As a real estate syndicator, I believed the most important thing that would make accredited investors need to passively invest and partner with your firm was the return. On the other hand soon seen that wasn’t the greatest concern.

My experience has provided me the opportunity to better understand passive investors. As well as in today’s blog, I'll be referring to these major causes I’ve seen to be why investors invest passively in your apartment syndication.

1. Knowing their cash is safe hands
2. As a section of a procedure that is certainly trouble-free
3. Consistent updates on important info about the deal

Knowing their money is in safe hands…
As with all other investments, there isn't any profit or capital preservation guarantees in the investment business. Therefore, passive investors need to know that we are taking all preventive steps to reduce risks. We accomplish this in-part by adhering to the subsequent three basics of apartment investing. (i) We secure lasting debt (ii) We don’t replace on appreciation only for cashflow (iii) We make certain there's adequate cash reserves. Overall, investors wish to know their money is safe. As his or her syndicator, we imply to them this since they can be excellent communicators, minimizing associated investment risks, having the necessary industry experience and developing a good meaningful relationship.



Being a portion of an activity that is trouble-free…
Every passive investor wants a trouble-free process. They desire to be a passive investor since they wished to placed their take advantage a profit-yielding investment and never have to bother themselves about daily operations. Most savvy passive investors are busy along with other money-making business ventures, so they really have little time for it to spare.

After undertaking initial research about the deal before investing, investors want a smart investment that won’t let them have sleepless nights. It is for that reason the only work we want our investors to do is check their monthly email around the deal and receive their cashflow and profits.

Consistent updates on important information regarding the deal…
What our investors want is exactly what we supply, an obvious, plain english, to-the-point, no fluff investment update with real numbers, solutions (if there’s a problem) and live property info & data. To be sure our investor have the very best communication monthly our deal updates include but are not limited to:

Any community engagement events
Any issues and our proposed solutions
Actual rents versus projected rents
Rehab and cost 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 provide investors using the current rent roll along with the profit and loss statement to enable them to evaluate the operations of the property and punctiliously investigate details if they want to. Our passive investors get distributions each month (not quarterly or yearly) so they really not merely receive updates but in addition receive payment.

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