1. Real Estate Asset Management – Definition
|Definition: Real Estate Asset Management includes activities like risk management, cutting spending, earning the highest income, and others. From there, they can optimize and maximize the return of an asset.|
Real Estate Asset managers care about the best values of property owners because they are the owners of investment property. In addition to jobs such as repositioning and improving the value of assets, they also have to develop long-term strategies, tracking the assets of real estate businesses.
Managers clearly understand real estate is a huge investment, requiring careful thought and the right strategy to help improve the value and cash flow of the property. You need to be willing to pay a real estate management fee to hire a qualified and visionary real estate manager.
2. Real Estate Asset Management vs Property Management: What Are The Differences?
It is not really that simple to define asset management clearly. There are usually certain things in common about the responsibilities and obligations between asset managers and property managers. The main and most important difference is that asset managers act as a bridge between finance and real estate. They focus on issues such as capital structure, financial modeling, and setting up a portfolio strategy to deliver the most profitable results. Meanwhile, property managers take care more about problems taking place every day. Take for example maintenance operations, or property rental.
3. Real Estate Asset Management – Who Will Hire You?
- Real Estate Companies: They provide real estate management services with a range of benefits depending on the income framework.
- Property Management Companies: They have many similarities with real estate companies but provide services to both individual and institutional clients. The fee is usually collected as a percentage of the total value of the assets they manage.
- Real Estate Development Companies: In addition to management, these companies also participate in the development of their property.
- Commercial banks: They need real estate managers who help manage assets owned by the bank and assets entrusted with the bank.
- Corporations: In certain companies, they have their own Real Estates department to manage their portfolios, in order to use those assets as reasonably possible.
- Government Agencies: There, real estate property managers will be responsible for handling commercial, state, local housing and government agencies related to renewable energy.
- Insurance Companies: Real Estates are often the key ingredient in their portfolios. So they need real estate asset managers as a matter of course.
- Mortgage Brokers: RE asset managers help them provide marketing management services to investors and manage their finances.
- Religious & Charitable Organizations: These organizations often run low-cost or low-cost housing programs and therefore need someone who is socially concerned to manage.
4. Real Estate Asset Management – Job Descriptions
Real estate asset management includes tasks such as:
- Identification of sites available for lease or purchase through market-based expertise, relationships, and research
- Serve as the primary point of contact during the site selection phase and advise franchisees on optimal real estate opportunities in their local markets of identified sites, assist Franchisee in selecting optimal locations.
- Manage and maintain relationships with commercial real estate brokers
- Confirm proper zoning and approval requirements, assist Franchisee as necessary, in rezoning processes and activities
- Assess cost to renovate and feasibility of a site based on our unit economics model
- Negotiate lease, leasehold improvement, and purchase transactions with landlords on behalf of franchisees
- Prepare site approval packages for review by the franchisor, and submit recommendations on acceptable site locations and facilitate meetings with the internal review committee
- Communicate regularly with the franchisor on project(s) status
5. Real Estate Asset Management – Requirements
A bachelor’s degree in business, finance, real estate or other related field of study is the first and simplest factor an employer often requires for the position of manager of real estate assets. yes. If there is a master’s degree, it will be preferred. Additionally, some states require these professionals to be licensed, especially if they will be actively involved in buying and selling real estate.
The Real Estate Administrator’s certificate administered by the International Institute of Management and Owners of Buildings is something some managers will choose to conquer. It helps to show that an individual has the right skills and knowledge for the job, such as knowledge of budgeting and accounting, environmental health issues and risk management. Owning a degree can increase the competitiveness of a job seeker even though it’s not mandatory.
Overall, the requirements for a real estate asset managers might look something like this:
- Knowledge of real estate leasing practices
- Ability to travel extensively within the regional territory and maintain a flexible schedule
- Ability to work independently, assess priorities, and manage a variety of activities while collaborating with a broad coalition of partners.
- Proven track record as a franchise specialist and franchise coordinator
- Strong interpersonal, communication, and organizational skills
- History of supervision and ability to manage multiple projects and processes in a fast-paced, deadline-driven environment
- Excellent writing skills and command of English
- Excellent analytical and problem-solving skills
- Team player
- Bachelor’s degree in business, the management, or an applicable field preferred
- Past franchise experience in real estate, operations, or project management preferred
- A minimum of 3 years of related experience
- Willingness to travel in assigned territory up to 80% of the time
- Demonstrated success working in a fast-paced and deadline-driven environment
6. Real Estate Asset Management – The Office Life
It is not uncommon for a real estate manager’s office to be located on the property for which he is managed or responsible. For example, you may have an office in the lobby of an apartment complex, if you take up the position of managing that neighborhood. Likewise, if you are a commercial director, you will probably work at a building or a skyscraper complex that you manage. In case your company owns a range of real estate in many parts of the world, you can work right at the business headquarters.
7. Real Estate Asset Management – Salaries
The median annual income real estate managers earned in 2010 was $51,480 (According to the US Bureau of Labor Statistics).
More specifically, $27,000 is what the lowest 10 percent of these professionals make less than the average. Meanwhile, the top 10 percent get paid over $111,000.
In addition to years of experience and employment levels, the industry also has a huge impact on the average income disparity. We have the example of people employed as real estate asset managers in a local government who are paid $58,670. In addition, those found in real estate brokerage offices earn $51,300.
8. Real Estate Asset Management Career – How To Prepare?
Demand for real estate asset managers will increase by 8% between 2018 and 2028, as indicated by data from the US Bureau of Labor Statistics.
In the US alone, there will be 322,300 job vacancies for real estate managers by 2022.
The question is, how do I get one of them?
8.1. Outstanding Profile
Make sure your resume is free of any errors: no typos, clear concise, clear orientation.
Follow the job requirements and description to customize your resume.
When submitting your application, send it along with a cover letter. It helps to show your character and at the same time show your enthusiasm and dedication to the real estate industry. Highlight your personal achievements there.
8.2. Be Active on Social Networks
Thanks to the development of technology and social networks, it is very likely that the recruitment message you are looking forward to will appear on someone’s social network.
So stay proactive, and always seek!
Top places to keep an eye on are: LinkedIn, Quora, Facebook, etc. Remember to always be positive and enthusiastic on social media.
Proactively talk to employees from the company and ask about internships, or any vacancies in the company that are in need of staff. Join discussion groups, company blogs to get to know them better.
8.3. The Real Estate Club
This job requires a very large network to have a long and far-reaching development.
Hence, joining a real estate club can be very beneficial. And of course, many job opportunities also come from there.
9. Additional Qualifications
Some managers choose to obtain certification such as the Real Property Administrator credential administered by the Building Owners and Managers Institute International. Certification from a recognized professional organization indicates that an individual possesses relevant job-related knowledge, such as budgeting and accounting, environmental health issues and risk management. Although it is not required to obtain employment, possessing a qualification can increase a job seeker’s competitiveness.