting that a lot of real estate firms do not fall into the classifications mentioned above.

Real Estate Private Equity

Real Estate Private Equity (REPE) are firms and companies that acquire, operate, develop, improve, and sell buildings for investor returns. They are similar to your standard private equity, except with buildings. Just as the name implies, these firms work to raise capital for private investors. [3]

Real Estate Investment Management

Real Estate Investment Management firms are just like REPEs in that they raise capital from Limited Partners or LPs to purchase, develop, and sell real estate properties to generate greater returns for real estate investors. The difference is that Private Equity tends to lean towards closed-end funds. Meanwhile open-end funds are preferred by Investment Management firms. [3]

Open-end funds have no end date, meaning they give managers more flexibility. Closed-end funds have a particular end date. This means the manager has to use capital in a way that fits within the fund life.

Investors may come across real estate firms that handle both open-end and closed-end funds. These firms may identify themselves as either a Real Estate Investment Management or a REPE.

Real Estate Development

Real Estate Development firms build properties from the ground up while investors buy existing real estate properties. In terms of size, strategy, and structure, they can vary just as much on the investment side as was discussed on the development side. These are companies that specialize in constructing real estate properties. [3]

Real Estate Investment Trusts (REITs)

Real Estate Investment Trusts (REITs) are public companies that own income-producing commercial real estate. They also operate and manage these properties whether it’s the mortgages on the properties or the properties themselves. Investors can invest in the companies individually using an exchange-traded fund, or through a mutual fund.

Real Estate Operating Companies (REOCs)

Real Estate Operating Companies (REOCs) are also companies that own and operate real estate—similar to REITs. However, unlike REITs, investing in a REOC is like investing in a company wherein the cash flow is derived from rent, buying properties, and reselling them, and managing properties for others. It is possible for REITs and REOCs to be private companies. [3]

Real Estate Brokerage

Real Estate Brokers act as facilitators of real estate transactions on both the sales and leasing side. They connect buyers with sellers and then collect a fee for their services. Investors can benefit from the broker’s extensive network of connections. Brokers are also experts at market analysis and valuation. [3]

Real Estate Lenders

Real Estate Lenders can help investors secure financing for real estate transactions. There are many different types of lenders, ranging from debt funds to life insurance companies. Lenders who are more “aggressive” tend to be structured in a way that they have the ability to own and operate properties in case a borrower defaults. They underwrite real estate transactions similar to owners, but they have a different perspective. [3]

What is Multifamily Syndication?

Multifamily syndication is one of the best ways to invest in real estate. It eliminates most of the problems associated with multifamily real estate investing.

For starters, one of the biggest concerns when it comes to investing in these larger real estate properties is that they have a high barrier to entry. These properties are typically more expensive and therefore harder to acquire for a lone investor.

You also need a real estate asset manager as well as a property manager to handle your multifamily property once you acquire it. It is incredibly difficult to manage an apartment building or a condominium if you have no experience. Being a landlord is a huge responsibility.

But with multifamily syndication, these issues are easily managed. A syndication deal is one way for investors to get into real estate without taking on any of the responsibilities of a landlord.

A syndication deal is when multiple investors pool their resources together to purchase a single real estate property. While this deal can be done with any type of real estate, multifamily syndication is the most popular because of its strong and reliable cash flow. [4]

With a multifamily property, you also do not have to worry about vacancies. Even if one or two units become vacant, you can still generate income from the remaining units.

In a syndication deal, a primary sponsor, also known as a syndicator, puts the deal together. They locate the investment property, secure the loan, and find passive investors to participate in the deal. These passive investors are accredited investors who want to diversify their portfolio through real estate.

The syndicator is also in charge of managing the property. They may take care of it themselves or hire property managers to do it for them. Either way, investors do not have to deal with the multifamily property themselves. This makes multifamily syndication a truly passive investment. [4]

All they have to do is supply a portion of the capital needed to acquire the property. They then earn from the monthly cash flow as well as the equity upon resale.

Work with BAM Capital for Multifamily Syndication

For accredited investors who want to get into multifamily syndication, BAM Capital is the best syndicator thanks to its unmatched real estate expertise and transparency. This Indianapolis-based syndicator has a strong Midwest focus and prioritizes class B++, A-, and A+ multifamily assets with in-place cash flow and proven upside potential. [5]

Passive investors will appreciate BAM Capital’s ability to mitigate investor risk. BAM Capital locates high quality assets and real estate opportunities for passive investors. They also negotiate the purchasing and financing on your behalf. BAM Capital also aims to create forced appreciation.

BAM Capital takes care of everything from start to finish, making it a true passive investment. [5]

BAM Capital has a consistent track record that makes them very popular among passive investors. In fact, they currently have $700M AUM and 5,000 units. Schedule a call with BAM Capital and invest today.

 

 

BAM Multifamily Growth & Income Fund III

BAM Capital created this fund in order to yield consistent and reliable cash flow, long-term appreciation, and accelerated tax benefits. The fund aligns with BAM Capital’s demonstrated track record of successful multifamily investing by continuing to implement our signature investment thesis, now in fund format. The fund aims for greater overall returns and lower risk through a multi-asset diversification strategy.

  • Consistent passive income
    Lower-risk assets with in-place cash flows with the ability to distribute preferred return after acquisition.
  • Significant tax benefits
    A cost segregation analysis allows for accelerated deprecation to years of ownership. This large passive loss gets passed onto investors through a K1.
  • Vertically integrated company
    In-house property management and construction allow for predictable cost reduction and value add.

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The contents on this site are for informational and entertainment purposes only and do not constitute financial, investment, or legal advice. BAM Capital cannot guarantee that the information shared on this post or page is appropriate for you and your financial situation. By using this site, you agree to hold BAM Capital and any and all entities related to the writing & publishing including BAM Capital’s parent company harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site. Always consult your investment advisor, CPA, and other professionals before making an investment. BAM Capital is excited to help you grow your investment assets. Please contact us to see how we can help you.