Being a passive investor is a decision based of your time value, wealth preservation goals & pursuit of passive streams of income. By working with an experienced team, passive investors get to experience a hands off approach to investing in commercial multifamily through the syndication model.
Think about the time a doctor, IT director, small business owner ect. has to seek an investment opportunity, perform due diligence and have the available capital needed to purchase a $5 million dollar asset. As a passive investor, the experienced sponsor brings you the investment opportunity that has been properly vetted, analyzed the market conditions and conservatively underwritten before putting sending it off to the limited partners.
A limited partner that places one’s capital into a multifamily syndication that is managed entirely by a general partner.
- Passive investor does noes not sign on the debt
- Share’s in the profits for the other limited partners and general partners
- Capital goes toward a portion of the equity investment
- Accredited investor on 506c syndication offerings and are verified via a third party verification service
- Up to 35 non-accredited investors on 506b syndication offerings
- Leverages the experience of the sponsors on the general partnership
- Does not want to create another job for themselves to pursue passion projects, climb the corporate ladder or spend more time with family
Now that you have a better understanding of what a passive investor is, did you ever consider that Warren Buffett is a professional passive investor? Yes he owns majority shares of a company but all in all, he hires the right operators to manage the investment. He leverages the experience of the experts to provide the returns he is seeking in his investments. Taking a page out of his investment book, are you working with the right experienced team in your real estate passive investments?
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