Rent-To-Own Fund - Phase Two Of My Investing

[Jordan Caroleo]

Good Morning BP!, I've been an agent based out of Long Island, NY for about 3 years now. With family, I've also purchase 2 multi-family homes that are currently rented out with model tenants. You can say my RE investing career has been pretty good so far. What I've been planning as "part 2" would be to start a Rent-To-Own fund with a closed group of investors. I would pre-screen the tenants/clients, then show them homes for sale that they would be interested in renting. My syndicate would then purchase the home (cash) with a lease pre-signed by the tenant. Tenant would agree to a 1-2 year rental beforehand. After the term, the tenant would have the right to purchase at a pre-determined price, or leave. During this time, we would be collecting cash-flow, so if the tenant didn't decide to purchase, we would have that small cushion anyway to either sell or rent. My role would be to screen the tenants and manage the properties as well as contribute capital to the purchase. In NY, an "issuer" (that would be me) doesn't have to file an offering plan or prospectus if the syndicate is <40 people. What do you guys think? Is this something doable? There is a strong rental demand in my market, and a healthy demand for RTO's.