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, with eight assets in Austin. Additionally, having owned and operated the Property since 2015, the Real Estate Company has unique insight into pro forma rents and expenses.
A partnership with Austin Affordable Housing Corporation (AAHC) allows us to take advantage of a 100% property tax exemption during the hold period.
Per CoStar, the area enjoys a strong demographic profile, with a population of nearly 300,000 and median household income of over $64,000 within a five-mile radius.
Presidium Group
The Housing Authority of the City of Austin ("HACA") shall enter into a 75-year ground lease with Presidium and AAHC (collectively the "Real Estate Company").
Presidium Group was founded in 2002 by Cross Moceri and John Griggs and is a vertically-integrated real estate firm specializing in opportunistic and value-add transactions in Texas. The Real Estate Company has over 12,000 multifamily units under management with a value of $1.6 billion. Cross Moceri has completed over $1.2 billion of real estate investments since 2002. John Griggs has 15 years of experience including the acquisition and integration of over $1 billion of real estate. This transaction would constitute RM's second with Presidium, the first being Serendipity Apartments.
Austin Affordable Housing Corporation ("AAHC") is a nonprofit subsidiary of the Housing Authority of the City of Austin (HACA) created in 2003 to ensure and preserve quality, affordable housing opportunities for low- to moderate-income families in Austin as well as provide financial literacy and homeownership opportunities.
http://www.presidiumre.com/Presidium Group Track Record - Current Portfolio | ||||||
Project Name | Location | Asset Type | Date Acquired | # of Units | Purchase Price | Forecasted Exit |
Shenandoah Woods | Houston, TX | Multifamily | 2006 | 232 | $5,220,000 | $13,920,000 |
Southern Oaks | Houston, TX | Multifamily | 2006 | 198 | $4,455,000 | $11,880,000 |
Unity Pointe | Houston, TX | Multifamily | 2006 | 109 | $2,452,500 | $6,540,000 |
Ashley Square | Houston, TX | Multifamily | 2006 | 117 | $2,632,500 | $7,020,000 |
Inglewood Village | Houston, TX | Multifamily | 2006 | 94 | $2,115,000 | $5,640,000 |
Oak Lawn Heights | Dallas, TX | Multifamily | 2010 | 137 | $1,860,000 | $12,330,000 |
Hillcroft Apartments | Houston, TX | Multifamily | 2014 | 381 | $14,250,000 | $22,678,600 |
Colonial Woods | Houston, TX | Multifamily | 2014 | 112 | $3,900,000 | $6,720,000 |
Entro at Midtown | Dallas, TX | Multifamily | 2014 | 404 | $24,400,000 | $41,000,000 |
The Branch at the Medical Center | San Antonio, TX | Multifamily | 2015 | 426 | $24,000,000 | $32,670,252 |
The Verge | Dallas, TX | Multifamily | 2015 | 217 | $14,115,000 | $22,785,000 |
Violet | Austin, TX | Multifamily | 2015 | 160 | $17,300,000 | $22,000,000 |
The Link | Dallas, TX | Multifamily | 2015 | 514 | $26,620,000 | $46,000,000 |
Ascent at Lake Worth | Ft. Worth, TX | Multifamily | 2016 | 265 | $17,100,000 | $28,561,251 |
Cottonwood Creek | Dallas, TX | Multifamily | 2016 | 270 | $21,000,000 | $34,099,974 |
The Linear | Dallas, TX | Multifamily | 2016 | 370 | $22,500,000 | $37,365,620 |
Spice Creek | San Antonio, TX | Multifamily | 2016 | 192 | $12,100,000 | $20,213,363 |
Brunswick Portfolio | Brunswick, ME | Multifamily | 2017 | 407 | $45,000,000 | $56,368,179 |
Clover on Park Lane | Dallas, TX | Multifamily | 2017 | 343 | $19,500,000 | $31,630,525 |
Vantage at Harlingen | Harlingen, TX | Multifamily | 2017 | 288 | $26,025,000 | $29,919,300 |
Solaris* | Austin, TX | Multifamily | 2017 | 562 | $47,250,000 | $52,972,544 |
Element* | Austin, TX | Multifamily | 2017 | 286 | $31,700,000 | $39,760,723 |
Villas at Tension Park* | Dallas, TX | Multifamily | 2017 | 442 | $23,800,000 | $33,407,315 |
Thread* | Dallas, TX | Multifamily | 2017 | 606 | $35,500,000 | $43,372,647 |
The Vue* | Austin, TX | Multifamily | 2017 | 156 | $17,500,000 | $21,473,996 |
Edison** | Austin, TX | Multifamily | 2017 | 353 | $70,880,914 | $98,154,651 |
JTB** | Jacksonville, FL | Multifamily | 2017 | 350 | $58,258,518 | $77,697,264 |
The Marc | College Station, TX | Multifamily | 2018 | 478 | $21,670,000 | $36,758,641 |
Ballpark - East, West and South | Austin, TX | Multifamily | 2018 | 810 | $124,000,000 | $163,514,442 |
Link* | Dallas, TX | Multifamily | 2018 | 514 | $47,000,000 | $57,789,967 |
Balcones Club* | Austin, TX | Multifamily | 2018 | 312 | $38,350,000 | $47,410,334 |
Lift* | Farmers Branch, TX | Multifamily | 2018 | 95 | $8,300,000 | $10,835,694 |
The Elliott** | Pflugerville, TX | Multifamily | 2018 | 272 | $43,463,395 | $51,773,951 |
Edgestone** | Frisco, TX | Multifamily | 2018 | 188 | $40,360,799 | $50,384,013 |
University Village/Estates* | Austin, TX | Multifamily | 2019 | 846 | $131,500,000 | $167,953,411 |
Revelstoke** | Fort Worth, TX | Multifamily | 2019 | 408 | $61,523,096 | $79,695,554 |
JTA** | Jacksonville, FL | Multifamily | 2019 | 375 | $62,623,341 | $79,430,374 |
Total Portfolio | 12,289 | $1,170,225,063 | $1,601,727,584 |
* = Recapitalization of Equity and Debt
** = Development Project/Under Construction
Note: The management overview and track record detailed above was provided by the Sponsor and has not been verified by RealtyMogul.com or NCPS.
In this transaction, RealtyMogul investors are to invest in Realty Mogul 149, LLC ("The Company"), which is to subsequently invest in Violet Holdings, LLC ("The Target"), a limited liability company that will indirectly own interest in the Property. Presidium purchased the Property for $12.7 million ($79,375 per unit) in May 2015 and plans to sell the Property to Housing Authority of City of Austin (“HACA”) for $22.0 million ($137,500 per unit) in April 2020. Presidium's cost basis is reportedly $17.0 million ($106,250 per unit). HACA shall then enter into a 75-year ground lease with Presidium and AAHC (collectively the "Real Estate Company"). Through the Real Estate Company's partnership with AAHC, the Property will be exempt from annual property taxes.
Presidium’s business plan is to continue driving value through the implementation of a $1.3 million ($8,319/unit) capital improvement plan, pushing rents from the current level of $1,034 per unit to $1,076 in Year 1. With unit and exterior improvements, the Real Estate Company plans to increase rents by an additional 3% each year thereafter. A joint venture will be formed between the Limited Partners (RM included), Presidium, and AAHC for the recapitalization of The Violet. The AAHC's minority position allows for the Property to be exempt from yearly property taxes, and in turn, save an average of $300,000 in property tax expense per year. To comply with AAHC requirements under the structure and to ensure the partnership receives the property tax exemption, at least 51% of the units at The Violet will be set aside for households earning 80% of the area median income. However, this restriction will not affect the Real Estate Company's ability to maintain and increase rent as 100% of the units fall well below this threshold. There is also a 10.0% and 10.0% construction management fee. The business plan calls for a five-year hold, at which point the Property is expected to be sold at a 4.75% cap rate for $26.7 million ($166,567 per unit).
Below is a summary of the capital improvements budget:
Capital Improvements Budget Summary:
Exterior Renovations | Total | Per Unit |
Roofs | $180,000 | $1,125 |
Paint and carpentry | $350,000 | $2,188 |
Parking lot reseal/stripe | $75,000 | $469 |
Landscaping | $25,000 | $156 |
Fitness center | $5,000 | $31 |
Other mechanical renovations | $55,000 | $344 |
Other renovations | $110,000 | $688 |
Subtotal Exterior Renovations | $800,000 | $5,000 |
Interior Renovations | ||
Unit renovations | $300,000 | $1,875 |
Subtotal Interior Renovations | $300,000 | $1,875 |
Contingency (10%) | $110,000 | $688 |
Construction Management Fee (10%) | $121,000 | $756 |
Total Estimated Budget | $1,331,000 | $8,319 |
These amounts are subject to change at the discretion of the Real Estate Company
The Violet Apartments (the "Property") is a 160-unit Class B multifamily apartment community located in Austin, TX, approximately seven miles south of Downtown Austin. The Property offers a swimming pool, fire pit, club room, business center, fitness center, and community laundry facilities. The Property consists of twelve low-rise structures, with 1x1 (108 units), 2x1 (16 units), and 2x2 (36 units) floorplans. The Property is located between I-35 and South Congress Ave, both heavily traveled thoroughfares providing easy access throughout the metro and to Austin's major employment hubs. The Property is a block away from Century South Shopping Center, which has over twenty shops including Big Lots, Gold's Gym, and KFC. The Property is also located within half a mile of several nearby retailers including H-E-B, Walgreens, 7-Eleven, and Jack in the Box.
The Property was built in 1984 and under Presidium's ownership, received $2.5 million in interior and exterior renovations. Renovations began in late 2015 and included full exterior carpentry and paint, new signage, a leasing office and fitness renovation, a pool renovation, dog park construction, backyard construction, carport construction, a landscaping overhaul, and unit interior renovations. Historic average occupancy has remained north of 95% over the years with a steady rent growth average of 3.9% since 2017.
In-place/Stabilized Unit Mix:
Unit Type | # of Units | % of Total | Unit Size (square feet) | In-Place Rent | Post-Reno Rent |
A1 Original - 1x1 | 1 | 1% | 481 | $840 | $874 |
A1 Premium - 1x1 | 43 | 27% | 481 | $892 | $928 |
B1 Original - 1x1 | 3 | 2% | 575 | $982 | $1,021 |
B1 Premium - 1x1 | 61 | 38% | 575 | $971 | $1,010 |
C2 Premium - 2x1 | 16 | 10% | 847 | $1,191 | $1,238 |
D2 Original - 2x2 | 1 | 1% | 917 | $1,225 | $1,274 |
D2 Premium - 2x2 | 31 | 19% | 917 | $1,237 | $1,287 |
E2 Original - 2x2 | 1 | 1% | 1,100 | $1,289 | $1,341 |
E2 Premium - 2x2 | 3 | 2% | 1,100 | $1,370 | $1,424 |
Total/Averages | 160 | 100% | 658 | $1,034 | $1,075 |
Lease Comparables
Marquis Soco | Soco | Terrace Cove | Arts at Turtle Creek | The Reserve | Arts at South Austin | Total/Averages | Subject | |
Submarket | Sweetbriar | Sweetbriar | Bluff Springs | Garrison Park | South Manchaca | West Congress | South Austin | |
CoStar Class | B | B | B | B | B | C | B | |
Units | 140 | 122 | 304 | 96 | 122 | 140 | 154 | 160 |
Year Built | 2014 | 2004 | 1986 | 1985 | 1985 | 1984 | 1993 | 1984 |
Occupancy | 93.0% | 91.8% | 97.0% | 90.5% | 96.7% | 95.7% | 94.1% | 97.7% |
# Units (1x1) | 92 | 16 | 180 | 47 | 73 | 55 | 77 | 108 |
$ (1x1) | $1,312 | $1,030 | $952 | $1,120 | $1,052 | $1,088 | $1,092 | $976 |
SF (1x1) | 770 | 570 | 587 | 670 | 591 | 608 | 633 | 537 |
$/SF (1x1) | $1.70 | $1.81 | $1.62 | $1.67 | $1.78 | $1.79 | $1.73 | $1.83 |
# Units (2x1) | - | 16 | 24 | - | - | 28 | 23 | 16 |
$ (2x1) | - | $1,247 | $1,159 | - | - | $1,295 | $1,234 | $1,238 |
SF (2x1) | - | 766 | 750 | - | - | 914 | 810 | 847 |
$/SF (2x1) | $1.63 | $1.55 | $1.42 | $1.53 | $1.46 | |||
# Units (2x2) | 48 | 74 | 100 | 48 | 49 | 57 | 63 | 36 |
$ (2x2) | $1,556 | $1,299 | $1,407 | $1,350 | $1,280 | $1,329 | $1,370 | $1,300 |
SF (2x2) | 1,157 | 872 | 928 | 915 | 860 | 894 | 938 | 937 |
$/SF (2x2) | $1.34 | $1.49 | $1.52 | $1.48 | $1.49 | $1.49 | $1.47 | $1.39 |
Distance from subject | 0.2 mi | 0.5 mi | 1.0 mi | 1.5 mi | 2.0 mi | 2.4 mi |
Sale Comparables
Cannon Oaks | SoCo at Alpine | Terraces at Southpark Meadows | Grace Woods | Establishment | Iron Rock Ranch | Cascade | Total/Averages | Subject | |
Date | 3/29/2018 | 7/1/2019 | 9/25/2018 | 1/19/2018 | 8/26/2019 | 12/17/2019 | 9/13/2019 | ||
Submarket | Bluff Springs | SoCo | Southpark Meadows | Parker Lane | Dawson | Mary Moore Park | Travis Heights | South Austin | |
Costar Class | B | B | B | B | C | B | C | B | |
Units | 230 | 59 | 244 | 430 | 139 | 300 | 198 | 160 | |
SF | 229,997 | 30,450 | 225,888 | 315,861 | 108,050 | 321,270 | 146,617 | 105,260 | |
Year Built | 2001 | 1972 | 2008 | 1981 | 1972 | 2001 | 1971 | 1987 | 1984 |
Purchase Price | $27,150,000 | $8,770,000 | $60,240,840 | $45,850,000 | $21,100,000 | $56,000,000 | $31,500,000 | $35,801,549 | $22,000,000 |
$/Unit | $118,043 | $148,644 | $246,889 | $106,628 | $151,799 | $186,667 | $159,091 | $159,680 | $137,500 |
$/SF | $118 | $288 | $267 | $145 | $195 | $174 | $215 | $200 | $209 |
Cap Rate | - | 4.25% | - | - | 4.74% | - | 4.55% | 4.51% | 4.75% |
Distance from Subject | 1.2 mi | 3.1 mi | 3.1 mi | 3.2 mi | 3.3 mi | 4.0 mi | 4.3 mi |
Sale and lease comparable information provided by CoStar, Axiometrics, and the Real Estate Company.
Market Overview
The Austin metro has been rated as the best place to live according to U.S. News and World Report for the past three years thanks to exceptional job growth, migration, and desirability. Low business costs, pro-business policies, and a high quality of life are the cherries on top of the deep bench of tech talent in Austin generated by the University of Texas at Austin, which regularly ranks as one of the best schools in the world for STEM graduates. Tech companies from Silicon Valley have been relocating their HQs to or opening satellite locations in Austin (Silicon Hills) for years. Two of the largest recent examples are Apple, which announced another expansion to its $1 billion campus in Northwest Austin, and Zoho, which is relocating from the East Bay to Southeast Austin. Austin's employment continues to grow at about twice the national rate, and strong growth should continue. With the 20-34-year-old population approaching 500,000, nearly a quarter of Austin's population consists of millennials. While the metro boasts one of the strongest economies in the nation this cycle, it has also been one of the most development-heavy markets in the country this cycle. In fact, nearly 35% of the inventory has delivered since 2010. However, the Midtown Austin submarket has demonstrated healthy performance. Per Axiometrics, rent growth in the South Austin submarket has averaged 2.9% over the past five years and currently sits at 6.7%. Multifamily vacancy in the submarket has dropped from a peak of 8.2% in Q2 2009 to 4.6% in Q4 2019. 2,200 units are currently under construction, representing 7.5% of the total 30,000 units of multifamily space in the submarket.
Total Capitalization
Sources of Funds | Amount |
Debt | $15,400,000 |
RM 149 Investor Equity | $8,698,446 |
Total Sources of Funds | $24,098,446 |
Uses of Funds | Amount |
Purchase Price | $22,000,000 |
Real Estate Company Acquisition Fee | $200,000 |
Broker Dealer Fee | $260,000 |
Loan Fee | $115,500 |
CapEx Budget | $1,331,000 |
Closing Costs | $110,000 |
Working Capital | $52,154 |
Taxes & Insurance | $29,792 |
Total Uses of Funds | $24,098,446 |
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: $15,400,000
- Estimated Interest Rate (Fixed): 3.38%
- Term: 5 years
- Interest Only: 5 years
- Prepayment Penalty: TBD ($1.0% of OLB underwritten)
- Extension Options: N/A
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 10.0% IRR to the Members;
- 85% / 15% (85% to Members / 15% to the Real Estate Company) of excess cash flow to a 15.0% IRR;
- 70% / 30% (70% to Members / 30% to the Real Estate Company) of excess cash flow to a 20.0% IRR;
- 50% / 50% (50% to Members / 50% to the Real Estate Company) 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 | Year 4 | Year 5 | |
---|---|---|---|---|---|
Effective Gross Revenue | $2,072,812 | $2,162,935 | $2,228,027 | $2,295,086 | $2,363,056 |
Total Operating Expenses | $682,760 | $697,077 | $710,785 | $724,791 | $739,061 |
Net Operating Income | $1,390,052 | $1,465,858 | $1,517,242 | $1,570,295 | $1,623,994 |
Year 0 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
---|---|---|---|---|---|---|---|
Distributions to RealtyMogul 149, LLC Investors | ($2,020,000) | $121,497 | $179,958 | $203,479 | $215,939 | $215,939 | $2,398,857 |
Net Earnings to Investor - Hypothetical $50,000 Investment |
($50,000) | $3,007 | $4,454 | $4,755 | $5,037 | $5,345 | $59,378 |
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 | $200,000 | Real Estate Company | Capitalized Equity Contribution | 0.9% of the Property purchase price |
Disposition Fee | 1.0% of Gross Sale Proceeds | RM Advisor, LLC | Distributable Cash | RM Advisor, LLC is the Manager of MogulREIT II and a wholly-owned subsidiary of Realty Mogul, Co. |
Broker-Dealer Fee | $260,000 | North Capital (1) | Capitalized Equity Contribution | Greater of $50,000 and 4.0% of the equity raised by RealtyMogul 142, LLC |
Construction Management Fee | 7.0% of Construction 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 149, LLC | RM Manager, LLC | Distributable Cash | RM Manager, LLC is the Manager of RealtyMogul 149, LLC and a wholly-owned subsidiary of Realty Mogul, Co. (2) |
Asset Management Fee | 2.0% 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.
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.