Raise Capital for Your Next Real Estate Project
Joint Venture Equity from Start to Close. Step by Step. How it Works.
By using the RealtyMogul platform, Sponsors gain access to a network of accredited investors looking for select commercial real estate offerings.
The RealtyMogul team will support you throughout the lifecycle of your project, giving you the resources you need to promote your offer as well as providing administrative services to help you manage investors.
There are no minimum qualifications to become a Sponsor though every Sponsor and deal will be evaluated by our affiliated broker-dealer RM Securities using formalized processes and checklists.
How it Works
The following steps are undertaken by our affiliated broker-dealer RM Securities.
STEP 1: Submission
As a Sponsor, you will provide to us:
• An overview of your company and management including your track record1
• An offering memorandum for the proposed real estate transaction, including an organization chart2
• An Excel or Argus financial model and supporting information3
• An overview of your company and management including your track record1
• An offering memorandum for the proposed real estate transaction, including an organization chart2
• An Excel or Argus financial model and supporting information3
Step 2: Initial Screening
The team from our affiliated broker-dealer, RM Securities will do an initial evaluation of your submission to determine whether your proposed project meets the requirements for a sponsor to use the RealtyMogul platform. We will typically provide feedback via email within 3-5 business days.
Screening
Due Diligence and Final Underwriting
Step 3: Diligence of Sponsor, Issuer and Management
Once the project has passed the initial evaluation, the team engages in a more detailed diligence review using formalized checklists and processes. This includes a review of the sponsor group, business plan, and all documentation, including background, credit and criminal reports for all managing members. The team will also typically schedule a site visit to the property to walk the asset with you and your team.
Step 4: Placement Agent Agreement
As the RM Securities team gets closer to completing due diligence, we formalize the Placement Agent Agreement, the legal agreement between RM Securities, LLC, and the Sponsor that engages RM Securities as the placement agent for this offering. This agreement details the responsibilities of the sponsor and RM Securities.
Step 5: Launch
Following execution of the Placement Agent Agreement and completion of satisfactory due diligence by RM Securities, the RM Securities team will prepare the content and a marketing campaign. Once your final offering documents are posted on the RealtyMogul Platform, the offering will be ready to launch as “Open for Pledging.” Pledging allows investors to create non-binding reservations for a specific investment amount so you can gauge interest and appropriately target the marketing campaign.
Step 6: Open For Funding
RealtyMogul will set your team up to host a webinar with your prospective investors. The webinar will give you an opportunity to share information about your project and answer investor questions. At this time, the transaction will be officially “Open for Funding” and binding capital commitments can be made by accredited investors.
Fundraising
Closing
Step 7: Preparation For Closing
Prior to closing, you review and approve all investors interested in your offering. Our Platform and technology collects, processes and provides you with detailed information for each potential investor including “Know-Your-Customer” compliance and accreditation verification to help facilitate your investor review and approval process.
Step 8: Time To Close
Once all investors have been approved by you, RealtyMogul coordinates with an unaffiliated escrow agent to wire all funds into the property escrow account 2-3 days prior to the transaction closing. Any release of funds from escrow is subject to satisfactory completion by our affiliate, RM Securities of its closing diligence review checklist, including satisfaction of closing conditions.
1. Includes request for most recent financial statement.
2. Real estate funds need to provide the limited partnership agreement and private placement memorandum.
3. Applicable supporting information include but are not limited to purchase sale agreement, applicable leases, debt term sheet, property condition report, applicable environmental reports, entitlements, zoning, etc.
2. Real estate funds need to provide the limited partnership agreement and private placement memorandum.
3. Applicable supporting information include but are not limited to purchase sale agreement, applicable leases, debt term sheet, property condition report, applicable environmental reports, entitlements, zoning, etc.
A dedicated partner
After closing, a RealtyMogul affiliate stays on for the life of the transaction to provide administrative services to help you manage the investors - from cash distributions to incoming questions to annual tax document distribution. We will assign a dedicated asset management professional to be your primary point of contact. Should any decision-making items arise over the course of property operations, this person will be a resource to help answer any questions and help you manage your new investors.