RE loan assets management

Worst f*cking job I ever had. For the love of Chirst, NEVER, EVER, EVER do loan Asset Management. I was bored out of my mind within a few months.

With that said, if you're looking to get into originations or underwriting and you're placed in physically close proximity to those groups then taking that obnoxious job may be a good "in" to getting to know the people you want to know.

Debt AM for a CMBS lender is going to be very different than for a balance sheet lender and overseeing stabilized assets is very different than unstabilized/construction lending. However, Debt AM functions fit into two general categories: portfolio surveillance and borrower requests. However, depending on the lender, it could also include servicing, origination/underwriting and closing. At my life co, debt AM handles surveillance, closing and borrower requests, which is a pretty good balance IMHO.

Portfolio surveillance is analyzing the performance of the asset (DSCR, occupancy trends, LTV, DY, etc.) to determine the ability of the borrower to repay the debt.

Borrower requests is evaluation of a request (leasing, release/substitution, transfers, etc.) to ensue that it conforms to the loan documents or if not, denying the request or negotiating with the borrower to address lenders concerns.

Servicing is mostly the clerical type stuff - tax/escrow analysis, receipt of payments, billing, etc.)

To me, debt is way more finance/analysis focused and equity is more relationship focused, so it really comes down to what you like.

I do this now. Depends on what your expectations are. It’s not a sexy job, but it has a good work life balance and flexibility. Pros: great entry level opportunity for people with little to no prior experience (like myself). Cons would be you have limited exit opportunities, the work can be boring sometimes, and there’s not a great deal of money to be made compared to other areas in RE (typical positions max out in my area low 100s). If you’re already in Underwriting or something else, it wouldn’t make much sense to move over Loan Asset Management unless you need the stability (It is really recession proof) or easier work hours.

I share a portfolio of 800+ loans that’s really active, so it’s not a 9-5 for me, just from sheer volume alone, but I do get a nice mix of trophy Sa/sb’s and big name sponsors that make it interesting. No two days have been the same for me either. Most people I work with are trying to make moves outside the department into RM roles, UW, or other areas if they want to advance their career. People who want to stay are riding out their current jobs until retirement. Hope this gives a little more perspective

Everyone likes to trash Debt AM until a recession happens, everything goes to shit and we have to bail all of the originators out of bad deals and frothy underwriting.

I've been in debt for most of the last decade and I've done a little bit of it all - servicing, AM, PM, origination. Personally, I enjoy debt AM because I'm the point person for everyone on any loan and therefore get to work with a bunch of people in different areas, as well as with a ton of different borrowers/sponsors.

Yes, it isn't as sexy as origination, but I also only work 40 hours a week and make the same amount of money as they do.

Also, as for exit options: maybe I'm just lucky, but I've never had a problem finding a new opportunity when I'm ready for it. I've had 7 jobs at 4 companies in 11 years.