In 2021 we have already had over 2,000 new investors visit our PassiveInvesting.com website and enter their information to join the Passive Investor Club. This means that our Passive Investor Club has grown over 195% in just 8 short months.
This surge in the number of investors has certainly allowed us to raise a significant amount of additional capital to grow our portfolio of multifamily and self-storage facilities across the southeast as well as our real estate debt fund.
This year our group has already raised $102mil+ between our multifamily assets, the real estate debt fund, and our growing self-storage fund. This is a 167% increase in the amount of capital raised from just 2020. See figure 1 above.
As we continue to grow our investor base, one of the things you will notice is that our offerings will be filling up faster. As one of our prior investors, you will need to commit to invest much faster than in the past, otherwise you risk missing out on the future investments.
We currently have 1,448 active investors in our offerings. An active investor is someone that has made the decision to invest with us and they have wired money to us in one of our offerings.
To date, we have raised $199mil since we began in 2018 with an average investment amount of $137k+ from our active investors.
Investing for the First Time
The one interesting stat for me, is that we currently have 4,099 members that have joined the Passive Investor Club to date which means only 35% of the members have taken the plunge to invest alongside us in one of our offerings.
Now, don’t get me wrong here, I am extremely overwhelmed by the response from our active investors, but I thought I would write this article specifically to those that have NOT invested with us just yet.
And I get it, right. Most of you are not going to be introduced to us for the first time and then decide to invest in our very next offering. There is a phase where you will want to follow us and see the results that our other investors are achieving before trusting us.
But there is a point in time where you have been following us long enough and now you start seeing some of our solid exits that we acquired years ago.
Then FOMO (fear of missing out) sets in, and you are ready to take the plunge and ride an investment offering alongside us.
I also understand that many of you are just not ready to take on the risks and invest with us. And that’s ok. This may be due to lack of access to capital, lack of confidence in our group, too many upcoming large expenses, fear of losing your money, or a myriad of other reasons that you conjure up in your mind to convince yourself not to invest in the current offering.
My encouragement to you is to “take the plunge” and make the decision to finally invest with us in the latter half of 2021. You won’t be able to change your current situation until you make a decision to take on some risk to grow your net worth. As you likely already know, real estate is a great wealth preservation and growth tool to have a major impact on future generations.
How to Invest for the First Time
Step 1: When you receive that email or offering booklet in the mail, take time to review the materials carefully and make sure it is the right investment for you.
Step 2: Watch the webinar on the offering to further investigate and hear from the managing partners about the business plan and strategy for growing your investment with the offering.
Step 3: Submit your first soft reserve commitment. This is basically raising your hand to us and letting us know that you have the capital available and are ready to invest. This is not a hard commitment. This will allow you to receive the PPM (private placement memorandum) documents to review.
Step 4: Review the PPM and submit any questions to our team for clarification on any points addressed within these documents. Don’t get too overwhelmed by the 150+ page PPM as it is mostly legal jargon that our attorney feels is important for us to include, and it also includes the 50+ page investor offering memorandum document which you have already reviewed prior to making the decision to invest.
Step 5: Sign the PPM and submit your accredited investor verification document. This is something that your CPA, attorney, or financial advisor can submit, or you can use our 3rd party verification service. If using your own professional, we have a template letter that they can use to speed up the process. If using our 3rd party provider, there is no cost to you, and we will receive the document from them once you complete the process with them.
Step 6: Wire funds to the bank account for the specific entity setup for the offering. These funds will sit in this account until the day we close on the asset.
Step 7: Receive an email on the day we close. This email will also include an Investor Guide to inform you of what to expect moving forward with the investment including the communication schedule, schedule K-1 timing, monthly distribution timing, etc.
You Now Have Decision to Make
Now you know what to expect. I know it might sound like a lot of steps, but it really is not that time-consuming or hard to execute at all.
Once you have the system down it shouldn’t take more than about 15-20 min to complete all the steps, except maybe the accreditation process, but once you do that with our group once, the accreditation letter is good for 5 years so subsequent investments will go much faster.
So, the decision you need to make here is: “Will I invest in the next offering?”
Go ahead and take some time to continue to think about it. The next offering is around the corner, so you have a little time to make up your mind.
If you need a little more convincing, you can always reach out to our team, and we can provide you with specific references from our current, active investors that have invested in multiple offerings.
NOTE: If you are an active investor, have invested in multiple offerings, and would be willing to talk to an investor who has not invested yet and maybe on-the-fence, please send me an email so we can add you to our investor reference list. This is always a great help because some investors like to check references prior to investing.
Thank you to all our trusted investors, and we look forward to helping you grow your family’s wealth for many years to come. God bless!