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 2,500 multifamily units. 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 213,027 and median household income of $112,109 within a one-mile radius (according to CoStar). Additionally, Fremont has averaged 7.2% annual rent growth and 96.9% occupancy since 2011 (according to Axiometrics).
With in-place rents 15% below the average rent in the Fremont submarket (according to Axiometrics), there is attractive renovation premium potential. The Real Estate Company has a $4 million renovation budget to capture this premium.
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/-
Edward RingFounder / CEO -
Cyrus BlourtchiChief Financial Officer -
Julie BlankChief Operating Officer
With over 23 years of real estate and financial consulting experience, Ring’s expertise includes providing strategic leadership for all aspects of the investment process, including sourcing new projects, business plan development, optimizing capital structures and actively overseeing each project’s execution phase from soup to nuts.
Previously, Ring was chief operating officer at Kennedy Wilson Multifamily Management Group, where he was responsible for the acquisition and operation of approximately 11,000 apartment units. At the time of his departure, roughly half of those acquisitions had been sold for a project level profit of over $100 million and had achieved a 1.80 multiple on equity, a 28.5 percent IRR, and an ROI of 55.4 percent. Ring also forged key partnerships with institutional investors, such as The Dubai Investment Group, General Electric, Mitsubishi Corporation, General Motors, AIG, RREEF and Wachovia Securities, among others.
In addition to his background as a real estate professional, Ring is an Emeritus member of the Writers Guild of America (WGA). He wrote for a variety of television comedies for NBC, UPN, Saban Entertainment, VH1 and HBO, where he earned a Cable ACE nomination for his work on “The Larry Sanders Show.”
A graduate of U.C. Berkeley in 1988, Ring went on to earn his MFA from New York University in 1992 and his MBA from UCLA Anderson in 2003. Ring served on the Executive Committee of the Anderson School’s Alumni Association and currently serves on The Board of Governors at Cedars Sinai Medical Center in Los Angeles. He is also a member of Mensa.
Cyrus Blourtchi brings 26 years of financial accounting and senior management experience to the company, including 19 years in the multifamily industry. Prior to joining New Standard Equities, Cyrus served as Director of Accounting/Controller with Kennedy Wilson Multifamily for seven years. Prior to that, Cyrus held accounting positions at Welk Real Estate and RCMI in Southern California.
Mr. Blourtchi is responsible for maintaining all aspects of the accounting records for New Standard Equities' assets and management assignments. He is highly trained in GAAP accounting procedures and professional protocols, including a strict adherence to Sarbanes-Oxley regulatory compliance standards for public investors. Cyrus also provided financial accounting services for organizations outside the real estate sector, including spending two years as a finance officer for the United Nations.
Julie Blank brings 16 years of professional multifamily management and investment consulting experience to her role as Chief Operating Officer. Julie is also a Certified Public Accountant and a CA Licensed Real Estate Agent. She is a reputable leader and strategic thinker with a proactive approach to business and solutions. This allows her to be very effective in developing and executing very detailed asset improvement plans with an eye toward maximizing NOI. Julie has also spearheaded a volume of disposition, acquisition, reposition, and development deals, resulting in profitable execution on the part of ownership. Julie considers herself a professional partner with investors, working through the spirit of harmony to add value to the bottom line.
| 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 138, LLC ("The Company"), which is to subsequently invest in NSE Fremont Manager, LLC ("The Target"), a limited liability company that will indirectly own interest in the Property. New Standard Equities (the "Real Estate Company") has purchased the Property for $60.0 million ($352,941 per unit) and the total project cost is expected to be $66.5 million ($391,344 per unit).
RealtyMogul is to invest into the GP, rather than its usual LP investment. The Real Estate Company plans to implement a value-add and mark-to-market strategy in which it will capitalize $4.0MM ($23,529 per unit) for capital improvements. These improvements will include renovations to all unrenovated and partially renovated units, the addition of washer/dryers to all units that do not currently have them, and common area improvements. Exterior and common area improvements have been budgeted at $820,767 ($4,828 per unit), and are to include new signage, new package lockers, and landscaping. Interior improvements have been budgeted at $2,855,800 ($16,799 per unit), and are to include new countertops, new cabinets, new fixtures, stainless steel appliances, and washer/dryers. There is also a 3.0% contingency and 5.0% construction management fee. Post-reno rents are expected to be $434 above in-place rents. The business plan calls for a five year hold, at which point the Property is expected to be sold at a 5.0% cap rate for $76.7MM ($450,918 per unit).
Below is a summary of the capital improvements budget:
| Common Area/Exterior Improvements | Total | Per Unit |
| Site Improvements | $196,500 | $1,156 |
| Buiding Exteriors | $264,350 | $1,555 |
| Building Improvements/Environmental Remediation | $72,917 | $429 |
| Amenity/Common Area Improvements | $287,000 | $1,688 |
| Total Common Area/Exterior Improvements | $820,767 | $4,828 |
| Interior Unit Improvements | ||
| Unit Interiors1 | $2,128,000 | $12,518 |
| Washer/Dryer Equipment & Installation2 | $727,800 | $4,281 |
| Total Interior Improvements | $2,855,800 | $16,799 |
| Soft Costs | $17,000 | $100 |
| General Conditions | $5,000 | $29 |
| Contingency (3%) | $110,957 | $653 |
| Construction Management Fee (5%) | $190,476 | $1,120 |
| Grand Total | $4,000,000 | $23,529 |
These amounts are subject to change at the discretion of the Real Estate Company
1 Applicable to 152 units
2 Applicable to 76 units
Built in 1969, Casa Serena, f.k.a. Marbaya, (the "Property") is a 170-unit garden-style community. It is located in Fremont, CA, approximately 17 miles north of the San Jose CBD. The Property contains studio (four units, 470 square feet), one-bed-one-bath (110 units, 610 square feet), and two-bed-one-bath (56 units, 835 square feet) floorplans. The current owner infused a total of $6.6 MM since buying the Property in 2004; 99 units have undergone some level of renovation, with 18 units completely renovated. Improvements include vinyl plank flooring, quartz countertops, and stainless steel appliances. Within one mile of the Property is a gym, two drug stores, several parks and retail/dining options, and the Quarry Lakes Regional Recreation Area, which offers swimming, fishing, bicycling, and hiking activities. The assigned elementary, middle, and high school are ranked 7/10, 10/10, and 8/10 respectively by greatschools.com. According to Trulia, the area has the lowest crime relative to the rest of Alameda County.
| Unit Type | # of Units | % of Total | Unit Size (square feet) | In-place Rent | Post-reno Rent |
| Studio | 4 | 2% | 470 | $1,715 | $2,023 |
| 1 Bed, 1 Bath | 110 | 65% | 610 | $1,968 | $2,364 |
| 2 Bed, 1 Bath | 56 | 33% | 835 | $2,306 | $2,715 |
| Total/Averages | 170 | 100% | 681 | $2,073 | $2,472 |
| Camden Village | Creekside Village | Heritage Village | Rexford | Total/Averages | Subject | |
|---|---|---|---|---|---|---|
| Units | 192 | 480 | 192 | 203 | 267 | 170 |
| Year Built | 1966 | 1987 | 1987 | 1980 | 1980 | 1969 |
| Average SF | 852 | 792 | 825 | 1,127 | 899 | 681 |
| Average Rental Rate | $2,655 | $2,601 | $2,679 | $2,730 | $2,666 | $2,472 |
| Average $/SF | $3.12 | $3.28 | $3.25 | $2.42 | $2.97 | $3.63 |
| Distance | 1.7 miles | 1.1 miles | 1.5 miles | 2.0 miles | 1.6 miles |
| The District | Sofi Union City | Mosaic Apartments | 3955 Adams Ave. | Total/Averages | Subject | |
|---|---|---|---|---|---|---|
| Date | Jul '19 | Dec '18 | Dec '17 | Jan '19 | Sep '19 | |
| Units | 24 | 250 | 122 | 10 | 102 | 170 |
| Year Built | 1964 | 1984 | 1970 | 1950 | 1967 | 1969 |
| Purchase Price | $9,600,000 | $91,500,000 | $43,000,000 | $3,200,000 | $36,825,000 | $60,000,000 |
| $/Unit | $400,000 | $366,000 | $352,459 | $320,000 | $359,615 | $352,941 |
| Cap Rate | 5.60% | 4.50% | N/A | 3.74% | 4.61% | 4.55% |
| Distance | 2.2 miles | 3.2 miles | 3.0 miles | 4.3 miles | 3.2 miles |
Sale and lease comps were obtained from CoStar and Axiometrics
Market Overview
Per CoStar, strong fundamentals in the market have triggered a wave of new multifamily construction. New apartments completed so far in the development cycle have been absorbed at a healthy rate. Vacancy rates are still trending near the 10-year historical average, despite more than 2,000 units being delivered over the past 12 months. However, with mounting levels of multifamily development set to reach completion over the next several years, CoStar’s forecast model calls for a moderately rising market vacancy rate with supply growth outpacing absorption.
Per Axiometrics, effective rent increased 1.6% from $2,326 in 1Q19 to $2,363 in 2Q19, and annual effective rent growth was 2.4% in 2018. Annual effective rent growth is forecast to be 2.6% in 2019, and average 2.2% from 2020 to 2024. Annual effective rent growth has averaged 4.8% since 1Q05. The market's annual rent growth rate was above the national average of 2.8% since 1Q05. The market's occupancy rate increased from 96.1% in 1Q19 to 96.4% in 2Q19, and was up from 96.1% a year ago. The market's occupancy rate is expected to be 96.3% in 2019, and average 96.0% from 2020 to 2024. The market's occupancy rate has averaged 96.1% since 1Q05.
Subarket Overview
The submarket is home to the Tesla Motors factory, the last major automaker producing cars in California, which makes it one of the industrial centers of the market. In addition to convenient freeway access, the submarket is serviced by eight BART stations providing residents with a number of accessible commuting options. New development will continue for the next few years as the submarket trails only Downtown Oakland in units under construction in the metro. More than 40% of submarket residents do rent, and a steady need for apartments throughout the metro has led to relatively tight vacancies and steady rent growth in recent years.
Per Axiometrics, effective rent increased 1.7% from $2,405 in 1Q19 to $2,447 in 2Q19. The submarket's annual rent growth rate of 2.8% was above the market average of 2.4% in 2018. Annual effective rent growth is forecast to be 2.5% in 2019, and average 2.0% from 2020 to 2024. The annual effective rent growth has averaged 5.4% per year since 1Q05. The submarket's occupancy rate increased from 96.8% in 1Q19 to 97.0% in 2Q19, and was up from 96.6% a year ago. The submarket's occupancy rate was above the market average of 96.4% in 2Q19. For the forecast period, the submarket's occupancy rate is expected to be 96.7% in 2019 and average 96.5% from 2020 to 2024. The submarket's occupancy rate has averaged 96.7% since 1Q05. Additionally, Yardi forecasts average annual rent growth of 3.2% over the next 10 years.
According to Zillow, Redfin, and Trulia, the median home price in Fremont is above $1MM.
| Sources of Funds | Amount |
|---|---|
| Debt | $49,000,000 |
| Equity | $17,200,000 |
| Prorations | $328,435 |
| Total Sources of Funds | $66,528,435 |
| Uses of Funds | Amount |
| Purchase Price | $60,000,000 |
| Real Estate Company Acquisition Fee | $450,000 |
| Broker Dealer Fee* | $0 |
| Loan Fee | $742,182 |
| CapEx Budget | $4,000,000 |
| Closing, Legal Fees and Due Dilligence | $472,310 |
| Escrows | $547,328 |
| Rate Cap Fee | $33,300 |
| Working Capital | $283,315 |
| Total Uses of Funds | $66,528,435 |
*Rather than being capitalized to the transaction, the North Capital Broker Dealer Fee will be paid by NSE outside of closing
Please note that the Real Estate Company's equity contribution may consist of friends and family equity and equity from funds controlled by the Real Estate Company
Please note that the Real Estate Company will be keeping $60,000 of working capital in the operating account of NSE Fremont Manager, LLC; this amount will be taken pro rata from all contributions to the GP Equity, including that of RealtyMogul 138, LLC
The expected terms of the debt financing are as follows:
- Estimated Proceeds: $49,000,000
- Initial Funding: $45,000,000
- Future Funding: $4,000,000
- Estimated Rate (Floating): One Month Libor plus 2.40%
- Term: 3 years
- Interest Only: 5 years
- Prepayment Penalty: 18 months yield maintenance
- Extension Options: Two (2) one-year extension options (0.0% fee for the first, 0.2% 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 a 10.0% IRR to the Members;
- 87.5% / 12.5% (87.5% to Members / 12.5% to Promote) of excess cash flow to the greater of a 15.0% IRR or 1.6x equity multiple;
- 68.75% / 31.25% (68.75% to Members / 31.25% 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 | $4,343,295 | $4,663,276 | $4,938,601 | $5,276,404 | $5,584,474 |
| Total Operating Expenses | $1,615,876 | $1,661,373 | $1,706,465 | $1,754,391 | $1,802,409 |
| Net Operating Income | $2,727,419 | $3,001,903 | $3,232,136 | $3,522,013 | $3,782,064 |
| Year 0 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|---|
| Distributions to RealtyMogul 138, LLC Investors | ($1,920,000) | $9,108 | $73,552 | $110,393 | $133,101 | $154,677 | $3,021,951 |
| Net Earnings to Investor - Hypothetical $50,000 Investment |
($50,000) | $237 | $1,915 | $2,875 | $3,466 | $4,028 | $78,697 |
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 | $450,000 | Real Estate Company | Capitalized Equity Contribution | 0.75% of the Property purchase price |
| Broker-Dealer Fee | $76,000 | North Capital (1) | Real Estate Company Acquisition Fee | Greater of $50,000 or 4.0% of the equity raised by RealtyMogul 138, LLC |
| Construction Management Fee | 5.0% of costs | Real Estate Company | Capitalized Equity Contribution | |
| Servicing Startup Fee | $150,000 | Third Party Investor | 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 138, LLC | RM Manager, LLC | Distributable Cash | RM Manager, LLC is the Manager of RealtyMogul 138, LLC and a wholly-owned subsidiary of Realty Mogul, Co. (2) |
| Asset Management Fee | 0.5% of Effective Gross Income | Real Estate Company | Distributable Cash | |
| Property Management Fee | 3.0% of Effective Gross Income | Real Estate Company | Distributable Cash | |
| Servicing Fee | $41,280 per year | Third Party Investor | Distributable Cash | 0.3% of capital contribution by Third Party Investor |
(1) North Capital Private Securities Corporation (“NCPS”), a registered broker-dealer who will act as placement agent for interests in the Company will be paid a fee as outlined above. NCPS will pay a referral fee to Mogul Securities, LLC (“MS”), an affiliate of the Manager and RealtyMogul, Co., for referring the transaction pursuant to a referral agreement between NCPS and MS. Certain employees of Realty Mogul, Co., an affiliate of Manager are registered representatives of, and are paid commissions by, NCPS.
(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.