In this article, we’ll take an in-depth look at property portfolios—including the different types of portfolios and why they are important to CRE professionals.
We’ll also look at how you can quickly find property owners and their portfolios with Reonomy.
|TABLE OF CONTENTS|
|About Property Portfolios|
|1. What is a property portfolio?|
|2. Types of Property Portfolios|
|How to Access and Analyze a Property Portfolio|
|1. Researching and Analyzing a Property Portfolio with Reonomy|
|2. Property Portfolio Software|
Perhaps the best way for anyone to analyze and understand an owner (of any kind), investor, or lender, is to thoroughly examine their property portfolio.
It is the most accurate and thorough way to examine a property owner or lender and build a more refined understanding of their tendencies and intentions.
What is a property portfolio?
A property portfolio is a collection of all the properties under ownership of a single person, group, or entity.
On one end, a property portfolio can be helpful for an investor because it can be used as their résumé and as credibility to be leveraged when interacting with potential buyers or sellers.
An owner’s portfolio is their “experience,” their career, their résumé—it’s their track record of success. It’s what proves their credibility in the industry, and even serves as a source of marketing and promotion.
For example, that’s why many investment companies display their full portfolio on their website.
On the other side of the equation, property portfolios help brokers and investors better understand other owners and lenders. Analyzing a portfolio allows them to gain insights into and better understand those that they might work with or buy property from.
Property Portfolio vs. Portfolio Property
You may also hear the phrase “portfolio property.” Whereas a property portfolio is the full-lot of properties owned by an entity, this phrase instead references just a single asset among the entire lot.
Types of Property Portfolios
Property portfolios can be that of a property owner or lender.
In terms of assets, those portfolios might be made up of commercial or residential real estate, retail, land, or any combination of them all. A portfolio’s focus asset type will likely be of a specific size (physically and financially), even if the land use is different.
Property Investment Portfolio
In most cases, when referring to a property portfolio, someone will be referring to a property investment portfolio.
The asset type focus within investment portfolios will often be based on the type of revenue that the owner is looking to gain—either rental income or capital gains.
Investment property portfolios will usually have (at least one, if not all of) a geographic, property use, and monetary value-focus. Beyond that, investors may turn their focus to certain tenants, whether or not a property is in an Opportunity Zone, or any number of other specific qualifiers.
They’ll also take the type of revenue into equation—i.e. whether the property generates rental income or is only for eventual capital gain.
Let’s look at a few more specific examples.
Rental Property Portfolio
A very common investment strategy is to build a portfolio of residential or business-rental income properties, where the owner generates a steady revenue through the rent paid by tenants.
Multi family homes serve as perhaps the best example of a rental income property.
Luxury Property Portfolio
A luxury property portfolio can span across a few different asset types, but will have more of a large-scale and high-cost (but low-risk) sentiment.
This could be apartment buildings, offices, hotels, and more, and will more often than not apply to commercial buildings.
Lender Property Portfolio
A lender portfolio is similar to that of an investment portfolio, but instead is an entity’s list of properties that they currently hold loans with.
So, in a sense, a lender’s portfolio is made up of assets from owner/investor portfolios.
Researching and Analyzing a Property Portfolio with Reonomy
The thing is, when you begin looking at more sophisticated investors, where more people, larger groups, more LLCs, and larger sums of money are involved, finding information on an owner or lender’s portfolio can be extremely difficult.
As more factors are introduced, your ability to access the right information becomes clouded.
With Reonomy, however, you can sift through many layers of information on any multi family, commercial property, or land parcel—in a matter of minutes, if not seconds.
You can quickly see all of the properties in an owner or lender’s portfolio, then drill into each property individually to see building and lot specs, sales history, debt history, and owner contact information.
Reonomy Property Portfolio
To see an owner’s full property portfolio on Reonomy, you can visit the Ownership tab of the search app.
Here, you can search either by a person’s name, or by the name of the company that owns the property—LLC or otherwise. You can also search specifically for properties that are owner-occupied.
Once you do so, you’ll be given a list of all of the properties owned by that person or entity—in other words, their full portfolio of properties.
From that list of properties, you can click into any one individually, where you can go through its profile page and analyze the sales history, debt history, its current tenants, building and lot information, then get owner contact information.
Now, to find a lender portfolio, instead of visiting the Ownership tab on Reonomy, you can visit the Debt tab.
Here, among mortgage amounts and pre foreclosure information, you can run a property search based on the most recent mortgage lender.
For example, by entering “Bank of America,” you’ll be able to see Bank of America’s full loan portfolio of multi family and commercial properties across the country.
Obviously, you’ll likely be searching more granularly than the entire country, or across every asset type. So, once you’ve added your lender-specific filter, you can add location and asset type filters to your search.
Let’s say you only want to see Bank of America’s loans on multi family properties in Norfolk, Virginia.
This can very easily be searched by navigating to the Location and Asset Type tabs of Reonomy and adding the necessary filters for asset class (and sub-class, if preferred), and city.
When using Reonomy, even if you don’t know who the owner or lender is on a property and want to build a list of prospects, you can search from scratch using location, asset type, building and lot, sales, and debt filters.
From there, you can visit an individual property profile (as mentioned above), to first find who the owner or lender is, then run a search using the name of that person or company.
You can even use Reonomy to analyze your own property portfolio, to find comparable properties to those that are in your portfolio.
Property Portfolio Software
As covered above, Reonomy is a great source to use for property portfolio and investment analysis for commercial, land, and multi family assets.
That does not mean there are not other tools worth taking advantage of. There are a number of investment analysis and portfolio management tools that you can use to assure you’re always making informed decisions.
Portfolio Management Software
Property management software can be great for streamlining the process of managing multiple properties, or even your entire portfolio, from one place.
AppFolio is a great property management software tool for those looking to manage a portfolio of commercial, single-family, or multi family properties.
You can access AppFolio on any device to manage and track tenant rent and billing, as well use the software to market your commercial vacancies.
Tools like AppFolio allow you to scale your portfolio without adding much extra work.
Buildium is another software tool that allows you to better maintain your portfolio of properties—in this case, notably residential.
This tool offers a free website where you can list vacancies and accept applications from hopeful tenants.
With Buildium, you can receive tenant maintenance requests in one place, share financial statements, and manage your outgoing bills to vendors. Similar to AppFolio, it allows you to scale your portfolio without having to spend a ton of time with extra management.
Investment Analysis Software
In terms of identifying potential new business, aside from Reonomy, you can also turn to tools like PropertyMetrics to get a better understanding of properties as opportunities.
PropertyMetrics is a place where investors, developers, and appraisers can analyze properties and markets, create sharable proformas, and create marketing materials like flyers, market reports, and more.
A Holistic Understanding of Owners, Lenders, and Your Desired Market
Diving into a property portfolio of any kind can help you build a holistic understanding of owners, lenders, and the markets in which you/they work.
Doing so can also help you better understand the general trends of professionals in the industry by seeing some of the ways that they go about building their portfolio and generating revenue.
Most importantly, whether you are looking for an owner of any kind or a lender, with access to property portfolios, you can understand your prospects on a much more granular level.