Summary: Feeling overwhelmed about apartment syndication? We’ve got you covered! Follow these 5 simple steps to banishing overwhelm and finding success through passive income investing!
If you’re getting into the apartment syndication game OR if you’ve been dipping your toes in for a while, today is your day.
We’re about to share how to not just dabble in passive investing…but how to actually succeed!
Because the truth is, passive investing doesn’t have to be complicated. In fact, if you approach it the right way, passively earning income while you travel, work, eat, or sleep can be very simple (and even fun).
Here’s the important thing to consider before we get to the good stuff — you wouldn’t, say, start a small business without a solid business plan and framework, right? You already know that a successful business plan requires some groundwork, thought, and effort to execute.
Well, think of apartment syndication in a similar way. Creating a framework to follow is the best way to find success! Plus, having a plan will make your passive income journey MUCH simpler.
So, we’re here to help you lay the foundation for totally changing your life through apartment syndication. 🙌🤩
Just follow our 5 steps to passive income investing success!
1️⃣ First, decide on your chosen passive investing method.
2️⃣ How will you fund your chosen investment?
3️⃣ It’s time to find your SQUAD.
4️⃣ Now implement the C.A.R.E. Strategy.
5️⃣Ah, the best part…just sit back, relax, and track your KPIs.
🤟😌😌
1️⃣ First, decide on your chosen passive investing method.
Alright, you’ve made the decision to dive into passive investing.
Awesome!
You might be full of excitement, nerves, and allllll the emotions thinking about how to invest your money for the best possible outcome. This first step is super important, because it sets the stage for the rest of your investment journey.
You ready?
There are plenty of options for how to invest your money. So, choosing the right method for you is key. You could try stocks, crypto, affiliate links, or any number of passive investing options.
And that’s all good and fine. Butttt there’s really only ONE way to make 80% of lucrative investment deals while you simply live your life your way.
Enter: apartment syndication…the love of our lives. 😍😍
We’re going to focus on apartment syndication as our chosen investment strategy for the remainder of this blog post. Because it really does offer the best chance at growing life-changing wealth – the simple way.
*But be sure to run all of the advice you receive by your own financial and tax professionals, okay? All investment styles come with some level of risk. Syndication just happens to be on the low-risk side of things.
2️⃣ How will you fund your chosen investment?
Okay. You’ve made the choice. Your passive investing journey is about to kick off!
Now is the time to figure out how you will fund your investment. How much dry powder do you need to light the fuse for your passive investing goals?
Well, according to the Kitti’s Dry Powder Principle…let’s play this example out. If you have a goal of hitting $60,000 annual passive income, and you’re getting a 6% annualized cash flow, you’ll need about $1 million to invest.
If that sounds like a lot, keep in mind it’s just one example. Depending on your own goals, you might need more or less to invest. The point is to make a plan, instead of just throwing all your cash into the first deal you find.
We really don’t recommend throwing your cash. 😅😅
If you’re now wondering where in the heck the investment money will come from, think of the money you are NOT using right now. Your passive investment money isn’t drawing from your day-t0-day expenses like your mortgage, rent, or putting food on the table.
Instead, think of any accounts that are sitting around, collecting dust. Your savings account or retirement fund isn’t making you a lot of money just sitting in the bank, right? Look at the stagnant money that is not currently being used, and won’t put your family in jeopardy if it’s tied up in an apartment syndication deal for a few years.
Thaaaat’s your ideal source of funding, right there. 👌
4️⃣ It’s time to find your SQUAD.
We’ve arrived at a very, very important step in your passive investing journey. You may not be an expert in every detail of apartment syndication, but your chosen team will be!
So, the success of your passive investments will really depend on who you decide to hitch your wagon to in this step. It’s a big decision, and you’ll want to put some time and effort into it. Put your trust in the deal sponsors who have a proven track record to help you maximize your investment returns AND care about your goals and future.
Trust us on this one…it’s also important to actually like your team.
Here are some questions to ask that will get you started in choosing the right squad for your passive investments:
- Are they likable and trustworthy?
- Do they share your values and vision?
- What’s their experience and track record like in your chosen investment style?
- Have any of their deals gone full cycle?
- If they’ve had deals that didn’t perform well, how did they recover?
- Do they have strong market intelligence and knowledge?
- Are they good at communicating?
- What is their risk mitigation strategy?
- Do they have business accruement?
- Are they good at project management?
- Can you tell how focused, committed, and invested they are in helping you find success?
- Have they personally passively invested?
If you’re thinking this seems like a lot, we get it!
But seriously, these are the people who will help you find financial freedom. Their experience and knowledge is essential to feel confident in their hands, but you also want to enjoy being around them and communicating with them. If you find all of that, you’ve found your dream team. ✨
4️⃣ Now implement the C.A.R.E. Strategy.
Once your team is in place, we move onto implementing our effective strategy for passive investing success. All you have to do is C.A.R.E.
Let’s break down each letter of the C.A.R.E strategy to give you ultimate investing confidence.
C is for Compass.
You need a compass to guide your thoughts and actions before embarking on any journey, right? It’s like plugging in your Google Maps before driving to somewhere you’ve never been. But a passive investing compass needs to be internal to keep you moving forward towards your passive investing goals.
So, picture this…
Tom Brady wasn’t born with all the skills he needed to become the best NFL quarterback of all time…right? He wasn’t even the best in college, or when he first got drafted. BUT Brady had something his competitors didn’t have – an internal compass guiding his every action.
He hired the right trainers, took care of his physical and mental health, worked crazy hard, aaaand led his teams to more Super Bowl wins than any other quarterback…ever.
Brady didn’t just fall into success. He worked every single day to accomplish his goals, and used his internal compass to guide his mindset and set criteria for how to get there.
How can you do the same for your passive investing journey?
Your success starts in your mind. 💪
A is for Awareness.
Awareness is huuuuge in passive income investing. Why? Because it means you know what you want, how you want it, and what you need to do to get it!
Think about what it’s like moving to a new city, or even a new state. You might not be familiar with the culture, restaurants, people, weather, etc. But after a little while, you’re able to make yourself fully at home.
You settle into your routine. You could probably walk the neighborhood with your eyes closed, know how long it takes to get to your usual spots, and have all the right people on speed dial when you need a hand.
Now, when it comes to apartment syndication, this level of awareness is important. You most likely won’t actually be moving to the area you’re investing in, but you still want to learn all about it. Becoming aware of things like demographics, surrounding areas, major employers, and rent projections will help you a ton in navigating your investment decisions.
R is for Review.
Think of the review step like doing all of your due diligence. There are a lot of numbers and facts thrown at you in apartment syndication, but having a solid business plan will help you stay the course.
If you’ve ever seen the movie, “Along Came Polly,” you know that Ben Stiller’s character is a risk management analyst, and Polly is a care-free, somewhat reckless, wild spirit. While we don’t recommend living your life like him, think about channeling a bit of Ben’s character in your syndication deals.
He approaches everything with analysis and planning, and makes educated decisions about how to act. If you do the same due diligence in your apartment syndication deals, you will set yourself up for success!
But…don’t let analysis take over your whole life.
Channel Stiller’s character on the syndication side of things, and Polly on the living-your-life-how-you-want side of things. 😉
If you do your due diligence, you won’t be taken in by every single claim people make. You’ll know if the projected returns are consistent with the market expectations.
Oh, and don’t forget to fully vet your potential sponsorship team, their claims, and their track record. That’s a big part of your due diligence, too.
E is for Execute.
While you’re doing your review in the step above, be sure you don’t get stuck in the analysis paralysis phase. It’s easy to get stuck in the thinking, dreaming, and planning parts, but there comes a time when you MUST be ready to execute.
If there’s no action, there’s no success.
Period.
Imagine planning the most wonderful vacation of your dreams – doing the research, booking flights and hotels, and setting up the perrrrfect itinerary.
Then, when it comes time to take the trip, you stay on your couch and never actually GO to the airport. Now, none of that planning matters because you never did the one thing that you needed to do to begin your journey.
Don’t miss your chance to begin, okay?
You deserve to accomplish all of your goals and live the life you’re imagining. But it will take action on your part, for any of it to happen.
5️⃣ Ah, the best part…just sit back, relax, and track your KPIs.
And here we are, at the lasssst step of passive investing success. You’re ready for the passive income to come rolling in, but you also need to track your KPIs – key performance indicators. This will keep you apprised of everything going on with your investment.
As asset managers in multifamily apartment syndication, we personally use the most state-of-the-art investment portal for our investors to track KPIs. We make it as simple, seamless, and intuitive as possible.
Because, hey…this should be the FUN part, right? 🥳
Here are some of the KPIs you should track for your passive investments:
- Projected annualized cash flow vs. actual cash flow
- Projected total return vs. actual return
- Projected tax benefit vs. actual tax benefit
- Projected hold period vs. actual hold period
- Projected IRR vs. actual IRR
- Projected ARR vs. actual ARR
There you have it, friend. The 5 steps to passive investing success, made simple!
We hope this helps overturn the overwhelm and slay the stress. But if you’re still feeling a little hesitant, here’s the best news to remember…
You don’t have to do aaaany of this alone.
Finding the right team will make every step of your passive investment smooth and enjoyable. Want to chat with us about any questions you still have about passive investing or apartment syndication? We’re always happy to help. 🥰
GET ME ON THE KITTI FREEDOM CLUB
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