RSN Property Group case study: raising $25 million from accredited investors with a split-tested investor funnel

Ben, can you tell us a little bit about your business, the assets under management, what you guys do?

Sure. Sure. So, we're a multifamily private equity firm. So we're buying, large multifamily complexes in various states and MSAs around the country, mainly in the Sunbelt area. So, you know, your Arizona, your your Texas, North Carolina. I could go on. At least large assets, you know, sort of like anywhere from maybe twenty to fifty million dollars, and we'll essentially fund the acquisition of those assets by raising capital from private, individuals who are investing fee k, a hundred k, five hundred k.

And we basically pull those investors together and, you know, secure their properties, with that strategy.

And before you worked with Atomic Funnels and AdSquad, can you tell us a little bit about any challenges that you had in terms of lead quality or cost per lead or, you know, any sort of, challenges in the funding space?

Like, our industry has changed a lot. So, without getting into too much of the details, up to, like, twenty twenty two, multifamily was a hot investment commodity. Returns were great. Everything was great. And then, if you remember the Federal Reserve, to combat inflation, rose interest rates really, really quickly, and that had a huge impact on commercial real estate. And, there were a lot of multifamily deals, and commercial deals that went backwards, and either the keys had to be given back, investors had had to do capital calls.

So all of a sudden, this, you know, huge network of investors that were investing in a lot of multifamily deals realized that it's not always gonna pan out exactly the way they expect. A lot of the people that we would invest with, that would invest with us and would invest just generally in multifamily stopped doing it. And, we've had to, like, kind of rebuild our investor network almost from scratch because of that.

Can you tell us a little bit about specifically, like, the number of acquisitions that you guys have, the number of doors that you purchased, the amount of assets under management?

Yep. So, we actually just closed on an asset on Tuesday, for forty four and a half million, which is gonna push us up to just over nine hundred and fifty million in acquisitions.

A couple of those have been, disposed of have been exited. So, the actual assets under management, I don't have that number at hand. You know, hundreds of millions, somewhere there. And, five thousand and five thousand five hundred doors, have been acquired. And, again, I I'd have to really, like, go back and do the math to figure out how many are under management now. But, yeah, either way, that you know, sizable numbers, you know, we we have a, you know, large business for, a syndicator and a small business if you compare us to BlackRock. But, yeah, that's where we sit.

So when Atomic Funnels sort of walked onto the field, the funnel as it existed was converting leads at seven percent. So that's seven percent of people that landed on the page filled out their information to speak with the investor relations team in some way. And we spun up about a dozen different split tests of our atomic funnels proprietary funnel flow and our offer creation framework to try and boost that. Our worst performer was seven point three percent.

Our best performer was around thirty two percent. And so our best performer provided about a three hundred percent improvement in cost efficiency on those leads in terms of getting a conversation started in some way, getting them to submit their information. And then coupled with Justin's proactive, speed to lead outreach where he has an AI agent and go high level reaching out to people or your investor relations team proactively reaching out to people that submitted documentation. How much money were you guys able to raise on the first engagement with us?

So we did, a deal called Eagle Creek Landing, and it was just over twenty million, and we've raised, eight and a half million bucks. Now some of that came from, you know, a variety of sources that we couldn't attribute to you guys, but, I mean, you know, we're well and truly in the five to six million buck range.

Through the funnel systems that we built coupled with Justin's ad management. Yes. Cool. So since then, it seems that you and Justin have gone on to work on multiple other projects to get them funded. Could you tell us a little bit about the success of those projects?

We did, the Broadwater, and then we did, Villas at Princeton Lake, and then we did Eagle Creek Landing, and now we've got, Alessia that's live.

So that's four deals. One of them's in flight right now. And, look. We've we've hit our targets.

We've completed the raises. You know? In our business, the, you know, you're putting really, really sizable deposits on these things, and you're spending a lot of money to secure them. So at any by the time you get to the closing table, you're probably a million dollars into the deal in terms of, like, costs.

And if you don't close on that deal, that just evaporates. So it's super, super high risk industry in that regard. Like, you've gotta hit your raise targets, and we've always managed to do that. And, you know, obviously, with digital marketing with Justin, like, you know, if we're short on, investor leads or we're short on capital, the beauty of the system is we can just ramp up the ad spend, get more leads in, more have more discussions, do more activity.

So there's a lot of levers we can pull to, make sure that we hit our targets. And, you know, just working with the team, we've we've always managed to do that. Like, you're absolutely right. All the statistics you shared are accurate.

We got better results in that regard. It did definitely push down the cost per lead. And, you know, there's a there's a bunch of other things that I can say about I like working with you guys, but I'll let you ask you questions.

Yeah. Well, I've I would love to just let you free flow and, you know, tell us, tell us your thoughts on an engagement with Atomic Funnels and AdSquad. Like, what would you what would you tell the world about it?

Yeah. Well, so the big thing that stood out for me working with you, John, was, the manner in which you were able to understand and extract the the the workings of our business and extract the, key, like, sales points and, you know, why why investors would be interested in this, why they'd be interested in that. And for us, we've been doing it for a while, so we knew a lot of that. But there was a bunch of stuff that you pulled out that I was like, okay.

Number one, he's nailed it. He's he understands what we're doing here. Number two, number three, like, here's, like, four or five points that are, you know, really compelling sales messages that we hadn't quite thought of, that we start to actually, like, now utilize. You know, that that aspect was, like, you know, one of the impressive things that I that I thought you guys did early in the engagement.

And then in terms of your engagement with Justin, what would you say about, like, the marketing side of things?

I've got my main guy that I deal with, Johan, who's kind of like the technical delivery guy if if I describe him as that. He's he's monitoring all the ads and doing the bulk of the work. And then but but we've also got, like, a project manager on every call, so capturing meeting minutes, capturing notes, sort of like, you know, making sure that nothing gets dropped. So that's good.

You know, Justin's an escalation point if there's, like, issues or questions or concerns that, you know, happen to rise above the team, which, you know, doesn't happen often. But when, you know, there's something going on and I'm like, hey, Justin. We need to talk about x y z. I just wanna make sure the team's, like, fully aware of these deadlines.

Like, you know, you you've got that professional, you know, network of people there. And, you know, there's been a couple of times where we've had, you know, a situation that might need to get dealt with on, you know, the weekend, and they'll quickly jump on. And it might only take, like, an hour or two to, like, right the ship, but not riding the ship means that we sort of you know, we're heavily impacted for three or four days.

And as a result of that management in dollar amount over these four projects, how much have you guys been able to raise?

Ballpark maybe about eight million on, Broadwater, maybe a little bit more, and then, about five million on, VPL, eight million on, Eagle Creek, but, you know, like I said, maybe that's more like five or six that's attributable there. And then Alessia, like, we're the one we're doing right now, we're right in the heart of that. So, you know, by the time we're done, that's gonna be a ten million dollar raise, and it's looking like the best part of seven or eight million of that is gonna come from, you know, atomic funnels and ad squad. We're we're very happy with the performance we've been able to achieve, and, you know, we we see a lot of our competitors, you know, not hitting the mark on deals, and, you know, a lot of that comes down to bringing in investors, having discussions with investors, having a good marketing system, having a good team behind you.

All of that plays into it. You know, tweaking the audiences, tweaking the ad spend, looking at, like, well, this this ad's performing, that ad's not performing. Like, you know, all that stuff is, you know, taken off my plate. I get the nice snapshots from you every week.

We have the, you know, weekly check-in calls, where I get all the data I need, get to ask all the questions. And, Yeah. If we weren't constantly leveling up and changing things, I think those calls would be, you know, really quick. You guys would just be handling everything with without me needing to be too far involved.