Build Wealth With Your Investment Properties
Managing a rental property is a game of tenants and toilets. But investing should be about ease and profit via exceptional asset management.
Other people have rentals… YOU have investments.
The Difference Between Property Management and Asset Management
Property Management
- Marketing vacancies
- Screening tenants
- Lease signing
- Rent collection
- Handling tenant issues
- Maintenance & repairs
- Move-in/move-out
- Evictions
- Accounting
Asset Management
- Investment management seeks to maximize short and long-term property value
- Maximize operating income which defines your future property valuation
- Track property value appreciation over time
- Plan for capital investments (e.g., roofing, hot water heaters)
- Incorporates tax impacts of depreciation, interest payments, and other deductibles
- Minimize tenant turnover and unnecessary expenses
- Track growth in property equity
- Investment management brings a holistic view to managing properties to optimize your wealth
Goal Alignment Between You and Your Property Manager
Our Wealth Optimizer service generates a plan that helps you and your Real Property Management office achieve your investment objectives. By focusing on short and long-term value for your property investment, we understand your goals and can act accordingly.
We help you understand the key variables that will affect your revenue and expenses now and in the future. With proper planning, you can anticipate and smooth out the costs associated with vacancies and capital improvements and keep track of your investment’s appreciation over time.
Primary Benefits
- Better investment performance
- Clear and understandable data and information
- Better revenue and expense management
The Wealth Optimizer Process
- We start with a comprehensive analysis of your property or properties’ revenue, expenses, equity changes, tax deductions, vacancy/occupancy rate, balance sheet, and reserves.
- We produce a complete and understandable report using our proprietary Wealth Optimizer tool.
- We meet with you personally to review the initial analysis and set goals for the next year, five years, and beyond.
- We can discuss different assumptions to evaluate the impact on your investment.
- On a monthly basis, we provide you with a report including cash flow, rent roll, occupation/vacancy rate, balance sheet, variance report, and reserve status.
- During the 4th Quarter of each year, we will jointly update assumptions, and you will receive a projected year-end report.
- At the beginning of each new year, we meet in person to review a new comprehensive analysis and proforma statement and establish goals for the coming year.
Our Wealth Optimizer Service Tracks and Evaluates Financial Factors Important to Investors
We not only analyze all the factors that influence your property’s financial situation, but we also compile the information into useful reports for you. This enables us to understand revenue and expense variances so that we can take action to improve performance.
- By incorporating predictions about future expenses, such as roof or HVAC replacement, based on age and standard life spans, we can budget accordingly and eliminate surprises.
- We can model the impact of different assumptions to understand critical variables affecting performance.
Our Wealth Optimizer calculator incorporates the following factors into our analysis. Some of the information is provided by your Real Property Management consultant, while other information must be provided by you.
Rent Revenue
- Monthly Rent Revenue
- Vacancy Rate
- Annual Increase in Rent
- Deferred Maintenance Costs
Operating Expenses
- Insurance
- Utilities
- HOA Fees
- Maintenance
- Property Management Fees
- Interest Expenses
Taxes and Depreciation
- Effective Tax Rate
(including Fed, State & Local) - Land % Allocation
(for Depreciation Amount) - Depreciation Term
Investment Capital
- Total Purchase Cost
- Mortgaged Amount
- Cash Required to Purchase Property
You receive a full view of the financials related to your property,
from cash flow analysis to tax benefits to return on equity.
Executive Summary
Overview of the investment performance of your property
Property Cash Flow Analysis
Review of key revenue and expenses attributed to your property
Property Metrics & Ratio Analysis
Snapshot of key operational and financial metric
Property Sale Price Estimate
Estimates based on both operating income and gross rent multiplier methods
Loan Summary
Multi-year view of projected principal, interest payments, and yearly ending balance
Loan Amortization Schedule
Detailed report of current year mortgage payments and principal growth
Choose Real Property Management Fairmate for Investment Management
We understand property management and property investments. With over thirty years of experience in property management and more than 300 offices in the United States and Canada, we have become the largest property management franchise in North America.
Our corporate Franchise Support provides oversight to local performance, compliance with high standards, ongoing training, and access to proprietary systems and processes to deliver professional service. Local Real Property Management offices are knowledgeable of neighborhood and city real estate market conditions, practices, and regulations. Together, we provide clients with the best property investment management services available. That’s why we are The Nation’s Local Property Manager.
Every office participates in extensive ongoing property management training, uses sophisticated processes and data management, and provides competitive pricing to our customers.
Join The Trusted Leader in Property Management
Contact your local Real Property Management office to learn more.
Real Property Management’s Wealth Optimizer Service
Managing a rental property and managing a property investment are different. Managing a property involves transactional activities such as marketing vacancies, screening tenants, collecting rent, and handling tenant activities. Managing a property investment involves these activities but adds deeper financial analysis to the process.
Insights, understanding, and planning drive better investment decisions. Contact us to discuss our proprietary Wealth Optimizer, which will provide you with immense insight into your properties and help you make long-term investment decisions. Download our introductory brochure on Wealth Optimizer and join those who know the difference between a professional money manager and all the rest.
Are you the right customer?
Wealth Optimizer is best for discerning property investors. This advanced level of service is for investors who want to build long-term value from their property, and especially those who have or plan to have multiple investment properties. It is ideal for investors who seek to treat their property as an investment for the future and not simply a short-term cash generator. This service level is for those who want to plan for capital expenditures and tenant vacancies and not be surprised by them as they occur. It is for those who want a complete financial picture of their property investment.