RE loan assets management

So basically a PM on the debt side is mainly looking at performance metrics such as debt service coverage and debt yield. I actually dealt with the PMs alot and they basically received our information such as cash flows and then they basically create a little package and let their lending committee know about our performance. Mainly its just debt service and debt yield, but if its a construction then they may discuss preleasing performance and lease up rate. If its a stabilized loan, then honestly the PM does very little since the bank really only cares the debt is being serviced. I am sure the PM dealing with us is handling over 50+ loans since we know a few other companies that deal with him as well.

Not great unless it's workout which is much better exit op wise. It can be good if you want to go into originations or debt brokerage but you would need to hustle. The experience would basically be worthless for equity Asset Management or acquisitions IMO. If it's all you have though I def take it over leasing brokerage.

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.

so the position I believe is loan level analysis, fund level analysis (for loans), debt underwriting and a little help on equity (property) underwriting. It sounds like a lot of fund level/portfolio level analysis+reporting. which im not sure im that interested in.

The debt side does interest me, however I wouldn't want to get pigeon held. I am most interested in property level analysis, so acquisitions, AM analyst, debt financing etc.

Also what kind of exit opps are there? would it be relatively easy to switch back to the equity side in say acquisitions or something?

Thoughts?

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.

Just out of curiosity, is there a difference between underwriting and loan asset manager?

is Debt AM really that bad?

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

Is it seriously that bad? Lol I am working in that right now at one of the top 3 brokerage firms and it doesn't seem that bad. There's a good amount of financial analysis involved and you get to work on properties all over the country - depending on your portfolio, although I wish there was more Argus/Excel modeling involved. I can definitely see how it can become mind-numbing though as I have only been in my position a month.

What do you guys think the exit opps are for someone who wants to remain in capital markets but not trying to move into underwriting/origination? Probably make a lateral career move in the company if the position is right.

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.