December 10, 2021
Have you have ever syndicated a deal or passively invested in one? If the answer is yes, then read this post to learn how to raise equity for a multifamily deal using Cash Flow Portal. If the answer is no, you may want to check out our multifamily due diligence checklist before you get started.
You probably know that it can take hours to compile lengthy emails to passive investors (or to read them). Then for investors to print, sign, and scan documents. It can be time-consuming both for GPs and LPs to find information about passive investors, syndicators, and all the details of the deal even using sophisticated real estate syndication software.
Another challenge for passive real estate investors is that if they invest in several multifamily deals, they have to log in to several real estate investor portals on syndicators’ websites to view deals. They also need to spend their precious time reading long emails, printing, and signing documents.
For co-sponsors, protecting their investors’ database when raising equity with the lead syndicator can be a challenge as well. That’s why our portal ensures that co-sponsors can raise money quickly, smoothly, and efficiently while keeping their LPs’ contacts safe and secure.
Like Perry mentioned in the Stars & Stripes podcast, Cash Flow Portal’s goal is “to make investing in a deal a two-minute one-click process instead of a usual one that takes days.” That’s why we are working hard on our equity-raising feature and now you can try our syndication software completely free and raise equity with no commitment till you close your first deal.
Investing in your deal is easier than reading an email. Instant check-out.
In this post, we will show you how other indicators raised $150M+ for their multifamily deals using Cash Flow Portal
Once you added your first multifamily deal and went through all the necessary steps, create an offering for your passive investors, add relevant documents and create your e-sign template:
Add your investors to the portal. They will receive a welcome email with a link to accept your invitation and join the portal. You will see a checkmark next to the investor’s name once they are on the portal:
Once your passive investor logs into the portal, they will see a comprehensive dashboard with your deal. It showcases all the details that passive investor needs, including offering size, minimum investment, projected returns, cash flow, avg cash return, etc.
Your investor then clicks on the “Invest now” button and is taken to the next screen to enter the details. They will select or create an investor profile and choose the investment class they want to invest in:
The next step is to enter the investment amount:
Once the amount is entered, your passive investor will review and e-sign the SSQ. They can download the document for printing:
Or review it directly on the portal: Once the document is signed, passive investors can review the funding information and select the date for the wire transfer:
Our software will automatically send details of the wire transfer to your LP. Just open your syndicator view and click on “send”:
Here is what your passive investor will receive:
Your investor will also get an automated notification e-mail, once the wire transfer has been completed.
If you are investing passively in a multifamily deal and also syndicating on another deal, you can easily switch between the passive investor and syndicator view.
When you switch, you will be able to see all the investors, documents, assets, distributions, entities, etc. It is especially convenient if you are syndicating one multifamily deal and passively investing in another. You can do it all using our real-estate syndication software. As a result, you don’t have to log in to several websites and spend time searching for the required information.
We believe this to be one of the strongest features of our syndication software because it makes multifamily equity raising efficient and consistent.