RWN Turnkey Rental Fund I will acquire a portfolio of cash flowing single-family rental homes in some of the strongest emerging markets in the U.S., including parts of Florida, Ohio and Georgia.
Our highly experienced fund managers will source the properties in the strongest growth and cash flow neighborhoods, ensure the homes are renovated to our REAL Turnkey standards, and work with highly experienced property managers to oversee the leasing and rental process.
Housing supply is low nationwide. Good properties sell quickly and with multiple offers. Cash buyers are in a stronger position, and experienced investors are able to act more quickly on good deals than those less familiar with certain markets and/or real estate in general.
The Business Plan
RWN Turnkey Rental Fund I (“the Fund”) is raising $5M from Real Wealth Network members to purchase single-family homes in Florida, Ohio and Georgia. We picked these areas based on demographics and migration trends. 10,000 baby boomers are turning 65 every day and moving to warmer, more affordable climates. Home prices in certain regions of Florida and Georgia are still well below the cost to build, so we expect to see continued price appreciation. Housing in parts of Ohio is still well below it’s historic price levels, so cash flows are high. Cleveland in particular has a growing medical, student and art/actor community that is attracting educated Millennials – which is why the area is now referred to as “the BrainGain”.
The Fund will strategically and conservatively use debt financing to achieve positive leverage in order to increase working capital and buy additional properties.
The Fund will hold these properties as rentals for approximately five to seven years, depending on market conditions.
Investors will receive a preferred return of 8% per year from the time they invest. Investors will split the increase in equity from the time of purchase to the time of sale with management as payment for their oversight.
The company is formed as an LLC, and a such, would be treated as a pass-through entity. This means investors may have access to some of the same tax benefits they would receive as if they owned the property individually. This is not tax advice – always consult with your own tax advisor in regards to your unique financial situation.
For whom is RWN Turnkey Rental Fund I ideally suited?
- Investors who want to be 100% passive and do not have the desire to be a direct landlord, managing property managers, tenants, and other issues associated with direct ownership of real estate.
- Investors who have maxed out their 10 conventional loans and are looking for additional investment opportunities. The fund will be able to take on financing.
- Investors who want their retirement funds secured to real estate (Give the offering documents to your CPA to enure you understand potential tax consequences within your IRA, including UBIT and UDFI).
- Busy professionals who do not have the time to educate themselves on real estate investing but want to have their capital tied to hard assets like real estate.
PLEASE NOTE: This is not an offer to sell nor a solicitation of an offer to purchase securities. The offer is only made through the Private Placement Memorandum.
$50,000 (no half-shares)
Who Can Participate
- Accredited Investors: an individual earning $200,000+, couples earning $300,000+, OR a $1m dollar net worth, excluding home equity
- Up to 35 Sophisticated investors: The investor has demonstrated a capacity to understand the fundamental aspects & merits of the investment & either $100,000 income OR $350,000 net worth, excluding home equity
- Self Directed IRA Investors
- Non-US Foreign nationals
- Investors can NOT do a 1031 exchange into The Fund
- Quarterly dividends with an 8.0% preferred return
- Profit share upon dissolution of the portfolio in year 7
- Rental Fund PPM
- Articles of Organization
- Operating Agreement
- Subscription Agreement
- Tax Form for US Investors - Form W9
- Tax Form for Non-US Investors - Form W8BEN
- Tax Form for Non-US Investors - Form W8BEN
- Supplemental Questionnaire for Foreign Investors - Non US Investors
- Supplement and Amendment No. 1 to PPM
Upload Your Documents
Instructions for reserving a place in this fund:
- Review the Private Placement Memorandum
- Decide how you plan to fund your investment (personal funds, IRA funds, LLC, etc)
- Fill out the subscription booklet and appropriate tax form (W-9 or W8BEN) based on your funding choice
- Upload the following three items using the uploader widget below:
1. Completed Subscription Booklet (Including supplemental questionnaire if a Non US Investor)
2. W-9 or W8BEN
3. Government-issued photo ID (e.g., driver’s license, passport)
After you submit your paperwork, wait for our team to review & counter sign. If we have any questions we will follow up. Please understand we are processing a lot of paperwork in a short amount of time, so our response time may be delayed.
Once approved, we will send you a countersigned subscription agreement & the funding instructions for your investment. Send in you funds.
Once your funds have cleared our account, we will send you an email confirmation that funds have been received.