Being a real-estate syndicator, I was thinking the biggest thing that would make accredited investors need to passively invest and partner with the firm was the return. But I soon remarked that wasn’t the most important concern.

My experience has given me the chance to better understand passive investors. And in today’s blog, I am speaking about these major reasons I’ve seen to be why investors invest passively in our apartment syndication.

1. Knowing their is within safe hands
2. Being a section of a procedure that is trouble-free
3. Consistent updates on important information in regards to the deal

Knowing their funds is safe hands…
As with any other investments, there are no profit or capital preservation guarantees from the real estate investment opportunities business. Therefore, passive investors need to know that we're taking all preventive steps to lower risks. We achieve this in-part by sticking to the following three principles of apartment investing. (i) We secure lasting debt (ii) We don’t replace on appreciation only for cashflow (iii) We ensure there exists adequate cash reserves. On the whole, investors want to know that their money is safe. For their syndicator, we suggest to them this by being excellent communicators, minimizing associated investment risks, getting the necessary industry experience and constructing a good meaningful relationship.



As a a part of a procedure which is trouble-free…
Every passive investor uses a trouble-free process. They desire to turned into a passive investor since they wanted to placed their cash in a profit-yielding investment and never have to bother themselves about daily operations. Most savvy passive investors are busy with money-making businesses, in order 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 allow them to have insomnia. It is for that reason the only work we'd like our investors to complete is check their monthly email on the deal and receive their cashflow and profits.

Consistent updates on information regarding the deal…
What our investors want is the thing that we stock, an obvious, clear language, to-the-point, no fluff investment update with real numbers, solutions (if there’s a concern) and live property info & data. To make certain our investor have 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 value 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 with all the current rent roll and also the profit and loss statement to enable them to look at the operations from the property and thoroughly investigate the details if they wish to. Our passive investors get distributions monthly (not quarterly or yearly) so they really not only receive updates but additionally receive payment.

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