Most of us are familiar with the role that property managers play i.e. they manage the financial aspects of owning a property:
- Collecting rent
- Taking care of taxes
- Ensuring insurance, payroll, and maintenance bills
Real estate asset management, on the other hand, is a little different. In short, asset managers maximize the performance and value of a company’s real estate investment portfolio, whether it consists of offices, retail, and/or multi-family units.
How Does This Benefit Me?
Real estate returns have a lower risk than other asset classes like stocks and bonds i.e. when managed properly, they can net you higher returns. Asset managers not only help you maintain the day-to-day duties of your portfolio they also increase your ability to influence performance.
An effective asset manager – like the ones at RAM Real Estate Asset Management – will have a more hands-on approach when it comes to helping you increase your property’s value. They will help you work out even the tiniest details i.e. replacing leaky roofs, improving the exterior, or populating buildings with higher quality tenants.
What’s the Catch?
Like with many other things in life, real estate investments come with some risk. For instance, transaction costs are significant when compared to other investment classes. In this way, it is more efficient to purchase larger real estate assets, as this spreads the cost over a larger base.
Following this tactic requires ongoing maintenance on two levels:
- Property Management: To deal with the day-to-day operations
- Strategic Management: To help you find long-term investment positions
Handling this type of investment on your own can be tough and time-consuming. So, if you want to build a strong portfolio that will provide you with a decent ROI, consider employing the services of the experts at RAM Real Estate Asset Management – not only will they give you everything you need to stay on top of market trends, they will also help you measure risk to increase your chances of acquiring an investment property that turns a profit.
The Bottom Line
When it comes to real estate investing, having an intelligent, savvy, and experienced professional on your team that helps you effectively manage your property is a valuable asset. At RAM Real Estate Asset Management, we have over 125 combined years in the real estate business and we pride ourselves on professionalism, helping our clients find high-quality properties and – most of all – making sure that their investments generate money. Contact us today to learn how we can help boost your portfolio with lucrative real estate investments.