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Final Decisions when Managing an REO Property

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In Part 1 and Part 2 of this blog series, we discussed what a real estate owned (REO) property is and the specific tasks an asset manager will perform to improve the overall appeal of the property. In this final post, we will evaluate the next steps after the property is repositioned.

As an asset manager, you are responsible for assisting in all aspects of the administrative, financial, capital, and operations of the assigned portfolio, in this case an REO Property. It is now your job to make decisions with respect to managing the property.
Management DecisionsFind a Property ManagerIf the property manager in place is not familiar with the sale process of REO properties, this might be a good time to hire a firm that can ensure a successful marketing of the property.
Select a Leasing AgentSelecting a leasing agent and a broker familiar with REO properties is pertinent. Ask about how many REO transactions they’ve handled, how recently, and inquire about their previous property addresses an…

Managing and Repositioning an REO Property

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In Part 1 of this blog series, we discussed what a real estate owned (REO) property is and why it is one of the biggest challenges in property management. In this post, we will go into the specific tasks an asset manager will perform to improve the overall appeal of the REO property to potential tenants and buyers alike.

Primary TasksUpon acquiring an REO property, the court-appointed receiver (an asset manager or property manager) must protect existing collateral value which will involve the following tasks.

Evaluate Security and Maintenance:Repair deficiencies that are diminishing the value of the property. This includes a comprehensive property condition assessment and prioritization of needed improvements.

Insure the Property: Place an appropriate amount of insurance on the property in case of fire or other damage to the building, effective on the day of acquisition. Liability insurance will protect ownership in case visitors are injured while on the premises.

Maintain Utilities: If t…

The Biggest Challenge in Property Management

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Managing a real estate owned (REO) property is one of the biggest challenges in property management. An REO property is owned by a lender such as a bank or government agency, usually after an unpaid mortgage and then an unsuccessful sale at a foreclosure auction. 


Numerous resultant problems require a specialized approach to property management. This demands an experienced manager and staff who have the ability to:
Quickly assemble resources and data.Interpret and analyze data.Articulate recommendation options and their corresponding likely outcomes.Assemble an experienced team to execute on the owner-approved asset management plan and strategy.In some cases, the building will be incomplete, and there may be complications in moving forward with development. 
If tenants are unhappy, potential lessees may be discouraged from moving into the building due to bad press. A critical issue in dealing with REO buildings is that they must often compete among other successful properties that offer …

How Can You Enhance Your Facilities Knowledge?

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In a facilities management (FM) industry that is constantly changing, how can you keep up?

Facility management once related merely to the physical maintenance and operation of buildings. As these activities became more complex and expensive, FMs gained additional skills to keep up with the growing demand - business management, architecture, engineering, real estate, construction, and human resources.

Here are three ways for an FM to enhance facilities knowledge in such a rapidly growing industry:
1. Education and Training
2. Professional Development
3. Industry Conferences and Tradeshows
Education and TrainingThe commercial real estate and facilities management industries place a high value on achieving a professional credential. Credentials are ideal for enhancing your career knowledge and skill sets.
BOMI CredentialsFacilities Management Certificate (FMC) is ideal for those who manage the ongoing operation and maintenance of facilities. Upon completion of this 3-course program, you will hav…

Think Twice About Making a Building Purchase

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In the market for a new building material? Learn how sustainability plays a factor in the purchase of anything from a building to what goes inside!

Sustainability extends beyond the boundaries of a building. It includes the products and materials that are purchased for use in the building, whether paper products or equipment or construction materials. Before making any purchase, a building manager must consider whether the existing product can still be used. Often products are thrown away or recycled while still functioning due to a desire to have the best or newest product on the market.


Here we list the 4 kinds of sustainable goods a building manager should consider before making a purchase.
1. Longer-Life GoodsMost goods purchased in the U.S. have a relatively short usable life (six months or less), either because they are designed this way or because they are replaced by more efficient or technologically advanced goods. This poses a challenge for meeting high-performance sustainable …

Heating Equipment Guidelines for Facility and Business Owners

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As the U.S. is in the heart of winter and subzero temperatures are apparent, it is important to understand the standard operating procedures (SOP) for heating equipment in order to protect yourself, tenants, and your building.


Whether you are a facility manager or business owner, proper maintenance of boilers and electric heating systems is crucial during the winter season.
Heating Equipment GuidelinesThe following 10 operating procedures for heating equipment include guidelines for both boilers and electric heating.
Boilers1. Inspect boilers for scale deposits. Scale reduces the efficiency of the boiler and can lead to overheating of the furnace, cracking of tube ends, tube fracture, possible explosion, and additional expenses for repair, downtime, and ensuring overtime.

2. Inspect the fireside of the furnace and tubes for deposits of soot, fly ash, and slag.

3. Adjust the air-to-fuel ratio as required to obtain clean-burning fire. Evidence of heavy sooting in short periods of time could …

Solutions to Roofing Emergencies & Repairs

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A good roofing management program extends the life of the roof and maintains its ability to perform with minimal repair. 

Depending on your role in the property, you will need to communicate with your facility management team to confirm that this program is in place. It is important to keep an inventory of repair materials appropriate for the roofing system, as part of a regular maintenance program. This will facilitate quick repairs that can minimize damage.

Without consulting with your facilities team first about this program, roof leakage and property damage are likely, with repairs and replacement scheduled by crisis rather than by design.
Emergency Roofing RepairsThe best time to prepare for emergency repairs is before they are needed. Emergencies, by definition, require quick action, usually during severe weather that can cause dangerous conditions on the roof as well as inside. Electricity and water are a hazardous combination. It is important to protect occupants by closing off a…