Our 3 Secrets to Attract and Keep Our Passive Apartment Investors

As being a real estate property syndicator, I figured the main thing that would make accredited investors want to passively invest and partner with this firm was the return. On the other hand soon realized that wasn’t the biggest concern.

My experience has given me the opportunity to better understand passive investors. As well as in today’s blog, I will be referring to these significant reasons I’ve discovered to be why investors invest passively within our apartment syndication.

1. Knowing their is at safe hands
2. Like a portion of an operation that is certainly trouble-free
3. Consistent updates on information and facts in regards to the deal

Knowing their cash is in safe hands…
As with any other investments, there won’t be any profit or capital preservation guarantees within the real estate investment business. Therefore, passive investors want to know that we are taking all safety measures to reduce risks. We achieve this in-part by staying with the next three basics of apartment investing. (i) We secure long term debt (ii) We don’t upgrade on appreciation simply for cashflow (iii) We make sure there exists adequate cash reserves. In general, investors wish to know that their financial resources are safe. His or her syndicator, we show them this by being excellent communicators, minimizing associated investment risks, obtaining the necessary industry experience and constructing a good meaningful relationship.

Like a a part of an operation that is certainly trouble-free…
Every passive investor uses a trouble-free process. They wish to be a passive investor because they planned to put their cash in a profit-yielding investment while not having to bother themselves about daily operations. Most savvy passive investors are busy along with other money-making small business ventures, in order that they haven’t much time for it to spare.

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

Consistent updates on important info concerning the deal…
What our investors want is the thing that we stock, an obvious, plain english, to-the-point, no fluff investment update with real numbers, solutions (if there’s a concern) and realtime property info & data. To make sure our investor get 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 expense 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 all the current rent roll along with the profit and loss statement in order to review the operations from the property and punctiliously investigate details if they wish to. Our passive investors get distributions each month (not quarterly or yearly) so they really not only receive updates but in addition receive payment.

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