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?