Ruthian Investment Fund LLC (Ruthian) was founded in 2019 as a real estate investment fund specializing in income producing residential real estate. We were founded on the idea that real estate investment should be available to everyone, not just the few. Owning real estate is an integral part in growing wealth in any investment strategy. Ruthian allows investors access to the benefits of owning real estate while reducing the associated risks of personal ownership. Ruthian provides an opportunity to invest with like-minded investors to buy and hold income producing real estate. The structure of the fund allows for a maximum of 100 memberships.

The benefits of investing in real estate are numerous and can provide investors with a stable and secure investment. Real estate has a number of advantages over other investments, such as stocks and bonds, and can provide a number of benefits to investors.

1. Real estate is a tangible asset. When you invest in real estate, you are investing in a physical asset that you can see and touch. This can provide a sense of security and stability for investors, as they can tangibly see their investment.

2. Real estate is a long-term investment. Unlike stocks and bonds, which can be sold relatively quickly, real estate is a long-term investment. This can provide stability and security for investors, as they know their investment will not be sold in the short-term.

3. Real estate is a relatively safe investment. While all investments come with some risk, real estate is generally considered to be a relatively safe investment. This is due to the fact that real estate values have historically tended to appreciate over time, meaning that investors typically see a return on their investment.

4. Real estate can be leveraged. When you invest in real estate, you can typically use leverage to finance your purchase. This means that you can purchase a property with a small down payment and then finance the remainder of the purchase price with a loan. This can allow you to purchase a property that you may not otherwise be able to afford.

5. Real estate can provide income. One of the great things about investing in real estate is that it can provide you with an income stream. If you purchase a property and rent it out, you can generate income from your tenants. This can provide you with a source of income that you can use to pay down your mortgage or reinvest in other properties.

6. Real estate can appreciate in value. Another benefit of investing in real estate is that it can appreciate in value over time. This means that your investment will be worth more in the future than it is today. This appreciation can provide you with a return on your investment and help you build wealth over time.

Ruthian is poised to invest throughout the United States. Ruthian targets specific markets based on demand driven by population growth, governmental restriction on supply, job growth centers, and potential rent growth.

Ruthian only acquires residential real estate. This may include condominiums, single family, and multi-unit developments.

Ruthian offers opportunities to invest in income-generating residential real estate. Our committed fund manager is responsible for sourcing, identifying, acquiring, and property managing the real estate portfolio comprehensively. By combining our investments, we can focus on larger and more varied properties, reducing the risk associated with holding a single asset.

Ruthian is not a limited term fund. This allows us to enter and exit the market at times to maximize the return to our members. By not having a specified fund term limit we are able mitigate potential losses in a declining real estate market.

A Real Estate Investment Trust?

REITs derive the majority of their fees through transactions, while ours come after the investor makes money.

Primary investment may not necessarily be in physical real estate – periphery: mortgages, alt investments, etc. Ruthian only invests in real estate.

We don’t pay a middleman to ‘sell’ our investments, which means lower fees for the investor and more dollars invested into properties. We provide annual updates on out investments and provide full transparency into our investment process. A private REIT is not obligated to provide investors with similar transparency.

A Crowdsourced Real Estate Investment?

Ruthian is not a crowdsourced online platform. We want to know our members and our members to know us.

The Fund manager are also Ruthain’s founders. They are the first investors and members in the Fund. As this is an investment for the managers, this makes sure that our interests are in line with our members.

The Fund also employs an independent accountant to prepare all Tax Returns and Distributions to members.

An investment in the Fund buys membership in the holding company Ruthian Investment Fund, LLC in the form of share units. The Fund buys and owns each real estate unit, and title is held in the name of the Fund. No member individually shall have any ownership interest in the property(ies). This structure allows members to be protected from the risks of owning real estate as an individual.

Ruthian Investment Fund, LLC is only available to Accredited Investors. Accreditation status will be self-certified as part of the execution of the Fund’s Subscription Agreement.

An accredited investor is a term used by the U.S. Securities and Exchange Commission (SEC) under Rule 501 of Regulation D. To qualify as accredited, an investor must accomplish at least one of the following:

1. Earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR

2. Has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).

3. Additional qualification requirements can be found here.

A member of our management team will reach out to you with legal documents to sign and instructions on ways to fund your Membership. The minimum initial investment in Ruthian starts at $50,000. The maximum investment amount is not limited, however there are only 100 memberships available in the Fund. However, the minimum amount of the investment is subject to change.

Interested investors can reach us at invest@ruthianllc.com

Yes. Investors can invest through an LLC or trust. Investors are also able to invest through their traditional self-directed IRAs.

The management team is made up of Kim Conti DeGroot, Daniel DeGroot, Amber Grundman, and John Grundman. They will manage the overall direction of the Fund and all day-to-day property operations. All decisions regarding the operation of the Fund are the sole responsibility of them.

You will never be obligated to make an additional capital contribution on your investment. The Fund may have opportunities for additional investments, but no member will be obligated to make any additional investment.

The minimum investment period is seven years. This investment period allows our fund time to develop to maximize both cash flow returns and long-term equity growth. The Fund has an allowance for a hardship withdrawal, specific requirement is described in detail in the Fund Operating Agreement.

It is important to note that the Fund will continue beyond the minimum investment period. This allows the Fund to maximize long term equity growth.

As with any investment opportunity, no guarantees are made with respect to return and there is the potential for a net loss against the initial investment amount and investors should be prepared for the potential of such loss, up to the entire amount of their principal investment. The Subscription Package includes a set of risk factors that address more specific risks associated with a given deal and we strongly encourage you to review these risk factors in detail before making any investment.

Distributions may be made annually, at the Manager’s discretion. Returns are generated for our members from operating cash flow, after a property sale, or refinance.

Acquisition Fee: At the closing of the acquisition of a Property, the Manager will be paid an acquisition fee equal to two percent (2.0%) of the purchase price of such Property.

Asset Management Fee: The Fund shall pay to the Manager on a yearly basis an asset management fee equal to five percent (5%), which can be reduced or waived by the Manager, in part or in full, in its sole discretion, of the Total Capital Contribution. The asset management fee will compensate the Manager for all services rendered to the Fund related to the operation of the Fund. The asset management fee will not compensate the Manager for standard property management expenses and related fees incurred in connection with standard property management services, such as rent collection, 3-day notices, bookkeeping services, the costs and expenses of which will be borne directly by the Fund.

Property Management Fee: The Manager may perform standard property management fee services either directly or indirectly through one or more affiliates or third-party subcontractors. In the event the Manager performs standard property management fee services directly or indirectly, such fees shall be at the then prevailing market rates, which is currently anticipated to be ten percent (10%) of gross rents per year, which can be reduced or waived by the Manager, in part or in full, in its sole discretion.

We wanted something special. Something that would instantly say: ethical, trustworthy, all American, etc. Babe Ruth came to mind. He possessed all the qualities we wanted people to know us for. Plus, we all love baseball.

No, it’s a sophisticated model used by sophisticated wealthy investors. But, we are bringing this opportunity to our family and friends with our experience and knowledge – by pooling our resources together we are creating wealth collectively.

Yes, however you must be an "accredited investor" to participate in the fund. An accredited investor is defined in Regulation D of the Securities Act of 1993.

While there have been many new regulations issued since the onset of COVID concerning renters’ rights and repayments, our tenants have continued to make timely payment throughout the past 2 years. We attribute this to the tremendous amount of work around vetting our prospective renters that has yielded positive results through this difficult period.