Lancaster Pollard’s ReserveManagerTM is a highly effective cash and investment management solution that select affordable and multi-family owner/operators may use to manage cash and other short-term investments.
Many property owners manage/monitor cash balances simply as a by-product of property management. As fiduciaries, they are required to manage their properties in totality, including maximizing their various accounts’ interest earnings. Current options generally provided by local or regional banks are typical, out-of-the-box products, with minimal returns, high fees and significant administrative and regulatory obligations. In fact, some monthly account maintenance fees may be more than the interest earned on the accounts.
ReserveManager:
- Complies with regulatory guideline
- Retains FDIC insurance
- Combines all accounts at one location
- Reduces administrative burden
- Consolidates reporting
- Has higher returns than traditional checking accounts
Affordable & multi-family housing owner/operators who manage their reserve for replacement and residual receipts accounts and have the ability to create a single signer for multiple properties are good examples of entities that may benefit from ReserveManager. Examples of such owner/operators are those with multiple FHA Sec. 202 Direct Loans, PRACs and USDA Sec. 515 Loans.
