Once you’ve invested passively, actively monitor the performance of your investment regularly. Stay updated on market trends, property management activities, and financial reports. What are the communication strategies and reporting the sponsorship team will provide? Regular communication with the sponsor to assess the investment’s progress and address any concerns.
It has been said to inspect what you expect.
Asset management is a critical part of operating multifamily and syndications. Whether you are an active operator or a passive investor (LP) it is critical that you watch the Key performance indicators (KPIs) such as:
– Occupancy
– Increase/Decrease in Net Operating Income (NOI)
I always like to ask if the new tenants that have moved in at increased rent after 90 days are still living there. Do we have any issues with them? When it comes to turning the tenant base and units over we want to make sure the new tenants are quality tenants.