As being a real-estate syndicator, I believed what is important that could make accredited investors need to passively invest and partner with our firm was the return. But I soon remarked that wasn’t the most important concern.

My experience has given me the opportunity better understand passive investors. As well as in today’s blog, I am talking about the three main reasons I’ve seen to be why investors invest passively in our apartment syndication.

1. Knowing their funds is at safe hands
2. Like a part of a procedure that’s trouble-free
3. Consistent updates on information regarding the deal

Knowing their cash is within safe hands…
Just like any other investments, there are no profit or capital preservation guarantees within the investment business. Therefore, passive investors want to know that we are taking all preventive steps to lower risks. We do this in-part by adhering to the following three basic principles of apartment investing. (i) We secure long term debt (ii) We don’t purchase for appreciation limited to cashflow (iii) We ensure there is certainly adequate cash reserves. Overall, investors want to know that the money is safe. As his or her syndicator, we suggest to them this when you are excellent communicators, minimizing associated investment risks, keeping the necessary industry experience and creating a good meaningful relationship.

As being a part of an operation which is trouble-free…
Every passive investor uses a trouble-free process. They need to become a passive investor since they wanted to place their cash in a profit-yielding investment without having 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 to spare.

After undertaking initial required research for the deal before investing, investors want a good investment that won’t give them sleepless nights. It’s because of this the only real work we would like our investors to do is check their monthly email around the deal and receive their cashflow and profits.

Consistent updates on important information about the deal…
What our investors want is the thing that we stock, a definite, plain english, to-the-point, no fluff investment update with real numbers, solutions (if there’s a problem) and real time property info & data. To be sure our investor receive the absolute best communication each month 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 pictures of the progress made
Distribution details
Actual rental premium versus expected rental premium
Relevant market and/or submarket updates
Then, every four months, we offer investors with the current rent roll along with the profit and loss statement so that they can review the operations of the property and punctiliously investigate the details whenever they desire to. Our passive investors get distributions on a monthly basis (not quarterly or yearly) so they really not just receive updates but in addition receive payment.

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