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The Most Important Takeaways from Our “7 Keys to Passive Investing” Series: Part One

We’ve Summarized Our Recommendations for Finding a Strong Multifamily Investment Company

If you’ve been following along with our blog, you may recognize our “Seven Keys” articles. “The Seven Keys to Passive Investing” is a method for vetting a multifamily investment company. When you follow these keys, you will end up choosing a superior firm to invest with.

Worcester Investments lives by these “keys” in our daily work with our investment properties. As a result, we aim to provide high returns on investment in the Kansas City real estate market.

Our accredited investors thus far have experienced the benefits of working with us. If you’re considering investing with a multifamily investment company, don’t invest until you’ve also considered our Seven Keys.

We don’t want you to dive into a real estate investment fund without doing your research. Take a look at each of our articles, beginning with the first key: trust.

Then, move on to the others. However, if you’re looking for a wider view because of your experience, this article may be for you. Below, you’ll be able to get a sense of each of the Seven Keys, and the questions that can help you make investment decisions.

Knowing the right questions to ask – and how they should be answered – are what you should come away with. Finally, if you feel you’re ready to work with Worcester Investments, we’ll show you at the end of this article how to get in touch with our Investor Success team.


A General Overview of “The 7 Keys to Passive Investing”

When you are considering a multifamily investment company as an accredited investor, you want to be sure of seven characteristics. These are the “keys” we are referring to above. If you feel secure with each of these seven items, potentially high returns on investment could result. This is because you are working with a company that is effective in the Kansas City real estate market. They know how to invest in, develop, and manage an investment property.

Here are the characteristics you should consider as an accredited investor:

  • Trust
  • Track Record
  • Team
  • Transparency
  • Type
  • Thesis
  • Terms


In each of the sections below, we will cover the kinds of questions you should be asking about each of these keys. Then, a takeaway will follow. First, however, let’s define each key.

Trust: You’ve established trust with the multifamily investment company.

Track Record: You’ve researched their work with investment properties to confirm their claims.

Transparency: The Kansas City real estate firm is easy to reach and practices accountability.

Team: The firm manages their investment properties vertically.

Type: The deal they are proposing bears risk that you feel comfortable with.

Thesis: The firm’s explanation of the deal makes sense – all of it.

Terms: Is the deal beneficial to you first, and do all of the numbers match the firm’s claims?


Questions to Ask and a Key Takeaway Related to Trust and Passive Investing

Here is what you should be thinking about in relation to trust. Remember that this key is one you can continue to return to. If – at the gut-level – you sense something is off as you move through the process, you can reconsider trust.

  • Does the multifamily investment company seem trustworthy?
  • Does anything jump out as problematic or concerning?
  • Does the data on their investment properties seem to match their claims?
  • Do they have experience and credibility in Kansas City real estate?
  • Is this firm promising high returns on investment far too soon in the process?
  • As a thoughtful accredited investor, do I like this firm?


Key Takeaway on Trust: These questions should help you establish trust. You should feel that the real estate investment firm is likable and has credibility in passive investing.


Questions to Ask and a Key Takeaway Related to Track Record and Passive Investing

Next, we move on to track record. Once you’ve established trust, every accredited investor should dive into what the multifamily investment company has done in the past. These are the questions we recommend asking to get a sense of the firm’s prior work with investment properties.

  • Does the firm have data to share about their past work in Kansas City real estate?
  • What do the numbers bear out in relation to their promises?
  • What deals are being pursued currently? Could these yield high returns on investment?
  • Do new deals seem consistent with old ones in terms of risk and ambition?
  • Do you notice gaps between what was promised and the actual success of their investments?

Key Takeaway on Track Record: Ultimately, the firm you are working with should have a track record in passive investing that will let you know they’ve been successful.


Questions to Ask and a Key Takeaway Related to Team and Passive Investing

Considering “team” means how willing the multifamily investment company is to explain their mission, philosophy, and strategy. This will tell you what kind of organization they are. You will want to know how they are structured to execute their mission as a team. As an accredited investor, this is what you should ask:

  • What is your approach to investment?
  • How have you actualized that philosophy with your investment properties?
  • How does your team work together to benefit all stakeholders?
  • When high returns on investment are not realized, who shoulders the responsibility?
  • Is your Kansas City real estate self-managed and vertically integrated?


Key Takeaway on Team: The firm you are looking at working with for passive investing should be forthcoming about their organization. They should be able to take ownership when problems arise. Find a multifamily company like Worcester Investments whose teamwork has brought us success with investors and our investment properties. We’ve seen historically high returns on investment, and we’re excited to share this potential with you.


How to Get in Touch with Worcester Investments to Begin Your Passive Investing Strategy

Next month, we will revisit these questions and takeaways, as well as provide new questions and takeaways for the remaining keys.

In the meantime, feel free to research our website. You can learn about our story and approach to investing. You can apply the first four keys to Worcester Investments and see how they hold up. Our multifamily investment company is proud of our work in Kansas City real estate, and we want to share this. Our investment properties have performed well, yielding historically high returns on investment.

If you are an accredited investor, we’d love to be in touch about our passive investing fund. Reach out to us here. Or, you can give us a call at (816) 759-0901 to set up an appointment with our Investor Success team. We look forward to exceeding your expectations for trust, track record, transparency, and more.