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Confidentiality Agreement
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By clicking the ‘I Agree’ button below:
Completed Equity
Target IRR  16%-18% *
17%
Target Avg. Cash on Cash* 5.6%
Target Equity Multiple* 1.59x
Estimated Hold Period* 3 years
FUNDED 100%
...
View our Risk and Quality Controls.
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
Offered By
Cooper Street Capital
Investment Strategy Value-Add
Investment Type Equity
Estimated First Distribution 12/2020
Minimum Investment 40000
Overview
Value-add acquisition of a multifamily asset with locally-experienced sponsorship and management.
Basis

 The Property is being acquired at a basis of $119,444 per unit, which compares favorably to recent comparables trading upwards of $160,000 per unit.

 

Value-Add

Per CoStar, current rents present a 21% discount to submarket averages and appear to offer a compelling mark-to-market opportunity as evidenced by the competitive set.  

Location

 The Property is well-located, situated 13 miles East of the Portland CBD, and within three miles of a Boeing factory (1,600 employees), an Amazon fulfillment center (1,500 employees), a 100-bed medical center, as well as downtown Gresham. The Property is also across the street from the MAX train station, offering affordable and convenient access throughout the Portland MSA. 

Property at a glance
Year Built 1974
# of Units 180
# of Buildings 21
Current Occupancy 92.5% as of September 2019
Parking Ratio 1.36 per unit
Acquisition Price $21,500,000
Amenities Resort-style pool, laundry facilities and a playground.
Investment Highlights
The Real Estate Company is purchasing the Property for $119,444 per unit, which represents a going-in cap rate of 5.46% on estimated year one net operating income
The Real Estate Company has budgeted $8,341 per unit for interior unit renovations, and $754,799 for exterior improvements
The exit strategy is to sell the Property in three years at an expected cap rate of 5.50%
Management
Cumulative Distributions

Cooper Street Capital

Cooper Street Capital (“CSC”) provides investment access to the commercial real estate space for retail, family offices, and institutional investors. As a private equity real estate firm, CSC applies targeted acquisition strategies and active asset management to provide consistent risk-adjusted returns for investors in value-add and core-plus multifamily real estate opportunities. CSC aims to capture upside potential for its partners through both physical renovations and/or major operational improvements.

Since the firm's founding in 2011, CSC’s team has stayed committed to sourcing commercial real estate investment opportunities from across the United States that have demonstrated strong financial performance in the past or that exhibit the potential for gains in the future. In either case, potential acquisitions must be supported by strong market fundamentals.

CSC aims to minimize downside risk for its partners through “deal-by-deal” and targeted acquisitions. The firm seeks out existing multifamily real estate assets that can provide for continued cash flow and where value can be built upon through the process of driving up an asset’s yearly Net Operating Income (NOI). The firm is headquartered in Aspen, Colorado. 

https://www.cooperstreetcapital.com/
  • Brandon Cooper
    Managing Partner
  • Matt Cooper
    Director of Acquisitions
  • Robert Fay
    Director of Investor Relations
Brandon Cooper
Managing Partner

Brandon has spearheaded the acquisition of over $1.5 billion worth of real estate assets in the last twelve years. Prior to founding Cooper Street Capital, Brandon was the co-founder of two other real estate investment firms, including Maroon Peak Partners and I-95 Ventures. Before breaking into the real estate sector, Brandon worked as a financial advisor at Merrill Lynch and previous to that as a policy analyst at The Center for Middle East Peace in Washington, D.C. He graduated Magna Cum Laude from Bates College where he led the Bobcat’s Division I cross country ski team. 

Matt Cooper
Director of Acquisitions

Prior to joining Cooper Street Capital, Matt spent several years with the US Delegation to the World Trade Organization (WTO) and the Organization for Economic Co-operation and Development (OECD) researching topics of international trade and the economics of corporate governance frameworks. Since joining, he has leveraged his analytical background to help CSC acquire over $1 billion of commercial real estate. He also holds a Bachelor of Arts in Political Science and French Language from the University of Virginia and a Masters of Science in International Political Economy from the London School of Economics.

Robert Fay
Director of Investor Relations

Over the past seven years, Robert has capitalized, acquired, and repositioned over $1.25 billion worth of multifamily real estate raising and managing over $450 million in equity from family offices and high-net-worth individuals. Prior to Robert’s real estate ventures, he worked in equity research assisting in the valuation of publicly traded stocks with market caps between $30-$200 billion and for Bank of America Merrill Lynch. At Cooper Street Capital, Robert is in charge of all things Investor Relations where he works closely with the CEO and Director of Acquisition on capital events for the company and its investing partners. He graduated from the University of Colorado at Boulder with a dual degree in Economics and Psychology.

Track Record

Property Name City, State Asset Type Status Acq Date Units Purchase Price Sales Price or Estimated Value IRR EMx
Highland Park Albuquerque, NM Multifamily SOLD 2/1/2013 80 $5,125,000 $6,400,000 18.40% N/A
Maroon Peak Netherwood  Albuquerque, NM Multifamily SOLD 8/1/2013 220 $13,975,000 $18,500,000 12.90% N/A
Citadel Apartments Albuquerque, NM Multifamily SOLD 3/1/2014 233 $9,719,000 $14,792,000 33.40% N/A
I-95 Portfolio Portland, ME Multifamily SOLD 7/1/2014 54 $6,550,000 $9,500,000 18.00% N/A
Bowdoin Realty Portfolio Portland, ME Multifamily SOLD 12/1/2014 41 $5,630,000 $9,900,000 22.30% N/A
94-96 Winter Portland, ME Multifamily SOLD 2/1/2015 10 $900,000 $1,400,000 54.50% N/A
Bricklight Capital Portfolio Portland, ME Multifamily SOLD 7/1/2015 45 $4,900,000 $7,100,000 20.50% N/A
East End Apartments Portland, ME Multifamily SOLD 9/1/2015 37 $4,300,000 $5,800,000 24.10% N/A
Bricklight II  Portland, ME Multifamily SOLD 9/1/2015 24 $2,730,000 $3,250,000 25.20% N/A
773 Congress  Portland, ME Multifamily SOLD 9/1/2015 5 $390,000 $420,000 29.60% N/A
59 Bramhall  Portland, ME Multifamily SOLD 10/1/2015 9 $625,000 $750,000 48.00% N/A
Bear Creek Apartments  Albuquerque, NM Multifamily SOLD 6/1/2016 84 $2,820,000 $3,400,000 30.50% N/A
Cedar 31 Apartments  Austin, TX Multifamily OWNED 4/9/2017 14 $2,310,000 $3,100,000 N/A N/A
Bannister Apartments  Austin, TX Multifamily SOLD 5/1/2017 34 $2,485,000 $3,300,000 18.30% N/A
1515 Clermont  Denver, CO Multifamily SOLD 7/1/2017 36 $5,500,000 $7,150,000 14.00% N/A
The Goose Nest Apartments Portland, OR Multifamily SOLD 8/1/2017 22 $3,075,000 $4,260,000 20.10% N/A
Villas de la Luz  Austin, TX Multifamily SOLD 1/1/2018 240 $20,500,000 $25,225,000 22.80% N/A
Courtyard and Arbors Apartments Albuquerque, NM Multifamily SOLD 2/1/2018 529 $31,100,000 $38,000,000 18.30% N/A
English Aire and Lafayette Landing Austin, TX Multifamily SOLD 8/1/2018 397 $38,750,000 $45,000,000 50.70% N/A
Sage Canyon  Albuquerque, NM Multifamily SOLD 8/24/2018 105 $8,790,000 $10,260,000 38.15% 1.54x
CSC North Austin Portfolio  Austin, TX Multifamily SOLD 1/1/2019 523 $56,000,000 $62,350,000 50.70% N/A
Gallery Park and Westfal  Portland, OR Multifamily OWNED 1/18/2019 93 $18,200,000 $2,600,000 N/A N/A
Mueller Rose Austin, TX Multifamily SOLD 3/15/2019 181 $18,825,000 $30,000,000 25.10% 1.93x
CSC Spanish Trails Austin, TX Multifamily SOLD 3/1/2019 40 $6,238,000 $7,600,000 19.30% N/A
1919 Portsmouth, 1903 Portsmouth, 420 W. Alabama  Houston, TX Multifamily OWNED 4/26/2019 75 $13,000,000 $14,000,000 N/A N/A
Rock Creek Albuquerque, NM Multifamily SOLD 6/28/2019 121 $6,875,000 $8,000,000 39.10% 1.48x
Pyramid Portfolio Albuquerque, NM Multifamily SOLD 6/28/2019 34 $1,905,000 $2,300,000 25.20% 1.25x
Bannister Place Austin, TX Multifamily SOLD 7/11/2019 20 $3,300,000 $4,000,000 13.21% 1.40x
The French Quarter Albuquerque, NM Multifamily SOLD 7/2/2019 84 $3,400,000 $4,480,000 16.45% 1.33x
Lexington Realty Capital Albuquerque, NM Multifamily SOLD 8/9/2019 156 $7,400,000 $11,750,000 142.16% 2.43x
The Zeno Apartments Portland, OR Multifamily OWNED 8/27/2019 22 $4,250,000 $5,000,000 N/A N/A
Cascade Apartments Austin, TX Multifamily SOLD 9/19/2019 198 $31,500,000 $38,000,000 13.90% 1.41x
Villas Esperanza Albuquerque, NM Multifamily SOLD 9/20/2019 188 $12,250,000 $19,000,000 35.60% 2.28x
Miller Square  Austin, TX Multifamily SOLD 9/1/2019 51 $8,640,000 $10,800,000 13.23% 1.42x
Chestnut Park San Antonio, TX Multifamily SOLD 12/3/2019 145 $12,000,000 $18,500,000 30.20% 1.89x
Arbors and Courtyards Albuquerque, NM Multifamily SOLD 12/23/2019 529 $38,000,000 $66,500,000 61.80% 3.04x
Barberry Village Portland, OR Multifamily SOLD 1/10/2020 180 $21,500,000 $34,000,000 36.59% 2.05x
Arcadian  Austin, TX Multifamily SOLD 2/14/2020 83 $11,350,000 $13,400,000 29.27% 1.80x
Amber Hill San Antonio, TX Multifamily SOLD 3/18/2020 244 $16,750,000 $20,700,000 52.90% 1.57x
Blue Vine Apartments San Antonio, TX Multifamily SOLD 4/27/2020 111 $10,050,000 $14,500,000 17.54% 1.39x
The Lexington Place Albuquerque, NM Multifamily SOLD 8/13/2020 156 $11,750,000 $15,752,000 35.57% 1.68x
River Park Apartments New Braunfels, TX Multifamily SOLD 9/2/2020 100 $7,800,000 $11,195,000 64.80% 1.67x
Luna Verde El Paso, TX Multifamily OWNED 9/9/2020 297 $13,500,000 $23,000,000 N/A N/A
Paso Oeste El Paso, TX Multifamily SOLD 9/9/2020 244 $15,500,000 $21,025,000 29.40% N/A
Vista Grande Albuquerque, NM Multifamily SOLD 10/19/2020 168 $11,000,000 $19,200,000 130.08% 3.80x
Mountaindale El Paso, TX Multifamily SOLD 10/1/2020 88 $5,100,000 $7,550,000 23.83% 1.34x
Creeks Edge Apartments Austin, TX Multifamily SOLD 1/4/2021 200 $23,000,000 $33,250,000 21.97% 1.32x
Netherwood Village Albuquerque, NM Multifamily SOLD 1/29/2021 220 $18,500,000 $31,500,000 366.94% 4.59x
Amber Hill - 2 San Antonio, TX Multifamily SOLD 5/25/2021 244 $20,700,000 $27,000,000 69.30% 1.73x
Raintree Village El Paso, TX Multifamily SOLD 4/15/2021 275 $15,750,000 $20,265,000 22.43% 1.44x
Evergreen Apartments Santa Fe, NM Multifamily OWNED 5/3/2021 70 $6,300,000 $8,500,000 N/A N/A
Alexis Apartments Las Cruces, NM Multifamily SOLD 6/2/2021 170 $13,235,000 $25,000,000 299.90% 4.25x
The Oasis, Speedway 38, Barton Ridge  Austin, TX Multifamily OWNED 7/21/2021 121 $21,650,000 $21,650,000 N/A N/A
Velo Apartments Spokane, WA Multifamily SOLD 6/16/2021 58 $7,900,000 $8,400,000 30.16% 1.44x
Orlo  Portland, OR Multifamily OWNED 8/6/2021 38 $5,000,000 $5,000,000 N/A N/A
Regal Ridge Spokane, WA Multifamily SOLD 8/31/2021 97 $18,250,000 $21,500,000 8.30% 1.16x
1865 Union Street San Francisco, CA Multifamily OWNED 9/30/2021 5 $4,100,000 $4,100,000 N/A N/A
The Rosewood  Spokane, WA Multifamily OWNED 12/15/2021 77 $10,500,000 $13,230,000 N/A N/A
Paso Norte, Santa Rosa, Rosetta El Paso, TX Multifamily OWNED 12/3/2021 288 $19,475,000 $24,000,000 N/A N/A
The Alexandra Lexington, KY Multifamily OWNED 2/15/2022 204 $14,000,000 $14,000,000 N/A N/A
The Lennox Spokane, WA Multifamily OWNED 3/7/2022 51 $6,600,000 $6,600,000 N/A N/A
Trinity Place/Casa Barranca El Paso, TX Multifamily OWNED 6/1/2022 429 $32,400,000 $32,400,000 N/A N/A
The Caterina/Paso Este  El Paso, TX Multifamily OWNED 6/1/2022 131 $8,825,000 $8,825,000 N/A N/A
Arabella San Antonio, TX Multifamily OWNED 7/12/2022 144 $12,700,000 $12,700,000 N/A N/A
Crescent Ridge Cincinnati, OH Multifamily OWNED 8/1/2022 154 $17,300,000 $17,300,000 N/A N/A
White Willow  Portland, OR Multifamily OWNED 9/21/2022 90 $11,700,000 $11,700,000 N/A N/A
Jackson / Morrison  Spokane, WA Multifamily OWNED 10/14/2022 111 $16,550,000 $16,550,000 N/A N/A
Elm Creek San Antonio, TX Multifamily OWNED 12/13/2022 81 $9,350,000 $9,350,000 N/A N/A
Casa Loma  Santa Fe, NM Multifamily OWNED 1/13/2023 132 $26,500,000 $26,500,000 N/A N/A
Dawn Run Lexington, KY Multifamily OWNED 4/27/2023 218 $9,100,000 $9,100,000 N/A N/A
The Izzy Oklahoma City, OK Multifamily OWNED 3/21/2023 328 $32,250,000 $32,250,000 N/A N/A
Villas on 50th Oklahoma City, OK Multifamily OWNED 5/8/2023 114 $7,300,000 $7,300,000 N/A N/A
Totals/Weighted Average         10,400 $925,192,000 $1,150,679,000    

The above bios and track record were provided by Cooper Street Capital and have not been independently verified by RealtyMogul.

In this transaction, RealtyMogul investors are to invest in Realty Mogul 143, LLC ("The Company"), which is to subsequently invest in CSC Barberry Village Realty Capital, LLC ("The Target"), a limited liability company that will hold title to the Property. Cooper Street Capital (the "Real Estate Company") is under contract to purchase the Property for approximately $21.5 million ($119,444 per unit) and the total project cost is expected to be approximately $25.1 million ($139,333 per unit).

The Real Estate Company plans to implement a value-add strategy. This strategy assumes a $2.4 million capital improvement budget tailored to address interior and exterior renovations over three years, resulting in a target renovation premium of $196 per unit (~20% above in-place). 

The exterior renovations, budgeted at $754,799, include adding a clubhouse, pool upgrades, landscaping, exterior painting, balcony updates and a signage package. The Real Estate Company plans to spend approximately $1.3 million ($8,341 per unit) on interior renovations for 160 units, including flooring upgrades, cabinet replacements, new black appliances, washer-dryers, bathroom renovations and painting. This budget also includes a 10.0% contingency and a 5.0% construction management fee. The business plan calls for a three-year hold, at which point the Property is expected to sell at a 5.5% cap rate for $30.2 million ($167,966 per unit).

Capital Expenditure Budget

Exterior Renovations    
Gates/Fencing $53,875  
Exterior Lighting $20,000  
Private Patios Enclosure (Ground Floor Units) $167,959  
Club House $40,000  
Landscaping $40,000  
Balcony Updates $30,000  
Signage Package $15,000  
Paint $150,000  
Siding $35,000  
Pool Upgrades $15,000  
Seal Coat/Striping $16,965  
Energy Efficient Windows $67,500  
Gazebo 12x16 Double Roof Aluminum $10,000  
Covered Grills $3,500  
Storage Space $40,000  
Miscellaneous Repairs/Green Updates $50,000  
Exterior Subtotal $754,799  
     
Interior Renovations   Per Unit
GE 24" Dishwasher $46,280 $356
Broan 30" White Range Hood $6,889 $53
GE 30" Electric Stove $74,945 $577
GE 15.5 Cubic Feet Top Mount Fridge $99,515 $766
Bathtub Resurface $27,840 $174
Bathroom Hardware Package $40,000 $250
Flooring $182,000 $1,400
Paint & Drywall Rehabilitation $24,000 $150
Kitchen Cabinet Paint/Hardware $20,000 $125
Washer/Dryer Hook-Ups Plumbing $562,230 $6,247
Washer/Dryer $135,045 $1,501
WAC Lighting Link 3 Light 27" Wide LED Bath $19,120 $120
Satco Blink Plus 15" W White 4000K LED $16,640 $104
Labor $80,000 $500
Interior Subtotal $1,334,504 $8,341
     
Construction Manager (5%) $100,465  
Contingency Reserve (10%) $200,930  
Marketing  $15,000  
     
Total Estimated Budget $2,405,698  

 

Property Information

Barberry Village is a class-C garden-style multifamily property located in the Gresham submarket of Portland, OR. Built in 1974, the Property is comprised of one- (68 units) two- (104 unit) and three- (8 units) bedroom floor plans combining to 180 units. Amenities include a resort-style pool, community laundry facilities, and a playground. The Property is 92.5% occupied with in-place rents of $958, which reflects a 21% discount to submarket averages, per CoStar.

The Property is located 13 miles outside of Portland CBD, proximate to I-84 and I-205. Within three miles of the Property are a Boeing factory, an Amazon Fulfillment Center, Mt. Hood Medical Center, and downtown Gresham.

Unit Mix

 

Unit Type # of Units % of Total Unit Size (square feet) In-place Rent Post-reno Rent
1 Bed, 1 Bath 68 38% 610 $886 $1,030
2 Bed, 1 Bath 104 58% 826 $992 $1,220
3 Bed, 1 Bath 18 4% 917 $1,129 $1,350
Total/Averages 180 100% 748 $958 $1,154
Comparables

Lease Comparables - Post Renovation

 
Townfair
Village Court
Fieldstone 
Rockwood Station
Pine Square
Averages
Subject
Submarket Gresham Gresham Gresham Gresham Gresham   Gresham
Occupancy 97% 94% 94% 94% 97%   93%
Units 265 84 154 195 143 168 180
Year Built 1991 1950 1997 1990 1974 1980 1974
# Units (1x1) 132 23 42 78 52 65 68
Rent (1x1) $1,214 $1,115 $1,381 $1,225 $1,149 $1,217 $1,030
SF (1x1) 730 500 774 717 735 691 610
Rent/SF (1x1) $1.66 $2.23 $1.74 $1.71 $1.56 $1.78 $1.69
# Units (2x1) 67 18 49 117 88 68 104
Rent (2x1) $1,306 $1,262 $1,410 $1,439 $1,310 $1,345 $1,220
SF (2x1) 922 915 957 1010 875 936 826
Rent/SF (2x1) $1.42 $1.38 $1.45 $1.42 $1.50 $1.43 $1.48
# Units (3x1)     14     14 8
Rent (3x1)     $1,798     $1,798 $1,350
SF (3x1)     1,077     1,077 917
Rent/SF (3x1)     $1.67     $1.67 $1.47
Distance from Subject 1.5 miles 0.7 miles 1.3 miles 0.1 miles 0.6 miles 0.8 miles N/A

Sales Comparables

 
The Binford
Mountain High
Halsey Station
Glendoveer Estates
Averages
Subject
Date Jul-18 Jan-18 Aug-19 Under Contract    
Year Built 1949 1995 1990 1973   1974
# of Units 182 112 124 79 124 180
Average SF/Unit 1,004 1,170 997 896 1,017 748
Purchase Price $30,729,309 $17,050,000 $20,800,000 $10,500,000 $19,769,827 $21,500,000
$/Unit $168,842 $152,232 $167,742 $132,911 $155,432 $119,444
Distance from Subject 6.1 miles  3.4 miles 2.2 miles 1.7 miles 3.3 miles N/A

Sale and Lease Comparable information provided by CoStar, Axiometrics, and the Real Estate Company.

 

Location Information

Market Overview 

Per Costar, with substantial inventory but limited development, the Gresham/Far East submarket boasts below-average rents and vacancies. Tenants often come here after getting priced out of more expensive urban core areas. The submarket was a hotbed of foreclosures during the housing crisis. Many residents were forced to rent apartments in the area, which has contributed to strong fundamentals. Cumulative rent growth has been rapid, but income restraints may make it difficult to sustain such an accelerated pace of growth.

Until recently, the submarket remained quiet during Portland’s building boom. No new inventory delivered for six consecutive years, but a steady trickle of units began coming on line in 2017. Though these smaller projects have not significantly affected fundamentals, several larger communities are now beginning to come on line. Benefiting from low prices and continued interest from a mix of local and institutional players, submarket sales volume has exceeded $100 million for each of the past five years.

Per Axiometrics, effective rent in the Portland MSA increased 1.7% from $1,401 in 2Q19 to $1,434 in 3Q19, which resulted in an annual growth rate of 2.9%. Annual effective rent growth has averaged 2.7% since 2Q96. The market's annual rent growth rate was below the national average of 3.0%. Out of the 150 markets ranked by RealPage nationally, Portland-Vancouver-Hillsboro, OR-WA was 32nd for quarterly effective rent growth, and 79th for annual effective rent growth for 3Q19.

The market's occupancy rate increased from 96.1% in 2Q19 to 96.3% in 3Q19, and was up from 96.2% a year ago. The market's occupancy rate was below the national average of 96.4% in 3Q19. The market's occupancy rate has averaged 95.0% since 2Q96.

Nearby Development - Rockwood Rising

The City of Gresham Redevelopment Commission is developing over 200,000 square feet of new commercial, office and retail space, including over 100 new apartment homes 0.1 miles from the Property. Rockwood Rising is expected to be a bustling center featuring a market hall, a public plaza, and “Innovation Hub” offering job hunting assistance, technical training, and space for small business owners. The project is expected to deliver in 2021.

Demographic Information

  1 Mile 3 Miles 5 Miles
Population (2019) 24,543 141,786 285,818
Population (2024) 25,695 148,519 299,957
Average Age 35 37 37
Median Household Income $44,252 $50,253 $54,060
Average Household Size 2.9 2.7 2.7
Median Home Value $226,697 $254,503 $269,102
Population Growth (2019-2024) 4.69% 4.75% 4.95%

Demographic information above was obtained from CoStar.

Gallery
current
current
current
current
current
Cap Stack
Sources & Uses
Total Capitalization
Sources of Funds Amount
Debt $17,880,000
Equity $7,200,000
Total Sources of Funds $25,080,000
Uses of Funds Amount
Purchase Price $21,500,000
CapEx Reserve $2,405,698
Real Estate Company Acquisition Fee $215,000
Broker Dealer Fee $160,000
Lender Origination Fee $178,800
Taxes and Insurance Reserve $99,879
Working Capital $50,000
Other Closing and Pursuit Costs $470,623
Total Uses of Funds $25,080,000

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.e

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Estimated Proceeds: $17,880,000
  • Estimated Rate (Floating): 30-Day LIBOR + 275 basis points
  • Amortization: None
  • Interest Only: Full term 
  • Term: 2 years
  • Extension Options: Two (2) one-year options to extend (0.25% fee for each)
  • Exit Fee: 1.0%

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.

Distributions

Barberry Village, LLC intends to make distributions to Realty Mogul 143, LLC as follows:

  1. To the Members, pari passu, all excess cash flows and appreciation to a 10.0% IRR to the Members,
  2. 70.0 / 30.0 (70.0% to the Members / 30.0% to Promote) of excess cash flows 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).

Realty Mogul 143, LLC will distribute 100% of its share of excess cash flow (after expenses and fees) to the members of Realty Mogul 143, LLC (the RealtyMogul.com investors). 

Distributions are expected to start in December 2020 and are projected to continue on a quarterly basis thereafter. These distributions are at the discretion of the Sponsor, who may decide to delay distributions for any reason, including maintenance or capital reserves. 

Cash Flow Summary
  Year 1 Year 2 Year 3
Effective Gross Revenue $2,163,684 $2,349,551 $2,568,888
Total Operating Expenses $989,438 $1,012,425 $1,036,764
Net Operating Income $1,174,246 $1,337,126 $1,532,124
RealtyMogul 143, LLC Cash Flows
  Year 0 2020 2021 2022
Distributions to RealtyMogul 143, LLC Investors ($4,040,000) $149,239 $238,695 $6,028,176
Net Earnings to Investor
- Hypothetical $50,000 Investment
($50,000) $1,847 $2,954 $74,606
 
Fees

Certain fees and compensation will be paid over the life of the transaction. The following fees and compensation will be paid:

One-Time Fees
Type of Fee Amount of Fee Received By Paid From Notes
Acquisition Fee $215,000 Real Estate Company  Capitalized Equity Contribution 1.0% of the Property purchase price
Broker-Dealer Fee $160,000 North Capital (1) Capitalized Equity Contribution Greater of $50,000 or 4.0% of the equity raised by RealtyMogul 143, LLC
Construction Management Fee 5.0% of Capital Expenditure Budget Real Estate Company Capitalized Equity Contribution  
Recurring Fees
Type of Fee Amount of Fee Received By Paid From Notes
Management and Administrative Fee 1.0% of amount invested in RealtyMogul 143, LLC RM Manager, LLC Distributable Cash RM Manager, LLC is the Manager of RealtyMogul 143, 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) 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.

Forward-Looking Statements

Investors should not rely on any forward-looking statements made regarding this opportunity, because such statements are inherently uncertain and involve risks. We use words such as “anticipated”, “projected”, “forecasted”, “estimated”, “prospective”, “believes”, “expects”, “plans”, “future”, “intends”, “should”, “can”, “could”, “might”, “potential”, “continue”, “may”, “will” and similar expressions to identify these forward-looking statements.


Non-Transferability of Securities

The transferability of membership interests in The Company are restricted both by the operating agreement for that entity and by U.S. federal and state securities laws. In general, investors will not be able to sell or transfer their interests. There is also no public market for the investment interests and none is expected to be available in the future. Moreover, the estimated investment holding period described herein is only a projection, and there can be no assurance when or if an investment may be liquidated. Persons should not invest if they require any of their investment to be liquid. This is particularly important for persons of retirement age, who should plan carefully to assure that their assets last throughout retirement.


Escrow Contingency

All funds from investors will be held in a non-interest-bearing escrow account with Broker-Dealer as escrow agent for the benefit of the investors in accordance with Rule 15c2-4 under the Exchange Act. All investor funds will be transmitted directly by wire or electronic funds transfer via ACH to the escrow account maintained by the escrow agent per the instructions in the Subscription Agreement. Upon certification by Broker-Dealer and acceptance by the Company that all contingencies have been met, the investor’s funds will be promptly transmitted to the Company. If the contingencies fail to be satisfied during the offering period, we will instruct the Broker-Dealer to return all funds to the investors without interest, deduction, or setoff, and all of the obligations of the investor hereunder shall terminate.


Oregon Rent-Control Law (Senate Bill 608)

Oregon's new rent-control law passed in February 2019 may reduce Property revenues as it caps rent increases over a 12-month period to seven percent (7%) plus inflation throughout the state (based on the Consumer Price Index for Western states), which for the remainder of 2019 amounts to a rent increase cap of approximately 10.3 percent (10.3%).


Apartment Complex - Competition

Competition in the Property’s local market area is significant and may affect the Property’s occupancy levels, rental rates and operating expenses. The Property will compete with other residential alternatives to attract tenants, including but not limited to other apartment units that are currently available for rent, new apartments that are built and condominiums/houses that are for rent or sale. If development of apartment complexes by other operators were to increase, due to increases in availability of funds for investment or other reasons, then competition with the Property could intensify. If the Property is not able to successfully compete with the competitive residential alternatives in the local or regional area this could adversely affect the ability of Target Entity to sell the Property, rent its units as necessary to maintain occupancy, and/or to increase or maintain unit rental rates.


Finance Term

The loan being used to acquire the Property is expected to have an initial two (2) year term plus two one (1) year extensions. However, the Sponsor Entity anticipates the Investment Period to be approximately three (3) years. The Investment Period length potentially creates capital markets risk in the event that market conditions deteriorate over the next two (2) years impacting the Sponsor’s ability to sell the Property or obtain replacement financing. There can be no assurance that the Property would qualify for a loan extension or be refinanced after the acquisition or on the rate and terms anticipated. Any delays or adverse effects of a lack of suitable refinancing options could adversely affect the Property’s financial results or business operations and thus the value of the Company’s investment.


Interest-Only Loan Period

The loan being used to acquire the Property is expected to have an interest-only period during the first two (2) years of the loan term, which means that there will be no reduction in the principal balance during that interest-only period.


The above is not intended to be a full discussion of all the risks of this investment. Please see the Risk Factors in the Issuer Document Package for a discussion of additional risks. The above presentation is based upon information supplied by the Real Estate Company and 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.

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