Lynn Rutledge posted an update 6 months, 1 week ago
Before raising money for the first deal, we thought the reason accredited investors would passively invest in our deal can be due to return. However, because there are other syndication and investment avenues which an angel investor can be, offering solid returns cannot be the driving factor. So, if returns aren’t their primary motivation, what’s? We have narrowed down the passive investors’ three primary factors behind purchasing a condo syndication:
1. My financial resources are in good hands
2. We are updated on relevant information on the deal
3. The procedure is hassle-free
Need #1 – Is my cash in good hands?
The attention when managing other people’s money needs to be capital preservation. Like every investment, you can find never guarantees – not for returns or even the preservation of capital. So, I have to are aware that you’re proactively mitigating any major risks from the following these investing principles:
1. Don’t purchase for appreciation
2. Don’t over leverage
3. Don’t get forced to sell
Furthermore, i need to trust you as a person. I want to have a great feeling about yourself and truly believe that you’ve my favorite interests in your mind. This trust created by the length and excellence of our relationship by you demonstrating your expertise using your experience, your team maybe thought leadership. With this particular trust, I’ll be certain that you should have wise practice, make good decisions, conservatively underwrite the sale, perform all the required due diligence before purchasing a condo and also at the very least, fulfill the projected returns you outlined. Finally, I would like to know that you might be a responsive communicator. If you have a problem with the offer, I want you to not only notify me with the issue, but have a very proposed solution at the same time. Of course, if I reach out to you having a question or concern, I expect that same lightning quick response by having an answer.
Need #2 – Should i find status updates for the deal?
Additionally, I want to be provided with ongoing status updates of the project. On a regular basis, I need a director level – not only a CEO or entry-level employee level – update for the take care of supporting data. To accomplish this, the syndicator needs to provide their investors with a monthly email update that features the following information:
1. Distribution details
2. Occupancy and pre-leased occupancy rates
3. Actual rents vs. projected rents
4. Capital expenditure updates with images 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 procedure hassle-free?
Finally, I need a hassle-free process. The main reason I am a passive investor is simply because I must park my take advantage a good investment while not having to concern yourself with doing any of the day-to-day operations. I would like a boring investment with little to no surprises. All I want to do is see the monthly email updates and receive my distributions. So, to effectively provide investor distributions, set up a direct deposit, rather than sending checks from the mail. Easily do connect using a concern, I want a quick resolution with minimal backwards and forwards. Therefore, you must proactively address potential concerns with your monthly updates and when a trader features a concern, have a very solution in place prior to replying.
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