FAQ Questions
Once a property is funded, it establishes its own dedicated property account containing a cash reserve, and a property manager is appointed to oversee all operational and financial aspects of the rental home.
The property manager is responsible for generating income by securing tenants and collecting rental payments, while also managing the various operating costs associated with the rental home. These costs can include property management fees, taxes, insurance, maintenance, repairs, and HOA fees, among others, which are funded by the rental income received by the property.
Rest assured, our investment structure is designed to safeguard your investment even in the unlikely scenario of The Rainmakers discontinuation. Each property is established as a separate, standalone series LLP with its own bank account and distinct ownership structure.
Since investors directly own the property through the LLP, the value of your investment will remain intact as long as the underlying property retains its value. The Rainmakers has no significant ownership stake, and there is a clear separation between the company and the investment properties. In the highly unlikely event of The Rainmakers cessation of operations, we will simply appoint a new custodian who will be responsible for making key decisions such as selecting a new property manager, and determining when to liquidate the property, among others.
The rental income is determined by the income generated after collecting rent and deducting all relevant expenses.
It’s important to note that the performance of short stay rentals can vary widely depending on a variety of factors, such as the popularity of the location and the time of year. For instance, some short stay rentals may experience higher levels of income during busy seasons, while others may see lower income during less popular times to visit.
Property Price / RM10 = Total Units
Rental income payments are distributed in January, April, July, and October of each year, and will be directly deposited into your linked bank account.
Please be aware that if the property was fully funded later in the quarter, the first rental income payment may only cover a partial quarter.
A key feature that makes us different from real estate investment products such as REITs, is that The Rainmakers platform provides investors ownership of their investments through asset backed digital contracts. As such, investors will have a voice for many aspects of decisions made on their investments.
Additional benefits incudes:
– Investment Transparency
– Annual Returns
– Capital Appreciation
– Rewards Program
– Investment Community Membership
– Future Financing
– Rent-To-Own
– Special Members Events
The Rainmakers is designed for long-term real estate investing. This is because real estate is a stable and less volatile asset, which means consistent returns are achieved over time. Long-term holding also helps to repay high transaction costs associated with buying and selling real estate. Moreover, real estate prices and returns go through cycles, and longer holding periods allow investors to ride out the down cycles and maximize returns in the long term. Therefore, The Rainmakers is not recommended for investors looking for short-term gains.
The decision of rent varies depending on the property and season. Some areas experience higher season compares to other and therefore will affect the pricing structure. In addition, the property itself will play a role in determining our pricing to stay competitive, whilst maximizing returns.
20% of rental yield after deductions of utility bills are paid to our property managers.
Our intention is to focus our efforts into urban markets that are cost-effective, offering high short term rental rates with good occupancy and displaying the following traits:
- Popular with millennials
- Favourable competitive environment in terms of entry obstacles and supply/demand dynamics
- Within an hour drive from a large population area
- Unique attractions, geographic features and desirable leisure
- Significant ability to generate short-term rental income relative to the cost of real estate
Our properties acquisition focuses on its ability to generate a stable cash flow for the long term as well as having the possibility to gain capital appreciation over time, in areas that we have identified as high growth, with addition of properties that may have time sensitive deadlines and sellers who are urgently looking to sell.
The Rainmakers properties offer two ways for investors to earn returns: 1) through property value growth and 2) rental income. Although we cannot guarantee future returns, we can provide historical data on property value appreciation and The Rainmakers rental property income as a reference. Please note that past performance may not reflect future results.
Property Growth:
- Investors who own shares in The Rainmakers property may benefit from potential property value appreciation, which could lead to an increase in the property’s equity value.
- Since The Rainmakers has not sold any properties from its portfolio, we cannot guarantee any particular return on investment. However, historically, rental properties in Malaysia have appreciated in value over time, and any potential increase in the value of and The Rainmakers property could result in increased home equity value for investors.
Income from Rentals:
- The Rainmakers investors receive rental income cash on a quarterly basis, which are derived from rental payments collected from tenants occupying the property. The amount of rental income you receive is directly proportional to the amount of units your own in the property.
- While we cannot predict or guarantee future returns on short stay rentals, based on market studies, an average of 5.6% – 8.7% returns can be expected.
What occurs in the event of negative cash flow caused by the tenant problems or unforeseen expenses?
We maintain a cash reserve at the individual property level for each home, which typically averages around 5% of the total home value. Additionally, we budget for both planned and unplanned operating expenses, such as property taxes, home insurance, and maintenance. Our projected rental income are net of these operating expenses.
If expenses or negative cash flow were to exceed our cash reserve and operating expense budget, we would provide a short-term loan from our corporate entity to the individual property, which would be repaid with future rental payments.
It’s important to note that we would not request additional capital from investors through a capital call. However, the loan could temporarily reduce the anticipated rental income until it is repaid or the cash reserve is replenished.
The Rainmakers recommends partners to hold the property until it has been sold. However, in cases where Partners wish to exit the investment or sell a portion of their investment early, The Rainmakers will look for potential investors to take over the investment from the current.
*Partners who exit early will incur a fee from The Rainmakers
*Subject to availability of potential investor
Our mission at The Rainmakers is to make investing in real estate accessible to everyone, and as such, we have set the minimum investment per property at only RM500.
The Rainmakers is open for everyone around the world to invest with the exception of citizens from the United States of America.
The Rainmakers assumes all home ownership responsibilities, including home selection, purchase, renovation, finding tenants, and managing maintenance requests. As an investor, you are only required to invest and earn your share of income from rent payments.
The Rainmakers partners with professional property managers who handle the leasing, maintenance, and rent collection tasks on a daily basis. Our team works closely with these managers to ensure maximum rental income, intelligent asset decisions, and minimal expenses. The property management partner’s fees, which amount to 20-30% of the rent, are passed through to our investors. By investing with The Rainmakers, you benefit from the oversight of two teams at an affordable cost, guaranteeing the best possible results for your property.
Each property is held through a limited liability company structure, which provides protection to investors from personal liability in case of any legal action or accidents that may occur on the property.
You may access updates on your investment through The Rainmakers dashboard site. Simply login with your details to gain access to everything related to your investment.
Contact us and we will get an account ready for you right away.
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