How do you do asset management when it comes to your real estate syndication or your real estate investment fund? In this four part series, we're gonna go through exactly that. The four big steps that you take. Now there is some overlap between
property management and asset management. But think of it this way, acid management for the purposes of these videos, we're talking about that level above property management, it's an off the banging on toilets and fixing and talking to tenants, these are the higher level decision making skills that you are going to need in order to run one asset effectively for your investors are multiple assets. This is part one of four different parts. This also is a blast from the past, it is
videos that I put together for a high level coaching program. Now many of the people were very high level real estate executives from REITs wanted to put together their own syndication or fun, high level broker. So a lot of them had a lot of the familiarity with property management itself. And so we're talking about the next level up that level of asset management and how you'd manage those, I know you're gonna find this video helpful.
We're talking about operations, we're talking about custody. And in this particular video, we are going through property analysis as it relates to that, that custody. So why are we doing so let's start there. So as we'll talk about in all of these custody videos, we want to set a baseline in order to measure it against. Now the purpose of setting that baseline is so we know at one point certain how things were so that we can see
how things have changed. So we start from a we're going to be we need to know where we are on the map in order to get to B. So in order to get to where we want to go and take this property to where we think it belongs, we need to understand where it is at one particular point of time, so that we can measure against it. Now under property analysis, there's two different things that we're really looking at, we're looking at the physical property. And we're also looking at management, and how that
property is being managed. Now under physical, there's a lot of things that kind of make sense, there are things that are very specific to the whole big picture of the property. And those are things like what are the what are the dimensions of the property? How is it constructed? Is it tilt up? Is it is it all steel? Is it all wood? You know, is it all framed? What does it you know, what does it look like? And some of this will seem super obvious, but it's still
critically important to add to the plan. Because remember, you're setting a baseline you want it to be a thorough baseline. So you want which also should gather up all plans all as built any blueprints, and or any floor plans. And really build a stacking plan in order to make sure that we have it all in one place. Again, we're setting that baseline so that whenever anything goes we have a go to source in order to be the
the record of the property. We have. We want to gather up all the surveys, the primarily the Alta surveys that were done for the property. I want to understand what the frontage is are like I want to understand what access what ingress what egress looks like you know is there a parking is there a stoplight right there at the exit of of it or not? Because that's going to that may change over time, maybe one will be added maybe one will be taken away. And I want to understand
that so I can measure how things are changing. And so I can identify potential changes that I'd like to make down the road. Perhaps ingress was working perfectly before when there wasn't a stoplight and now suddenly, there's a stoplight in the end grass just isn't working quite right. I need to know that so that when I'm planning, okay, maybe I'd like to change how the building is out of the parking lot people come in that I know, okay, it worked really well when we didn't have that stoplight,
so maybe I'd like to see it look a little bit differently. I'd like to understand what my parking situation is like. Parking is always critical in a commercial building. And I want to understand, well, if I've got this many parking spaces, and it's set up in this particular manner, perhaps if I staggered them, maybe I'll get a little bit better parking, or maybe I'll get a little bit worse, and maybe it'll flow better, maybe
it'll flow worse, I want to understand it. Want to know what the zoning is like? And what restrictions are put on the property as to they can change over time. And I want to know what sort of easements
there are. And I want to know all these things, as we said, to make changes in the future, but also set that baseline so that I have a source of record, where if ever there's a question, I know where it needs to where I can go to find it, sometimes you'll find out oh, is you'll have a use where a tenant asked you if a particular use is available, if it can fit within the current zoning. And if you do have to go look it up, it can be problematic, if you doesn't show that you know, the building
well. Whereas if it's in your book, and it's in your source of truth, now you've got it all in one nice place. Other things that relate to the building, too, isn't necessarily just, you know, the big picture of the building, but those smaller pictures, you know, what improvements have been made? And like, how are the systems done? Like your age back? Your plumbing? What are those? Like, when were they last done? What how new? Are they? How old? Are they? What about the elevators?
Do they currently have the right certificate? Or do they need to be updated? Are they at capacity? Are they going to need work? How about your fire suppression system? Is that up to code? Or is it is it need work so that when suddenly you have a new tenant, that's a restaurant tenant that needs additional fire suppression, that suddenly now you're going to have to make a substantial upgrade? Be nice to know that
ahead of time? And then also, you know, where are the where are you at on all of your warranties on all of those systems? So like the roof warranty is a perfect example. Where am I at on my roof warranty? Because I know I've a roof has maybe 20 years of life so that I know what what's coming. And then if I need to use that warranty immediately, I've got it at my disposal. And related to that is management.
And I say related to that, because when something goes wrong, who's the person that actually knows about those things, who's the person who needs to be contacted? So we need to understand the roles of the management. And here we're talking about property management. What are the job descriptions? What is the communication plan? A lot of times you'll have a structure where there is a property manager and there will be a facilities manager and the facilities manager manager may have janitorial
underneath them. So what is the plan? When janitorial notices something? Are they supposed to go directly to the facilities manager? What if it's a very important thing, and then the facilities manager reports that up to the property manager, maybe the janitorial goes directly up to the property manager with all those things. It's possible. It's all just it's not that there's one particular right way to do it. It's making sure that you understand it and that you've
documented it accordingly. What are those policies and procedures How do you deal with the slipping foul? How do you deal with a new tenant coming in or giving over? Over vacancy? How do you deal with, with build outs or complaints or service
requests? What are those those policies? And lastly, because most because your investor is not interested in you making money as the property manager, should you be the property manager, the investor isn't doesn't have an interest in that what they have an interest in, oops is in the agreement that the entity of the property manager has with the owner of the asset, you know, what fees are getting paid. And this can
be you or this cannot be you. And I should put that in, make that clear on when we're talking about these analyses, this property analysis, it may not be done by you, if you're not the property manager, maybe you don't need to have this done by yourself. But you should expect this is done by your property manager. These are very important things in order to set that baseline so that you can manage it properly or habit
manage properly and make smart decisions going forward. So that's a high level view of asset management or the first part of assets management for this series of videos part one of four talking about the property analysis that needs to take place. Now, why do we do this? Again, it sets that
benchmark and identifies issues. As we'll see in later videos, we'll take that same information and move it along so that ultimately you make better decisions when it comes to what I call the custody part of being a syndicator or investment fund manager. My name is Tilden Moschetti. I am a syndication attorney for the Moschetti Syndication Law Group. If we can help you put together your syndication your investment
fund, we'd be happy to talk with you. Not only do we take care of the legal side of things to keep you in compliance with the SEC, and state regulators, but we're also there as experts in how to do syndication investment funds, and we're happy to help share our expertise and our knowledge to make sure that you are successful.