A happy investor can bring in a lot of benefits to a multifamily syndication. You will need to put your best foot forward when it comes to satisfying the people who are financing your property acquisitions.
For many people, it’s not easy to make everybody happy. It takes time to have the right systems in place to keep investors in the loop on what’s happening to the money they contributed. For some, it’s tedious to even begin answering queries from investors.
Still, one positive experience can generate better and more profitable opportunities in the future. This boils down to using the right approaches. When I started in the multifamily sector, I wasn’t really sure how to go about getting more people to invest. I instead focused on keeping one investor happy. This allowed me to make a breakthrough because this happy investor decided to mention me in his network of associates. As a result, I got a lot of queries coming from people who want their wealth to grow exponentially.
There’s a process that you need to follow here. Follow these tips and turn one happy investor into 30 more.
Update and meet up
In the first four months after closing, we usually hold monthly investor meetings. During these meeting, we present the closing statement and go over all the pertinent information to show to investors.
In the second month, we go over the property take over procedures and the staff that we have hired to run the day to day operations. The new systems in place along with the software awareness for managing their asset. In the third month, we start showing the progress of the minor renovations, signage, marketing strategies, flyers and new pictures of the asset.
After the fourth month, we then discuss the investment status in a quarterly meeting. We usually hold online through webinars and teleconferences. These are recorded and sent to investors who were unable to join the virtual meeting.
Keep them informed
It’s always important to remember that investors want to make sure their hard-earned money will generate a large income flow. You will need to give them complete data in terms of the income generated as well as rent prices and losses on account of vacancies. Keep your records as accurate as possible so that your investors will continue to trust you throughout the lifespan of their multifamily investments.
Make time for education
Investors will appreciate you more if you fill them in on everything there is to know about the multifamily sector. You will need to guide them in understanding complicated concepts like NOI and capitalization rates can easily be understood. Moreover, you need to give them a good grasp of rules set by the SEC. There are a lot of regulations that investors will need to know, so it helps them a lot if you take the time to discuss these with them. Studying the market trends and economic upturn and downturn and passing that information to investors is so essential.
Send quarterly checks
Investors like it if you put their needs above everything else. More importantly, they also want to ensure that their investments are actually producing income as expected. Nothing gives them a good reason to trust you like a quarterly or monthly return on the hard-earned money they contributed. This will lead you towards attracting more investors to your syndication because a happy investor can spread the word about you. This will ultimately bring in more capital and allow you to acquire more properties later on.
Once you start applying this process, it will be easier for you to make your investors happy and get them to produce 30 more who won’t mind spending more for multifamily properties.