Ep 143 - What Is An Asset Manager & What Do They Do?

Hey, everybody. Flip and Danny here, founders of the Freedom Real Estate Group family of companies. And welcome to another episode of our.

Podcast called Freedom through Passive Income. Good job, Sabine.

One word, one time.

Stop throwing me off, man.

Welcome to this episode. This one's called what is an asset manager and what do they do?

Yeah.

So what is an asset manager? This is someone who manages a portfolio. Investments for others.

Yes.

What is an asset manager goal? To maximize the value of an investment portfolio over time while mitigating risk.

Yes.

Last asset manager. Fiduciary responsibilities to make decisions on behalf of their clients and required to do so in good faith.

Yes.

Now I'm done. Danny Takeover.

Is that the end of the episode?

So make sure you go over to our website.

So, yes, thank you for going over those three important things. So what it is what their goals are and what their fiduciary responsibilities are to the client that they're working with. So we've got properties now. Some of them are. We're general partners on, in which they have their own asset managers. Like, they've got the operations figured out on for the things that we're doing in house or with our partner, Ken. We'll need an asset manager in the deals that we do with Ken. He is the asset manager. He is very much like us has. He has tons and tons of properties that he owns personally. Plus him and his wife own a brokerage, and they're both licensed and so. And they have a property management company now, so. And kids. And they do so, so, so, so much.

Way more like, oh.

But on any deals that we do here in our backyard where Ken is not involved, then just like the 56 unit that we purchased originally, we will be the asset manager for that deal. Now on the 56th unit, the asset manager really was our property manager. But the more and more properties that we get and we turn this into a portfolio of larger apartments, then we need somebody dedicated to this particular job. So we have actually been searching for an asset manager. Haven't found the perfect fit yet. And slow to hire, quick to fire is important. Always remember that. So we have been slow to hire, and we have not hired. So thank you, Tina. I know that you're watching this episode. She is our coo and she has stepped in as our asset manager.

Way to go, Tina. So literally, did Tina know that?

Yes, she did. Actually had a powwow meeting with Tina and Jody, and we were splitting up responsibilities, and I was like, tina, are you okay handling the asset manager part of this stuff? And of course, she Said sure, because she's awesome. Thanks, Tina. So I printed out, we have an old chart and we have some of these roles written out. As we build up this company, we want to know who we wanted to hire, what the responsibilities are at a higher level. And so I just printed that out. So asset manager right now, says Danny, I'm going to replace this with Tina.

Yeah.

So she helps with underwriting assistance, attending inspections. Well, she can't do that because she's in Georgia. That's where Flip and Danny will step into the asset manager role. And actually we do the underwriting assistance right now too, until she learns that part. Capex Analysis Assistants Create property business plan Asset management Manage the asset management tracker. We just built our first foundational asset management tracker. It's pretty cool. She handles the project management, which is the renovations. She also handles the rehab draws. So like this particular 48 unit, we have a bank that's got the rehab funds and we're doing draws from them. So she'll handle that process of how we get that money out. Property reporting both client facing and internal. So she's going to create the reports and all the emails or the communications that goes out to our clients to say, hey, this is what's going on at the property. She also does more frequent reports to us for the internal team so that we can ask questions and then help out as needed. Weekly meetings with deal level teams, that's the rehab, the renovation manager and the property manager, she'll do weekly meetings with them. So on the progress, those actually get move to bi weekly and then monthly as the property stabilizes. But when it's an active renovation, then you're going to want to be meeting weekly. And she manages the cost segregation study. So those are the high level pieces of info that we have on our org chart of what an asset manager stands or does as part of the responsibilities. And then I just printed out May 12th, I sent this email and it was about our 48 unit that we're getting ready to close, actually will be closed by the time this airs. And it's to Tina. And then I copied a few other people on the team that is relevant for this type of stuff, but it ultimately is telling everybody, hey, this is how we want to move forward. So I took the scope of work that was created during our due diligence period. I forwarded it to everybody and I said, okay, here's the scope of work, here's the things and the questions that I have. And I have 13 questions. And there was another email that I said, oh, here's another one I forgot to add there. So it's 14 total questions of things that I wanted Tina to be thinking about as this project starts, because I. Ultimately, we close. I want to get started on the 17th. Right. We close on the 16th. I start on the 17th. There's no wasting time here. Shocker. So all of that information is in here so that we've got a game plan. And that game plan ultimately goes to the asset manager, is discussed internally with the team, goes to the asset manager. The asset manager then works with the property manager and the renovation manager and tweaks it. It doesn't mean everything that we talked about or discussed here in this email communication or in our meetings is going to. The property manager and renovation manager could both go, oh, no, we think this is better. And Tina could agree that's part of her fiduciary responsibility. Make decisions on behalf of their clients and require to do so in good faith so we don't have to constantly get involved all the time. That asset manager is going to listen to the experts that are doing the projects and doing the renovations and managing the units, talking to the tenants, and they're going to go back to her, make suggestions, and she's going to make a decision from there. And so that's what she does. We don't think it's like a role that takes a whole lot of time, but it's an important role. It's an integral role that you need somebody in there that you can trust. And of course, she's our COO for a reason.

I was just gonna say, is she still our coo?

Yes, this is. Actually, I was thinking about that. I was thinking about how perfect is it for the COO to step into a role that's being created so that as we create these processes and these templates and everything, then she goes. And when we hire the new person as the operations officer, she goes, here it is, like, on a plate. It's pretty. Here's your processes and all the templates that you use going forward. And we all know what they are because we helped create them. Right. And she was a key piece to that. And building six companies. She has been a part of that from the very beginning. It's been tough for her to be able to get into every single company. She's literally had to go, this company, do it. Do, do, do, do, this company, do. So now she's a part of FCI and is really helping build it from the ground up. So it's exciting. Yeah.

She definitely came on at an interesting point. Of our six companies.

Yes.

Yeah, she jumped in with both feet.

Yes. She came in like 10 years ago. So way before six companies.

No, no, I mean when she came this last time when she joined us.

Yeah.

Well, anyway, we hope that you enjoyed this episode. Go on over to our website, freedomcapitalinvestments.com to join our investor club. And that's where you're going to find more information about deals that we're doing. But make sure you meeting up with us on all the social medias and doing the YouTube subscribe thingy and hit that like button.

Yeah. If you like, Tina, hit the like button. I've been trying to find it and now I'm gonna be going on there, going like, like, like, like, like, like.

How many times can I hit the like button?

If we're providing value of any kind, please hit that like button. We love seeing that you enjoy the videos. Thank you.

That's right. And we like to end all of our episodes with Invest Smart, Live Happy. Bye, everybody. Nothing on this show should be considered specific personal or professional advice. Please consult an appropriate tax, legal, real estate, financial or business professional for individualized advice. Opinions and information on this show are not guaranteed. All investment strategies have the potential for profit or loss.

Sam.