I got to work early this morning.

I suppose that isn’t particularly strange, but today I arrived earlier than usual with a chipper attitude. I guess you could say I’m exciting.

Today, I bring you information on REO Asset Management.

It’s kind of become a “buzzword” in our real estate community… REO Asset Management. It’s gotten a lot of attention due to the recent collaspe in real estate markets across the globe.

However, it’s hasn’t always been clear what REO Asset Management really is and how it can help you advance your professional real estate career.

When broken down, an Asset Manager is a professional asset analyst with the goal of increasing value. REO Asset Managers, in paticular, do just that. They manage the value of Real Estate Owned properties while in the process of disposition. This includes (but not limited to): default management, lease analysis and relations, capitol improvements and most importantly, property valuation services.

In a nutshell, REO Asset Management are companies that act as the bridge between lenders, mortgage services and real estate professionals in the default marketplace. They are the companies that send out Broker Price Opinions for real estate professionals to complete. They are the “employer” of the BPO assignments, so-to-speak.

In the last few years these companies and asset managers were brought on by financial institutions to manage large asset holdings and portfolios. In general, these accounts tended to be more high risk assets, or management heavy lease contracts. They were also large investor porfolios which were poorly managed and lacked proper asset implementation. As a result, many banks hire Asset Managers as a value resource to manage their property asset.

However, in recent years (and years ahead) these companies and asset managers will play a very big role in the management of default accounts. Just imagine the influx of defaults many banks are seeing. The more defaults the harder it is to manage. And that is where REO Asset Managentment companies come in. Due to current economic stablization it has proven that property values cannot sustain another crash like the one we are experiencing. As a result, property asset managers will have a role in the recovery (and beyond). They are important for banks as well as real estate professional.

For us, REO Asset Management companies supply us with the BPO assignments.

Knowing who these companies are and being able to contact them is key to your success with Broker Pricing Opinions.

Ron

P.S. — If you’re intereted in getting a list of REO Asset Management companies — {{ GO HERE }}.