• Gorman Duke posted an update 4 years, 1 month ago

    Before raising money for first deal, we thought the main reason accredited investors would passively put money into our deal could be due to the return. However, as there are other syndication and investment avenues this agreement a trader can be, offering solid returns cannot be the driving factor. So, if returns aren’t their primary motivation, what is? We’ve simplified the passive investors’ three primary reasons for buying a rental syndication:

    1. My money is in good hands

    2. I will be updated on relevant facts about the deal

    3. To obtain the vehicle hassle-free

    Need #1 – Is my cash in good hands?

    The main focus when managing other people’s money must be capital preservation. Like all investment, you’ll find never guarantees – not for returns or perhaps the preservation of capital. So, I want to are aware that you are 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 expected to sell

    I additionally need to trust you as a person. I want to have a good feeling with regards to you and truly believe you have my favorite interests planned. This trust is made through the length superiority our relationship and also by you demonstrating your expertise by your experience, your team or maybe your thought leadership. With this trust, I’ll be positive that you’ll have good sense, make good decisions, conservatively underwrite the sale, perform all the due diligence before purchasing a rental possibly 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 an issue with the deal, I wish for you not only to notify me from the issue, but possess a proposed solution at the same time. Of course, if I contact you with a question or concern, I expect that very same lightning quick response with the answer.

    Need #2 – Will I find status updates about the deal?

    Additionally, I want to be provided with ongoing status updates in the project. On a regular basis, I’d like a director level – not just a CEO or entry-level employee level – update on the cope with supporting data. To achieve this, the syndicator must provide their investors having a monthly email update that also includes the subsequent 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, together with your proposed solution

    6. Any community engagement events

    Need #3 – Is the process hassle-free?

    Finally, I want a hassle-free process. The key reason why I’m a passive investor is really because I wish to park my profit a good investment without having to worry about doing the day-to-day operations. I want a dull investment with little to no surprises. All I wish to do is see the monthly email updates and receive my distributions. So, to effectively provide investor distributions, start a direct deposit, in contrast to sending checks in the mail. Only do connect with a concern, I want a quick resolution with minimal forward and backward. Therefore, you must proactively address potential concerns within your monthly updates and when an angel investor includes a concern, use a solution in position prior to replying.

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