Industry Insider Tips For Getting Started with a Multifamily Investment Company
If you’ve already heard about the high upside of passive investment with a multifamily investment company, you’re likely wondering how to select the best sponsor and how to determine whether an investment with them is right for you.
At Worcester Investments, we’re big believers that the sponsor vetting process should include considerations related to trustworthiness, the track record of the firm, the team they’ve assembled, and whether this sponsor will provide transparency at every step in the investment relationship.
When getting involved with real estate investment properties – for the first time or as an experienced investor – you deserve to be equipped with the tools you need to understand the upside of real estate investment as well as what makes for the right investment relationship for you. Here are key points we believe every potential investor should know.
What is Multifamily Real Estate Investment?
Multifamily real estate investment is an investment in properties that contain multiple residential units, such as an apartment building. After expenses, multifamily properties generate cash flow and high returns on investment, primarily from occupancy fees. Therefore, multifamily real estate investment asks an accredited investor to consider how a company acquires and operates its investment properties. A superior company operates attractive real estate properties where occupancy rates remain extraordinarily high.
What Does a Multifamily Investment Company Do?
A multifamily investment company like Worcester Investments makes acquisitions of multifamily real estate in Kansas City in order to reposition and operate them, thereby providing value to our partnerships with a private group of accredited investors. We’re very proud of our team – which runs the gamut from strategic acquisitions to exceptional operations – and, because of them, our properties continue to be desirable, key real estate that offers a high return on investment.
Investors can choose to invest in the Worcester Fund, which offers a stake in a number of diversified real estate holdings, including properties and loans. Investors also can choose Worcester Financing, as we offer private financing for purchasing real estate for renovation and sale, as well as cases where an investor wants to buy, renovate, and hold a property for rent. We also offer bridge loans to help keep a property investment going in the short-term.
What to Look for in a Multifamily Investment Company
An investor has to trust the company they are entering into a partnership with, and that trust begins with the first phone call. Our Investor Success team is here to listen to your goals for your financial future, understand and address your questions, and guide you through the steps toward a decision to invest – and onward.
We believe that the feeling you get from your sponsor says a lot. Are they there to do all the talking, or are they listening to your questions and concerns? Do you feel heard? Do you share common goals, and an understanding that the company’s investment philosophy aligns with your own? If so, this multifamily real estate company has passed a key test when it comes to real estate investing.
Look to the Company’s History
You don’t want to go much further if an investment company’s track record doesn’t seem to offer a promising, strategic path forward for future investments. A feeling of connection with a potential sponsor is important, but evidence is clearly essential when you’re investing for your financial future – and that of generations to come.
Looking at the historic numbers from a company’s investments will tell you what you need to know. You also might consider asking about recent deals, deals underway, and what kinds of industry analysis is being done to make the next great acquisition. You also can consider testimonials from the pool of investors who’ve worked with the sponsor, and do your own research on the investment properties in the company’s portfolio.
Consider the Multifamily Investment Company Team’s Talent
A talented team allows a multifamily investment company to continue adding value for accredited investors. The team, not just the people at the very top, are essential to the day-to-day operations and management of Kansas City real estate properties and the consistent, careful practices involved in managing a large stable of properties in a fund worth many millions of dollars.
As you know from your own professional experience, each member of a team plays an important role, so be sure to ask about the players – large and small – starting with getting to know the investor relations team.
A Better Experience Includes Access, Visibility, and Strong Communication
Having done our research and witnessed the pitfalls that many investment firms run into as they try to build their investment funds, the Worcester family – two brothers and their father – wanted to do things differently. They believed – and continue to affirm – that investors deserve a rich, personalized experience with their investment team, which includes deliberate onboarding and developing a relationship that will last far into the future. The high upside on our investments is for the investor first. When you speak with Worcester Investments’ Investor Success team, you’ll notice how we take care of our investors right away.
Even if you’re not ready to begin the process during an initial phone call, we will continue to keep you informed about great deals down the road. We’re always excited to share the ways our strategy continues its track record of profitability in the Kansas City real estate market.
Get Started on a High Value Investment
See for yourself the difference Worcester Investments can make for your financial future. Find out why our historically high returns on investment attract investors across the country.