Follow us in our five part series behind the scenes of our private equity real estate acquisition process.
In Part 1, we found the best cities, neighbourhoods and properties to invest in. In Part 2, we analyzed the properties and decided if we wanted to place offers. In Part 3, we submitted offers to sellers and conducted physical due diligence on a property. In Part 4, we discussed what our typical closing process looks like.
Equity Management
The role of the Equity Manager is to manage the relationship with the investor base and continue to provide investment oversight of and guidance to the Asset Manager. All investor communications and reports are handled by the Equity Manager to keep investors informed about key milestones and operating metrics.
Asset Management
The role of the Asset Manager after closing is to develop operating and capital budgets, hire and oversee the property manager, find ways to increase revenues (eg. through strategic renovation programs), evaluate and revise the financing strategy, conduct market research, prepare financial projections, manage cash flows, determine the financial performance of the property, calculate returns, and provide hold or sell recommendations.
Property Management
The role of the Property Manager is to handle the day-to-day management activities of the property. Key duties are to collect rents, lease unit, deal with tenant issues, enforce property rules and regulations, serve eviction notices in case of non-payment, maintain the building and grounds, respond to maintenance requests from tenants, pay operating expenses of the property (eg. utility bills, property taxes etc.), work with on-site staff and coordinate with contractors.
Five Part Series on Our Acquisition Process
- Part 1 of 5 – Research
- Part 2 of 5 – Analyze
- Part 3 of 5 – Negotiate
- Part 4 of 5 – Close
- Part 5 of 5 – Manage (this post)
