Monday, July 23, 2018

Real Estate Asset Managers


In the real estate industry, there are many different professions, each with its unique role. I have focused on different real estate professions in the past on this site, so let us take a look at more obscure and lesser known profession--the Real Estate Asset Manager.

Role of a Real Estate Asset Manager

Although the title Asset Manager has multiple meanings in the world of finance, the Real Estate Asset Manager has a specific task—to manage properties resulting from mortgage default or property acquisition on behalf of a real estate investor, whole loan investor or mortgage servicer. Typically, real estate asset managers maintain a network of vendors, such as contractors, real estate brokers, real estate marketing companies and appraisers in order to maintain, market and sell properties under their management. Resultantly, much of the role of the Real Estate Asset Manager consists of vendor management.

Most real estate asset managers work with mortgage servicers through either a client or a subsidiary relationship. For example, Altisource, the nation’s largest real estate asset manager, is an independent but related company to Ocwen Loan Servicing, one of the nation's largest mortgage servicers, whereas SingleSource, another well-known real estate asset manager, is a wholly independent company that is hired by some of the largest loan servicers. Given the size of the whole loan portfolios of the larger mortgage servicers, many find hiring a real estate asset manager more cost effective than building and managing property vendor networks and tracking sales activity.

Local Impact of the Real Estate Asset Manager

Real estate asset managers also frequently serve as a clearinghouse for contract work for local real estate professionals. Many realtors, contractors, landscapers and appraisers use their affiliations with these asset management companies to gain access to a steady stream of contract work flowing from the real estate needs of mortgage servicers. These real estate professionals not only benefit from the attending to the substantial real estate management needs of the larger mortgage servicers, but also the flexibility of the relationship between the professional and the real estate manager involved. Typically a local real estate professional's obligation to the real estate asset manager can be terminated at any time after the accepted task has been completed.

Most often overlooked in most discussions concerning the real estate industry, the Real Estate Asset Manager serves a vital function in both the residential and commercial real estate markets. These managers of real estate facilitate market functionality and link real estate institutions with local markets.

That is my take on real estate asset managers, please feel free to provide your prospective on the matter below.