THE FIRST TIME IS THE HARDEST
3 Tips for Passive Real Estate Investing
It is true about speaking in public, about stepping into the batter’s box, about asking someone out on a date, about having a baby…
The first time can be the hardest.
It is also true about your first investment in real estate, or a multifamily property through a syndication.
It was for me. It might be for you, too.
Here are three tips for getting through your nervousness about stepping into a passive investment in an apartment complex for the first time.
ONE: GET TO KNOW THE “OPERATORS”
Don’t go any further than this tip. Don’t make any investment, a first one or further ones, if you don’t know and trust the people who are pitching the deal to you. Get to know the folks who will manage your investment.
The “operators” are a significant factor in the success of your investment.
We know, because we are operators.
Take the time, however much time it takes, to get to know the “operators”.
Once you do, you can move on to tip two.
TWO: DO YOUR HOMEWORK
Just as the operators will do the required due diligence on the property and the financials and the legal matters, you have some homework to do before you sign any commitments and wire any funds.
Learn all you can about being a passive investor, about the numbers at the heart of the investment, and about the documents you are required to read before you invest.
Of course, some of this homework would be good before you even get serious about investing in multifamily assets. Talk to operators, read all you can, go to a conference or workshop. Get familiar with this kind of investment. Get to know some of the “operators” out here.
Then, go back up to tip one and really get to know an “operator.” Really! Do you trust them? Do you like them? What is their experience?
THREE: BE AWARE OF YOUR COMFORT ZONE
Again, this may be something you want to do early in the process. Get in touch with your comfort zone. If you are married or have a family, ask them what they are comfortable with. Help them learn the risks and the benefits of investing in apartments.
There are many significant benefits. We have written about these in previous blogs. But, there are many risks, as well. Ask us. We have faced and moved through them.
Be aware, you could lose every penny of your investment. Go in with your eyes open. Invest right up to or just over the edge of what is appropriate and comfortable for you, the first time. The first investment is a great way to build the experience and confidence you need for all your future investments. It helps expand your comfort zone.
The first time you do many things is the most difficult, wouldn’t you agree?
But, it can also be a breakthrough to new opportunities. Right?
Remember what baseball was like after your first at bat. Remember what that relationship was like after the first date. Take that first step into multifamily investing, but do it wisely.
I’ve shared three tips that might help you be able to take the first step with an investment in an apartment complex. I hope this is helpful.
HELP US GET TO KNOW YOU BETTER
What are some things you do to get over the fear of doing something the first time??
Attune Investments provides a better return for our investors. And we make a positive impact in people’s lives and in our world.
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Through the power of a syndication partnership with other investors like you, working with managing partners who are experienced in managing apartment complexes, you can own multifamily assets.
Or you can choose to loan money, get in with a clear return, and get out earlier.
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Harland leads our Investor Relations. He is a “repurposed” Pastor and Army Chaplain. He is an author, speaker, mastermind facilitator, and coach. Harland lives with his wife, Barbara, in DeLand, Florida.