Asset Management for Private Hard Money Lenders

According to reports, there were a total of 214,323 active foreclosure cases in the US in 2020.

The truth is that banks and financial organizations do not like foreclosure as the process can be lengthy, cumbersome, and unfavorable. Plus, they also have to take care of the property and ensure it fetches a good price. Still, it might often be the only option when a loan defaults.

A lender may end up owning the property after the foreclosure process and start the process of getting rid of it and recovering money. Fortunately, lenders have the option to hire the services of an asset management company for this purpose.

Here’s What An Asset Management Firm Does

As the name suggests, the job of an asset management company is to manage your assets, i.e.: the property in question.

Here are some of the tasks they perform:

• Property signage creation, removal, and placement services
• Regular property maintenance to assure a home is fully maintained and in excellent marketing condition
• Property registration with l authorities following according to jurisdictional requirements
• Demolition services for homes that are not fit for occupancy
• Correction and repair work to make property habitable
• Preservation services including proper securing, debris and trash removal, installation of security systems, etc.
• Snow removal and shoveling services
• Emergency services such as floor water pumping, roof tarping, and dehumidifier installation

It’s essentially property management for lenders, but for a short term contract until the property is re-sold.

What’s The Benefit of Hiring an Asset Management Company?

The problem with ‘foreclosure’ is that lenders have to sell the property to recover funds. However, properties seized are not always in a sale-able condition and can sit for months on the market before a good buyer is found.

Lenders don’t want to keep a property for long as maintenance costs can run in thousands. By hiring a professional asset management firm, lenders can export the burden and have someone else take care of everything from maintenance to repairs.

Asset management firms can perform needed repairs, safeguard property against theft, and help you sell you find a good buyer. In simple words, they ease the burden and ensure you don’t have to worry about anything.

While lenders have to pay a small fee for these services, it’s usually worth it since proper repairs and maintenance increase the value of a home and help it sell faster and at a better rate.

Which Asset Management Firm to Hire?

There are many asset management businesses out there. It’s important that you hire a firm that specializes in the type of property you have – a single family residence, a warehouse, an apartment building, etc.

The business should offer a variety of services from emergency services to repairs with experience in the industry.

At PrivateLenderLink.com, we strive to help lenders discover asset management companies that serve the private mortgage industry. Scroll up and view each company’s profile, then visit their websites to learn more, and contact them directly.