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Before raising money for first deal, we thought the primary reason accredited investors would passively put money into our deal could be as a result of return. However, with there being other syndication and investment avenues that a trader will go, offering solid returns can’t be the driving factor. So, if returns aren’t their primary motivation, what is? We have refined the passive investors’ three primary causes of buying a condo syndication:

1. My funds are in good hands

2. We are updated on relevant info on the deal

3. The process is hassle-free

Need #1 – Is my profit good hands?

The main objective when managing other people’s money must be capital preservation. As with any investment, you’ll find never guarantees – not for returns or the preservation of capital. So, I need to are aware that you’re proactively mitigating any major risks with the following these investing principles:

1. Don’t upgrade on appreciation

2. Don’t over leverage

3. Don’t get made to sell

I additionally need to trust you like a person. I need to have a good feeling with regards to you and truly believe that you’ve my best interests planned. This trust is made by the length and quality of our relationship and also by you demonstrating your expertise via your experience, your team or maybe your thought leadership. Using this type of trust, I will be certain that you should have good sense, make good decisions, conservatively underwrite the sale, perform all the research before purchasing an apartment at a minimum, satisfy the projected returns you outlined. Finally, I wish to are aware that you might be a responsive communicator. When there is a problem with the offer, I would like you to not only notify me with the issue, but have a proposed solution too. And when I find you which has a question or concern, I expect that very same lightning quick response by having an answer.

Need #2 – Can i be provided with status updates for the deal?

Additionally, I want to discover ongoing status updates in the project. On a regular basis, I need a director level – not just a CEO or entry-level employee level – update around the handle supporting data. To achieve this, the syndicator must provide their investors which has a monthly email update that also includes these 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, as well as your proposed solution

6. Any community engagement events

Need #3 – Is the method hassle-free?

Finally, I would like a hassle-free process. The reason I am a passive investor is simply because I wish to park my take advantage an investment without having to concern yourself with doing the day-to-day operations. I need an ordinary investment with practically no surprises. All I want to do is read the monthly email updates and receive my distributions. So, to effectively provide investor distributions, generate a direct deposit, in contrast to sending checks in the mail. If I do touch base with a concern, I need a fast resolution with minimal backwards and forwards. Therefore, you ought to proactively address potential concerns inside your monthly updates if a trader includes a concern, possess a solution set up before replying.

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