2. This brochure is provided for informational purposes only and does not constitute an offer to sell securities nor A solicitation
of an offer to purchase securities. Securities will only be offered to designated offerees pursuant to A definitive subscription
agreement, limited partnership agreement, and related materials, when available. The terms set forth herein are preliminary
and subject to change without notice.
The sole purpose of this brochure is to provide information to potential lenders, investors or business partners in deciding to proceed with a further
investigation and evaluation of the “Fund” in connection with the investment opportunity described herein. This brochure does not purport to contain all
information that may be material to a prospective lender, investor or partner. Recipients of this document should conduct their own evaluation of the
investment. No representation or warranty is made, expressed or implied, as to the accuracy or completeness of any of the information contained in this
brochure. The information contained herein is current only as of the date hereof and you should not, under any circumstances, assume that there has
not been any change in the matters discussed herein since the date hereof.
By accepting this brochure, each recipient agrees that the subject matter hereof and all of the information contained herein is of a confidential nature
and that the recipient will treat it in a confidential manner and that it will not, directly or indirectly, use or disclose or permit its affiliates or representatives
to use or disclose any information regarding its receipt hereof or any information contained herein to any other person or reproduce this presentation, in
whole or in part, without the prior written consent of the General Partner.
Any financial information, including without limitation historical, current or project market conditions or property performance, contained in this
presentation represents the subjective views of InvestNet based on various assumptions which the General Partner believes are reasonable, but which
may or may not prove to be correct. Any and all such information involves known and unknown risks, uncertainties, and other such factors, which may
cause the actual results, performance, or achievements of the Company to vary from the General Partner’s forecasts and projections. Industry experts
may disagree with these assumptions and with the General Partner’s view of the market and the prospects for the investment. Descriptions of prior
performance in this document should not be regarded as representations of future performance by the Company. Past performance of the property
described herein or of properties managed by any affiliate of the Company is not indicative of future performance by the Company.
Certain of the statements in this brochure consist of, or contain, forward-looking statements. Those statements include references to the Company’s
investment objectives, targeted return, targeted cash flow, net operating income, timeline, investment strategy, anticipated or estimated performance
and risk management, as well as statements containing words such as “expects” or “expected”, “projected”, “estimated”, “believe” or “belief” or symbols
such as “+/-” or “≅”. Forward-looking statements are inherently speculative and should not be relied upon in making an investment. There can be no
assurance that the results reflected in any such anticipated or estimated summaries of performance, targeted returns or targeted cash flows will be
realized by the Company. Actual results of the Company will vary from the estimates of performance and targets contained herein, and those variations
may be material. Furthermore, the Company may not be able to achieve its investment objectives due to various risks. This document is not intended to
provide legal, business or financial advice. Please consult your applicable professional for such advice. The General Partner disclaims any obligation to
provide recipients of this brochure with any updates or supplements to this document at any time or for any reason.
Single Family Rental Investment Opportunity 1
3. InvestNet is a real estate asset management firm based in Northwest Arkansas with a focus
on acquiring distressed, single family properties for cash flow and appreciation.
About InvestNet
The InvestNet team is vertically integrated and has been managing single-family homes since
2015 and currently manages 233 homes with offices in Fayetteville, Bentonville, Rogers, and
Farmington, Arkansas. We have a proven reputation of excellence with our clients and an
expert team to provide superior service.
22+
YEARS IN REAL ESTATE
190+
TEAM MEMBERS
230+
HOMES MANAGED
Single Family Rental Investment Opportunity 2
4. Opportunity: Single Family Housing
Upon stabilization InvestNet is targeting a net returns to investors of:
Returns
InvestNet believes these investments provide strategic diversified downside
protection in growing cities within strong working communities.
• InvestNet has the opportunity to buy distressed single family housing at discounted
prices in Fayetteville, Bentonville, Rogers and other Arkansas MSA’s.
• After a +/- 5-year hold, InvestNet will sell the assets realizing the most value and return
for investors.
• Upon acquisition, InvestNet performs value-add renovations, leases to qualified
tenants at attractive yields, and provides best in class management services.
14-18%
IRR
2.2x
Multiple
8-10%
Cash On Cash Return
Single Family Rental Investment Opportunity 3
5. Nate Nead is the Managing Principal of InvestNet, LLC a
investment fund focused on acquiring single family real estate in
opportunistic markets in the United States. An experienced M&A
advisor and valuations expert, Nate has facilitated over $150M in
buy and sell-side M&A transactions over the last decade and has
personally managed nearly 100 rental properties. He owns and
operates two separate B2B online services businesses which are
run by remote teams of more than 40 people. A licensed
investment banker, Nate holds series 79, 82 & 63 licenses.
Single Family Rental Investment Opportunity 4
Managing Principal Owner and Principal Broker
Stuart Collier is the owner and Principal Broker of Collier
& Associates, the fastest growing real estate firm in the
state of Arkansas. In eight years, Collier & Associates
has achieved the highest market share of all locally-
owned firms in Northwest Arkansas and grown to include
185+ agents in four office locations, expanding to include
both Commercial and Property Management branches.
natenead/ stuart-collier-157392129/
Principal
Jason Powell has extensive experience includes
advising businesses, lenders, investors, startups, and
real estate investment companies and developers
across the United States, on business transactions
from formation to exit, acquisition, due diligence, real
estate securities offerings, joint ventures, disposition
and financing of real estate.
jasonmichaelpowell/
6. Dir. of Construction Mgmt
Southern Brothers
Dir. of Property Mngmt
Catherine Belt
Processor/Analyst
Listing Agent/Tenant Screening
Photographer
Brooke Hurst
Karli Jones
Nate Friend
Bella Vista
Gravette
Bentonville
Pea Ridge
Elkins
Prairie Grove
Farmington
Rogers
Fayetteville
Siloam Springs
Gentry
Springdale
Dir. of Acquisitions
Eden Mejia-Ashburn
Processor/Underwriter
Transaction Coordinator
Realtors by Zone
President
Nate Nead
Dir. of Real Estate
Stuart Collier
Dir. of Operations
Emmy Kane
Investment
Software
Marketing
Sales
Single Family Rental Investment Opportunity 5
Sundy Dills Brandi Mallard Sydney Mooney Kyle hunt Jessie Kersh Coby Shyder
Marsha Wallace Kailee Mathews Amanda Wells Michelle Brock Joe Schmits Karrla Spencer
Lauren Cardwell
Jennifer Donley
Chief Counsel
Jason M. Powell
7. Single Family Rental Investment Opportunity 6
Fund Summary
Type Rental
Average Cost Basis $148,000
$PSF $105
Average Market Value $182,000
Average Rent $1,900
CoC %* 8.00%
Projected IRR 16.00%
Projected Multiple 2.03x
Type Flips
Average Cost Basis $135,122
Average Market Value $168,250
Realized IRR 34.2%
Realized Multiple 1.61x
8. Single Family Rental Investment Opportunity 7
19
Target Fund Size $20.0 million
Minimum Investment $100,000
# of Homes 70–200
Fund Term 5 years (2 -1yr ext.)
Fund Management Fee 1.50% on Unreturned Capital paid annually to General Partner
Target Product Type (i) Single Family Residential Properties (ii) Market value range of $125k to $250k
Target Geography Bentonville, Rogers, Fayetteville and other Northwest Arkansas MSAs
Acquisition Fee 3.0% of purchase and renovation cost basis (Min. of $5k per home) paid to General Partner
Construction Management Fee 10.0% of construction costs
Preferred Return 8.0% per annum, accrues if unpaid; Distributions projected to begin in 18—24 months
Profit Split over Preferred Return 70% to Limited Partners / 30% to General Partners
Required Cash Reserves Minimum of $1,500 per home
Property Management Fee 10%
Sourcing Agent Compensation of Additional 3%
9. Single Family Rental Investment Opportunity 8
Acquisition
Asset
Management Rehab
Leasing
Sales
Property
Management
10. • Due to rising home prices and sluggish wage growth, the demand for affordable housing is
increasing for medium and lower income workers.
• Since the Great Recession (2008-2009), mortgage lending standards have tightened making
it more difficult for Americans to buy their first home.
• Millions of Millennials entering the workforce have high levels of student/consumer debt and
are unable to afford a down payment on a house or the cost to maintain a home.
• Scarcity of land close to major workplaces for affordable housing developments and rising
home prices have led to a supply shortage in single family housing.
*SF rentals typically perform very well in a
low interest rate environment and better
in a high interest rate environment. The
two biggest demographics (Boomers and
Millennials) are expected to drive demand
for SF rentals. The Boomer generation
will likely continue to look for low
maintenance, smaller rentals after
liquidating the equity on their current
home. Higher interest rates will force the
Millennials-who would be first time home
buyers-to become tenants.
Single Family Rental Investment Opportunity 9
11. Single Family Rental Investment Opportunity 10
Liquidity Supply at Discount
Highest liquidity of all real estate asset classes. SFR/s are more liquid than multi-family homes
and commercial real estate. and can currently be obtained at a 10-25% discount to market by
acting on structural inefficiencies.
Capital Preservation
Rental cash flow is non-cyclical. Long-term data shows stable cash flow, even during crises.
Appreciation
Single-family home values have appreciated at 5.4% for the past 55+ years.
Predictable Cash Flow
Rental income, vacancy rates, maintenance and management expenses are predictable and
provide for a reliable cash flow over time. Rental rates have grown 3.9% on average since 1963,
generating stable and predictable cash flows.
Tax Efficiency
Depreciation shelters the Fund’s annual cash distributions.
Diversification
Hard assets, less volatile than equities, comparable returns.
Steady Demand
Living in a single/family home is still seen as the American dream, however, middle-class families
struggle to obtain mortgages.
Attractive Leverage Options
Financing for SFR investors continues to become more attractive as lenders become
comfortable with the business model.
Security of Real Assets
Real estate act as a natural hedge against inflation since rents generally increase with inflation.
12. Population Estimate, July 2020 548,634 535,746 2.4%
Real GDP (millions of chained 2012 dollars), 2019 $23,863 $23,727 0.6%
Average Annual Unemployment Rate, 2020 4.5% 2.6% 1.9%
Total Nonfarm Employment, 2020 261,700 264,600 -1.1%
Average Annual Wages, 2020 $50,470 $47,600 6.0%
Business Establishments, 2020 14,129 13,741 2.8%
R&D Expenditures (in thousands), 2019 $180,225 $175,498 2.7%
Average Domestic Airfare, 2020 $180,225 $485 -22.9%
Northwest Arkansas created 25,800 net new jobs over 2015-2020.
From 2015 to 2020, Northwest Arkansas’ employment grew at an average
annual rate of 2.1%.
The Northwest Arkansas GDP grew by $136 mn in 2019 and has grown by over $3.4
bn since 2014.
Real metropolitan gross domestic product (GDP) in the Northwest Arkansas region
increased by 0.6% between 2018 and 2019, bringing GDP to nearly $23.9 bn.
The number of Northwest Arkansas business establishments grew by 388 in
2020 and has grown by 1,804 since 2015.
Business establishment growth from 2019 to 2020 was 2.8%, higher than
both the state and national growth rates.
The Northwest Arkansas population grew to 548.634 in 2020 from 535,746 in
previous year with a 2.4% growth rate.
$-
$500.00
$1,000.00
$1,500.00
US Arakans
0.00%
5.00%
10.00%
15.00%
Arkansas US
16.00%
18.00%
20.00%
22.00%
US Arkansas
30.00%
32.00%
34.00%
36.00%
38.00%
US Arkansas
Single Family Rental Investment Opportunity 11
https://nwacouncil.org/wp-content/uploads/2021/10/NWAC_StateoftheRegionReport_2021.pdf
https://www.deptofnumbers.com/rent/arkansas/#:~:text=For%20Arkansas%2C%20median%20monthly%20gross,2019%20according%20to%20the%20ACS.
13. * Median Sales Price in thousand dollar & year-over-year percent increase in 185 markets
IN EXISTING SINGLE-FAMILY
HOME PRICE IN 2022 Q2*
OGDEN-CLEARFIELD, UT
25.5% I 518.7
FAYETTEVILLE-
SPRINGDALE,
ROGERS, AR-MO
31.9% I 350.0
MYRTLE BEACH-CONWAY-
NORTH MYRTLE BEACH,
SC-NC
28.5% I 367.4
LAKELAND-WINTER
HAVEN, FL
31.4% I 343.0
CAPE CORAL-FORT
MVERS, FL
27.8% I 460.0
PUNTA GORDA
, FL
27.4% I 400.0
NAPLES-IMMOKALEE-
MARCO ISLAND, FL
28.9% I 850.0
NORTH PORT-SARASOTA-
BRADENTON, FL
28.0% I 515.0
TAMPA-ST, PETERSBURG-
CLEARWATER, FL
28.0% I 411.0
OCALA, FL
26.7% I 285.0
14. 3,025,891
Population Growth (2010–2019) 3.30%
US Growth Rank # (MSAs > 1mm) 39
Job Growth (2018–2019) 10.4%
Average Home Price 153,263
Median Home Price 133,600
Average Annual Appreciation (10 yrs) 4.25%
Average Price to Rent Ratio 14.56
Total Housing Units 1,380,728
# Investor Owned SFR Unable to find
# Institution Owned SFR Unable to find
Total Active Rental Listings 887
Total Leased (Past 6 months) Unable to find
Size 1,500–2,500 SF
Monthly Rent $745–$1,235
Sales Price $130K–$250K
Single Family Rental Investment Opportunity 12
https://www.thecentersquare.com/arkansas/this-is-the-average-cost-of-a-home-in-arkansas/article_8e4a2f37-2245-5cab-b272-ddca5f3453f1.html
15. Single Family Rental Investment Opportunity 13
Team
Motivated, disciplined and lean. We are hands on, on-site making decisions to maximize long
term value for each property. We strictly adhere to our detailed system for consistent
execution.
Market Intuition
A combination of experience and deep understanding of our markets that helps us to
accurately price and minimize days on market. It also allows us to take advantage of
inefficiencies, find hidden value and maximize return.
Sales
Price
Competition BREAKFORM RE
The Solution
Single Family Residential Re-Development
Acquisition Cost Re-Development Cost Profit
16. Single Family Rental Investment Opportunity 14
Network + Relationships
• Off-market deals preferred. Sourced directly through in-house
marketing and hyper local agents who provide a constant flow
of distressed and discounted opportunities.
• Value add in design by sourcing new appliances, fixtures and
durable finishes which minimize future maintenance.
• Trusted contractors are an integral part of our value, providing
high quality work and expertise at a fraction of retail cost.
AFTER
17. Single Family Rental Investment Opportunity 15
Invest Rehabilitation Rent & Manage Sell
INVEST RETURN
T I M E L I N E
Acquire 100-250 distressed
homes at 10-25% discount to
current market values
Rehabilitate homes for an immediate
value appreciation
and increased rentability
Rent and professionally
manage properties for recurring
rental income
Sell properties at the end of
the fund’s term (or continue to hold,
if investors so desire)
First 36 Months Continuous In 5-8 Years
18. Single Family Rental Investment Opportunity 16
Base Case Break-Even Delta
Occupancy 95% 68.00% -27%
Monthly Rent $1,500 $1,116 ($384)
Interest Rate 5.50% 10.10% 4.60%
Annual Rent Growth (5 years) 2.50% -3.90% -6.40%
Upside Base Case Downside
All-In Cost per SFR $150,173 $150,173 $152,923
Monthly Rent $1,500 $1,500 $1,500
Annual Rental Growth 4.00% 2.50% 1.50%
Vacancy % 5.00% 5.00% 10.00%
Interest Rate (5 year fixed) 4.50% 5.50% 6.00%
Net Sales Price $207,852 $188,752 $163,115
Yield % at Stabilization 16.52% 8.37% 7.24%
IRR 21.20% 16.00% 7.00%
ROI Multiple 2.48x 2.02x 1.38x
Break-Even Variables
Scenario Analysis
Discounted cost basis protects capital
against market volatility
19. Single Family Rental Investment Opportunity 17
Size 900 - 2,000 sf
# Bed/Bath 2 - 4Bd / 1 - 3Ba
# Stories 1 - 2 (1 preferred)
Lot Size < 0.5 acres
Year Built 1950 +
Construction Type Brick or wood
Pools? No Pools
Acquisition Criteria
MARKET VALUE: $125–250K
MARKET RENTS: $1,000–2,000
EMPLOYMENT CENTERS: < 10 MILES
TRANSIT / MAJOR ROAD: < 2 MILES
RETAIL: < 2 MILES
AVERAGE SCHOOL RATING: > 3.0
AVERAGE HH INCOME: $50,000
*All criteria the same except “Foundation type” and “Other Requirements”
20. Single Family Rental Investment Opportunity 18
• Personal financial distress
• Accumulated deferred maintenance
• Other unfortunate circumstances such as
hoarding, tax delinquencies, or a combination
of the above
The Opportunity Explained
Proprietary deals via internal, hyper local agents
Off-market portfolios
Online marketing
Marketing campaigns, such as direct mail
Bank owned/foreclosures
Utilize courthouse lists of pre-foreclosures and
houses going to auction
Non-residents found in tax records
MLS listings
InvestNet sources deals from the following categories:
21. Single Family Rental Investment Opportunity 19
The goal with every transaction is to get the ”first look” &
never compete in bidding wars.
This aspect of our strategy allows us stay disciplined &
within our predetermined price range.
Every property is evaluated within our model and analyzed
with conservative assumptions.
A licensed home inspector will tour the home before
acquisition to ensure a thorough property inspection.
If the property meets our team’s “buy box” we purchase
the property all cash within +/- one week of receiving the
opportunity. Speed wins.
The Opportunity Explained
23. Single Family Rental Investment Opportunity
Cap rates are getting squeezed up and no longer will we be able to trade on a 4.5 &
5.5 cap. Therefore, we are going to need to compensate with our increased rents
based on the demand & difficulty in purchasing homes with an increased rate. We
will combat that to try to help with a better exit. Cap rates are expected to adjust
with increased interest rates, but so will demand in this product. The exit strategy is
likely going to be best positioned based on increased rents due to increased
demand based on millennials/boomers. Structure is the same, but capital is
deployed flexibly depending on the current environment
The Opportunity Explained
# of Property Owned
# of Property Owned
# of Property Owned
# of Property Owned
# of Property Owned
# of Property Owned
Individual Home Sales (Retail) — Supply constrained markets likely to
maintain upward pressure on pricing given low inventory & days on the
market, making for efficient dispositions
01 Portfolio sale to large institutional player (large-scale portfolios trade in
the 4.5–5.5% cap)
02
Recapitalization with large institution looking for exposure to SFR assets
03
21
24. Single Family Rental Investment Opportunity 22
19
1010 Skyline Loop Centerton, AR 72719 SFR 1,934 4 2
317,075 in
12/2021
2,100.00 360,000.00
1101 Shiraz Centerton, AR 72719 SFR 1,702 3 2
265,100 in
3/2022
1,950.00 302,000.00
1347 S Duncan St. Fayetteville, AR 72703 SFR 2,580 4 4/2 Built 2021 1,800.00 300,000.00
1349 S Duncan St. Fayetteville, AR 72703 SFR 1,400 2 2/1 Built 2021 1,800.00 300,000.00
1409 SW Rosedale Ave. Bentonville, AR 72712 SFR 3,096 4 3/1
339,314 in
8/2013
2,600.00 650,000.00
2716 SW Livingston Square Bentonville, AR 72713 SFR 2,800 5 2/1 Built 2020 2,295.00 500,000.00
2739 Livington Sq Bentonville, AR 72713 SFR 1,961 5 3 Built 2020 2,300.00 500,000.00
3102 Alberta St Bentonville, AR 72712 SFR 2,057 4 2
308,000 in
9/2021
1,900.00 363,000.00
3839 E Embry Dr. Fayetteville, AR 72764 SFR 1,839 3 2
191,201 in
10/2014
2,200.00 367,000.00
450 W Tyler Rd Farmington, Ar 72730 SFR 1,787 3 2
311,000 in
4/2022
2,150.00 324,000.00
25. Single Family Rental Investment Opportunity 23
19
2104 Jean Street Springdale, AR 72762 SFR 1,185 3 2 65,000 in 6/1998 900.00 217,000.00
2224 & 2226 Cinnamon Way Fayetteville, AR 72703 Duplex 1500 each 3 2/1 391,000 in 3/2022 920 & 895 408,000.00
2607 Lee Street Springdale, AR 72762 SFR 1,679 3 2 71,000 in 1999 1,300.00 262,900.00
457 E 7th Street Fayetteville, AR 72701 SFR 2,192 6 4 265,000 in 2018 850.00 429,000.00
50 Dunsford Bella Vista, AR 72714 SFR 1,341 3 2 175,000 in 2019 1,500.00 288,000.00
914 14th Place Rogers, AR 72756 SFR 1,440 3 1/1 70,000 in 1996 1,250.00 234,000.00
26. Single Family Rental Investment Opportunity 24
19
3090 Verona Lane
Fayetteville, AR 72704
• Bought: $197,000
• No updates
• Sold: $240,000
4604 Bamboo Ave
Bentonville, AR 72713
• Bought: $410,000
• Updates: $15,000
• Sold: $500,000
455 Hunter Allen
Springdale, AR 72764
• Bought: $215,000
• Updates: $12,000
• Sold: $320,000
3144 Ladelle Place
Fayetteville, AR 72764
• Bought: $450,000
• Updates: $12,000
• Sold: $595,000
5703 W Murfield Drive
Rogers, AR 72758
• Bought: $334,000
• No updates
• Sold: $400,000
1301 Apache Drive
Bentonville, AR 72712
• 3 Beds 2 Baths 1471 SF
• Bought: $197,000
• Rented: $1,600/month
1310 N Shetland Drive
Fayetteville, AR 72704
• 3 Beds 2 Baths 1671 SF
• Bought: $260,000
• Rented: $1,695/month
35. NREI – July 2020 Bloomberg – May 2020
NREI – April 2020 Globe Street – June 2020
Globe Street – July 2020 Globe Street – June 2020
32
Single Family Rental Investment Opportunity
36. 437 SW B Street
Bentonville, AR 72712
sfr@invest.net (425) 405-0744
Invest.net
