You're a Hands off + Value Add 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.

Value Add Asset: Value-add investors seek to generate heightened yields by harvesting untapped revenue potential or creating value through property upgrades. Although the premise has been around for ages, value-add investment is sweeping the multifamily markets. With value-add investments, you get your distributions sooner, the project is more de-risked due to you already having an existing cash flow, but the project level returns tend to be slightly lower.