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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 will be due to the return. However, with there being other syndication and investment avenues which a trader will go, offering solid returns is not the driving factor. So, if returns aren’t their primary motivation, what exactly is? We've got refined the passive investors’ three primary causes of investing in an apartment syndication:

1. My funds are in good hands
2. We are updated on relevant facts about the deal
3. The process is hassle-free


Need #1 - Is my money in good hands?
The main objective when managing other people’s money should be capital preservation. As with any investment, you will find never guarantees - not for returns or preservation of capital. So, I want to understand that you are proactively mitigating any major risks through the following these investing principles:
1. Don’t replace on appreciation
2. Don’t over leverage
3. Don’t get made to sell

I additionally have to trust you as a person. I need to have a great feeling in regards to you and honestly think which you have my favorite interests at heart. This trust is made through the length and quality of our relationship and by you demonstrating your expertise using your experience, your team or your thought leadership. With this trust, I am confident that you'll have good sense, make good decisions, conservatively underwrite the deal, perform all the required due diligence before purchasing a condo and also at the very least, satisfy the projected returns you outlined. Finally, I must realize that you're a responsive communicator. If you have an issue with the offer, I wish for you not only to notify me from the issue, but use a proposed solution also. And when I find you which has a question or concern, I expect that same lightning quick response with the answer.



Need #2 - Will I be provided status updates about the deal?
Additionally, I would like to find ongoing status updates of the project. On a consistent basis, I need a director level - not only a CEO or entry-level employee level - update about the take care of supporting data. To do this, the syndicator must provide their investors which has a monthly email update that also includes the next information:

1. Distribution details
2. Occupancy and pre-leased occupancy rates
3. Actual rents vs. projected rents
4. Capital expenditure updates with photos of the progress
5. Relevant market and/or submarket updates
5. Any issues, along with your proposed solution
6. Any community engagement events


Need #3 - Is the process hassle-free?
Finally, I would like a hassle-free process. The reason why I'm a passive investor happens because I want to park my take advantage an investment and not have to bother about doing any of the day-to-day operations. I would like an ordinary investment with hardly any surprises. All I want to do is look at monthly email updates and receive my distributions. So, to effectively provide investor distributions, set up a direct deposit, in contrast to sending checks inside the mail. Easily do reach out with a concern, I need a simple resolution with minimal backwards and forwards. Therefore, you should proactively address potential concerns with your monthly updates if an angel investor includes a concern, have a very solution in place before replying.

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