Do You Know What Real Estate Investment Strategy Is Right For You?
When researching the best approach to your real estate investment strategy, you’re likely to come across Property Management focused firms and Asset Management focused firms. So, as an investor, it’s important to have a comprehensive understanding of each as well as an understanding of any firm’s expertise, in order to confidently move forward with your strategy and investment partner.
First, it’s important to establish your expectations in working with a firm. For example, consider the following questions:
- Am I looking to grow a portfolio of investment properties, or just ensure day to day management operations are handled?
- Do I need future acquisition or exit strategy consultation?
- Will I be prepared for a shift in the real estate market?
- What do I expect to get out of this investment? Cash flow, time saved, or both?
Next, it’s important to understand what each investment strategy offers you as an investor.
Experienced Property Management is vital to maintaining value in your investment property. A qualified property management firm should handle the day to day operations for both the tenant and owner. These responsibilities include, but are not limited to rent collection, maintenance repairs and cause investigation, regular in-person property reviews, regulation enforcement, and financial reporting.
While there is no doubt that a property can be managed by its owner, that owner often learns the hard way why property management firms are relied upon by seasoned investors. Leveraging a property management firm’s years of experience prevents unforeseen circumstances that can result in unhappy tenants and negative cash flow.
Asset Management on the other hand has a heightened focus on maximizing financial gains and return on investment strategy. The asset management approach considers other factors such as market forecasting, property acquisition, financial counseling, and long-term revenue growth projections. This strategy looks to trends and historical data to determine the best approach to reduce expenses and increase passive income.
Best of Both Worlds
What our experience has shown us, is that the best approach to any real estate investment venture will thrive from utilizing both tactics. It’s clear that property management handles the operational details that owners do not have time or experience for. Furthermore, the historical experience they provide prevents negative outcomes for tenants and property owners. While asset management handles and oversees financial strategy and cash flow management to ensure long term investment success. Bringing together both approaches facilitates positive tenant and owner outcomes, while simultaneously increasing investment derived cash flow.
Sounds like the best of both worlds, right? We agree and we want to put our experience and expertise to work for you and your investments. Give us a call today and let’s see how we can help.