Being a property syndicator, I thought the biggest thing that might make accredited investors desire to passively invest and partner with your firm was the return. However i soon seen that wasn’t the greatest concern.
My experience has given me the opportunity to better understand passive investors. Plus today’s blog, I will be talking about the 3 main reasons I’ve seen to be why investors invest passively inside our apartment syndication.
1. Knowing their cash is in safe hands
2. As a section of a procedure which is trouble-free
3. Consistent updates on important info in regards to the deal
Knowing their funds is within safe hands…
As with all other investments, there won’t be any profit or capital preservation guarantees from the real estate investment opportunities business. Therefore, passive investors would like to know that we are taking all safety measures to minimize risks. We achieve this in-part by sticking to these three principles of apartment investing. (i) We secure long lasting debt (ii) We don’t buy for appreciation simply for cashflow (iii) We make sure there is adequate cash reserves. On the whole, investors wish to know that the financial resources are safe. His or her syndicator, we demonstrate to them this since they can be excellent communicators, minimizing associated investment risks, keeping the necessary industry experience and developing a good meaningful relationship.
Like a section of a procedure which is trouble-free…
Every passive investor wants a trouble-free process. They desire to turned into a passive investor since they desired to put their money in a profit-yielding investment and never have to bother themselves about daily operations. Most savvy passive investors are busy with other money-making business ventures, so that they haven’t much time for it to spare.
After undertaking initial required research on the deal before investing, investors want a smart investment that won’t give them difficulty sleeping. It’s on that basis the sole work we would like our investors to do is check their monthly email for the deal and receive their cashflow and profits.
Consistent updates on information and facts in regards to the deal…
What our investors want ‘s what we supply, a specific, clear language, to-the-point, no fluff investment update with real numbers, solutions (if there’s an issue) and real time property info & data. To ensure our investor obtain the finest communication every month our deal updates include but are not limited by:
Any community engagement events
Any issues and our proposed solutions
Actual rents versus projected rents
Rehab and price updates with images of the progress made
Distribution details
Actual rental premium versus expected rental premium
Relevant market and/or submarket updates
Then, every 4 months, we offer investors using the current rent roll as well as the profit and loss statement in order to evaluate the operations with the property and thoroughly investigate details when they desire to. Our passive investors get distributions monthly (not quarterly or yearly) in order that they not just receive updates and also receive payment.
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