Asset Management

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What is Real Estate Asset Management?

Asset ManagementAs Asset Managers we look at the entire existing portfolio with regard to any planned portfolio changes.

Operational Cost and Income Structure. We investigate the cost and income structure to identify opportunities for improvement. This can be active Supply Chain Management, combining the entire portfolio and in the next step bundling the buying power of different portfolios we manage in negotiations with suppliers.
Capital Expenses Based on the results of the Due Diligence. We establish a rolling Capital Expenses Budget Plan which is kept up to date with the actual needs. We identify those investments that might bring a quick win through improvement of the rental situation.
Organising and Supervising the Property Management. Based on a detailed scope of works we develop based on the investment philosophy of the investor, we help to identify and contract appropriate service providers for Property Management.Main tasks for the Property Manager is rent collection, dealing with tenants and service providers, maintenance and repairs within the framework set by the owner or his Asset Manager.
Performance Measurement
is key to our service philosophy: What you measure is what you get! (also see article "Performance Measurement in Real Estate Investment") We have developed a system of Service Level Agreements with Key Performance Indicators for Property Management including performance reviews and evaluations. We always incorporate a performance based element into any management fee, including our own.There is also the aspect of measuring the performance of each property in a portfolio and the entire portfolio against the business plan at the outset. This aspect is reflected in our performance focussed reporting. A separate posting for Performance Measurement will follow.
Reporting in compliance with the needs of the investor/owner. We develop a reporting structure and make this part of any contract with Property Managers and/or Facility Managers. It defines time and contents of any regular or ad hoc reports. A summary report by the Asset Manager is available to the owner on an internet based Client Portal and is the Executive Dashboard.Applying the Balanced Score Card philosophy this report contains the actual data and performance against agreed targets. Besides the obvious like rental income, this might include tenant turnover (as a measurement of the customer care by the Property Manager), the meeting of reporting deadlines and financial management
and other goals that are important to the investor.Operational reporting is also of growing importance for lenders. Not only in cases of securisations extensive quarterly reports are required. If you are interested to find out more about our reporting tools please check back weekly.
Risk Management. Because financial institutions have to perform a risk assessment before any lending, if the investor can show that he has his own risk management in place it will influence the interest rate positively. We establish and agree a risk matrix with the owner and actively manage it during the operational phase.
Outline Proposal. As a guideline we have prepared a generic Outline Proposal which will be detailed in each case for each investor and Property.For more detailed information about Real Estate Asset Management please visit the website of Berlin Portfolio Ltd.

This list is not complete by any means but should provide an insight on the main deliverables of the Property Asset Management Service.

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Author:

The author is a Berliner and active in the German property market for more than 25 years. Experienced as project manager, developer and head of the German Business for a UK based property consultancy he now owns and operates Berlin Portfolio Ltd. His international background and local expertise is an ideal combination for an international investor. Contact: E-Mail

Industrial Asset Management

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Industrial asset management is the trend these days in order for a company to optimize profits. This is done by exploiting assets to the fullest by taking consideration not only the measurement of assets and resources but also analyzing data, current market trends and quickly taking business decisions based on information collected. In short, you take everything into account to ensure productivity.

This is achieved by first identifying what are the current resources. This could be capital investments or the plant itself. Once it has been identified, it is time to come up with policies that preserve them. Some companies keep track of this by using asset management software that makes the information accessible to all departments.

This program is better known as enterprise asset management systems. It was first developed in the 1960’s with improvements being done constantly so it may encompass all the stages of the asset life cycle from planning, designing, purchasing, installing, operating, maintaining and finally disposing. Customized maintenance management software forms the subset of EAM.

With the assets stored in the company’s server, this will ensure that it is not possible for the duplication of resources. This means not having to spend money on new equipment and supplies when there it is still available in the company’s inventory.

Another benefit of industrial asset management is that the company can focus their energy on non-productive assets. This will enable the company to convert for instance idle land into real estate development or simply get rid of this by making some money out of it.

This is very useful for banks that have confiscated assets which the clients could not pay for and then auction these off to interested buyers so money can be made.

Should there be a surplus after taking everything into account, they may also decide to sell these off and make a few bucks. To compute the selling price, it is best to inspect it, have it appraised then advertise so interested buyers will come over and buy it.

Industrial asset management may also work for those who buy the goods from the company in terms of inspection of the assets for sale, contract reviews, search and comparisons to see if there are any alternatives and the procurement and shipping of the item.

Industrial asset management can do one other thing for the company. If they see that there is something they lack and there is an opportunity to acquire it, they can check if it can be added to their portfolio so the company is able to grow.

Companies that have used the software include aerospace, automobile, mining and service companies because even if they do have assets worth billions of dollars they do not want to see a single penny go to waste.

Will installing a software program to monitor industrial asset management do the trick? The answer is no because you still need management to be involved throughout the whole process. Each company has different needs and these have to be addressed accordingly.

Industrial asset management is a good thing because it helps the company stay productive. You have to remember that it is simply a tool so there is still a lot of work to be done to ensure you get maximum returns on your investment.

How to look for the right asset management people

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You can work all you want but with the high costs of living and the rising prices, your savings will not be enough to last you until your retirement. In order to have a secure future, you need to manage your money right and make sure that the money will earn by itself. Unfortunately, asset management is not something that most people are particularly strong in. In fact, people nowadays are often in trouble because of credit card debts. Only a few know how to save their hard earned money and but even they don’t know how to make their money grow.

Asset management is something that is often done by people who are already experts in money trade. They are the ones who know when to invest and where to invest so that your money will last for a long time. There are companies that specifically provide these kinds of services to people especially to large corporations who seek to grow their money. Asset management companies often deal with individuals who have amassed a lot of money but don’t know what to do with it. For a professional fee or sometimes for a percentage of commission, they will invest your money in real estate, in stocks and in bonds.

Most people, however, are not comfortable with the idea of other people handling their finances. In fact, some will not even let others know that they have amassed such a fortune. But keeping the money in banks will not make it grow. It will only stay stagnant and rendered valueless in time because of rising inflation rates. When you really concentrate on the task, you can find someone who can manage your assets honestly. Here are some tips on how to find that person.

Ask for referrals.

The best way to look for people who you can trust is to ask people you trust to refer people whom they trust. That way, you can be sure that who you are hiring has already been in a way tried and tested by people whose judgment you respect.

A good person to talk to for this is perhaps your parents or in laws who have probably hired people years ago to manage their retirement funds. You can also ask people whose portfolio you admire. Even your boss in the office can be a good source of information.

Diversify

Another way to make sure that your money is well-taken cared of is to spread the money to a couple of asset management people. Do not put all your financial eggs in one basket. This way, you can be sure that if one will have a problem, the other will still be there as an insurance.

Research

But don’t rely on referrals and opinions of people. Even the best judge of characters will also make mistakes. Before hiring the person, look him over and do some background check on him. Research on his employment history and if possible talk to his previous employers and also present ones. Invite him for dinner or set up a meeting with him. That way, you can talk to him or her. Here you will be able to see if you instinctively like the person. Sometimes the gut feel is also important.

How to do Asset management yourself

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It’s not enough that you work every day. If you want to become rich, you also need to invest your money so that it will earn for itself. This is the same concept of putting your money in the bank but the low interest rates that banks give is not enough to combat the rising inflation rates. In fact, if you really want to double or triple your money, experts suggest that you put up a business. However, this is not an option for most people, especially those that are afraid of taking risks. That’s when asset management comes in.

Asset management is the professional management of your money and other assets like stocks, bonds and even real estate for better profit. This is often done by financial advisors and portfolio managers for a fee or most often a percentage of the earnings in a period of time. This fee is what makes most people especially retirees shy away from hiring asset management people.

If you know the economic environment and understand investment terms, you can actually take care of your own assets. Here are some tips on how to manage your money and properties yourself.

1. Ask people

Do not be ashamed to ask people for advice or recommendations. Start with the people that you know. Ask friends or colleagues. If you know people who are good in business, approach them. They will be wells of information. This is because they are probably doing their investing themselves and will know business investments that are really good. Plus, these people in the industry are the first to know about stock news and gossips so you will have first knowledge of the goings on.

Ask them what’s the latest stock that they bought or what investment opportunities do they know that can yield a lot of money. Even if they are not doing asset management themselves, they can probably mention a couple of companies or investment funds that their managers recommended. This way, you are benefitting from asset managers’ wisdom and expertise without having to pay for the fee.

2. Do your research

One reason why a lot of people hire mangers and not do the investing themselves is the fact that the world is filled with people who want to rob you of your money. There are a lot of con artists with schemes that seem picture perfect at first glance. Earn money in 6 months with minimum investment, everything will seem too good. One advice, check it out. If something seems to good to be true, it probably is.

Before you invest in something, make sure that you have done some background checks on the company running it. Looking at their websites or visiting their offices are not enough. You need to look thoroughly at every aspect of the company. Check the transactions that it has made over the years. The number of years that the company has been operating is a pretty good clue too. Stay away from new companies as much as you can. They may be operated by con artists.

3. Diversify

This is actually what most people in asset management do. Do you know the old saying "Don't put all your eggs in one basket." Heed that. Put your money in different business investments. That way, when something happens with one, you still have the other one.