Real Estate Asset/Portfolio Management Tips and Tools

The purpose of this post is to compile tips and tools to optimize or enhance real estate asset management and portfolio management and to get some feedback on what I have done at my job. I am about 6 months into my current role, starting to get a firm grasp on how everything operates, and would like to add as much value as I can. What do you or what does your firm utilize to monitor investments both at the property level and the fund/portfolio level? A little background on your role and company would be helpful as well.

Firm: I work with a small private equity company (8 employees) that is currently investing in value-add multifamily projects across the US as the limited partner. We almost always partner with a sponsor that has a property management arm and handles the day-to-day.

Role: Analyst - mostly AM with some acquisitions work. Prior to me joining, little was done to closely monitor individual asset performance and portfolio performance was done on a high level. I have implemented some tools to help (below).

Here is what we/I use:

  • Portfolio Summary - Excel model built before my time. This simply tracks NOI for each asset, values the assets simply based on trailing numbers (adjust for reserves), and monitors debt and equity in the deals. We generate our quarterly reports from this.
  • Disposition Model - I implemented. This is pretty detailed and allows you to forecast out a current project and run different capital event scenarios (refi, supplemental loan, sale). It's actually a bit more intricate than our acquisition model only because it has some bells and whistles.
  • Fund Level Model - I implemented. The function of this model is to compile all the assets in the fund and reflect what net cash flow is to our fund, our investors, and our promote.
  • Asset Update Template - I implemented. Tracks monthly cash flows, project notes (from calls/emails), and a rent roll analysis that tracks new leases, renovated units, etc.

The reason I noted what I implemented wasn't to brag, but to get feedback on what I have done and can still do. I still feel that the majority of decisions after acquisition are done by our partner/sponsor and we give the OK. I would like to be more involved and be a regular decision maker.

TLDR: What do you use to monitor investments and your portfolio?

Comments (8)

Aug 8, 2019

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Most Helpful
Aug 13, 2019

Glad to find some discussions on AM. My company is an investment and management firm in similar size as yours and we invest in value-add multifamily assets across the east coast. Most of our deals are through JV partners and we raise the fund on deal basis. We hire 3rd management firm to manage our assets. My role is analyst and I work with Asset Manager monitoring the day to day operation of each asset.

What we use:
- Reforecast Model - excel model for each property based on T12 and forecast for the next year based on budget and outer year assumptions throughout the holding period. It tracks most of the metrics (IRR, Cash on Cash, Exit Value etc.). We use this to compare to initial underwriting # and most of our investor quarterly report explanation come from this.

  • Weekly Leasing Report - This tracks each week's detailed leasing activity at each property. Typically property manager fills out the report to discuss on the weekly calls. This report includes information such as # of leases we need to get per week to achieve target occupancy rate, renewal rate, delinquency and availability summary.
  • Renovation Tracker - This tracks detailed unit renovation (return on cost, # and % of units renovated) at each property as one of our value-add strategy is to renovate the units and capture the upside.

Would love to hear more from other people.

    • 2
Aug 14, 2019

Nice. How many assets do you have? I am debating what to add to my template that adds enough value for the extra time it takes to update it each month.

Aug 17, 2019

We have 11 assets now with one being a multi-building portfolio. My job is pretty granular, I guess maybe yours will be more high level since you manage the fund? What is your day-to-day work scope look like?

Aug 19, 2019

Gotcha. We have 35 assets over about 25 entities, so we stay somewhat high level unless we have an asset that is struggling or needs more attention.

My day-to-day changes. For the most part it is taking the monthly reports we receive from our partners and consolidating the information into excel to track the progress (capex, leasing, income, etc). If we have an asset that is in the position to sell or refinance I will run those scenarios. We just launched another fund so I helped put together information for that. If we get new deals I might take a look first or help with the write-up for the investment committee.

That's a reason I created the post - looking for ideas that will be value-add.

    • 1
Aug 22, 2019

I see. As far as capex and leasing, we review them weekly/biweekly and give guidance. I help with the disposition and refinance too but most of the time I won't get into new deals. One of my colleagues who run acquisition normally does it. Tracking Real Estate Assessment, Insurance payment also fall under my belt. At current season, I will also assist with the budgeting process for next year. I am also responsible for preparing the financial covenant compliance package for lender.

Aug 14, 2019

Great thread.

Aug 14, 2019