All eyes on managers as credit screw turns.IREM IREM Institute of Real Estate Management (Chicago, Illinois) IREM Institute of Real Estate Managers IREM Integrated Research, Evaluation, and System Analysis Model IREM Infra-Red Emission Microscopy president Regina T. Mullins, CPM (1) (Critical Path Method) A project management planning and control technique implemented on computers. The critical path is the series of activities and tasks in the project that have no built-in slack time. , said the national credit crunch Credit Crunch An economic condition whereby investment capital is difficult to obtain. Banks and investors become weary of lending funds to corporations thereby driving up the price of debt products for borrowers. has put asset managers in the spotlight. "As the sub-prime mortgage crisis in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. depresses the commercial credit market, which until recently had fueled soaring real estate investment returns, emphasis now is shifting to improving operating results to drive property values," said Mullins. "Operations is replacing speculation as the stimulus for growing real estate values--and the lead players in this essentially back-to-basics scenario are the top-notch, professional managers of real estate assets who are hired by investors to do just that, to optimize ROI (Return On Investment) The monetary benefits derived from having spent money on developing or revising a system. In the IT world, there are more ways to compute ROI than Carter has liver pills (and for those of you who never heard of that expression, it means a lot). from operations. "Indeed," Mullins added, "protecting real estate assets and enhancing their value are what professional real estate managers have always been about. The fundamental mission of credentialed managers is to improve ROI by optimizing operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. and controlling expenses. "And now that flipping properties no longer is as prevalent or feasible as it once was, owners and investors are looking to sustained long-term ROI growth as the key to increasing the value of their investments." "Professional, credentialed real estate managers," Mullins points out, "do a lot more than just collect rents." She cites the full range of skills, experience and integrity that credentialed managers bring to the table to optimize ROI from operations, including: budgeting and financial management; asset and risk management; marketing and leasing; Human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. management; physical property management; business development and negotiation skills; communications and resident/tenant relations skills. "As well, they must have knowledge of increasingly competitive market conditions and complex technologies," said Mullins. "Finally, well-managed properties don't just appreciate in value but also improve the quality of life for the people who live, work and shop in them." |
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