Real Estate Asset Management: The Beginning

When you come to the stage where you seek asset management principles you no longer an amateur on real estate investments and you build 1+ property portfolio. As the common mistake that most of people do without intention is they neglect their assets over a time.

The reasons for that are that people loses momentum with their property over number of years, they simply do not appreciate the power it contains. I will put this example in a most simplistic form: Asset – is what makes you rich, it is not a car which looses value when you leave the dealer, it is not a house you are living in (if it is on a mortgage) or your capital eroding in a bank account.  Asset is what is yielding Net Cash for you every single week or month as results of your viable investment.

Real estate business is not just acquiring properties in various locations it is about effective and efficient property management that reduces running costs and enhances value of your asset over time.

The strategies for asset management must be set before asset acquisitions and clearly align with your financial goals and objectives. Even if the property was bought as a holiday home for your family it must be sustained in a ways that maintains value.  Management principles, tactics and strategies solely depends on Investor asset management experience, therefore Helios Group specializes in selecting the most benevolent strategies for your residential and commercial real-estate assets.

Property Assets have three features that place primacy on their property Management:

1.    They are expensive – in terms of capital value and annual costs for upkeep;

2.   They need to be carefully managed over their live to ensure best value - e.g. maintenance, use and generation of income streams;

3.   It takes time to determine new property needs, to produce and to provide them for current market demand;

The scheme below is a simplified approach towards successful asset management:

Asset allocation and management is not an easy process it requires market assessment for specific type of asset, asset acquisition and its management in sustainable way.

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The next article will look into problems associated with asset management, their consequences on financial vision and remedies for improvements.