As your number of real estate investments grows, you may find the need to add a fund manager to your team.
The larger your portfolio, the more difficult it can be to monitor the performance of your investments and pinpoint opportunities for growth.
A real estate fund manager can help analyze your investments and protect your portfolio during market twists and turns.
Let’s dig into the purpose of a fund manager, and what they can do for your portfolio.
What is a Real Estate Fund Manager?
When you begin investing in real estate, it may at first be manageable to analyze and review your investments on your own.
But as your portfolio grows, it quickly becomes an overwhelming task. You most likely want to grow your portfolio and make the most of your investments, and certain assets can fall under the radar without consistent review.
That’s where a fund manager comes in.
A real estate fund manager is different from those who manage bonds or mutual funds. And they aren’t to be confused with a real estate property manager.
Instead, a fund manager deals with risk management and asset allocation — plus the actual property, land, and structures.
What Do Fund Managers Do?
Fund managers are experts not only in real estate, but in efficiency, performance measurement, and forecasting.
They can handle all types of investment properties, including residential, commercial, mixed-use, or vacation rentals.
A fund manager can assist with the following tasks:
- Finding lenders to secure financing
- Managing cash flow and budgeting for expenses and future investments
- Evaluating properties in efforts to boost value and returns
- Assisting with purchases and sales of properties
- Drafting property agreements and leases that benefit both tenant and owner
- Advertising properties, creating listings, or finding a listing agent
- Studying market trends and performing research
- Predicting revenue based on all real estate investments
Fund managers ultimately will help you maintain a diverse, lucrative real estate investment portfolio, focusing on long- and short-term profits to protect you from risk.
How Do Real Estate Fund Managers Differ from Property Managers?
It’s important to distinguish that a fund manager isn’t going to manage your actual properties, but the finances, property potentials, and industry ins and outs.
Investors with multiple properties most likely will need a property manager in addition to a fund manager.
A property manager handles the day-to-day functions of rental properties, including:
- Rent collection
- Maintenance and repairs
- Overall property condition
- Tenant issues
While a fund manager might draft a property agreement and lease terms, a property manager will work directly with tenants to sign the lease.
Basically, it’s a matter of business versus operations.
Benefits to Hiring a Fund Manager
Asset management is essential for any investor to understand, but it also has enough meat to it to be its own career.
Additionally, real estate isn’t like other investments. It’s much more complicated than stocks or bonds. But with a fund manager, it becomes a lot simpler for the investor.
Real estate investors don’t need to know everything in order to have a successful, diverse portfolio — they can enlist the help of their expert team.
This team might include a combination of the following experts:
- Hard money lender
- Fund manager
- Property manager
The real estate market is a rapidly changing environment that requires a lot of research and industry expertise to stay ahead.
Investors who are serious about real estate can enlist the help of a fund manager to squeeze the most out of their investments, and help them navigate the ins and outs of the industry.
How to Find the Right Investments
What comes first— the investments or the fund manager?
Fortunately, these aspects can go hand in hand.
The best fund manager for you is invested in the same types of interests and strategies. Basically, they live what they teach. Is your fund manager following their own advice? This marks a level of trust.
The best course of action is to find a fund manager invested in real estate secured loans, and has a solid partnership with a private lender that supplies these types of notes.
Why You Should Invest with a Private Money Lender
Private lending is a staple of the financial services industry, and for good reason: It fills a valuable void left over by banks and other financial institutions.
Private money lenders understand that there are numerous profitable deals that banks leave on the table — mostly due to the strict lending requirements they must follow.
Marquee Capital Fund 1 offers private money loans in both the consumer and commercial marketplace, which provides investors a diverse portfolio of real estate secured notes.
Investing in secured notes is an essential addition to your lucrative, diverse portfolio, because these notes are high-yielding while offering investors protection via intensely scrutinized loan requests.
Start Investing with Marquee Capital Fund 1
Whether you have a fund manager yet, accredited investors can get started with Marquee Capital Fund 1 today.
Our loans are screened and underwritten by licensed professionals, with an emphasis on yield preservation and principal.
Our loan requests depend on the following:
- Quality of collateral
- Borrower’s finances and ability to repay
- Title verification
Start building your real estate investment portfolio with real estate secured notes, and find a fund manager who also views these investments as the right balance for your portfolio.
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