At RealWealth, we’ve been connecting investors with quality real estate opportunities for over 20 years. Our extensive experience has allowed us to develop rigorous vetting processes that protect our members and ensure they work with only the best turnkey property teams and real estate syndication sponsors in the industry.
This article outlines our comprehensive vetting standards for both:
- Turnkey Property Teams (single-family and multi-family rental properties)
- Real Estate Syndications & Funds (large-scale commercial and development projects + RealWealth managed single and multi-family real estate funds)
A Comprehensive Guide to Our Vetting Standards for Turnkey Property Teams & Syndication Deals
Core Philosophy
Our vetting process is built on three foundational principles.
1. Relationships Matter
We understand that long-term success with real estate investments depends largely on the turnkey real estate companies we refer our members to. We know the turnkey property teams and property managers we refer to, and they know us. For our syndication projects, we also only work with developers who have proven track records.
2. Lengthy and Rigorous Process
Because of the importance of these relationships, our vetting process is both lengthy and rigorous. It’s not a quick checklist. Rather, it’s an in-depth evaluation that creates a long-term partnership.
3. Continuous Monitoring
To remain on our referral list, the turnkey property teams RealWealth works with must receive continual positive feedback from our members. Vetting doesn’t stop after initial approval. We continuously monitor performance and adjust if necessary. Because our syndications and funds are managed in-house, we have the unique advantage of working directly with developers and staying closely aligned with the property managers responsible for each property in our portfolio.
PART 1: Turnkey Property Team Vetting Process
RealWealth’s thorough vetting practice includes:
Market Selection Process
Before vetting turnkey property teams, we heavily research top-performing markets by evaluating:
In-person Site Visits
Our team conducts on-site visits to each market to:
Company Background & Reference Checks
We conduct thorough due diligence on every trunkey property team in our network, including:
Inventory Analysis
Our team physically goes into each market and inspects everything the turnkey property teams do, including:
The REAL Income Property™ Standards
All turnkey property teams in our network are recommended to adhere to our REAL Income Property™ Standards, which provide guidance on the quality of work RealWealth and our members expect.
R – Renovated or Built (to REAL Income Property™ Standards)
Properties are recommended to meet specific renovation standards, including:
| Component | Standard Requirement |
| Roof | Replace if less than 5 years remaining life |
| HVAC (Furnace/Boiler/A/C) | Replaced with new or serviced with a one-year home warranty |
| Plumbing | Home inspection accepted; updated finish plumbing |
| Hot Water Tank | Replaced with new or serviced with a one-year home warranty |
| Foundation | Home inspection accepted by the buyer |
| Electric | Home inspection accepted by the buyer |
| Flooring | Updated or functional; approved through home inspection |
| Kitchen | Updated or functional; at or above neighborhood standards |
| Bathroom | Updated or functional; at or above neighborhood standards |
| Interior Paint | Freshly painted |
| Interior Paint | Home inspection accepted (additional cost if repainting requested) |
E – Examined (through inspections and due diligence)
We recommend turnkey property teams:
- Provide 3-5 licensed, local inspectors who understand rental property
- Facilitate recommended inspections: home, sewer/septic, well (if applicable), new construction phase inspection, and others as needed
- Clear safety items
- Confirm flood zone status and requirements
- Work with buyers to verify properties meet or exceed REAL Income Property™ Standards
A – Appraised (purchase price at or below market value)
We recommend property teams:
- Have a traditional bank appraisal for financed purchases
- Have a third-party home appraisal recommended for cash purchases
- Be priced at or below market value
- Offer options if the property appraises low
L – Licensed Property Management
We recommend turnkey property teams:
- Be properly insured and licensed according to state laws
- Have at least 2 years’ experience with a great track record
- Use professional management software
- Adhere to national industry standard fee ranges:
- Monthly Management Fee: 8-12%
- Tenant Placement: 50-100% of monthly rent
- Lease Renewal: 25-50% of monthly rent
Note that if a property does not meet these standards, the turnkey provider will clearly mark it as “Rental Resale” on the pro formas, so all RealWealth members know it does not meet our ideal REAL Income Property™ Standards.
Contract Review
We complete a comprehensive review of all contracts (not a legal review) to ensure specific contingencies are included, such as:
Member Feedback Loop
Our vetting process includes continuous member feedback:
PART 2: Real Estate Syndication & Fund Vetting Process
The 9-Step Vetting Process for Syndications & Real Estate Funds
RealWealth Developments (RWD) has developed a rigorous nine-step vetting process for real estate syndication and fund opportunities:
Step 1: Initial Screening
Step 2: Background Checks
Step 3: Track Record Analysis
Step 4: Full Underwriting
Step 5: Third-Party Validation
Step 6: Site Visits
Step 7: Deal Structure Review
Step 8: Sponsor or Project Team Alignment Assessment
Step 9: Legal Documentation Review
Syndication Evaluation Criteria
Sponsor Team Assessment
We evaluate:
Market Fundamentals
We evaluate:
Deal Structure
We review:
Return Structure
We evaluate:
Risk Management
We assess:
Conservative Underwriting Approach
At RealWealth Developments, we take a conservative, data-driven approach to ensure returns are:
We prioritize:
Investor Protections
Our syndication offerings include:
How We Make Money
We maintain transparency about our compensation structure:
For Turnkey Property Teams:
- Broker-to-Broker Referral Agreements: As a licensed brokerage in California, when we refer a member to a property team and that member purchases an investment property, we receive a predetermined broker-to-broker referral fee from the proceeds of the sale
- Zero Property Markup: We never mark up the cost of properties sold by turnkey property teams in our network, and we never will
For Syndications & Funds:
- Management fees and profit sharing after investor preferred returns and equity are returned
- All fees are clearly disclosed in the offering documents
- Sponsor compensation aligned with investor success
Additional Revenue:
- Sponsorships: Vetted resource partners (mortgage companies, CPAs, attorneys, insurance companies) pay to advertise and teach classes to members, allowing us to offer FREE educational content
- Books: Our founders have written books about real estate investing
Vetting, Quality Control & Accountability
How We Maintain Our Standards
New Property Team Protocol:
Ongoing Monitoring:
Removal Process:
Company Values
Our ATOMIC core values guide our vetting process and member relationships.
A – Accountability
- We do what we say we will do
- We take ownership and responsibility
- We hold each other accountable
T – Transparency
- We practice open and honest communication
- We share our thoughts and feelings with each other
- We check our egos at the door, and we’re willing to be vulnerable
O – Optimism
- We start with trust and then verify
- We look for the best in others, their dreams, idea,s and goals
- We see challenges as adventures and face them with creativity and positivity
M – Mastery
- We follow the path of patient, dedicated effort, without attachment to immediate results
- We strive for continuous improvement – personal, professional, intellectual & financial
- We understand that as we get better, everything around us gets better
I – Integrity
- We walk the talk
- We do the right thing
- We understand that honesty is always the best policy
C – Curiosity
- We seek to understand
- We ask questions and stay open-minded
- We are committed to building stronger connections
Important Disclaimers
For Property Purchases
RealWealth is an educational company and is not acting as a real estate broker in states outside of California. Although we believe fully in our vetting process, always:
- Seek the services of licensed third-party appraisers and inspectors.
- Use professional title and escrow companies.
- Check with RealWealth before purchasing to verify that turnkey property teams and markets haven’t changed.
- Consult with your own legal, tax, and accounting professionals. You can also view our preferred partners in these specialities under the Investor Resources tab in our main menu.
For Syndications
- Most syndications are limited to accredited investors ($200K+ annual income or $1M+ net worth excluding primary residence)
- Some offerings are available to non-accredited investors under Regulation A or under a 506(b) offering.
- Past performance does not guarantee future results
- All investments carry risk, including loss of principal
- Consult with financial, legal, and tax professionals before investing
- Read and review the PPM and Operating Agreement before investing
General
- RealWealth does not provide legal, tax, accounting, or other professional advice
- Nothing on our website is intended to form a contract or binding legal commitment
- Members must conduct their own due diligence
How to work with us
For Turnkey Property Investments
- Schedule a complimentary strategy session with your RealWealth Investment Counselor
- Access the turnkey property team information under the Invest tab
- Contact property teams to view and buy properties
For Syndications & Funds:
- Schedule a call with real estate syndication manager Paul DiVincenzo
- Access syndication resources under the Syndications tab
Final Thoughts
RealWealth’s vetting process represents over 20 years of experience in real estate investing and member education. Our dual approach, which includes rigorous upfront vetting combined with continuous monitoring, ensures that our members have access to quality investment opportunities with trusted partners.
Whether you’re interested in turnkey rental properties for direct ownership or real estate syndications and real estate funds for passive investing, our vetting standards give you confidence that you’re working with thoroughly evaluated teams and opportunities.
Our commitment: We will continue to research markets, vet turnkey property teams and real estate syndication deals, and refine our processes based on member feedback to help you create real wealth through real estate investing.
