October 22, 2019
Asset Management
Asset management is one of the key components of the real estate investment process. An asset manager oversees a portfolio of investments with the goal of reaching maximum potential while reducing risk. Borrowers seeking funding for fix-and-flip projects will see that asset managers are active partners in the loan process. They release escrow or holdback money on an agreed-upon schedule supported by inspections. However, they’ll also see the asset manager is a resource, someone working closely with them to keep projects moving along on schedule and according to contract terms.
Borrowers Benefit from Internal Draw Requests
A key role of the asset manager is coordination of the draw request process. Once a property deal closes and funds fully, the borrower’s work can begin. That work can include demolition, rehab or construction. As the project progresses, the borrower pays contractors and then submits the draw request to their Bay Mountain Capital asset manager for a release of funds. That alerts the asset manager to arrange for a third-party inspection of the property to determine whether work has been done according to the draw request and construction budget submitted with the loan application. Once the asset manager reviews the inspection report, they can, based on loan agreement terms, sign off on the draw request and disburse funds to the borrower.
Advantages of In-House Asset Management
Real estate projects often need to move quickly to be beneficial to the borrower, and the lender, too. Both have a vested interest in reducing down-time and delays that sometimes come with draw requests. In-house asset management reduces that lag time in fulfilling requests.
A dedicated asset manager serves as a single point of contact for on-going communications. For example, they are the source of information for draw requests or other loan-related concerns. Because that asset manager is part of the lender’s team, the borrower gets fast and accurate responses with no middle-man. Borrowers know they can count on their asset manager and that they can trust in-house asset managers to have the insight, knowledge and expertise to assist them. It’s more than simply business transactions; it’s building a business relationship.
The Role of an Asset Manager
An asset manager provides critical coordination of the overall loan process. A dedicated asset manager oversees the loan fulfillment process from closing to completion. They handle monthly payments from the borrower, prepare monthly mortgage statements and pay-off quotes, receive draw requests and evaluate inspection reports to authorize the release of funds.
Strong asset management helps lenders achieve maximum return on their investment while ensuring borrowers have reliable and timely financial resources to complete their real estate projects. While a common part of the lending process, draw requests can be complex; but borrowers shouldn’t be wary of contacting their asset manager because problem loans aren’t uncommon. A qualified asset manager who’s part of the lending team is the best resource for borrowers in the midst of the loan process.
Contact Bay Mountain Capital today and learn how an asset manager dedicated to your real estate project can make loan management easier and faster, getting your property to market quicker.
About Bay Mountain Capital:
Bay Mountain Capital has been in business for more than a decade, closing approximately 2,000 loans. We specialize in financing all types of residential and commercial property investments throughout Texas and Georgia. Using common sense and value-added approach, we strive to incorporate these principles into our underwriting and closing processes.
As a direct lender, Bay Mountain Capital can close a loan within one day after receiving a complete file and clear title. The process generally takes two weeks for a residential loan but can be accelerated where circumstances require it.
We are primarily an asset-based lender, which means that qualification requirements are limited. Our rates and fees are among the lowest in the industry.