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 business plan is to implement a value-add program and renovate all 200 units and update exterior and common areas. Interior renovation scope includes granite countertops, new cabinet fronts, plank flooring, lighting, and plumbing fixtures.
The property’s current management is local and not very sophisticated. We plan to hire Village Green as our property manager. They have an institutional approach which we believe will allow us to push rents and maximize revenue.
The Orion is in Orion Township, a suburban township in Oakland County. Oakland County is a highly affluent county with median area income of $90K.
RM Communities
RM Communities is an owner/operator of multifamily assets with a proprietary playbook to deliver strong risk-adjusted returns. RM Communities acquired its first investment in May of 2019 and has since grown to nearly 2,000 multifamily units and over $300 million in real estate with a fully dedicated team of acquisitions, underwriting and asset management professionals.
RM Communities is a sister-company to RealtyMogul, one of the leading real estate crowdfunding platforms. After working with third party operating partners for 10+ years at RealtyMogul, we observed how the best operators stood out – their processes, acquisition targets, execution models, reporting materials and communication styles that informed our strategic objectives for RM Communities. Today, we execute against that playbook as we seek to deliver strong risk-adjusted returns across a variety of multifamily opportunities.
RM Communities 2023 Outlook Webinar
Todd Hanson, Managing Director of RM Communities, discussed the RM Communities portfolio performance and also provided his 2023 strategic outlook. This discussion included his thoughts on multifamily risks and opportunities and how best to navigate the 2023 investment environment. Watch the Webinar
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Todd HansonManaging Director -
Gideon PfefferManaging Partner -
Shmuel CohenPartner -
Derek JensenDirector of Acquisitions, West & Florida -
Daniel WeisbergerAssistant Vice President of Acquisitions -
Hannan LisPartner
Todd Hanson is the Managing Director for RM Communities across the US and has responsibility for planning and execution of overall strategy and directing the investment and financing activities of the company. He is actively involved in maintaining existing client relationships and developing new capital and partnership opportunities for the company. Mr. Hanson was previously EVP and Head of Investments at The ConAm Group, a private equity multifamily investment firm.
Gideon is responsible for strategic partnership initiatives and ventures, financing and debt opportunities, overseeing investment performance, strategic partner’s performance, and approving decisions on investments and acquisitions. He also oversees daily operations. Prior to GSH, Gideon operated a highly successful aggregation and renovation firm focused on single-family homes in the Midwest and Southeast.
Shmuel is responsible for asset management and Israeli Investor relations. An Israeli citizen, Shmuel also owns a separate portfolio of over 1,300 units in multifamily properties in Michigan and North Carolina. His experience as an owner and operator is an invaluable resource and he is responsible for the continued success of raising private capital in Israel for The GSH Group.
Derek Jensen is a Director of Acquisitions for RM Communities, the direct acquisition arm of RealtyMogul, and has responsibility for overseeing direct acquisitions of multifamily opportunities in the western half of the United States. Mr. Jensen has over 20 years of real estate experience, concentrated in the acquisition, management and disposition of over 10,000 multifamily units including market rate, value-add, affordable housing and fractured condominiums. Mr. Jensen has held positions at several private and institutional firms including Pacifica Companies and GFI Partners.
Daniel Weisberger is an Assistant Vice President of Acquisitions for RM Communities, responsible for direct acquisitions of multifamily opportunities. Mr. Weisberger has experience in the real estate and financial services industries having transacted and advised on over $15 billion of real estate debt and equity investments. He was previously a Development Analyst at a national multifamily developer and a Senior Associate at PricewaterhouseCoopers in the Real Estate Valuation and Transaction Advisory group. Mr. Weisberger is a licensed Certified Public Accountant.
Hannan is responsible for banking, investor relations, and branding. He is an experienced real estate investor, owns several businesses, and is an active member of a prominent family office in Michigan. Hannan is president of WW Group, which holds Weight Watchers franchises for Michigan and Ontario, Canada. The company was formerly the largest franchisee in the Americas.
| Property Name | Location | Multifamily Class | No. of Units | Year Built | Purchase Price | CapEx Budget | Status |
| Terrace Hill | El Paso, TX | B | 310 | 1983 | $18,700,000 | $4,095,000 | Full Cycle. 22% deal-level IRR, 18% LP-level IRR* |
| La Privada | El Paso, TX | B | 240 | 1982 | $11,700,000 | $1,867,000 | Closed |
| The Hamptons | Virginia Beach, VA | B | 212 | 1973 | $19,051,000 | $3,792,000 | Closed |
| Pohlig Box Factory & Superior Warehouse | Richmond, VA | A- | 93 & 7,700 Retail SF | 2004 | $15,900,000 | $1,348,000 | Closed |
| Lubbock Medical Office Building | Lubbock, TX | B | 20,880 SF | 1966 | $8,350,000 | $0 | Closed |
| Turtle Creek | Fenton, MO | A- | 128 | 2018 | $24,875,000 | $596,000 | Closed |
| The Orion | Orion Township, MI | B+ | 200 | 1995 | $27,375,000 | $2,308,000 | Closed |
| Kings Landing | Creve Coeur, MO | A- | 152 & 9,229 Retail SF | 2005 | $40,100,000 | $3,885,850 | Closed |
| Minnehaha Meadows | Vancouver, WA | A | 49 | 2021 | $16,450,000 | $83,950 | Closed |
| Roosevelt Commons | Vancouver, WA | A | 36 | 2020 | $12,550,000 | $78,200 | Closed |
| Bentley Apartments | Grove City, OH | A- | 138 | 2020 | $30,200,000 | $650,000 | Closed |
| Sherwood Oaks | Riverview, FL | B | 199 | 1984 | $35,000,000 | $1,266,725 | Closed |
| Haverford Place | Georgetown, KY | A- | 160 | 2001 | $31,050,000 | $2,836,734 | Closed |
| Edison Apartments | Gresham, OR | A | 64 | 2020 | $19,500,000 | $203,390 | Closed |
| Ridgeline View Townhomes | Vancouver, WA | A | 50 | 2022 | $18,100,000 | $37,500 | Pending |
| Brookside Apartments | Raleigh, NC | B | 68 | 1986 | $9,400,000 | $1,402,680 | Pending |
| Total | 2,099 | $319,601,000 | $23,049,752 |
The acquisitions of the Terrace Hill Apartments, La Privada, The Hamptons, and Pohlig Box Factory & Superior Warehouse properties preceded the formation of the RM Communities, LLC. Consequently, these real estate assets are managed by an affiliate of RM Communities, LLC. They are included as part of the RM Communities, LLC portfolio because these real estate assets were acquired and are managed under the same executive leadership in Jilliene Helman and according to the same investment strategy employed by RM Communities, LLC.
Note: Totals include Terrace Hill (sold).
*Past performance is not indicative of future performance.
The business plan is to implement a value-add program and renovate all 200 units and increase average in-place rents from $1,119 to $1,299. The renovation program includes new cabinet fronts, granite countertops, lighting, plumbing fixtures, and vinyl flooring. Average interior renovation is $8K/unit. Additionally, the Sponsor plans to implement a RUBS and trash reimbursement program; currently the property is charging a flat fee. Other expenditures include repairing vinyl siding and parking lot, upgrading the clubhouse, bbq and pool area, and adding a dog park and volleyball court. Total interior and exterior CapEx is $2.3 million or $11.5 thousand per unit. A portion of the CapEx ($350 thousand) will be funded by the supplemental loan underwritten at the end of year 3. The property currently has an assumable loan of $20.5 million with 3.75 years of interest only and 9.75 years term. At the end of year 3, the plan is to obtain a supplemental loan at 72% of then-current LTV. The Sponsor plans to exit in 9.75 years at a cap rate of 6.30%.
Investors will be investing into Orion Investors, LLC which will subsequently invest into RM Orion, LLC which will hold title to the property.
Below is a summary of the capital improvement budget:
| Interior Upgrades | Total | Per Unit |
|---|---|---|
| Appliances | $286,000 | $1,430 |
| Countertops | $352,000 | $1,760 |
| Cabinet Doors/Pulls | $76,544 | $383 |
| Lighting | $57,200 | $286 |
| Plumbing Fixtures | $67,200 | $336 |
| Flooring | $372,816 | $1,864 |
| Bathroom | $97,088 | $485 |
| Paint | $146,400 | $732 |
| Other | $156,800 | $784 |
| Subtotal Interior Upgrades | $1,612,048 | $8,060 |
| Exterior, Common Area Upgrades and Repairs | Total | Per Unit |
| Vinyl Siding | $80,000 | $400 |
| Pool Renovation Incl. Furniture | $10,000 | $50 |
| Dog Park Addition | $15,000 | $75 |
| Playground | $30,000 | $150 |
| Sport Court (Volleyball Court) | $10,000 | $50 |
| Parking Lot Repairs | $50,000 | $250 |
| Clubhouse (Incl. Business Center) | $20,000 | $100 |
| Signage | $35,000 | $175 |
| Pergola, Benches, and Grills | $10,000 | $50 |
| Miscellaneous | $75,000 | $375 |
| Irrigation System | $60,000 | $300 |
| Subtotal Common Area Upgrades and Repairs | $395,000 | $1,975 |
| Construction Management Fee (5%) | $100,352 | $502 |
| Contingency (10%) | $200,705 | $1,004 |
| TOTAL | $2,308,105 | $11,541 |
Property is a Class B+, 200-unit apartment community in Orion Township, MI. Orion Township is an incorporated village located northwest of Detroit proper. The Property is comprised of 13 residential buildings on 30.2 acres, and is currently 98% occupied. Built in 1995, the Property consists of 56 1B/1Bs, 96 2B/2Bs, and 48 3B/2Bs. Amenities include fitness center, playground, covered parking, clubhouse with sundeck, pool, and picnic/BBQ area. The units feature full-size washers and dryers, walk-in closets, and private entrances.
In-Place/Stabilized Unit Mix:
| Unit Type | # of Units | Unit Size (square feet) | In-Place Rent | Projected Post-Reno Rent |
| 1 Bed, 1 Bath | 56 | 807 | $962 | $1,125 |
| 2 Bed, 2 Bath | 96 | 1,043 | $1,099 | $1,305 |
| 3 Bed, 2 Bath | 48 | 1,294 | $1,341 | $1,490 |
| Total/Averages | 200 | 1,037 | $1,119 | $1,299 |
All rents are net effective
Occupancy and in-place rent are as of 3/12/2021.
| Pier 38 | Hillside Forest | Northville Woods | Subject | |
|---|---|---|---|---|
| Date | 3/1/2020 | 7/25/19 | 7/25/19 | 3/23/2021 |
| Year Built | 1997 | 1986 | 1972 | 1995 |
| # of Units | 141 | 252 | 274 | 200 |
| Total SF | 147,600 | 277,875 | 278,932 | 248,821 |
| Purchase Price | $19,400,000 | $32,500,000 | $35,150,000 | $27,375,000 |
| $/Unit | $137,589 | $128,968 | $128,284 | $136,875 |
| $/SF | $131 | $117 | $126 | $110 |
| Cap Rate | 5.85% | N/A | N/A | 6.42% |
| Legends Fox Creek | The Crossing at Auburn Hills | Auburn Gate Apartments | Heron Springs | Total/Averages | Subject | |
|---|---|---|---|---|---|---|
| Year Built | 1998 | 1998 | 2001 | 2014 | 1995 | |
| Rents (1x1) | $1,400 | $1,494 | $1,447 | $1,125 | ||
| SF (1x1) | 775 | 900 | 838 | 807 | ||
| Average $/SF (1x1) | $1.81 | $1.66 | $1.73 | $1.39 | ||
| Rents (2x2) | $1,500 | $1,249 | $1,440 | $1,650 | $1,460 | $1,305 |
| SF (2x2) | 1000 | 990 | 1,162 | 1,324 | 1,104 | 1,043 |
| Average $/SF (2x2) |
$1.50 |
$1.26 |
$1.31 | $1.25 | $1.32 | $1.25 |
| Rents (3x2) | $1,349 | $2,060 | $1,925 | $1,778 | $1,490 | |
| SF (3x2) | 1,189 | 1,532 | 1,743 | 1,488 | 1,294 | |
| Average $/SF (3x2) | $1.13 |
$1.34 |
$1.10 | $1.19 | $1.15 |
Sale and lease comps were obtained from CoStar and Axiometrics.
The Orion is in Orion Township, a suburban township in Oakland County, Michigan. Oakland County is home to 1.3 million residents and ranked in the top 10 for most affluent big counties in the entire nation. Major employers include – Beaumont Health Systems (18,260 employees), Fiat Chrysler (12,900 employees), and General Motors (8,500 employees). Oakland County continues to be a sought-after place to call home which is why year-over-year it is highly rated by news sources across the globe. Thus, The Orion is perfectly located to capture the strong momentum that continues to build in southeast Michigan.
Market Overview
With a $1.3 billion asset value and over 15,000 apartments, Northwest Oakland County is the fifth largest submarket in Detroit that appeals to baby boomers and empty nesters seeking a more rural environment. The market takes advantage of strong suburban population growth, which captures workers who are employed in the suburbs of Detroit and allows for a greater market share of renters than in other parts of Michigan. The vacancy rate has been averaging below 4% for the past several quarters and has only risen to 5%, due to the delivery of 100 units at The Marquette in 19Q4. Market rents are some of the most affordable in the region, sitting at a little more than $950/month. Annual rent growth remains robust, averaging above 5% in 20Q1, a significant increase from 2019, when the highest growth rate, 4.2%, was reported in 19Q2
Prior to the COVID-19 pandemic, Detroit was undergoing a late revival from the 2008 financial crisis. The metro has undergone significant changes, including major development in its urban center. Reuters analyzed 378 metropolitan areas in the US from 2010 to 2017 and found that Detroit was among the top 20 cities to experience significant job growth. Detroit’s economy has diversified from its manufacturing background.
Since 2010, Amazon has created more than 13 thousand jobs and invested more than $2.5 billion in southeast Michigan. Amazon currently has nine other sites in Metro Detroit that are operating, under construction or planned. At nearby Pontiac, which is 10 minutes from the property, Amazon is constructing a regional distribution centerat the former Pontiac Silverdome. The $272 million project is expected to bring more than 1,500 jobs to the area. Another major project is planned at the Palace at Auburn Hills site, formerly the home of the Detroit Pistons,which is 10 mins northwest of the property. The project is expected to house corporate offices and tech firms.
| Sources of Funds | Cost |
|---|---|
| Debt | $20,541,000 |
| Equity | $10,410,633 |
| Total Sources of Funds | $30,951,633 |
| Uses of Funds | Cost |
| Purchase Price | $27,375,000 |
| Loan Assumption Fee | $205,410 |
| Closing & Legal Costs | $290,000 |
| Seller Credit at Closing | $500,000 |
| CapEx Budget | $1,958,105 |
| Acquisition Fee | $397,500 |
| Taxes & Insurance Escrow | $175,618 |
| Working Capital | $50,000 |
| Total Uses of Funds | $30,951,633 |
The assumable terms of the debt financing are as follows:
- Lender: Fannie Mae
- Total Proceeds: $20,541,000
- Rate (Fixed): 4.92%
- Amortization: 30 years
- Term Remaining: 9.75 years
- Interest Only Remaining: 3.75 years
Note: Sponsor is expecting to add a supplemental loan at the end of year 3. Loan assumptions are 72% LTV at 4.0% interest rate, and it is expected to be co-terminus with the deal.
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.
A substantial portion of the total acquisition for the Property will be paid with borrowed funds. The use of borrowed money to acquire real estate is referred to as leveraging. Leveraging increases the funds available for investment or development purposes, on the one hand, but also increases the risk of loss on the other. If the Company were unable to pay the payments on the borrowed funds (called a "default"), the lender might foreclose, and the Company could lose its investment in its property.
Distributions to Orion Investors, LLC will be as follows:
Operating Cash Flow:
1. 8% Preferred Return
2. 70%/30% (70% to Members/30% to GP Entity) to a 15% IRR
3. 50%/50% (50% to Members/50% to GP Entity) thereafter
Capital Event:
1. 8% Preferred Return
2. Return of Capital
3. 70%/30% (70% to Members/30% to GP Entity) to a 15% IRR
4. 50%/50% (50% to Members/50% to GP Entity) thereafter
Note: 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). Distributions are expected to start in August 2021 and are projected to continue on a quarterly basis thereafter. These distributions are at the discretion of the Manager, who may decide to delay distributions for any reason, including maintenance or capital reserves.
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | Reversion | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Effective Gross Revenue | $2,782,861 | $3,022,109 | $3,221,801 | $3,404,985 | $3,554,539 | $3,690,561 | $3,811,644 | $3,929,879 | $4,049,485 | $3,117,059 | $4,265,094 |
| Total Operating Expenses | $1,096,309 | $1,189,250 | $1,223,180 | $1,257,341 | $1,291,238 | $1,325,495 | $1,360,088 | $1,395,403 | $1,431,586 | $1,097,404 | $1,497,141 |
| Net Operating Income | $1,686,553 | $1,832,858 | $1,998,621 | $2,147,644 | $2,263,301 | $2,365,066 | $2,451,556 | $2,534,477 | $2,617,899 | $2,019,655 | $2,767,953 |
| Total Property Cash Flow | $610,076 | $752,570 | $5,512,257* | $657,523 | $584,045 | $683,215 | $767,320 | $847,885 | $928,916 | $21,052,842 |
* Supplemental loan proceeds in year 3.
| Year 0 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Earnings to Investor - Hypothetical $50,000 Investment |
($50,000) | $2,908 | $3,593 | $26,453 | $2,849 | $2,591 | $2,910 | $3,173 | $3,412 | $3,647 | $76,429 |
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 | $397,500 (1.452% of Property purchase price) | RM Communities and The GSH Group | Capitalized Equity Contribution | |
| Construction Management Fee | 5.0% of Capital Expenditures | The GSH Group | Capitalized Equity Contribution |
| Type of Fee | Amount of Fee | Received By | Paid From |
|---|---|---|---|
| Asset Management Fee | 1.5% of Effective Gross Income | RM Communities and The GSH Group | Distributable Cash |
| Property Management Fee | 3.0% of Effective Gross Income and Incentive Fee if NOI Exceeds Budget | Village Green, Third Party Property Manager | Distributable Cash |
The above table is a summary and there may be additional fees and expenses associated with this offering. Please refer to the Private Placement Memorandum for further details.
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.