Rodman Schley is the CEO of EvolveX Capital, a company that lets you invest in short-term vacation rentals in A-rated markets.
“People are traveling more than ever now,” he says. “And we feel there’s a tremendous opportunity to capitalize on this type of real estate.”
“One of the things I’m most excited about is the team I’ve put together for our new EvolveX Equity Fund. I call it my dream team. They understand not only the investment side but the valuation side,” he continues.
“They understand what creates value, what pushes returns. What do we do in the buy, what do we do in the sell, what happens in between? It’s a team that really understands investment fundamentals. And they also understand valuation fundamentals.”
“As we grow our portfolio, the EvolveX Equity Fund will take a very analytical approach to how we are buying property. It’s really important to us that we don’t just look at an investment opportunity like say a broker would.”
Rodman goes on to explain how they’ve set up a proprietary system for analyzing the markets they wanna go into. They wanna be certain, whenever they pull the trigger on a property, they’ll get the maximum returns not just for themselves but for their investors as well.
There are a ton of equity funds out there already. What makes EvolveX Capital different?
Well, they invest dollar to dollar with their investors. What that does is align everyone’s goals: when you make money, they make money.
“We don’t take any equity out prior to selling the fund,” Rodman adds. “We invest in the fund just like our investors do. And that’s what puts our goals in alignment.”
“When you’re looking at a real estate equity fund, one of the most important things that you need to take into consideration are the fees that are being charged to that fund. When we were putting together this fund, we wanted to make sure that our investors had a very advantageous preferred rate. So we went ahead and made it 8% for the investor,” he explains.
This means, the first 8% that’s earned goes directly to their investors.
In addition to that, they’re offering an 80/20 split. So anything beyond 8% that’s earned, 80% of it would go to you, the investor, while the other 20% would go to EvolveX Capital.
Cool, so what’s their projected rate of return, right?
Rodman says it’s right around 11%, with an IRR, over the long-term, of 20%.
There are a lot of funds out there that’ll raise funds for a specific asset like a large apartment building. Problem is, all the risk goes into that one building.
“Whereas, when you’re buying short-term rental properties,” Rodman would argue, “there’s more than one property. It’s a portfolio of properties. So it reduces the risk.”
“If you have a property that, let’s say, is not performing? You have the ability to take it out of the portfolio, sell it, and replace it with a higher-performing property.”
“The way we have it set up, it reduces the risk to the investor. You’re not just invested in a single asset; you’re invested in a portfolio of assets. That’s a big difference.”
Bottom line, when you factor in their team, their leadership, their collective experience, their approach, Rodman believes it’s a no-brainer to invest with Evolve X.
They accept both accredited and non-accredited investors.
Minimum investment amount is $10,000.
How long will your money be tied up? The term is seven years, but they can extend that if they deem necessary.
When will you be paid distributions? Once a year, tentatively, but that can change too.