The 3 Secrets to Attract and Keep Your Passive Apartment Investors
Before raising money for your first deal, we thought the primary reason accredited investors would passively spend money on our deal could be due to the return. However, with there being other syndication and investment avenues this agreement an investor can be, offering solid returns can not be the driving factor. So, if returns aren’t their primary motivation, what is? We've got narrowed down the passive investors’ three primary causes of purchasing a condo syndication:
1. My financial resources are in good hands
2. I am updated on relevant facts about the offer
3. The procedure is hassle-free
Need #1 - Is my take advantage good hands?
The target when managing other people’s money must be capital preservation. Like any investment, you can find never guarantees - not for returns or even the preservation of capital. So, I have to understand that you might be proactively mitigating any major risks with the following these investing principles:
1. Don’t buy for appreciation
2. Don’t over leverage
3. Don’t get instructed to sell
I additionally need to trust you as a person. I need to have a good feeling about yourself and truly believe which you have my favorite interests in your mind. This trust is made with the length superiority our relationship and also by you demonstrating your expertise by your experience, your team or maybe your thought leadership. With this particular trust, We are certain if you should have common sense, make good decisions, conservatively underwrite the offer, perform all the required required research before purchasing a condo at the very least, meet the projected returns you outlined. Finally, I wish to realize that you're responsive communicator. If there is a problem with the deal, I want you to not only notify me of the issue, but use a proposed solution too. If I find you using a question or concern, I expect that same lightning quick response by having an answer.
Need #2 - Will I be provided with status updates about the deal?
Additionally, I would like to discover ongoing status updates in the project. On a consistent basis, I want a director level - not a CEO or entry-level employee level - update for the handle supporting data. To do this, the syndicator has to provide their investors having a monthly email update that features the next information:
1. Distribution details
2. Occupancy and pre-leased occupancy rates
3. Actual rents vs. projected rents
4. Capital expenditure updates with pictures of the progress
5. Relevant market and/or submarket updates
5. Any issues, plus your proposed solution
6. Any community engagement events
Need #3 - Is the method hassle-free?
Finally, I'd like a hassle-free process. The reason why I'm a passive investor is really because I must park my profit a great investment without having to bother about doing the day-to-day operations. I want an ordinary investment with hardly any surprises. All I would like to do is read the monthly email updates and receive my distributions. So, to effectively provide investor distributions, create a direct deposit, instead of sending checks from the mail. Only do connect having a concern, I want a fast resolution with minimal forward and backward. Therefore, you ought to proactively address potential concerns inside your monthly updates and when an angel investor carries a concern, have a solution available ahead of replying.
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