Asset Management

BPOs Help Evaluate Shifting Investment Markets

by Kade Clark
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A Trusted Valuation Strategy By Kade Clark The investment-purpose single-family residential purchase market in the U.S. has seen significant growth in recent years, with several key metropolitan areas emerging as top destinations for investors. In these markets, the ability to fairly estimate the value of investment properties efficiently can be the difference between profit and loss. Evaluating properties at scale locally, regionally, or nationally may be particularly difficult. With different valuation tools on the market, investors oftentimes look for the right combination of speed, accuracy, and reliability while balancing cost. That is why Broker Price Opinions (BPOs) remain the gold standard for accurately forecasting the final realized sales price of a property. Let’s explore some of the major SFR markets that are beginning to fluctuate before delving into how the BPO may fit into an investor’s strategy to evaluate the impact to their portfolio. The Sunbelt Continues to Shine, but Growth is Slowing Down For investors who purchase single-family rental properties, some of the hottest real estate markets share characteristics that make them attractive to tenants and investors, including robust population growth, strong job markets, and relatively affordable housing compared to coastal metros. This combination creates an excellent environment for rental demand as young professionals and families that may be priced out of purchasing a home seek more affordable quality housing options. Over the last four years, the sunbelt has flourished as a destination for SFRs, especially metro areas in Georgia, Arizona, Florida, Texas, North Carolina, and South Carolina. In fact, according to the National Association of REALTORS®, cities in these markets have experienced significant population growth and job market expansion, fueling demand for rental properties. However, in recent months some of those high growth areas have begun to slow. Five of the slowest-growing markets as of February 2024 were in Texas and Florida according to an analysis of Zillow data from Arbor Realty Trust. Likewise, in April 2024, Redfin reported that home prices in Florida and Texas were beginning to stagnate due to softening demand and heightened supply. For example, home prices dropped 4.6% in the North Port-Sarasota metro in March 2024. Of course, home valuations may play a crucial role in understanding the dynamics in these markets. As home prices have appreciated nationwide in recent years, real estate investors have realized appreciated value in their property portfolio. But as rental price growth and home price appreciation slows down in some areas, SFR owners and investors need to be aware of how that may impact their portfolios. While markets are shifting across the country, savvy investors are keeping a close eye on emerging opportunities in other regions that may offer similar growth potential with more favorable entry points. To do that, investors need a reliable means of evaluating properties in multiple locations. That is where the Broker Price Opinion (BPO) has proven itself to be an invaluable tool. What Makes a BPO so Useful for SFR Investors? Since the inception of the single-family rental asset class more than a decade ago, the Broker Price Opinion has been the go-to valuation solution for institutional investors due to the product’s pricing accuracy, cost, and boots-on-the-ground approach of local agents pricing real estate in their home markets. A BPO is an estimate of a property’s potential selling price, conducted by a local licensed real estate broker. Typically, a BPO involves a drive-by exterior inspection, though sometimes it may include a brief interior walkthrough. The agent or broker gathers basic information about the property and surrounding neighborhood and compares it to similar properties in the area to develop a price estimate. Though BPOs may seem akin to appraisals, they differ mainly in the qualifications of the person providing the valuation. A BPO offers the perspective of a real estate agent or broker, while an appraisal is carried out by a certified or licensed real estate appraiser. Additionally, BPOs generally involve less detailed inspections and are subject to different regulations. As a result, BPOs are usually more affordable and faster to complete than full or hybrid appraisals, with the added benefit of being less disruptive for tenant-occupied properties. Importantly, Moody’s Investors Service has given its stamp of approval on the BPO. Dating back to 2014, Moody’s rating methodology for assessing credit risks for SFR securitizations includes BPOs as a primary source of initial property valuations. According to their analysis, Moody’s concluded “broker price opinions (BPOs), on average, can provide fair assessments of single-family home values if BPO providers follow detailed and thorough processes and procedures.” Thorough Processes and Procedures are Key for Quality BPOs As Moody’s mentions, thorough processes and procedures are key. Moody’s will adjust the property values based on a qualitative assessment of the valuation provider and the method and scope of the valuation used. A valuation provider must follow rigorous protocols to meet the industry standards for BPOs: » Extensive Documentation // Brokers typically gather and submit detailed evidence supporting their price opinion. This could include taking multiple photographs of the property’s exterior from various angles (front and each side), as well as images of surrounding streets. They also report any visible exterior damage or needed repairs. Additionally, they usually document broader market conditions, such as housing prices, employment trends, and neighborhood characteristics that might impact property values, along with the local housing supply and demand. » Multiple Comparable Properties // Brokers performing BPOs generally use a minimum of six comparable properties in close proximity to the subject property, including three that have sold within the past year and three that are currently on the market. » Strict Comparable Property Guidelines // Exacting criteria for selecting comparable properties is typically used, so that comparables are similar in style, age, lot size, square footage, number of bedrooms and bathrooms, and overall condition. Additionally, these comparables are usually located within one mile in urban and suburban areas, and within five miles in rural areas. If brokers use comparables outside these guidelines, they will usually provide justification for their selection. » Quality Assurance

The Business Case for Centralized Services

by Jason Myers
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Reduce the Complexity of Managing Multiple Services By Jason Myers Single-family rental (SFR) property owners and operators of all sizes face a similar challenge when it comes to working with multiple vendors for different required services, and that is hoping that those providers can get the job done efficiently and on time. Regardless of portfolio size, SFR investors, institutional owners and property managers commonly rely on their local or regional employees to farm out the services, often with many different providers. Navigating this maze of vendors, service providers, contacts, services, and schedules frequently becomes more complicated—and more costly—than it needs to be. Additionally, many smaller providers often lack the technology, processes and redundancy that larger, more established players can offer. How are we defining centralized property services? When you contract and manage a reduced number of services partners, you’re centralizing (or consolidating) services. That can mean working with a single partner nationwide or a select few providers in each region or market. Many of our SFR clients are making a strategic shift to adopt a centralized approach. Centralizing property services such as inspections, lawn care and preventative maintenance can help eliminate hassles and even yield cost savings. So, why are SFR companies making this shift, and why does it make so much sense? Saving time and hassle // Centralizing core property services can offer a one-stop solution, allowing the provider to handle the service, back-office support and logistics, while enabling you to maximize efficiencies and shift talented staff to revenue-generating roles. And if the same partner is already handling other tasks at your properties, you can reduce the number of touches required to complete projects within a single group and minimize the staff required for oversight. Redundancy // Working with individual service providers not only creates more complexity, but it also leaves you more vulnerable if something goes wrong. For example, if a truck breaks down, equipment isn’t working or a contractor doesn’t show, there’s no redundancy in your system to deliver a backup plan. The key is choosing a single source with access to multiple service providers, whether they are self-performing or outsourced, so you know you’re always covered. Consistency // Working with a larger, established provider yields both efficiencies and consistency in the work they deliver. You know you can count on them to be there when scheduled, as well as the next time you need services performed. And one key benefit is their services will be performed in the same manner—and to the same standards—across all of your properties. Protection // Managing multiple services vendors also can lead to other headaches—for example, increased exposure to risks, such as uninsured or underinsured contractors. Working with a single company with a large footprint ensures you’re covered, from background checks and licensing to insurance, safety training and more. Technology // The technology capabilities that a larger company can deliver offer a better line of sight and peace of mind. When their portal connects to your platform, you can add, track, and confirm jobs (with before-and-after and check-in/out photos) without leaving your desk. This furthers the time savings for your team, allowing a smaller group in your vendor management department to be more effective. Financial savings // Working with a larger company may even yield financial savings due to their buying power, but it requires looking at the complete picture. For example, you might be paying $5 more per service, but if you’re able to reduce headcount (or shift it back where it needs to be), you can still end up with overall savings and improved efficiencies. MCS has seen centralized programs priced competitively with local crews based on the total number of assets being serviced in a market. How Do You Get Started? Moving to a centralized service model requires careful planning and leadership on the front end as well as time to evaluate and recalibrate as the program gets up and running. Here are a few key things to keep in mind to help ensure the success of a centralized model. A thorough and realistic definition of the scope of work Work with your service partner to define the scope of work so it’s mutually understood and agreed on. Clarity is key: A detailed scope should list and describe the services you expect a potential partner to complete and when and how you expect them to be completed, so there are no surprises in the ultimate results or costs. Communication from the executive level to local managers Just as frequent and clear communication between you and your provider is essential, how you communicate this substantial business shift within your organization will be critical to its success. How will you roll out this new model (and new partner relationship) to your local leaders? Many may have long-term relationships with current providers, so your messaging will need to address an understanding of their situation and also provide the reasoning behind the decision and facts to support the shift. Easing into the relationship with your provider Going from numerous services providers to a single source may be a bigger shift than you’re ready to make. The good news is you won’t have to start with an exclusive partnership to see success. A centralized program can be phased in over time to help foster a smooth transition. You may also consider starting out with two or three providers so quality work can be rewarded with increases in property share, and it provides redundancies as the program starts. Technology integration to easily turn on and off You need to be able to shift services as properties enter or exit your management portfolio, and relying on regional managers to communicate this for each property can lead to missed or duplicated services. A robust technology platform can help track this information and prevent missed services and duplication of work. Consolidating your service partner list can reduce the headaches and complexity of managing multiple services for your SFRs. When you select an experienced company with a

The Cash for Keys Strategy

by End 2 End Team
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A Successful Alternative for a Return to Positive ROI By The End 2 End Team Return on Investment (ROI) is the most crucial aspect of owning a single-family rental property. You have put in the investment to purchase the asset, complete renovations and prepare the property for the rental market. Finally, everything is complete, and you are ready to begin seeing the ROI that you expected when you purchased this asset. You diligently market the property and screen potential renters to find the most qualified candidate to secure your investment. It is time to finally see some revenue…. what could go wrong? Owning an investment or rental property can have its advantages and challenges. One of the biggest challenges investors face today is non-paying tenants occupying their rental properties. No matter how much effort you put into screening your tenants there is always the chance that the tenant will be late or stop paying. So, what do you do when you have a tenant who Is habitually late or just stops paying altogether? Your return on investment has just plummeted. Your holding, maintenance and utility costs continue to pile up and your tenant has stopped responding to your inquiries as to when payment will be made. Eviction timelines can take months in some jurisdictions and even if you are able to secure an eviction date with the courts and local sheriff, the cost to complete the eviction can be in the thousands of dollars. At this point, you will be lucky if the tenant has not vindictively destroyed your property just for the sheer fact that you proceeded to evict them. Now you have even more renovation costs to incur to get the property turned and ready for rent. This is a time to resort to some alternative resolution strategies to get back possession of your property quickly and in the best condition possible. One of these alternatives is called cash for keys or relocation assistance. In this scenario, you offer the tenant a specified number of dollars to vacate the premises and leave it in broom-clean condition. This type of transaction results in the tenant leaving amicably and ensures that you will receive the property back in a condition ready to be turned and made ready for rental. Why Pay Someone Who Owes Me Money? The reality is that paying out a few thousand dollars to get possession of your property now and get it back to being income producing, is a much better and more cost-effective solution than shelling out tens of thousands of dollars to wait and proceed to evict the non-paying tenant. Offer Determination When determining the amount you would offer an occupant in this type of situation, we suggest considering the amount of rent they currently pay as well as the amount they would need to pay to secure another rental. For most people to move, they need to pay at minimum the first month’s rent and security deposit. If the tenants did not have the money to pay you for the rent owed, the likelihood of them having funds to relocate on their own is minimal at best. Transaction Success The success of your transaction is going to depend on the offer you present and the diligence of your efforts to get the tenant to communicate and be interested in completing the program. Historically, the average success rate is about 30%. In recent months, the End to End Solutions team has been exploring additional communication methods, offer amounts, and additional offerings that in some scenarios have resulted in a 70% or more success rate in either getting the tenant to accept the offer and relocate, or to bring their account current and continue their current tenancy. Communication Methods How you communicate the offer to your tenants is the most important aspect of your transaction. There are a lot of scams and fraud going on these days, and ineffective communication can lead your tenant to believe that what is being offered is not legitimate and therefore not take it seriously. The offer should be presented to the tenant with a note or letter explaining why it is being offered. Communication attempts can include personal hand delivery of the letter, sending the letter to them via expedited delivery methods such as FedEx, UPS, or USPS, sending the letter and information via email, and following up with the tenant post-delivery via telephone to confirm receipt and discuss the offer terms. Additional Incentives Additional incentives can include the return of the security deposit (if the property is left in the same condition when rented), a waiver of the past due amount, and an agreement not to release this information to the reporting credit bureaus. These types of alternate add-on incentives can help to drastically increase your success rate and help in ensuring the property is returned to you in good condition. Deadlines When presenting an offer to your tenant, it is imperative that you impose deadlines for a response or acceptance of the offer as well as the vacate date. Setting a deadline for the tenant to respond or accept the offer will prompt them to make a decision in a timely manner. Failure to provide deadlines can result in an open-ended offer that the tenant will attempt to renegotiate or delay as there is no repercussion for failure to act. It can also be beneficial to present multiple offers with different deadlines. For instance, if the tenant vacates the property in two weeks, they will receive a higher dollar amount than if they vacate the property in three weeks. Presenting the tenant with options gives them a little more sense of control of the situation and allows them to choose what option is best for their situation. These unique and creative solutions allow you to effectively decrease the losses typically seen when a property becomes non-income producing and help increase your Return on Investment. The End to End Solutions team is constantly creating, testing, and producing

A/C Maintenance 101

by Doug Ellis
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Maximize Your SFR Investment and Renter Satisfaction By Doug Ellis A/C maintenance is key to lowering energy bills and preventing expensive repairs. These items should be addressed as part of an A/C preventive maintenance visit. Summers can be tough on your air conditioning system. If you missed an early season A/C maintenance check on your single-family rental (SFR) properties, do not put it off any longer as fall and winter can be an excellent time to catch-up on maintenance projects. Waiting longer or skipping regular maintenance can potentially cost you expensive repairs and even the premature replacement of your A/C units. And preventive maintenance for A/C systems is essential to ensure their optimal performance, energy efficiency, and longevity. Regular maintenance can also help prevent costly (and emergency) repairs and improve indoor air quality. According to Modernize, the average HVAC replacement cost ranges from $6,465 to $11,877 and can cost much more for emergency services. In fact, HomeGuide reported HVAC emergency services typically cost double or triple the regular rate for a service call. A/C Preventive Maintenance Frequency If HVAC systems are well maintained, you can expect an estimated life expectancy of 15 to 20 years in most parts of the country; in hotter climates, it is closer to 12 to 15 years. According to the Indoor Air Quality Association, regular HVAC maintenance reduces the risk of costly breakdowns by as much as 95%. How often should you be scheduling HVAC preventive maintenance for your rentals? An optimal maintenance program includes: » Two major checkups //typically in the spring and fall—where all systems (including refrigerant levels) are checked, coils are washed and filters are changed. » Two minor checkups //typically in the summer and winter—where a visual inspection of the system is conducted and filters are changed. Start by getting your A/C units checked, and then get them on a regular preventative maintenance schedule. Here is what an HVAC technician should be checking and addressing as part of an A/C preventive maintenance checklist: Air filters Regularly replacing air filters (as part of your planned A/C maintenance and then monthly) can potentially help you avoid problems with your HVAC unit. Plus, by routinely changing air filters, your renters can save on their energy bills. In fact, the U.S. Department of Energy estimates that replacing those dirty filters can result in a 5% to 15% reduction in energy consumption. While they stand to benefit, it is generally best to not rely on your renters to tackle this task, though. Talk to your property services partner about scheduling this routine job. Refrigerant system The refrigerant system is a critical component of A/C maintenance, moving the heat from indoor air to outside. Too much (or not enough) refrigerant decreases a system’s efficiency, drives up costs and can shorten its life. Inspecting and charging refrigerant levels are important for keeping A/C systems in working order. Refrigerant leaks can harm the environment as well, so it is important to address any issues promptly. Outdoor condenser coil Because the outdoor coils are naturally exposed to dirt, pollen and other potentially damaging elements due to their outdoor location, they need to be cleaned at least once a year. An HVAC technician will check and record the refrigerant pressure, then rinse the coils with water, applying a cleaning agent and removing any debris that has accumulated around them. Foliage check While they work great aesthetically as a disguise, shrubs and plants around outdoor A/C units should stay trimmed back—at least 18 inches on all sides of the unit—to permit air flow. Your property services partner should report back to you if landscaping near the unit is a concern. Indoor evaporator coil Indoor coils should be cleaned and inspected for damage every year, especially in advance of the summer months when air conditioners will be doing the most work. Condensing system When an air conditioning system pulls heat and moisture from the air, that condensate must be drained outside. The condensing system should be flushed during an A/C maintenance check to prevent or remove any clogs and allow for proper drainage. Electrical components During this A/C maintenance visit, the tech will confirm that all electrical components are firmly connected and tighten them if needed. In addition, they should test all motors, contactors and capacitors and recommend replacing any that are underperforming. This step can help you avoid bigger and more expensive repairs. Ductwork The A/C maintenance visit should also include a test for air leaks, paying close attention to any gaps or loose ductwork and sealing them as leaks or blockages can reduce efficiency and cause uneven cooling. Cleaning the ducts can also keep pollutants like dust and mold from being circulated inside the home, a benefit your renters will appreciate. Additional items During regular inspections, other items that should be addressed include inspecting and tightening electrical components, lubricating moving parts, checking insulation, testing capacitors and relays, and inspecting thermostats and controls. Remember, while you can perform some tasks yourself, it is crucial to have a professional HVAC technician perform a thorough inspection and maintenance annually to keep your A/C system in optimal condition. Plan your A/C maintenance check today Keeping up with routine A/C maintenance can help you maximize your SFR investment by potentially avoiding expensive repairs and even the premature replacement of your unit. Plus, your renters may be able to enjoy the benefits of lower energy bills and improved indoor air quality, contributing to overall renter satisfaction. Property service companies like MCS can help SFR owners and operators build and manage an effective A/C maintenance program.

Why You Should Go Green with your SFR Properties

by Anthony Scotese
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Renters Will Pay a Premium By Anthony Scotese The benefit of “going green” with your single-family rental (SFR) properties does not stop with the environmental impact alone (although that is certainly cause for celebration). Investors have also enjoyed financial benefits as well, such as improving property value, minimizing tenant complaints and improving tenant retention. Plus, studies show that renters favor living in energy-efficient buildings and will pay a premium to live in these spaces. The Benefit of Going Green Many of us have spent time thinking about our environmental impact and ways to minimize our carbon footprint. From eliminating single-use plastics from our lives to carpooling with co-workers, there are many ways — big and small — to live a little “greener” and be kinder to mother earth. Living greener and healthier lives starts in the home. Renters are increasingly taking green living into consideration when searching for places to live. What once may have been considered a passing fad is now quickly becoming table stakes for many would be renters. According to a recent survey of more than 2,000 U.S. renters from MRI Software, 40% of respondents stated they would not rent a property that did not include green practices. So, What is at Stake? Residential and commercial buildings accounted for 13% of greenhouse gas emissions in 2021, according to data from the Environmental Protection Agency. Fossil fuels that are used to provide heating and cooling to residential homes and apartment buildings are all contributing to these emissions. And adjusting residential properties is not just a recommendation in some states and cities, it is mandated. For example, owners of apartment buildings in New York City must get their buildings in compliance with Local Law 97 by 2024, a part of the city’s Climate Mobilization Act of 2019, or face millions of dollars in fines per year. On the west coast, the California Green Building Standards Code provides guidance on the mandatory and voluntary sustainable construction practices for residential and commercial buildings in California. And while some of these considerations are more geared toward multifamily dwellings, if state and local mandates such as these continue to be a trend, it would behoove landlords to start making these green adjustments to their investment and SFR properties sooner, rather than later. Aside from reducing harmful emissions, making green enhancements to SFR investment properties can pay off — literally and figuratively — in the long run. Making adjustments that can minimize drafts – like new weatherstripping, insulation and energy efficient heating and cooling systems — can cut back on energy bills, tenant complaints and maintenance costs. Other small to mid-level enhancements like installing energy-efficient lighting and smart thermostats could help save hundreds of dollars per year, while larger projects like installing energy efficient heat pumps could potentially yield savings in the thousands annually per household. What’s more, making green updates to a home can help increase its property value. And, if you are ever considering selling off some of the properties you have made green enhancements to, you could pocket more. Freddie Mac research shows that homes that had high-efficiency ratings sold more on average than homes that did not — 2.7% more, in fact. Four Improvements to Consider Going green seems like a big undertaking — whether you have five or 500 SFR properties. So, how can you start on the smaller scale, while still making a big impact on your carbon footprint and your wallet? Here are four areas to consider: Replacing windows Say goodbye to those thin, drafty windows and say hello to new, ENERGY STAR qualified windows. With features such as invisible glass coatings, multiple panes and stronger weather stripping, you are able to better control heat gain and loss. Another bonus: According to ENERGY STAR, installing these qualified windows can lead to reduced energy bills by “about 7-24% compared to non-qualified windows.” Installing insulation Installing or improving insulation is another option to consider in helping to reduce energy bills. According to the U.S. Department of Energy, adding insulation to spaces like attics, crawl spaces, floors and more, can help save, on average, up to 20% on a home’s heating and cooling costs. Updating appliances Consider swapping in new, ENERGY STAR label appliances that use less energy to run. For example, an ENERGY STAR label washing machine uses less energy and water than agitator washing machines – 25% less energy and 70-75% less water, respectively. Faucets and showerheads Leaky old faucets and showerheads in your rental properties could mean you are leaking money. According to energy.gov, one drip per second from a single leaking faucet wastes 1,661 gallons a year, which translates to around $35. And while $35 is nothing too concerning, for an investor with several hundred properties in their portfolio, that figure can grow exponentially. Consider installing faucet aerators and low-flow showerheads in your properties to ensure maximum water efficiency. WaterSense labeled faucets and aerators — that can even be installed onto existing faucets — are more efficient than standard models. How efficient? Models that bear the WaterSense label can save around 700 gallons of water a year, according to epa.gov. Outsourcing to Save Time You do not have to go it alone. Working with a trusted partner, who specializes in the management of rehab projects and can oversee the project from start to finish by sourcing local contractors, can take the burden off your plate and provide you with the peace of mind that the job will be done right. Consider if outsourcing these enhancements at-scale makes sense for you.

Embracing the Change in Eras

by Katherine Baunach
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Utilizing Advanced Technology in Asset Management By Katherine Baunach We seem to have found ourselves at an “era crossroad,” and no, I am not referring to Taylor Swift’s tour and the struggle to find tickets. There appears to be a consensus that we are exiting the Information Age, once defined as the ability to generate, access, and control information, which occurred after shifting away from more traditional industries and practices established during the Industrial Revolution. With this change, the Age of Artificial Intelligence, Machine Learning, and Data Creation is very much present in our daily lives. However, we are at the very infancy of these technological advancements. This then begs the question: how can we implement and weave this new technology within the asset management lifecycle and our subsequent decisioning practices to drive efficiency and execution? Evolution of Technology The evolution of technology is well documented within the asset sector. The use of proprietary and third-party property management and disposition platforms have been a best practice for 25+ years. As we migrated to cloud-hosted, web-based applications, we saw developments to stimulate operational efficiency via the implementation of integration capabilities between systems via methods like APIs (application programing interface). Additionally, stronger rules engines were introduced to assist in automated workflow through a series of “if, then” scenarios to further staff capacity and support portfolio scalability. As these operational concepts were well past their implementation phase, the next advancement focal point surrounding third-party data integration was to strengthen analytics. The ability to interface with or aggregate market and multiple listing service (MLS) data, home price forecasting data, and various key municipal data came to the forefront. Subsequently, this led to normalizing these data points and presenting them in a way to help make the decisioning process more streamlined when determining optimal performance on executing an investment or management strategy across a portfolio or at an asset-level. What’s Next? Tying back to the original proposition, where and how can we layer in newer forms of technology — specifically, machine learning and artificial intelligence — and who will create this standard? Embedded within Guardian Asset Management’s ecosystem is a successful marriage of its various service pillars, including asset disposition, property management, renovation, maintenance, preservation, evaluation, and title services. The two former pillars – asset disposition and property management – have tremendously benefited from Guardian forging deep partnerships with leading machine learning and artificial intelligence firms to not only support several operational initiatives, but to layer various proprietary developments into its technology infrastructure designed to support strategic decisioning. Many assets under management face simple strategic questions, such as, “Is this part of a long-term strategy via a rent and hold management path, or is this part of short-term strategy by leveraging a strategic disposition management path?” While this decision is often made during due diligence, circumstances can often subsequently change due to various factors such as the aggregation of additional data. Layered under the broad management path decision are complex methodologies and critical data points that will help asset managers arrive at what drives optimal execution. For example, the decision to liquidate might be easy to determine based on the asset’s characteristics or due to the lack of additional velocity in a given market. Should the decision be made to liquidate, critical data must be obtained and analyzed to determine how to best execute the plan since various disposition options are available. There are a few avenues that one can evaluate as the conveyance strategy once liquidation is the determined route. These options include As-Is, Repaired, Auction, Deed-Away, Donation, and Occupied Sale. Historically, the determination of which path to choose required a seasoned asset manager with access to several data points. Today, the use of modern technological concepts layered upon years of experience and data analytics, will drive asset owners to make faster, logical, and more optimal decisions. The following are several key developments Guardian has made in the asset management sector: AI-Driven Apps // As we have progressed through developments in technology, Guardian has been able to better aggregate data on assets. A constant variable has always been a property’s true condition as that is often subjectively interpreted. Guardian, through proprietary developments, has application technology that helps close this data gap, turning photographs of a subject into data points, which is then layered by artificial intelligence. This allows us to better identify risks, flaws, and opportunities associated with a property that can be addressed through renovation or repair practices, while also directly tying costs and timeline projections to the analysis. Asset managers are now provided with more data in real-time and with less resources to make critical decisions instantaneously. Integrated rule engines within management platforms can then drive subsequent tasks and directives, creating more capacity for each asset manager. Decisioning Tools // Complementing the above, Guardian has critical-decisioning tools layered within its operations to better assist its clients and investors on generating optimal results. Properties are analyzed either from a risk perspective or opportunity perspective. However, the data and analytics reviewed are often the same for each perspective. By integrating decisioning points from various sectors of our industry, ranging from approaches utilized by private lenders, mortgage servicers, and investors, we’ve been able to better apply this advanced technology to help identify the best execution plan faster and with higher confidence. As asset owners, sensitivity to time is critical, which is a driving initiative behind these applications. Strategic Integration // The heartbeat of our ecosystem that ties our diverse services together is technology and the ability to integrate our various applications and platforms. Through strategic dashboards and interfacing, we’ve studied the critical data that drive asset decisioning and present our analytics to the decisionmakers, be they internal associates or external clients, effectively offering streamlined transparency without overstimulation. Guardian continues to not only embrace technology but is a leader in its application as we head into a new era. By helping support technology’s development and implementation, we are able to drive continued advancement within the