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The 7 Keys to Passive Investing Pt. 6: Thesis

Understanding the Narrative With Your Multifamily Investment Company

Trust, track record, transparency, team, and type. These are the first five keys we’ve explored. Now we can move on to thesis. It is important at this point to remind accredited investors that they can always reevaluate. Just because you have made it to a certain point with a multifamily investment company, that doesn’t mean you’re committed. Suppose that when you hear about the type of deals a company is making, something feels off. At this point, it’s possible that a company may not even be revealing the full picture about the investment properties. If trust and transparency seem to dissolve before you, it may be best to walk away.

However, with a sponsor like Worcester Investments, by the time you get to the sixth key – thesis – you’ll be ready for more. We’ve built our business on these seven keys, so we pride ourselves in the strength of each one. Our investment properties in Kansas City real estate have an excellent track record. We love presenting our historically-high returns on investment to our accredited investors. We are a multifamily investment company that is proud of each decision we make. When moving on to the sixth key, we think your confidence in Worcester Investments will increase. We’re leaders in passive investing, and we hope to prove it to you during a call with our team.


What Does Thesis Mean in Passive Investing

When you sit down with a multifamily investment company, the investment property plan will be summarized for you. You as the accredited investor get to ask questions. You get to listen. You get a chance to understand the sponsor’s intentions. You’ll also get a sense of the expected returns and whether they are satisfactory for you. You’ll be able to match these expected returns with your desire for a high return on investment. Essentially, you will be able to hear the entire narrative of a deal from the firm you’re working with.

This is what thesis means: the overall narrative that includes the past, present, and future. In terms of the past, you’re looking at the company’s track record. In the present, it’s the multifamily investment company’s latest deal related to real estate in Kansas City or elsewhere. When looking into the future, you’re considering what the sponsor intends, the challenges ahead, and what the returns could be. This is the “story” of the investment as a whole.

The story should make sense to you. If you tell it to someone else, they will understand the logic as well. A good deal is explainable in simple terms. If there are too many challenges or contingencies, it may be that the plan is not solid. You want to be sure you feel like you’re on solid ground when getting into passive investing.


Questions You Can Ask about Thesis and Passive Investing

In order to get clarity on the narrative or thesis of a deal, here are questions you can ask. You should ask these of the multifamily investment company you are working with. As an accredited investor, you should always be able to ask questions. If you want to invest in Kansas City real estate and experience historically-high returns on investment, ask us. These are the questions we were born to answer because of our solid track record. Our investment properties and the deals behind them are always strong. Make sure that the investment you are making is also strong, by considering the questions below.

  • What is the narrative of this deal?
  • Does the narrative make sense to me as an accredited investor?
  • Why is this deal a good deal for my passive investing portfolio?
  • Is this sponsor a good fit for buying and managing this investment property?
  • What could potentially go wrong?
  • What is the best-case scenario?


Elaboration on Questions about Thesis that Lead to Success in Passive Investing

As we’ve done with the fifth key, we want to elaborate on these questions. While some accredited investors understand these questions because of their experience, others may not. If you’ve gotten this far with a multifamily investment company, it is important at this point to ask your remaining questions. This is why we are spending so much time on elaboration. You want to be sure that your investment in Kansas City real estate or elsewhere is what you want it to be. You’re seeking high returns on investment, so you want to go with your best option. Therefore, ensuring that these questions are fully answered is important. It will help you to know for sure if the investment property deal you’re considering is strong. Consider it your right to ask questions as someone who is seriously interested in passive investing.


Understanding the Narrative Clearly is an Important Matter for Passive Investing

The deal should be very clear to you when you hear it from your multifamily investment company. It should make sense to you in your head when you repeat it back to yourself. It should make sense when you share it with someone else. You can continue to trust your instincts as an accredited investor. You should understand how this deal with this particular investment property will work. You should understand why Kansas City real estate (or any location) is the right place for this deal. Remember, you are looking for high returns on investment. You want the deal you are engaging in to be very promising.


Considering Why a Sponsor’s Track Record is a Good Fit Continues to Matter for Passive Investing

Earlier in your relationship with this multifamily investment company, you considered our passive investing key called track record. Now that you know the company’s track record with investment properties, put this particular deal to the test. Is this company the right one to handle a deal based on track record? Consider their work. For instance, Worcester Investment’s former work in Kansas City real estate can tell you a lot about our future success. As an accredited investor, you want to apply track record to the current thesis your sponsor is proposing. Again, remember that you’re seeking high returns on investment. Is the deal proposed by the sponsor one they can handle? Do you think they’ll be able to realize potentially strong returns?


Understanding the Best- and Worst-Case Scenarios is Also Essential for Passive Investing

When weighing any decision, it is important to consider the pros and cons. Imagining the worst-case and best-case scenarios will help. Think about what the worst-case scenario would be for you as an accredited investor. What’s the best news that a multifamily investment company could tell you? Consider what would happen if this investment property floundered. Are there challenges ahead that can be overcome or that could lead to failure? On the other hand, is it possible that real estate in Kansas City or elsewhere could bring in high returns on investment? If you need to, run these questions by an outside party. It is important to deeply consider your decision. You’re making important decisions for your wealth and your family when you embark on successful passive investing.

Worcester Investments looks forward to connecting with you. We want to earn your trust. We want you to understand our track record. We look forward to being transparent with you. And, most certainly, we can’t wait to share our deals, and what we plan to achieve for you. Contact our Investor Success team to find out how our investment properties can lead to potentially-high returns on investment. Get in touch with us here, or call us at 816-759-0901 to schedule an appointment.

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