Our 3 Secrets to Attract and Keep Our Passive Apartment Investors
As a property syndicator, I believed the main thing that might make accredited investors wish to passively invest and partner with this firm was the return. But I soon pointed out that wasn’t the greatest concern.
My experience has given me the opportunity to better understand passive investors. As well as in today’s blog, I will be speaking about these main reasons I’ve seen to be why investors invest passively in our apartment syndication.
1. Knowing their is safe hands
2. As a section of a procedure that’s trouble-free
3. Consistent updates on important info regarding the deal
Knowing their cash is in safe hands…
As with all other investments, there won’t be any profit or capital preservation guarantees inside the real estate investment opportunities business. Therefore, passive investors need to know that we’re taking all preventive measures to lower risks. We do this in-part by adhering to the subsequent three basic principles of apartment investing. (i) We secure lasting debt (ii) We don’t purchase for appreciation limited to cashflow (iii) We ensure there is adequate cash reserves. On the whole, investors need to know that their funds are safe. For their syndicator, we imply to them this when you are excellent communicators, minimizing associated investment risks, keeping the necessary industry experience and constructing a good meaningful relationship.
Like a portion of an activity which is trouble-free…
Every passive investor uses a trouble-free process. They need to turned into a passive investor simply because they wished to put their money in a profit-yielding investment and never have to bother themselves about daily operations. Most savvy passive investors are busy with other money-making business ventures, in order that they haven’t much time to spare.
After undertaking initial homework on the deal before investing, investors want a great investment that won’t give them sleeplessness. It really is for this reason the sole work we want our investors to perform is check their monthly email on the deal and receive their cashflow and profits.
Consistent updates on important info regarding the deal…
What our investors want is the thing that we supply, a specific, clear language, to-the-point, no fluff investment update with real numbers, solutions (if there’s a worry) and realtime property info & data. To make sure our investor get the best communication monthly 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 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 together with the current rent roll as well as the profit and loss statement to enable them to look at the operations with the property and thoroughly investigate the details should they need to. Our passive investors get distributions each month (not quarterly or yearly) so they really not simply receive updates but also receive payment.
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