Getting Someone to Represent You
The entrepreneurs who have many interests in the real estate investing business will not be able to undertake all the management tasks that are required of them. Rather they will have to delegate some of these duties to the portfolio manager.
If I was giving advice I would insist that the management is separated from the acquisition team because they are two completely different sets of issues that require different skills. In this article we will examine some of the main issues that arise in managing a real estate investment as well as the type of qualities that are required.
An Estates Manager with a Purpose
Initially the person who is managing the portfolio will have to identify all the tasks that would be needed to professionally control the assets. They then set up procedures to identify what assets need to be managed as well as a schedule for managing those assets. Each manager will adopt their own style depending on their skills and training. You the entrepreneur do not necessarily have to get involved at every stage but you can provide an overall view of what you would like your real estate investing business to look like.
The Real Estate Manager ( or Property Managing Agent ) will then have to communicate with you on a fairly regular basis to discuss the day to day running of your portfolio. They should also be included in the planning stages of any new major development because they will form the basis of your view of the growth opportunity of your real estate investment venture. No one will know the details of your assets more than your management assistant. Make sure that you take every opportunity to know what is going on so that you can anticipate problems before they arise.
The management function of your real estate investing business will also take on the day to day communication with the tenants of other people who are closely associated with your property. This is a particularly sensitive area because it can make or break the business relationships that you establish. The manager will be able to resolve the conflicts that will almost certainly arise within your portfolio and can report back to you for escalated functions.
When you reach a point of sale, the real estate investment manager will be able to give you a good picture of the equity within your property. They do this by explaining to you what is wrong and what is right about the current state of the realty that you own. They may even make suggestions for improvements just before putting the property up for sale. If you are keen on, real estate managing agents could also perform the function of proposing possible good value properties acquisition to be included into your existing real estate portfolio.
Where the buyers are unconvinced about the value of your property and require input, then you can work out a plan to develop a relationship between the manager and themselves which allows you to put forward any mitigating circumstances that increase the price of your property.
The management function is the one that caters for your real estate investment portfolio on a daily basis. It requires that you either take a keen interest or hire a professional real estate managing agent who will do so. This ensures that you are on the money when it comes to your business.