Our 3 Secrets to Attract and Keep Our Passive Apartment Investors

As being a real estate property syndicator, I figured what is important that could make accredited investors desire to passively invest and partner with your firm was the return. However soon realized that wasn’t the biggest concern.

My experience has given me the opportunity better understand passive investors. And in today’s blog, I will be referring to these major reasons I’ve found to be why investors invest passively in our apartment syndication.

1. Knowing their money is within safe hands
2. As being a portion of an operation that’s trouble-free
3. Consistent updates on important info in regards to the deal

Knowing their is within safe hands…
As with all other investments, there isn’t any profit or capital preservation guarantees within the real estate investment opportunities business. Therefore, passive investors wish to know that we’re taking all preventive measures to reduce risks. We accomplish this in-part by adhering to the next three basic principles of apartment investing. (i) We secure long-term debt (ii) We don’t upgrade on appreciation only for cashflow (iii) We be sure there is certainly adequate cash reserves. In general, investors would like to know that their money is safe. His or her syndicator, we demonstrate to them this since they can be excellent communicators, minimizing associated investment risks, having the necessary industry experience and building a good meaningful relationship.

As being a section of a process which is trouble-free…
Every passive investor wants a trouble-free process. They want to turned into a passive investor given that they planned to put their money in a profit-yielding investment and never have to bother themselves about daily operations. Most savvy passive investors are busy along with other money-making small business ventures, so they really have little time to spare.

After undertaking initial research for the deal before investing, investors want a smart investment that won’t allow them to have difficulty sleeping. It can be on that basis the one work we want our investors to accomplish is check their monthly email on the deal and receive their cashflow and profits.

Consistent updates on information and facts about the deal…
What our investors want is the thing that we stock, a definite, clear language, to-the-point, no fluff investment update with real numbers, solutions (if there’s a worry) and realtime property info & data. To be sure our investor obtain the absolute best communication every 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 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, our company offers investors with the current rent roll along with the profit and loss statement in order to look at the operations in the property and punctiliously investigate the details when they want to. Our passive investors get distributions every month (not quarterly or yearly) in order that they not merely receive updates and also receive payment.

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