The team at our affiliated broker-dealer, RM Securities, conducts diligence on of the issuer, including detailed background checks, criminal checks, bad actor checks, and reference checks on sponsors. In addition to screening for any criminal background, we may also turn down sponsors due to poor reference checks, even if the background and criminal checks are satisfactory.
We require unaffiliated sponsors to use an unaffiliated third-party escrow agent.* When an investor makes an investment with such sponsors using the RealtyMogul platform, the investor’s money is transferred directly into a third-party escrow account. All closing conditions in connection with a sponsor’s contingency offering need to be met before the third-party escrow agent will approve releasing investor funds to the issuer or general partner. For example, if an issuer or general partner plans to use funds for a real estate acquisition that does not ultimately transact, the third-party escrow agent will not transfer investor funds to the issuer or general partner, and funds will be returned to investors.
* Unless otherwise disclosed, escrow accounts are not required for some investments that accommodate 1031 investments where the property is already acquired.
Our processes typically includes visiting certain properties (or a subset of properties if it's a fund) to confirm the real estate is what and where the real estate is supposed to be. For certain properties that accommodate 1031 exchange investments, the team will review third-party prepared due diligence reports in lieu of a site visit.
We have formalized processes and checklists for every private placement deal listed on the platform.
The Real Estate Company is highly experienced, having owned and operated more than 2,400 multifamily units, including over 1,000 in Washington. Additionally, the company is a repeat partner of RealtyMogul, with the partnership's only full cycle transaction achieving a 31.8% IRR earlier this year.
The area enjoys a strong demographic profile, with a population of over 80,000 and median household income of $59,793 within a three-mile radius (according to CoStar). Additionally, the submarket has sustained average annual rent growth of 6.2% since 2011, with 3.4% expected during the hold period (according to Axiometrics).
The Real Estate Company has budgeted for interior unit renovations of $12,000 per unit, and an additional $688,500 for exterior and common area improvements. The significant upside potential coupled with the Property's large average unit size (28% larger than the submarket's average unit size, according to Axiometrics) makes Majestic Bay a rare acquisition.
New Standard Equities
New Standard Equities "NSE" was formed in 2010 to capitalize on the dislocation in the post‐financial crisis real estate investment market. With significant experience in buying and operating large, institutional-quality multifamily properties throughout the Western U.S., the company is deploying private and institutional capital to purchase and operate apartment assets that offer steady, long-term cash flow to its investors. New Standard Equities’ full-service real estate platform is actively engaged in property management, asset management, construction management and project consultation. NSE has successfully operated multifamily assets in major markets throughout the Western U.S.
The track record below includes all acquisitions completed by New Standard Equities.
RealtyMogul has invested in five prior transactions with NSE, (1) Oak Harbor, (2) Village Fair, (3) Walnut Place, (4) Elysian Glen, and (5) Majestic Bay Townhomes. Of these, only Oak Harbor has gone full cycle, achieving a 31.8% IRR after being sold in Q1 2019.
http://www.newstandardequities.com/Property | Location | Purchase Date | # of Units |
Purchase Price |
---|---|---|---|---|
Fountain at Curson | Hollywood, CA | Jun-11 | 20 | $4,000,000 |
Crossings at the Bay | Long Beach, CA | Nov-11 | 235 | $34,500,000 |
Villa Olivos | Canoga Park, CA | Aug-12 | 53 | $4,950,000 |
Parke Pasadena | Pasadena, CA | Aug-13 | 22 | $3,400,000 |
Asana at North Park | San Diego, CA | Sep-14 | 132 | $18,470,000 |
Anchor Pointe | Oak Harbor, WA | Aug-15 | 107 | $7,500,000 |
Rancho Azul | San Diego, CA | Aug-15 | 74 | $14,000,000 |
SeaGlass Village | Bremerton, WA | Mar-16 | 182 | $13,000,000 |
The Venue | Renton, WA | Jun-16 | 284 | $41,500,000 |
Village Fair | Bremerton, WA | Dec-16 | 120 | $13,250,000 |
Atlas | Port Orchard, WA | Feb-17 | 276 | $38,150,000 |
Duet | Lynnwood, WA | Oct-17 | 120 | $24,000,000 |
Elevate at Towngate | Moreno Valley, CA | Nov-17 | 227 | $27,850,000 |
Walnut Place | Pasadena, CA | Oct-17 | 30 | $14,000,000 |
Elysian Glen | Concord, CA | Jul-18 | 120 | $34,700,000 |
Alterra | San Jose, CA | Jul-18 | 143 | $52,500,000 |
The Mark | Hayward, CA | Dec-18 | 150 | $44,000,000 |
Panorama | Bremerton, WA | Feb-19 | 138 | $24,000,000 |
Majestic Bay Townhomes | Des Moines, WA | Aug-19 | 81 | $18,000,000 |
Total | 2,514 | $431,770,000 |
The bio and track record were provided by the Real Estate Company and have not been verified by RealtyMogul or NCPS
In this transaction, RealtyMogul investors are to invest in RealtyMogul 134, LLC ("The Company"), which is to subsequently invest in Majestic Bay Investors, LLC ("The Target"), a limited liability company that will directly or indirectly own interest in the Property. New Standard Equities (the "Real Estate Company") is under contract to purchase the Property for $18.0 million ($222,222 per unit) and the total project cost is expected to be $20.6 million ($254,321 per unit).
The Real Estate Company plans to implement a value-add and mark-to-market strategy in which it will capitalize $1,760,130 ($21,730) for capital improvements. Interior renovations are to include new flooring, paint, countertops and cabinetry. The budget also includes capital for common area and exterior renovations including exterior painting, landscaping, and deferred maintenance. Upon completion, the Real Estate Company expects average rental increases of $272 per unit. The business plan calls for a five-year hold, at which point the Property will be sold at a 5.50% cap rate for $25.3 million ($312,047 per unit).
Below is a summary of the capital improvements budget:
Common Area/Exterior Improvements | Total | Per Unit |
Deferred Maintenance | $183,000 | $2,259 |
Exterior Paint | $125,000 | $1,543 |
Interior Hallways | $100,000 | $1,235 |
Landscaping | $100,000 | $1,235 |
Seal Coat & Slurry | $50,000 | $617 |
Roof Reserve | $50,000 | $617 |
Elevator Reserve | $30,000 | $370 |
Signage & Marketing Collateral | $25,000 | $309 |
Package Lockers | $20,000 | $247 |
Immediate Repairs per Property Condition Report | $5,500 | $68 |
Total Common Area/Exterior Improvements | $688,500 | $8,500 |
Interior Unit Improvements | $972,000 | $12,000 |
Contingency (1%) | $16,605 | $205 |
Construction Management Fee (5%) | $83,025 | $1,025 |
Grand Total | $1,760,130 | $21,730 |
These amounts are subject to change at the discretion of the Real Estate Company
Built in 1980, Majestic Bay (the "Property") is an 81-unit mid-rise townhome community in the city of Des Moines, WA -- part of the Seattle MSA. The average unit size at the Property is 1,122 square feet, which is 36% larger than the market average and 29% larger than the submarket average (according to Axiometrics). The Property is constituted of one building on 2.4 acres; its amenities include a basketball court, a BBQ/grill area, and a picnic area. It is 1.2 miles from central Des Moines and 13.6 miles from Downtown Seattle. The newly built 1.6 million square foot Des Moines Business Center is 4.8 miles away; its tenants include FAA, K-2 Sports, and Amerisource Bergen. Additionally, Seattle-Tacoma International Airport is 3.2 miles from the Property. Within one mile is a drug store, a bank, a Safeway, a veterinary hospital, and several dining options. Per Trulia, the area has the lowest crime relative to the rest of King County. The Property is currently 92.6% occupied, and each unit already includes a washer/dryer.
Unit Type | # of Units | % of Total | Unit Size (square feet) | In-place Rent | Post-reno Rent |
1 Bed, 1 Bath | 5 | 6% | 609 | $1,294 | $1,385 |
1 Bed, 1 Bath | 4 | 5% | 614 | $1,213 | $1,379 |
2 Bed, 1.5 Bath | 14 | 17% | 1,010 | $1,412 | $1,750 |
2 Bed, 2 Bath | 28 | 35% | 1,185 | $1,568 | $1,850 |
2 Bed, 2 Bath | 24 | 30% | 1,240 | $1,645 | $1,925 |
2 Bed, 2 Bath (Den) | 6 | 7% | 1,380 | $1,762 | $2,025 |
Total/Averages | 81 | 100% | 1,122 | $1,544 | $1,816 |
The average unit size at the subject Property (1,122 square feet) is significantly larger than the average unit size in the market, and of the comparable set. So, RealtyMogul has included rental rate per square foot and sale price per square foot in the below comparisons for a more relevant comparison. Additionally, a comparison of RealtyMogul's projected exit and recent townhome sales is included. The townhome comparables are taken from nearby submarkets with similar demographic profiles to Des Moines, WA.
Marina Club | Regatta | Skyview 3322 | Spinnaker Landing | Averages | Subject | |
---|---|---|---|---|---|---|
# of Units | 77 | 86 | 192 | 66 | 105 | 81 |
Year Built | 1989 | 1987 | 1980 | 1987 | 1986 | 1980 |
Average SF | 781 | 801 | 1,120 | 775 | 869 | 1,122 |
Average Rental Rate | $1,549 | $1,579 | $1,836 | $1,534 | $1,625 | $1,816 |
Average Rent per SF | $1.98 | $1.97 | $1.64 | $1.98 | $1.87 | $1.62 |
Distance from Subject | 0.4 miles | 0.8 miles | 0.6 miles | 0.7 miles | 0.6 miles |
All rents are net effective
Brittany Park | Timber Heights | Des Moines Station | Driftwood Apartments | Averages | Subject | |
---|---|---|---|---|---|---|
Date | Apr-19 | Jul-18 | Apr-18 | Sep-17 | ||
Year Built | 1970 | 1966 | 1978 | 1978 | 1973 | 1980 |
# of Units | 43 | 34 | 95 | 382 | 139 | 81 |
Gross Building Area | 35,583 | 26,488 | 62,650 | 270,300 | 98,755 | 89,570 |
Purchase Price | $8,300,000 | $6,084,000 | $17,200,000 | $53,996,300 | $21,395,075 | $18,000,000 |
$/Unit | $193,023 | $178,941 | $181,053 | $141,352 | $173,592 | $222,222 |
$/SF | $233 | $230 | $275 | $200 | $234 | $201 |
Cap Rate | 5.00% | 5.25% | 5.13% | 5.71% | ||
Distance from Subject | 2.7 miles | 2.6 miles | 1.1 miles | 2.8 miles | 2.3 miles |
1303 Boise St. | 3838 Spadoni Ln. | 3307 44th St. | 3858 Spadoni Ln. | 3421 Harborcrest Ct. | Averages | Subject | |
---|---|---|---|---|---|---|---|
Date | Jun '19 | Jun '19 | Apr '19 | Nov '18 | Oct '18 | ||
Submarket | South Tacoma | North Tacoma | North Tacoma | North Tacoma | North Tacoma | Des Moines | |
SF | 1,218 | 1,280 | 1,280 | 1,280 | 1,243 | 1,260 | 1,122 |
Year Built | 1984 | 1991 | 1988 | 1991 | 1986 | 1988 | 1980 |
$/Unit | $324,950 | $389,900 | $355,000 | $374,219 | $339,719 | $356,758 | $312,047 |
$/SF | $266.79 | $304.61 | $277.34 | $292.36 | $273.31 | $282.88 | $278.12 |
Distance from Subject | 16.0 miles | 14.6 miles | 15.0 miles | 14.6 miles | 13.6 miles | 15.1 miles |
Sale and lease comps were obtained from CoStar, Axiometrics, and Zillow
Market Overview
Per CoStar, the Seattle apartment market is hot, and justifiably so. The metro attracts both foreign and domestic interests, and in terms of job growth, Seattle has outperformed the national average this cycle with many additions in high paying sectors like tech and life sciences. Well-paid newcomers are contributing to outsized demand growth, a trend that is expected to continue, especially in and around job nodes in the urban core and the Eastside. However, not everyone works for high-end tech firms and this has spurred demand for lower-end units in the urban core and peripheral submarkets. The city of Seattle has become increasingly unaffordable for many locals and recent legislation incentivizes developers to build more affordable units in exchange for higher density in many neighborhoods.
Per Axiometrics, effective rent increased 0.9% from $1,762 in 4Q18 to $1,778 in 1Q19, and annual effective rent growth was 1.8% in 2018. Annual effective rent growth is forecast to be 2.8% in 2019, and average 3.4% from 2020 to 2024. Annual effective rent growth has averaged 3.7% since 1Q95. The market's annual rent growth rate was above the national average of 2.5%. The market's occupancy rate increased from 95.3% in 4Q18 to 95.5% in 1Q19, and was up from 95.2% a year ago. For the forecast period, the market's occupancy rate is expected to be 95.3% in 2019, and average 94.9% from 2020 to 2024. The market's occupancy rate has averaged 95.3% since 1Q95.
Submarket Overview
Per CoStar, the Des Moines area has some of the lowest rents in the metro and is characterized by older assets. Vacancy is among the tightest in the metro due to strong population growth and a large renter population. Properties in the submarket offer investors high yields in a central location poised for continued growth.
Per Axiometrics, effective rent increased 0.5% from $1,364 in 4Q18 to $1,371 in 1Q19. The submarket's annual rent growth rate of 3.9% was above the market average of 1.8% in 2018. Annual effective rent growth is forecast to be 3.5% in 2019, and average 3.4% from 2020 to 2024. The annual effective rent growth has averaged 3.9% per year since 1Q95. The submarket's occupancy rate increased from 95.2% in 4Q18 to 95.6% in 1Q19, and was down from 95.7% a year ago. The submarket's occupancy rate was above the market average of 95.5% in 1Q19. For the forecast period, the submarket's occupancy rate is expected to be 95.3% in 2019 and average 94.8% from 2020 to 2024. The submarket's occupancy rate has averaged 95.1% since 1Q95.
Sources of Funds | Amount |
---|---|
Debt | $15,300,000 |
Equity | $5,300,000 |
Total Sources of Funds | $20,600,000 |
Uses of Funds | Amount |
Purchase Price | $18,000,000 |
Real Estate Company Acquisition Fee | $180,000 |
Broker Dealer Fee | $80,000 |
Loan Fee | $137,700 |
CapEx Budget | $1,760,130 |
Working Capital | $57,491 |
Tax/Insurance Reserve | $108,879 |
Closing Costs | $275,800 |
Total Uses of Funds | $20,600,000 |
Please note that the Sponsor's equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor
The expected terms of the debt financing are as follows:
- Estimated Proceeds: $15,300,000
- Estimated Rate (Floating): One Month Libor plus 2.36%
- Term: 3 years
- Interest Only: 5 years
- Exit Fee: 1.0% of outstanding loan amount
- Extension Options: Two (2) one-year extension options (0.5% fee for the first, 1.0% fee for the second)
There can be no assurance that a lender will provide debt on the rates and terms noted above, or at all. All rates and terms of the debt financing are subject to lender approval, including but not limited to possible increases in capital reserve requirements for funds to be held in a lender controlled capital reserve account.
The Target intends to make distributions to investors (the Company and Real Estate Company, collectively, the "Members") as follows:
- To the Members, pari passu, all excess operating cash flows to an 8.0% IRR to the Members;
- 70.0% / 30.0% (70.0% to Members / 30.0% to Promote) of excess cash flow to a 15.0% IRR;
- 60.0% / 40.0% (60.0% to Members / 40.0% to Promote) of excess cash flow and appreciation thereafter.
Note that these distributions will occur after the payment of the Company's liabilities (loan payments, operating expenses and other fees as set forth in the LLC agreement, in addition to any member loans or returns due on member loans).
The manager of The Company may receive a portion of the promote. Distributions are expected to start in March 2020 and are projected to continue on a quarterly basis thereafter. These distributions are at the discretion of the Real Estate Company, who may decide to delay distributions for any reason, including maintenance or capital reserves.
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
---|---|---|---|---|---|
Effective Gross Revenue | $1,627,115 | $1,818,510 | $1,913,977 | $1,993,403 | $2,071,797 |
Total Operating Expenses | $599,468 | $621,001 | $640,129 | $659,264 | $678,871 |
Net Operating Income | $1,027,647 | $1,197,509 | $1,273,848 | $1,334,138 | $1,392,926 |
Year 0 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
---|---|---|---|---|---|---|---|
Distributions to RealtyMogul 134, LLC Investors | ($2,025,000) | $29,632 | $138,494 | $183,727 | $176,393 | $173,129 | $3,004,104 |
Net Earnings to Investor - Hypothetical $50,000 Investment |
($50,000) | $732 | $3,420 | $4,536 | $4,355 | $4,275 | $74,175 |
Certain fees and compensation will be paid over the life of the transaction. The following fees and compensation will be paid:
Type of Fee | Amount of Fee | Received By | Paid From | Notes |
---|---|---|---|---|
Acquisition Fee | $180,000 | Real Estate Company | Capitalized Equity Contribution | 1.0% of the Property purchase price |
Broker-Dealer Fee | $80,000 | North Capital (1) | Capitalized Equity Contribution | Greater of $50,000 or 4.0% of the equity raised by RealtyMogul 134, LLC |
Construction Management Fee | 5.0% of costs | Real Estate Company | Capitalized Equity Contribution |
Type of Fee | Amount of Fee | Received By | Paid From | Notes |
---|---|---|---|---|
Management and Administrative Fee | 1.0% of amount invested in RealtyMogul 134, LLC | RM Manager, LLC | Distributable Cash | RM Manager, LLC is the Manager of RealtyMogul 134, LLC and a wholly-owned subsidiary of Realty Mogul, Co. (2) |
Asset Management Fee | 1.0% of Effective Gross Income | Real Estate Company | Distributable Cash | |
Property Management Fee | 3.0% of Effective Gross Income | Real Estate Company | Distributable Cash |
(1) Certain employees of Realty Mogul, Co. are registered representatives of, and are paid commissions by, North Capital Private Securities Corp., a Delaware corporation ("North Capital"). In addition, North Capital pays a technology provider services fee to Realty Mogul, Co. for licensing and access to certain technology, reporting, communications, branding, entity formation and administrative services performed from time to time by Realty Mogul, Co., and North Capital and Realty Mogul, Co. are parties to a profit sharing arrangement.
(2) Fees may be deferred to reduce impact to investor distributions.
The above presentation is based upon information supplied by the Real Estate Company or others. Realty Mogul, Co., RM Manager, LLC, and The Company, along with their respective affiliates, officers, directors or representatives (the "RM Parties") hereby advise you that none of them has independently confirmed or verified any of the information contained herein. The RM Parties further make no representations as to the accuracy or completeness of any such information and undertake no obligation now or in the future to update or correct this presentation or any information contained herein.
RM Securities, LLC, its registered representatives, affiliates, associated persons, and personnel of its affiliates who may also be associated with it, including our associated persons and personnel of our affiliates who are also be associated with RM Securities, LLC (it (“RM Securities,” “we,” “our,” or “us”) will receive fees, expense reimbursements, and other compensation (“Fees”) from the issuer of this investment offering, its sponsor, or an affiliate thereof (“Sponsor”), or otherwise in connection with Sponsor’s offering. The Fees paid to us are in addition to other fees you will pay to Sponsor or in connection with Sponsor’s investment offering. You will pay Fees to Sponsor, either directly or indirectly as an investor in the Sponsor’s offering. Sponsor will use the Fees you pay, as well as funds you invest in the relevant offering, to compensate us. The Fees paid to us will directly or indirectly be borne by you as the investor (typically, but not always, in the form of an expense of the Sponsor’s offering in which you invest) because such Fees will reduce the proceeds available for distribution to you and reduce the amount you earn over time.
For more information on the Fees paid to us, or any other Fees you will pay in connection with Sponsor’s offering, please carefully review the Sponsor’s Investment Documents. Please also carefully review RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.
No Approval, Opinion or Representation, or Warranty by RM Securities, LLCSponsor has provided, approved, and is solely responsible in all aspects for the information on this webpage (“Page”), including Sponsor’s offering documentation, which may include without limitation the Private Placement Memorandum, Operating or Limited Partnership Agreement, Subscription Agreement, the Project Summary and all exhibits and other documents attached thereto or referenced therein (collectively, the “Investment Documents”). The Investment Documents linked on this page have been prepared and posted by Sponsor, and not by RM Securities. We did not assist in preparing, do not adopt or endorse, and we are not otherwise responsible for, the Sponsor’s Investment Documents. We make no representations or warranties as to the accuracy of information on this Page or in the Sponsor’s Investment Documents and we accept no liability therefor. No part of the information on this Page or in the Sponsor’s Investment Documents is intended to be binding on us.
Sponsor’s Information Qualified by Investment DocumentsThe information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.
Risk of InvestmentThis investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.
No Reliance on Forward-Looking Statements; Sponsor AssumptionsSponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Neither RM Securities nor Sponsor are obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.
Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.
No Reliance on Past PerformanceAny description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.
Sponsor’s Use of DebtA substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.
Sponsor’s Offering is Not RegisteredSponsor’s securities offering will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement”). In addition, the offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership interests) are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.
No Investment AdviceNothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments. For additional information on RM Securities’ involvement in this offering, please carefully review the Sponsor’s Investment Documents, and RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.
1031 Exchange RiskInternal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts and certain tax consequences may vary depending on the individual circumstances of each investor. RM Securities and its affiliates make no representation or warranty of any kind with respect to the tax consequences of your investment or that the IRS will not challenge any such treatment. You should consult with and rely on your own tax advisor about the tax aspects with respect to your particular circumstances.