8 Biggest Challenges Asset Managers Face

Regulation

You are impacted by different rules. It’s important that your buyers and sellers also follow any guidelines by regulators. With competition very high it makes it more demanding to follow rules. This stress affects decision making.

You can work with consultants or with people within their own company to find a fit with regulation.

One of the keys for regulators is the liquidity of real estate assets, the price, and ownership.

Liquid prices makes the market more efficient and ownership reduces fraud.

Pricing

As Asset Managers, it is important not to compete on price because your institutions are institutions.

Real estate buyers want discounts and there is competition.

Knowledge of the marketplace is important to know prices.

You have a digital business strategy:

It is very important to have a digital business strategy. The two sources of focus for a digital business strategy in this article are the:

• Prevalence of real estate platforms, and
• Communicating on social media

You have your own real estate platforms and listing sites.

It is important for you to leverage social media to take advantage of a non zero-sum game.

Competition

It is hard to stay competitive when listing sites connect buyers and sellers.

Maintaining quality and differentiation

You might not be responsible for managing quality and differentiation. 

Value might be at the forefront of an your mind when the competitive industry is buying low and selling high.

If you have 7 buyers from one listing you will be more competitive.

Partnering with customers

If you buy and sell real estate are you partnering with buyers and sellers?

Fitting in with industry practices

It’s hard to discern if a buyer or seller is fraudulent.

Banks have real vetting procedures.

Balancing risk/return

Some properties in some markets can be $1. 

Birds of a Feather