Ray Real Estate

REAL ESTATE INVESTING

Investment Process

At Ray RealEstate, we have a streamlined investment process designed to maximize efficiency and transparency.

Forming Investment Group

Forming Investment Group

We bring together a group of individual investors to collectively purchase a property. This is done using a single-purpose LLC (limited liability company), which ensures a clear and organized investment structure.

Legal Framework

Legal Framework

Our securities attorney prepares the Operating Agreement, ensuring that all legal aspects are covered. The entire process is regulated by the SEC (Securities and Exchange Commission).

Profit Sharing

Profit Sharing

As investors, we all receive a pro rata share of the income generated by the property, profits from its eventual sale, and any applicable tax benefits. This means that each investor’s returns are directly proportional to their investment.

Forming Investment Group

Forming Investment Group

We bring together a group of individual investors to collectively purchase a property. This is done using a single-purpose LLC (limited liability company), which ensures a clear and organized investment structure.

Legal Framework

Legal Framework

Our securities attorney prepares the Operating Agreement, ensuring that all legal aspects are covered. The entire process is regulated by the SEC (Securities and Exchange Commission).

Profit Sharing

Profit Sharing

As investors, we all receive a pro rata share of the income generated by the property, profits from its eventual sale, and any applicable tax benefits. This means that each investor’s returns are directly proportional to their investment.

3 Criteria To Vet A Passive Investment

The Sponsor

The Sponsor

The credibility of your investment partner is paramount. Do you know, like, and trust this person, or have they been referred to you by a trusted source? Assess their experience and credibility. It’s essential that their values align with yours and that they operate ethically. Evaluating the sponsor’s track record and reputation is crucial to ensuring your investment is secure.

The Market

The Market

Consider the investment location carefully. Even with a great sponsor and an excellent property, an underperforming market can impact your returns. Evaluate the market’s economic indicators, growth potential, and stability. Investing in a thriving market can significantly improve the success of your investment.

The Property

The Property

Assess the property’s business plan and deal structure. Does the plan make sense? Are the underlying assumptions conservative or aggressive? Is the deal structured to align sponsor and investor interests? A well-thought-out business plan with realistic assumptions and a structure that ensures alignment between all parties is crucial for a successful investment.

3 Criteria To Vet A Passive Investment

The Sponsor

The Sponsor

The credibility of your investment partner is paramount. Do you know, like, and trust this person, or have they been referred to you by a trusted source? Assess their experience and credibility. It’s essential that their values align with yours and that they operate ethically. Evaluating the sponsor’s track record and reputation is crucial to ensuring your investment is secure.

The Market

The Market

Consider the investment location carefully. Even with a great sponsor and an excellent property, an underperforming market can impact your returns. Evaluate the market’s economic indicators, growth potential, and stability. Investing in a thriving market can significantly improve the success of your investment.

The Property

The Property

Assess the property’s business plan and deal structure. Does the plan make sense? Are the underlying assumptions conservative or aggressive? Is the deal structured to align sponsor and investor interests? A well-thought-out business plan with realistic assumptions and a structure that ensures alignment between all parties is crucial for a successful investment.

Frequently Asked Questions

HOW IS RAY REALESTATE DIFFERENT FROM OTHER REAL ESTATE INVESTMENT OPTIONS?

We provide a hands-off investment approach with professional management. Our team handles property acquisition, management, and sale, allowing investors to enjoy passive income without active involvement.

HOW DO I INVEST WITH YOU?
Head over to our contact page and we will get you started.
WHAT IS A SYNDICATION?

Syndication is the pooling of investor money where the investor is typically a limited partner and the general partner, or active partner, puts the deal together and manages the business plan to provide a return for the benefit of all investors.

CAN I INVEST THROUGH MY IRA OR RETIREMENT ACCOUNT?

Yes, we can structure investments to be compatible with self-directed IRAs and other retirement accounts. This allows you to invest tax-deferred or tax-free.

HOW DO I GET STARTED WITH RAY REALESTATE?

Getting started is easy! Contact us to learn about our current investment opportunities. We’ll provide detailed information, answer your questions, and guide you through the investment process.

ARE RAY REALESTATE INVESTMENTS REGULATED?

Yes, our investments are structured in compliance with SEC regulations. We work with securities attorneys to ensure all legal aspects are properly addressed.

HOW DO YOU SELECT INVESTMENT PROPERTIES?

We conduct rigorous market analysis and due diligence to identify properties with strong growth potential and stable income streams.

WHO MANAGES THE PROPERTIES?

Properties are managed by professional property management companies with expertise in maximizing property performance and tenant satisfaction.

HOW DOES PASSIVE REAL ESTATE INVESTING WORK?

Passive real estate investing allows investors to pool their resources into real estate projects managed by professionals. Investors earn returns through rental income, property appreciation, and tax benefits.

GENERAL PARTNER’S FEES
The returns forecasted to you are after fees. The most common fee is an acquisition fee based on purchase price and is paid closing. This covers the general partner’s costs to find the deal and get it under contract. The second most common fee is the asset management fee which is compensation for holding the property manager accountable, to ensure execution of the business plan, bookkeeping, and distribution of checks and K1s. The asset management fee is aligned with the investor’s interest as it is based on the property’s revenues. Industry averages are 1-3 % for both fees
WHAT IS A PPM?

The Private Placement Memorandum (PPM) is required by the SEC and is a comprehensive legal document that details the offering, risks, partnership agreement, investment summary, and subscription agreement. It is prepared by a syndication attorney and typically spans approximately 100 pages.