An Asset Manager’s primary job is to manage a company and its properties on behalf of the company’s owners. The owners include the investors who contributed the money to acquire, improve and operate the company’s assets, as well as members of the management team.
An Asset Manager’s responsibilities include:
- Identifying and analyzing target properties (assets) for acquisition
- Conducting due diligence to ensure the property is capable of generating profits that can be shared between investors and the management team
- Arranging bank financing for acquisition and refinancing of the property
- Overseeing property managers to ensure the company’s plan for increasing cash flow and improving property value is being timely executed
- Periodically providing reports and making cash distributions to investors (usually quarterly)
- Eventually reselling the property, returning investor capital contributions and sharing the remaining profits with investors
Property Managers are the “boots on the ground” team whose job is to rent apartments, manage tenants, collect rents, supervise property maintenance and improvements, and manage the day-to-day operation of the property. They report to the Asset Managers.
Now you know the difference.