You're a Hands off + Ground up Investor

In this third investor profile, hands-off investors just don’t have the time to watch their investments and/or they don’t trust their own ability to outperform professionals.

Overall, the automatic investor wants to set it and forget it, at most doing an annual portfolio rebalancing, but generally outsourcing the work to a team of professionals.

Other traits of this type of investor might include:

  • Doesn’t enjoy or doesn’t have the time to read financial news
  • Likes to own a little bit of a lot of things
  • Wants to partner with a professional
  • Doesn’t want to know what investment terms mean

They may hold a few investments but might not have too much exposure outside of that. Hands-off investors might prefer to invest in a fund, rather than invest in individual syndications.

Ground Up Asset: Ground-up development is the construction of a real estate asset completely from scratch. The starting point is either raw, undeveloped land or the complete tear-down of any existing structure. This is one of two general types of construction projects. The other is a renovation, in which contractors rebuild some of the structure’s components, but leaves some or most structural elements intact. With ground up developments, it takes longer to see a distribution, but the project returns tend to be generally higher and allows investors to take advantage of multiple refinancing scenarios.