As being a real-estate syndicator, I figured the most important thing that might make accredited investors need to passively invest and partner with our firm was the return. But I soon seen that wasn’t the greatest concern.

My experience has given me the chance to better understand passive investors. Plus today’s blog, I’ll be referring to the main reasons I’ve seen to be why investors invest passively within our apartment syndication.

1. Knowing their cash is safe hands
2. As being a portion of a process that’s trouble-free
3. Consistent updates on information in regards to the deal

Knowing their is at safe hands…
As with any other investments, there are no profit or capital preservation guarantees within the investment business. Therefore, passive investors would like to know that we’re taking all preventive measures to minimize risks. We accomplish that in-part by sticking with these three fundamental principles of apartment investing. (i) We secure long-term debt (ii) We don’t replace on appreciation simply for cashflow (iii) We be sure there is adequate cash reserves. Overall, investors wish to know that the funds are safe. As their syndicator, we imply to them this when you’re excellent communicators, minimizing associated investment risks, keeping the necessary industry experience and creating a good meaningful relationship.

Being a part of an operation that is certainly trouble-free…
Every passive investor uses a trouble-free process. They wish to turned into a passive investor simply because they wished to take their take advantage a profit-yielding investment while not having to bother themselves about daily operations. Most savvy passive investors are busy to money-making small business ventures, so they really haven’t much time to spare.

After undertaking initial research about the deal before investing, investors want a great investment that won’t provide them with insomnia. It’s for that reason the only real work we’d like our investors to do is check their monthly email around the deal and receive their cashflow and profits.

Consistent updates on important info in regards to the deal…
What our investors want ‘s what we supply, a definite, plain english, to-the-point, no fluff investment update with real numbers, solutions (if there’s a worry) and realtime property info & data. To make certain our investor receive the absolute best communication monthly our deal updates include but are not restricted to:

Any community engagement events
Any issues and our proposed solutions
Actual rents versus projected rents
Rehab and cost 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, our company offers investors with the current rent roll and the profit and loss statement in order to look at the operations of the property and punctiliously investigate the details should they want to. Our passive investors get distributions each month (not quarterly or yearly) so that they not just receive updates and also receive payment.

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