One thing we’ve learned about real estate investors in our decades in business is that some have a heavy hand in managing their assets, while others feel they lack the skills and knowledge to do it alone. Risk analysis, due diligence and negotiations are all needed to close a real estate deal, and managing a portfolio effectively is no simpler. That’s where real estate investment management firms come in—we take over the daily management of your real estate assets, as well as the long-term planning and strategy responsibilities.
If you are looking for a trusted real estate investment management firm, you’ll first need a clear idea of your goals so that you can focus your search on only those firms that can help you reach them. You will also want to investigate potential partners thoroughly to make sure they have the expertise needed to meet all of your expectations.
To lay the groundwork for this, let’s look at five of the most important traits every real estate investment management company should have.
Investment Management Company Essentials
- Good communication habits. You will need a steady flow of information about your assets, as well as easy access to firm managers, especially in the early stage of your relationship. They should be professional, cooperative and supportive, and quick to respond to your questions. They should also be able to clearly explain the risks involved in specific investments, and support their explanations. If they don’t offer to send you regular detailed financial reports and an annual report containing verifiable financial projections, you may want to think twice.
- Full service. An expert firm will explain exactly how your financial goals will be met. This requires broad knowledge of finance and real estate practice to provide you with sound advice, and strategies to act on that advice. Services could include real estate acquisition, development, repositioning, and management. Having a well established national presence, as well as a local presence, inspires additional confidence.
- Room to Grow. Real estate assets are not static. The firm you choose should be diversified enough to offer you new opportunities and growth options. You may want to reinvest your earnings in new development, and you might want to do it in a different state. Know what their strategies are for reinvestment, tax optimization, and exit.
- Licensing and experience. An investment management firm should have appropriate licensing and accreditation (SEC registration, FINRA and SIPC membership, for example), as well as a well-documented record of success. While past performance is not a guarantee of future success, length of experience and depth of knowledge are strong indicators of ability. A solid presence on FINRA’s BrokerCheck website is a positive sign. The Better Business Bureau and state oversight agencies could also shed light on a firm’s background and qualifications.
- Good reputation. Word of mouth counts too. In addition to working with their clients, investment management firms deal with many professionals, including property management companies, other financial experts, contractors, etc., and quickly establish a reputation. If that reputation is less than stellar, question whether your experience with the firm will be any better. Talk to your associates and other investors.
A top real estate investment management company will save investors time by relieving them of many of the responsibilities and tasks that come with investment management, and will provide greater security through knowledge and experience. A highly qualified real estate investment management company is itself a great investment.
If you are looking for an investment management firm that meets all of your expectations—and more—CWS Capital Partners may be a good match for you. Founded in 1969, we are a reputable, fully integrated real estate investment management company that specializes in the acquisition, development, repositioning, and management of luxury apartments.
For more information about CWS Capital Partners and the 97 luxury properties we manage nationwide through our affiliate, CWS Apartment Homes, please contact us to learn more about investing with CWS Capital Partners, or view our current offerings by completing our self-certification form for accredited or qualified investors.
The information provided here is for your general informational purposes only. It should not be considered a recommendation or personalized advisory advice. CWS has made this third party information available from authors it believes are knowledgeable and reliable resources. However, its accuracy or completeness cannot be guaranteed and sentiment may change due to legal or economic conditions.
All investments involve risk including the possible loss of principal. You should familiarize yourself with all risks associated with any investment product before investing.
Advisory services are provided by CWS Capital Partners LLC, a registered investment advisor.
Securities offered by CWS Capital Partners LLC are through an affiliated entity, CWS Investments. CWS Investments is a registered Broker Dealer, member FINRA, SIPC.