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 in the area, having owned and operated nine properties (1,508 units) within 25 miles of the Property. Given that it is vertically integrated, the Real Estate Company has unique insight into proforma rents and expenses.
According to Axiometrics, the submarket has enjoyed average annual rent growth of 6.4% over the past five years, and 4.5% effective rent growth is expected over the next five years. Over the same period, CoStar expects population growth of 5.9% within three miles of the Property.
With proforma rents 14.3% below those of comps on a per square foot basis, RealtyMogul feels that there is attractive renovation premium potential and room to exceed proforma returns. Additionally, the Property is already exceeding proforma rents on select units.
Titan Capital Investments
Based in Atlanta, Titan Capital Investments ("The Real Estate Company") is a multifamily real estate investment firm with an exclusive focus on value-add apartment transactions in the Southeast United States. Titan's investment strategy is to improve assets through renovations, operational efficiencies, and rebranding. Titan has owned a portfolio consisting of 2,374 units (with a current market value of over $213 million) in Georgia and Tennessee. Nine of the Real Estate Company's properties (1,508 units) are within 25 miles of the Property.
https://www.titancapitalre.com/about-titan-capital-
Joe BeasleyInvestment Strategy
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Brian KerrAsset Management
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Amy SaundersPrincipal
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Brian SuttonKey Principal
| Property | Location | Acquisition Date | Units | Purchase Price | Sale Price / Market Value |
|---|---|---|---|---|---|
| Stonegate Townhomes | Riverdale, GA | Jul-14 | 114 | $1,950,000 | $7,500,000 |
| Decatur Gardens Apartments | Decatur, GA | May-15 | 148 | $1,600,000 | $8,000,000 |
| Wyndham Hill Apartments | Forest Park, GA | Jun-15 | 112 | $2,676,000 | $6,550,000 |
| Delta Victory Lake Apartments | Forest Park, GA | Nov-15 | 104 | $2,350,000 | $5,200,000 |
| Veracruz Apartments | Forest Park, GA | Dec-15 | 156 | $4,192,000 | $9,400,000 |
| Park Walk Apartments | College Park, GA | Jun-17 | 124 | $7,050,000 | $10,540,000 |
| Brentwood Apartments | Decatur, GA | Oct-17 | 156 | $9,230,000 | $18,500,000 |
| Glenn Cove Apartments | Gainesville, GA | Oct-17 | 132 | $7,062,000 | $10,600,000 |
| Reserve at Stockbridge Apartments | Stockbridge, GA | Oct-17 | 88 | $6,700,000 | $8,360,000 |
| Parc at 1875 Apartments | College Park, GA | Jun-18 | 352 | $30,000,000 | $45,000,000 |
| Wildcreek Apartments | Clarkston, GA | Oct-18 | 242 | $22,350,000 | $30,250,000 |
| South of Maple Apartments | Carrolton, GA | Nov-18 | 208 | $12,300,000 | $12,300,000 |
| Meridian at Hamilton Place | Chattanooga, TN | Jul-19 | 238 | $22,500,000 | $22,500,000 |
| Evergreen at Hickory Valley | Chattanooga, TN | Aug-19 | 200 | $18,500,000 | $18,500,000 |
| Total | 2,374 | $148,460,000 | $213,200,000 | ||
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 142, LLC ("The Company"), which is to subsequently invest in Titan Liberty Borrower, LLC ("The Target"), a limited liability company that will indirectly own interest in the Property. Titan Capital Investments (the "Real Estate Company") is under contract to purchase the Property for $23.5 million ($129,834 per unit) and the total project cost is expected to be $25.8 million ($142,696 per unit).
The Real Estate Company plans to implement a value-add, mark-to-market, and expense saving strategy. It has budgeted $1,049,950 for renovations (~$5,801 per unit). $417,300 ($4,850 per unit) will be spent on the 90 units that are partially renovated; upgrades are to include faux stainless steel appliances, tile backsplash, two-panel doors, resurfaced bathtubs, and interior paint. $43,875 ($8,775 per unit) will be spent on the five classic units; upgrades are to include vinyl plank flooring, faux stainless steel appliances, new countertops, tile backsplash, two-panel doors, interior paint, and new cabinets. $493,325 ($2,726 per unit) will be spent on deferred maintenance and amenity upgrades including roof repairs, exterior accent paint, a new fitness center, HVAC condensing unit replacements, new property signage, and pool area enhancements. Washer/dryers will be added to the 71 units that do not yet contain them. Upon completion, the Real Estate Company is anticipating average rental increases of $58 per unit. The Property is already achieving rents close to or above proforma for each unit type. The highest one-bedrooms currently being rented are at $919 (7 units), while proforma is $955. The highest two-bedrooms are currently being rented for $1,199 (12 units), while proforma is $1,158. The highest three-bedrooms currently being rented are at $1,449 (2 units), while proforma is $1,380. The business plan calls for a three-year hold, at which point the Property is to be sold at a 5.75% exit cap for $28.8 million ($164,458 per unit).
Below is a summary of the capital improvements budget:
| Common Area/Exterior Improvements | Total | Per Unit |
| Deferred Maintenance | $393,325 | $2,173 |
| Amenity Upgrades | $100,000 | $552 |
| Total Common Area/Exterior Improvements | $493,325 | $2,726 |
| Interior Unit Improvements | ||
| New Cabinet Doors (5 Units) | $7,500 | $1,500 |
| Cabinet Hardware (5 Units) | $750 | $150 |
| New Countertops (5 Units) | $2,000 | $400 |
| Tile Backsplash (95 Units) | $30,875 | $325 |
| Faux Stainless-Steel Appliances (95 Units) | $161,500 | $1,700 |
| Vinyl Plank Flooring (5 Units) | $6,500 | $1,300 |
| Door Hardware (95 Units) | $16,625 | $175 |
| Lighting Fixtures (5 Units) | $1,875 | $375 |
| Plumbing Fixtures (5 Units) | $1,000 | $200 |
| Resurface Bathtubs (95 Units) | $21,375 | $225 |
| Paint Unit (95 Units) | $35,625 | $375 |
| Washer / Dryer Sets (71 Units) | $56,800 | $800 |
| Total Interior Improvements | $461,175 | |
| Contingency (10%) | $95,450 | $527 |
| Grand Total | $1,049,950 | $5,801 |
These amounts are subject to change at the discretion of the Real Estate Company
Built in 1969 and renovated in 2015, Liberty Pointe (the "Property") is a 181-unit garden-style apartment community located in Marietta, GA, approximately 14 miles north of Downtown Atlanta. The Property contains one-bedrooms (28 units, 850 square feet), two-bedrooms (105 units, 1,250 square feet), and three-bedrooms (48 units, 1,450 square feet). The current owner has infused $4.7 million (~$26k per unit) in capital expenditures. Improvements have included new roofs, landscaping, a remodeled clubhouse, new siding and exterior paint, a new playground, new signage, and varying degrees of interior improvements to the majority of the units. These interior improvements include new cherry cabinets, new black appliances, tile backsplash, faux-wood flooring, and new lighting and hardware. On average, renovated units are currently achieving a $27 premium over their classic counterparts; however, the Real Estate Company feels that there is a substantial mark-to-market opportunity, even on the renovated units, which is supported by nearby comparables and the highest rents at the Property. The Property includes a sport court, swimming pool, pet park, and playground. Within one mile of the Property is Life University (2,700 students), Kennesaw State University (5,200 students), the Atlanta FC training facility and headquarters, and an array of dining and retail options. There is also an Air Force Reserve Base nearby; however, fewer than 5% of the tenants are students and fewer than 5% are Military. According to Trulia, the area has the lowest crime relative to the rest of Cobb county.
In-Place/Stabilized Unit Mix:
| Unit Type | # of Units | % of Total | Unit Size (square feet) | In-Place Rent | Post-Reno Rent |
| 1 Bed, 1 Bath | 28 | 15% | 850 | $880 | $955 |
| 2 Bed, 1.5 Bath Townhome | 105 | 58% | 1,250 | $1,106 | $1,158 |
| 3 Bed, 2.5 Bath Townhome | 48 | 27% | 1,450 | $1,317 | $1,380 |
| Total/Averages | 181 | 100% | 1,241 | $1,127 | $1,185 |
*All rents are net effective
| The Crossings | Augusta Commons | Lantern Ridge | The Hills at East Cobb | Averages | Subject | |
|---|---|---|---|---|---|---|
| Units | 380 | 166 | 150 | 268 | 241 | 181 |
| Year Built | 1983 | 1988 | 1972 | 1971 | 1979 | 1969 |
| Average SF | 995 | 908 | 1,133 | 1,146 | 1,046 | 1,241 |
| Average Rental Rate | $1,121 | $1,085 | $1,340 | $1,124 | $1,168 | $1,185 |
| Average $/SF | $1.13 | $1.23 | $1.18 | $0.98 | $1.12 | $0.96 |
| Distance | 0.7 miles | 1.2 miles | 1.5 miles | 2.0 miles | 1.3 miles |
| Lantern Ridge | Discovery Gateway | Avana Cumberland | The Hills at East Cobb | Averages | Subject | |
|---|---|---|---|---|---|---|
| Date | Jul '19 | Sep '19 | Sep '19 | Apr '19 | Dec '19 | |
| Units | 150 | 378 | 400 | 268 | 299 | 181 |
| Year Built | 1972 | 1984 | 1968 | 1971 | 1974 | 1969 |
| Rentable Square Feet | 169,950 | 402,570 | 113,844 | 307,128 | 248,373 | 224,650 |
| Purchase Price | $18,300,000 | $49,300,000 | $61,000,000 | $35,100,000 | $40,925,000 | $23,500,000 |
| $/Unit | $122,000 | $130,423 | $152,500 | $130,970 | $133,973 | $129,834 |
| $/Square Foot | $108 | $122 | $141 | $114 | $121 | $105 |
| Cap Rate | 5.25% | 5.00% | 4.50% | 5.50% | 5.06% | 5.17% |
| Distance | 1.5 miles | 0.1 miles | 4.1 miles | 1.9 miles | 1.9 miles |
Sale and lease comps were obtained from CoStar and Axiometrics
Market Overview
Per CoStar, the Atlanta multifamily market is in a strong position. Resurgent net absorption has helped keep the market's vacancy rate below mid-expansion highs. Overall housing construction levels remain muted compared to prior cycles. Annual single-family home deliveries are roughly half of previous cycle highs, and multifamily construction levels are in line with the national average. As long as the recent pace of job growth and household formation continues apace, Atlanta is well positioned to outperform historical norms in the near term.
Per Axiometrics, effective rent increased 2.2% from $1,235 in 2Q19 to $1,262 in 3Q19, and annual effective rent growth was 4.8% in the past 12 months. Annual effective rent growth is forecast to average 3.1% from 2020 to 2022. Annual effective rent growth has averaged 2.0% since 1Q95, which was below the national average of 2.8% over the same period. The market's occupancy rate increased from 95.4% in 2Q19 to 95.7% in 3Q19, and was up from 95.3% a year ago. The market's occupancy rate is expected to average 94.8% from 2020 to 2022. The market's occupancy rate has averaged 93.1% since 1Q95.
Subarket Overview
Per CoStar, the submarket also continues to perform well. Despite consistent supply additions, vacancies have remained comfortably below the metro average in recent years, and rent growth continues to outpace the Atlanta metro average. A significant portion of new development in the submarket is clustered near the intersection of I-75 and I-285, adjacent to SunTrust Park and The Battery. Developers have been able to take advantage of being near these mega-projects, as well as the proximity to major office tenants in the area. New deals are primarily mid-rises that command a significant premium over older assets throughout the submarket.
Per Axiometrics, effective rent increased 5.2% from $1,124 in 2Q19 to $1,183 in 3Q19. The submarket's annual rent growth rate of 3.7% was below the market average of 4.8% in the past 12 months. Annual effective rent growth is forecast to average 4.4% from 2020 to 2022. Annual effective rent growth has averaged 2.4% per year since 1Q95. The submarket's occupancy rate increased from 95.6% in 2Q19 to 96.0% in 3Q19, and was up from 95.7% a year ago. The submarket's occupancy rate was above the market average of 95.7% in 3Q19. The submarket's occupancy rate is expected to average 95.3% from 2020 to 2022. The submarket's occupancy rate has averaged 92.1% since 1Q95.
| Sources of Funds | Amount |
|---|---|
| Debt | $19,700,000 |
| Equity | $6,127,950 |
| Total Sources of Funds | $25,827,950 |
| Uses of Funds | Amount |
| Purchase Price | $23,500,000 |
| Real Estate Company Acquisition Fee | $352,500 |
| Broker Dealer Fee | $180,000 |
| Loan Fee | $295,500 |
| CapEx Budget | $1,049,950 |
| Closing, Legal Fees and Due Dilligence | $200,000 |
| Escrows | $200,000 |
| Working Capital | $50,000 |
| Total Uses of Funds | $25,827,950 |
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
The expected terms of the debt financing are as follows:
- Estimated Proceeds: $19,700,000
- Initial Funding: $18,800,000
- Future Funding: $900,000
- Estimated Rate (Floating): One Month Libor plus 2.85%
- Term: 3 years
- Interest Only: 3 years
- Prepayment Penalty: 18 month lock out; 0.5% exit fee
- Extension Options: Two (2) one-year extension options (0.25% fee for each)
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;
- 80% / 20% (80% to Members / 20% to Promote) of excess cash flow to a 14.0% IRR;
- 70% / 30% (70% to Members / 30% to Promote) of excess cash flow to an 18.0% IRR;
- 50% / 50% (50% to Members / 50% 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 July 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 | |
|---|---|---|---|
| Effective Gross Revenue | $2,473,720 | $2,602,910 | $2,792,764 |
| Total Operating Expenses | $1,153,316 | $1,164,321 | $1,200,974 |
| Net Operating Income | $1,320,404 | $1,438,589 | $1,591,789 |
| Year 0 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|
| Distributions to RealtyMogul 142, LLC Investors | ($4,555,000) | $0 | $279,512 | $325,948 | $6,544,593 |
| Net Earnings to Investor - Hypothetical $50,000 Investment |
($50,000) | $0 | $3,068 | $3,578 | $71,840 |
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 | $352,500 | Real Estate Company | Capitalized Equity Contribution | 1.5% of the Property purchase price |
| Broker-Dealer Fee | $180,000 | North Capital (1) | Capitalized Equity Contribution | Greater of $50,000 and 4.0% of the equity raised by RealtyMogul 142, LLC |
| Type of Fee | Amount of Fee | Received By | Paid From | Notes |
|---|---|---|---|---|
| Management and Administrative Fee | 1.0% of amount invested in RealtyMogul 142, LLC | RM Manager, LLC | Distributable Cash | RM Manager, LLC is the Manager of RealtyMogul 142, LLC and a wholly-owned subsidiary of Realty Mogul, Co. (2) |
| Asset Management Fee | 1.5% 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.
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.