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Find Out Why Track Record Is Important in Passive Real Estate Investing: A Case Study

Successful Investing in Multifamily Investment Properties in Kansas City Depends on Our Seven Keys

Our last case study focused specifically on trust as one of “The Seven Keys to Passive Investing.” Trust is the first thing you should consider when getting into passive real estate investing. It is important to have a good feeling about the vertically integrated real estate company you are working with. It is equally important to get a sense of the real numbers, and whether they match a firm’s claims. If a firm is claiming high returns with multifamily investment properties in Kansas City, they need to back this up.

However, once trust has been established, you may consider moving forward. Keep in mind that when seeking out the right sponsor, you can always reconsider trust. Companies that deal with alternative real estate investments can still break that initial trust. So, it is important to remain vigilant as you vet a sponsor.

The next step in the vetting process asks you to consider the team’s track record. To illustrate this concept, we will adopt the same structure as our last case study. Read below about two investors and their experiences with track record when vetting a firm.

A Summary of Track Record as the Second Essential Key for Passive Real Estate Investing

Before we present our illustration of two accredited investors, let’s discuss track record. A firm that deals with multifamily investment properties in Kansas City must have a good track record. Otherwise, all established trust goes away. There is no sense in getting into passive real estate investing without this key concept in mind.

You will know a vertically integrated real estate company with a strong track record based on these qualities:

  • The firm has been successful in the past with alternative real estate investments.
  • The firm has the numbers to prove their success in passive real estate investing.
  • The firm intends to pursue similar formulas for success in the future.

If these qualities seem evident when vetting a sponsor for investment, you can move forward. We illustrate these qualities – or the lack thereof – in our two case study narratives.

Our First Accredited Investor’s Experience with Passive Real Estate Investing and Track Record

Our first accredited investor is vetting multifamily investment firms. They visit one that makes a lot of claims. They say they are the premier company for passive real estate investing. They claim to be a vertically integrated real estate company. In addition, they claim that if you invest with them, you will definitely experience high returns on investment.

The accredited investor is intrigued. This sounds like a firm they’d be interested in – who wouldn’t? However, things change when the investor asks more questions. They ask for the numbers related to these great deals. The accredited investor wants to see if the alternative real estate investments they are discussing have truly yielded good results.

The firm says they will provide all that information at a later time. When the investor asks more about their vertical integration, the explanation is murky. Doing some research online, the investor realizes that it is not clear that this firm manages its own multifamily investment properties in Kansas City. After this meeting, our investor feels less secure. They want to believe that this firm can grow their money into generational wealth, but something is off.

There’s no evidence behind this passive real estate investing firm’s claims. Information is not forthcoming. Everything feels too good to be true. And, in the end, it is. The deeper the accredited investor digs, the more they realize they wasted their time. Empty claims and evasive answers do not equal success.

Our Second Accredited Investor’s Experience with Passive Real Estate Investing and Track Record

In the case of our second accredited investor, things unfold differently. Our second investor asks to hear more about the firm’s success. The firm they are interviewing has had a great deal of success, and shares it openly. Their portfolio of multifamily investment properties in Kansas City has done very well.

It appears that over the course of the firm’s history, success has been natural to them. The firm shows how their vertically integrated real estate company measures success. They explain their goals. Then, the firm demonstrates how they’ve exceeded their goals year after year. This passive real estate investing company has evidence to back up their claims.

It is clear that this firm has a great track record. As far as alternative real estate investments go, they’ve done very well. It appears that they are on track for another great quarter. They aren’t afraid to share this information. Also, when the accredited investor asks about specific challenges over the years, the firm is forthcoming. They aren’t afraid to describe their pivots, and how they’ve managed to overcome difficulties with grace and success.

This helps our accredited investor feel more trusting and confident. This, plus the overall history of this company’s success, means this is a good firm to move forward with.

Learn More About Worcester Investment’s Track Record – Schedule a Meeting with Us

Worcester Investments wants to see you have a positive, fulfilling investing experience. When you work with our vertically integrated real estate company, this is what you’ll get. You’ll get to know our team. More importantly, however, you’ll get to know our track record.

You’ll find out why our multifamily investment properties in Kansas City have succeeded. You’ll hear about our historically high returns on investment. If this piques your interest, you can partner with us. We’d love to have you as an investor at our passive real estate investing firm.

We recognize how many choices you have for alternative real estate investments. Therefore, we make sure you feel as confident and comfortable as possible. Get to know what we have to offer and get to know the evidence behind our claims. We think you’ll be pleased. Get in touch with us here, or give us a call at (816) 759-0901. We look forward to connecting with you.