Being a real estate property syndicator, I believed the main thing that will make accredited investors want to passively invest and partner with this firm was the return. But I soon pointed out that wasn’t the biggest concern.
My experience has given me the opportunity better understand passive investors. Plus today’s blog, I am referring to the three main reasons I’ve found to be why investors invest passively inside our apartment syndication.
1. Knowing their money is safe hands
2. Like a a part of an activity which is trouble-free
3. Consistent updates on important info about the deal
Knowing their is in safe hands…
As with all other investments, there isn’t any profit or capital preservation guarantees from the owning a home business. Therefore, passive investors want to know that we are taking all preventive steps to reduce risks. We do this in-part by sticking to the following three principles of apartment investing. (i) We secure long lasting debt (ii) We don’t buy for appreciation only for cashflow (iii) We ensure there is adequate cash reserves. Overall, investors want to know that the money is safe. For their syndicator, we show them this since they can be excellent communicators, minimizing associated investment risks, keeping the necessary industry experience and constructing a good meaningful relationship.
As being a portion of an operation that is trouble-free…
Every passive investor uses a trouble-free process. They need to be a passive investor given that they desired to place their money in a profit-yielding investment without having to bother themselves about daily operations. Most savvy passive investors are busy with money-making business ventures, in order that they have little time and energy to spare.
After undertaking initial research around the deal before investing, investors want a great investment that won’t let them have insomnia. It is for this reason the only real work we’d like our investors to complete is check their monthly email around the deal and receive their cashflow and profits.
Consistent updates on important info concerning the deal…
What our investors want is exactly what we feature, a clear, plain english, to-the-point, no fluff investment update with real numbers, solutions (if there’s a worry) and realtime 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 pictures of the progress made
Distribution details
Actual rental premium versus expected rental premium
Relevant market and/or submarket updates
Then, every four months, you can expect investors using the current rent roll as well as the profit and loss statement in order to assess the operations in the property and punctiliously investigate details should they want to. Our passive investors get distributions each month (not quarterly or yearly) so they really not only receive updates but additionally receive payment.
For details about apartment syndication just go to our internet page.