RealtyMogul Deal Checklist



For each deal, a formalized process is used to review the market, the property and the investment, empowering investors to find deals that may meet a variety of risk/reward profiles.

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At RealtyMogul, our affiliated broker-dealer, RM Securities, has a formalized process to evaluate deals before they are posted on the RealtyMogul Platform.

Realty Mogul’s affiliate, RM Securities, uses an extensive checklist regarding “Sponsors” on the Platform, As part of its review before a deal is approved for the Platform, RM Securities evaluates the market, the property, and the reasonableness of the sponsor’s assumptions regarding the investment. Here are the steps RM Securities takes before a deal is approved for the platform.

Market Due Diligence
Investigate and evaluate the specific real estate market, including:

✔ Key economic drivers, including major employers, travel, education and transportation infrastructure

✔ Evaluation of tenant base and affordability constraints

✔ Sales comp analysis, including identification of similar assets in similar submarket with similar tenant base

✔ Rent comp analysis, including assessment of amenities, treatment of utilities, market vacancy and understanding of bad debt in market

✔ Assessment of market growth potential
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Property-Level Due Diligence

Investigate and evaluate the business plan, the reasonableness of the Sponsor’s claims, and assumptions of the issuer, including:

✔ Intended use of proceeds in the issuer’s pro forma models

✔ Economic and business assumptions - performing a comprehensive investigation and evaluation of the reasonableness of the Sponsor’s economic, financial, and operating assumptions (e.g., renovation and/or development costs, rents, debt terms, reserves, interest rate assumptions, etc.)

✔ Planned exit strategy/capitalization in light of possible market conditions

✔ Asset quality, specifically the issuer’s assumptions considering the asset’s age and condition

✔ On Site Visits to certain properties examine the asset in person

Investment Due Diligence
✔ Legal review of offering documents and disclosures in accordance with a formalized checklist, which typically includes:

  • Accuracy of offering documents and related disclosures of known material facts
  • Retain and utilize outside counsel as needed to supplement legal reviews.
  • Disclosure of known material risk factors
  • Disclosure of known conflicts of interest (e.g., related party transactions or arrangements, management’s fees and compensation, distribution rights, etc.)
✔ Management’s fees and compensation, including their commercial reasonableness

✔ Waterfall structure, including treatment of real estate company co-invest, incentive structure and treatment of investors’ initial capital contribution
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In Summary

Our mantra at RealtyMogul is that it is all about the people.

We want to provide investors with access to deals that our affiliated broker-dealer has evaluated through its formalized process. This empowers investors to find deals that meet a variety of risk/reward profiles.

The RM Securities team is committed to empowering the investor by providing transparent, detailed information so that you can make an informed decision.

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