Intro: [00:00:00] If you're a real estate agent earning 200, 000 a year and you want to grow your passive income, this show is for you. Learn secrets other agents use and hear from experts in our field who will guide you on your journey to investing in assets like apartment communities, so you can take your commissions and turn them into cash flow.
Here's your host, Randall. Let's dive
Randal McLeaird: in. All right. All right. Welcome back. We have a special onsite episode today. I haven't done any of these for a podcast or for the YouTube channel. This should be interesting. I apologize for the wind and the audio. We are onsite, so it's not going to be the best, but just bear with me.
So we're at a property that I bought, and this is a prime example of the types of properties we buy for the Ram Capital Fund. This is a two bedroom, two bath. About 1, 300 square feet, I think. We're enclosing the garage, it's gonna be a little bit bigger. Bought it for 100, 000, we're gonna put about 35, 000 into it.
And when we're done, it's going to be worth about 215, 000. Get a [00:01:00] 15, 000 down payment, a note for 200, 000, and we only are in the deal for 135, 000. So that spread between what we are all in price and the actual note value is significant, and that's where we are able to make more money on the interest that we're charging than the pref that we're paying out to all of our investors.
So anyway, again, this is a perfect example of it. I want to walk you through the property and actually show you what it is that we have. Main thing here is like scraping the yard. The lady had all kinds of stuff in the yard, two by fours and all kinds of boards down in the yard that needed to be picked up.
Inside is mostly cosmetic. The outside of it is in great shape. We're going to redo all windows. So that's it. Big light on them on this deal because they're all single pane old metal windows. You can hear the guys in there right now just jackhammering away getting all the tile out. We're already on the second dumpster 240 yard dumpsters.
I'm not gonna go in the house right now because it's jackhammering all kinds of stuff [00:02:00] and obviously that's gonna be Hard to hear if you're driving around. Listen to this in the car. Let me go in the back and just show you the yard and all the stuff that we've already cut down trees that we're doing.
Again, the main play here is to spruce up the house, clean it up. Okay. So here's the backyard. Again, I apologize for the noise. So we've already cleaned up. There's a whole dumpster worth of stuff that we got out of here, piling up all the rocks and brick. So we can redo reuse those bunch of trees I cut down earlier today, and there's still a lot to clean up just to make the Yard look the way it should, but all in all, the house is in great shape.
Um, I'm going to do new HVAC, I'm going to do new windows, and we are going to make this house look brand new for the new homeowner. Okay, if you are curious how crowdfunds work, or you are interested in starting one of your own, I'd be happy to chat more with you about that. You can go back and listen to some of the episodes that we've already done on this as well.
But high level [00:03:00] the way crowdfunds work you have to go through a platform our platform is Envone and you can go to Envone. com you can actually see Where our fund is housed because no money can go directly to an individual or company who is crowdfunding has to go through a platform through the SEC.
They're registered with the SEC and then our actual offering gets registered with the SEC as well. Yeah, it's a Regulation CF, Regulation Crowdfund, and you can raise up to five million dollars. And so we have pegged ours at five million dollars. Uh, we'll be buying 25 to 32 houses, depends on the purchase price in that fund.
We have something in ours that is unique in that there's Successive closings or multiple closings that we can actually draw capital out of and keep the funds still going. There are others on crowdfund sites where they say we need 300, 000. If we don't get that, then we won't take any of the money. So typically, or just how it goes in a crowdfund, all the money goes [00:04:00] into an escrow account.
So if you said, Hey, I want to invest today, here's 50, 000 that goes into an escrow account and we don't touch it until we have a house. That we have identified that we are going to purchase and or a note that we are going to buy. So it just depends on the type of setup. So when you identify for us, we have a minimum raise of 140, 000.
Since we have multiple closings throughout, meaning we're going to pull funds out of the escrow account. Every time we find a house and we are able to deploy that capital. We are actually, we have to raise double of what our minimum is. So I think our minimum was 70 and so we have to raise. 140, 000.
That'll buy us one house in the fund and get us going. If it were a single investor and they gave us 150, 000, they'd be getting 10 percent on their money and you can structure your crowdfund however you want. You can structure it in a standard 7 70 30, meaning 7 percent preferred return with a 70 30 split after that.
There's a ton of ways that you can structure it. So I guess the main point [00:05:00] of what I'm trying to drive at is if you're trying to do this on your own. There are a bunch of hoops you have to jump through. Um, once you get through them and you're confident that you can raise the capital, then you can launch a crowdfund on one of these crowdfund sites.
And it's relatively straightforward. It's just a matter of going out and raising the capital, deploying the capital, and running your business the way you would normally run your business. Just using, instead of hard money, you're using, or friends and family money, or your own cash, you're using crowdfund money.
So we think it's a great platform, and it's a great way to deploy capital into this business model, where we're gonna. carry the paper, the notes on those deals that we're buying and provide a great return for our investors and also have excess interest that we get to collect as well as a company. So it keeps our company going and we feel like it's a great model.
So again, if you have any questions about it, I'm happy to chat about it. Open book. You can go to RidgelineIG. com to the offerings page and fill out your information. It'll come to me directly and I'm happy to chat with you about it And [00:06:00] teach you what I need to know or sign you up as an investor either way Um, hope you're having a great day You guys enjoy the weekend and I'll catch you on the next
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