Love Carroll posted an update 5 months ago
Before raising money for the first deal, we thought the reason accredited investors would passively purchase our deal could be due to the return. However, since there are other syndication and investment avenues this agreement an angel investor can be, offering solid returns is not the driving factor. So, if returns aren’t their primary motivation, what is? We have reduced the passive investors’ three primary causes of investing in a flat syndication:
1. My cash is in good hands
2. I am updated on relevant info on the offer
3. The process is hassle-free
Need #1 – Is my take advantage good hands?
The main objective when managing other people’s money ought to be capital preservation. Like all investment, you can find never guarantees – not for returns or the preservation of capital. So, I must realize that you are proactively mitigating any major risks from the following these investing principles:
1. Don’t replace on appreciation
2. Don’t over leverage
3. Don’t get expected to sell
I also have to trust you as a person. I want to possess a good feeling about you and honestly think that you’ve my best interests at heart. This trust is made through the length superiority our relationship and by you demonstrating your expertise by your experience, your team maybe thought leadership. Using this trust, I’ll be positive that you will have sound judgment, make good decisions, conservatively underwrite the deal, perform all the required required research before purchasing a condo possibly at the absolute minimum, match 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 offer, I really want you not only to notify me in the issue, but use a proposed solution too. Of course, if I contact you using a question or concern, I expect that same lightning quick response with the answer.
Need #2 – Can i be provided status updates about the deal?
Additionally, I would like to be provided with ongoing status updates with the project. On a consistent basis, I’d like a director level – not only a CEO or entry-level employee level – update around the take care of supporting data. To do this, the syndicator needs to provide their investors which has 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, along with your proposed solution
6. Any community engagement events
Need #3 – Is the procedure hassle-free?
Finally, I’d like a hassle-free process. The reason I am a passive investor happens because I wish to park my money in a great investment and not have to bother about doing one of the day-to-day operations. I want an ordinary investment with hardly any surprises. All I want to do is browse the monthly email updates and receive my distributions. So, to effectively provide investor distributions, create a direct deposit, rather than sending checks in the mail. Basically do connect using a concern, I would like a fast resolution with minimal back and forth. Therefore, you need to proactively address potential concerns with your monthly updates and when an investor includes a concern, have a very solution available ahead of replying.
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