The real estate market has many nuances that, if improperly managed, can detract from the investor’s profits or even cause a loss of profit.

But your stock’s value probably won’t be affected by lousy tenants, vacancies, or poor market growth. Sure, you might watch the stock market and decide when it’s time to buy or sell, or maybe you’ll even participate in shareholder voting. Real estate typically requires more time, effort, and patience.įor example, when you buy a stock, there’s little work you have to do after the initial purchase. However, real estate is a more complicated type of investment than your standard security. You buy at a certain price with the expectation that you can sell for a higher price in the future. There are several different types of investment properties, including:Īn investment property is really not so different than a stock or bond. It’s important to note that there’s a major difference between real estate asset management and property management. Real estate asset management is all about strategically expanding and diversifying your real estate investment portfolio. Portfolio Building: Ideally, the more you invest, the more you’ll profit. Mitigating risk or preparing contingencies in case an investment fails are critical components of real estate asset management. But some investment properties are riskier than others. Risk Management: There’s an element of risk in all types of investing. For example, you can choose best-value contractors for fix-and-flips or secure loans with good rates. Luckily, there are a variety of ways to reduce the cost of investment properties. Reducing Expenditures: A property can cost quite a bit of money to maintain when you consider operational costs, maintenance, closing costs, and taxes. One way to do this effectively is by investing in rental properties. Good real estate investors seek out properties that provide the highest possible stream of revenue.

But consistent profit is just as important-if not more important-than a large lump sum profit. Generally, there are four areas of focus in real estate asset management:įinding the Highest/Most Consistent Revenue Sources: It’s always nice to find a property that’s likely to increase significantly in value. Real estate asset management is the process of maximizing a property’s value and return on investment.

Harry estroff real estate gift manager