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Showing posts from April, 2019

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…