As being a real estate syndicator, I thought the main thing that would make accredited investors need to passively invest and partner with your firm was the return. But I soon seen that wasn’t the largest concern.
My experience has given me the opportunity to better understand passive investors. Plus today’s blog, I’ll be speaking about the three major reasons I’ve discovered to be why investors invest passively inside our apartment syndication.
1. Knowing their funds is safe hands
2. Being a portion of an operation that is trouble-free
3. Consistent updates on important info about the deal
Knowing their money is in safe hands…
As with every other investments, there won’t be any profit or capital preservation guarantees within the real estate investment opportunities business. Therefore, passive investors wish to know that we are taking all safety measures to minimize risks. We do this in-part by sticking with the following three basics of apartment investing. (i) We secure long term debt (ii) We don’t purchase for appreciation just for cashflow (iii) We make certain there’s adequate cash reserves. Overall, investors want to know that their funds are safe. For their syndicator, we imply to them this by being excellent communicators, minimizing associated investment risks, getting the necessary industry experience and developing a good meaningful relationship.
As being a a part of a process that is certainly trouble-free…
Every passive investor wants a trouble-free process. They wish to become a passive investor because they desired to put their profit a profit-yielding investment without needing to bother themselves about daily operations. Most savvy passive investors are busy to money-making business ventures, in order that they haven’t much time for it to spare.
After undertaking initial research on the deal before investing, investors want an investment that won’t allow them to have difficulty sleeping. It can be for this reason the sole work we would like our investors to accomplish is check their monthly email for the deal and receive their cashflow and profits.
Consistent updates on information and facts regarding the deal…
What our investors want is exactly what we supply, a clear, plain english, 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 receive the finest communication every month our deal updates include but aren’t limited to:
Any community engagement events
Any issues and our proposed solutions
Actual rents versus projected rents
Rehab and expense 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, our company offers investors with all the current rent roll and the profit and loss statement in order to look at the operations with the property and thoroughly check out details whenever they need to. Our passive investors get distributions every month (not quarterly or yearly) in order that they not merely receive updates but in addition receive payment.
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