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.
Significant value-add opportunity to bring an underperforming asset to market level performance. On turn, lightly renovated units at the Property are already achieving rents in the range of the pro forma post-renovation rents.
Next Wave Investors specializes in investing in the Pacific Northwest and their principal, Jordan Fisher, personally owns 185 units less than 5 miles from the Property. Their experience managing in this market, combined with efficiencies from nearby properties in their portfolio will allow the Sponsor to seamlessly operate the property.
The Property is currently ~97.7% occupied and, per CoStar, submarket vacancy is 3.1%, nearly half of the national average. Underwritten vacancy is ~6% which provides upside if occupancy is to remain close to current levels. There are currently ~30 units expected to be delivered in 2021 in the submarket. This constricted supply should continue to place downward pressure on submarket vacancy.
Next Wave Investors
Next Wave Investors, LLC (“Next Wave”) is a Southern California-based private equity investment firm with a specialized focus in value-add multifamily investments throughout the Western United States. With more than $400 million in acquisitions to date, Next Wave is exceptionally skilled in identifying well-located, underappreciated properties where they can create value through professional operations and capital improvements. Drawing upon an 18-year track record and hands-on experience in the ownership, operation, and enhancement of multifamily properties, the firm consistently delivers value on behalf of individual and institutional investors throughout the globe.
https://nextwaveinvestors.com/Property | City | State | Asset Type | Acq Date | Units or SF | Purchase Price | Sale Price |
Skyline Terrace | Las Vegas | NV | MultiFamily | 7/1/2015 | 44 | $2,625,000 | $3,175,000 |
Skyline Place | Las Vegas | NV | MultiFamily | 7/1/2015 | 87 | $4,750,000 | $6,075,000 |
Skyline Parc | Las Vegas | NV | MultiFamily | 7/1/2015 | 193 | $7,000,000 | $11,000,000 |
Skyline Villas | Las Vegas | NV | MultiFamily | 7/1/2015 | 94 | $3,825,000 | $7,385,000 |
Casa Vista | Las Vegas | NV | MultiFamily | 3/1/2016 | 23 | $910,000 | $1,200,000 |
Oakridge | Henderson | NV | MultiFamily | 3/1/2016 | 42 | $1,750,000 | $2,500,000 |
Skyline Park | Tucson | AZ | MultiFamily | 3/1/2016 | 60 | $1,920,000 | $2,600,000 |
Villa Pacific | Tucson | AZ | MultiFamily | 7/1/2016 | 176 | $5,400,000 | $7,282,500 |
Quails | Tucson | AZ | MultiFamily | 8/1/2016 | 288 | $9,400,000 | $12,200,000 |
Sycamore Cove | Tucson | AZ | MultiFamily | 12/1/2016 | 67 | $1,322,000 | $2,400,000 |
Landing Point | Salt Lake City | UT | MultiFamily | 10/24/2017 | 126 | $13,000,000 | $17,600,000 |
Commons on 2nd | Salt Lake City | UT | MultiFamily | 10/24/2017 | 72 | $5,800,000 | $8,300,000 |
Bella Vista | St. George | UT | MultiFamily | 2/9/2018 | 148 | $13,200,000 | $18,200,000 |
Orange Tree Village | Tucson | AZ | MultiFamily | 3/16/2018 | 110 | $10,550,000 | $15,850,000 |
Harlow | Las Vegas | NV | MultiFamily | 3/29/2018 | 98 | $17,100,000 | $21,500,000 |
Cypress Springs | Las Vegas | NV | MultiFamily | 6/1/2018 | 144 | $15,000,000 | $20,000,000 |
Park Station | Midvale | UT | MultiFamily | 7/20/2018 | 96 | $10,750,000 | $15,600,000 |
Bella Vida | Las Vegas | NV | MultiFamily | 10/16/2018 | 72 | $12,525,000 | $15,000,000 |
La Estrella Vista | Phoenix | AZ | MultiFamily | 5/16/2019 | 96 | $13,175,000 | $16,750,000 |
Aspen Village | West Valley City | UT | MultiFamily | 3/18/2019 | 90 | $12,175,000 | $18,500,000 |
Townhomes at Mountain Ridge | S. Salt Lake | UT | MultiFamily | 5/23/2019 | 63 | $12,500,000 | |
Cove on Bruce | Clearfield | UT | MultiFamily | 9/21/2018 | 76 | $7,600,000 | $15,250,000 |
Westover Parc | Phoenix | AZ | MultiFamily | 9/1/2019 | 160 | $20,000,000 | $41,625,000 |
Tompkins Cove | Las Vegas | NV | MultiFamily | 2/4/2020 | 88 | $14,500,000 | $18,600,000 |
Shiloh Park Townhomes | Plano | TX | MultiFamily | 11/18/2020 | 73 | $14,850,000 | |
Park Central Luxury Townhomes | Phoenix | AZ | MultiFamily | 12/16/2020 | 56 | $25,500,000 | |
Spanish Oaks | Las Vegas | NV | MultiFamily | 2/12/2021 | 216 | $28,500,000 | |
River Lofts | Tualatin | OR | MultiFamily | 4/23/2021 | 74 | $14,200,000 | |
Serrano | Spokane | WA | MultiFamily | 4/26/2021 | 300 | $34,400,000 | |
Spyglass Hills | Las Vegas | NV | MultiFamily | 7/1/2021 | 56 | $8,500,000 | |
Ashley Terrace | Vancouver | WA | MultiFamily | 8/4/2021 | 118 | $23,850,000 | |
Willow Creek | Prescott | AZ | MultiFamily | 12/1/2021 | 160 | $58,000,000 | |
Park Place Apartments | Spokane Valley | WA | MultiFamily | 10/15/2021 | 65 | $8,000,000 | |
Ivy Apartments | Roy | UT | MultiFamily | 12/10/2021 | 64 | $10,100,000 | |
Total | $442,677,000 | $298,592,500 |
The above bios and track record were provided by Next Wave Investors and have not been independently verified by RealtyMogul.
The Real Estate Company has budgeted $5.00MM in capital expenditures which will be allocated to both interior and exterior renovations. All units will undergo renovation at $11,487 per unit. The interior renovation plan will introduce stainless-steel appliances, new lighting fixtures, plumbing enhancements, vinyl flooring, new carpets, resurfaced countertops, and new paint. Exterior renovations will include repainting, roofing repairs, a new signage package, and aesthetic upgrades to the pool and landscaping. Post-renovation, the Real Estate Company plans to increase rents by $150 - representing a 15.7% return on cost on interiors. The Property will be sold after a 5-year hold at a 5.50% cap rate.
CapEx Breakdown:
$ Amount | Per Unit/SF | |
Interior Renovations | ||
Appliance Package | $598,000 | $2,000 |
Flooring and Carpets | $648,700 | $2,170 |
Light Fixtures | $75,025 | $251 |
Paint | $251,950 | $843 |
Resurface Countertops | $179,400 | $600 |
Cabinets | $238,200 | $797 |
Electrical Plates | $30,175 | $101 |
Bathroom Hardware | $23,450 | $78 |
Plumbing Fixtures | $76,800 | $257 |
Cleaning | $39,910 | $133 |
Total Interior Renovation Costs | $2,161,610 | $7,229 |
Exterior Renovations | ||
Exterior Paint | $234,400 | $784 |
Landscaping | $219,212 | $733 |
Pool Refresh | $40,000 | $134 |
Leasing Office Renovation | $60,000 | $201 |
Mailbox Replacement | $25,000 | $84 |
New Signage & Lights | $46,444 | $155 |
Dog Park | $30,000 | $100 |
Playground Replacement | $40,000 | $134 |
Garage Door Replacements | $35,600 | $119 |
Total Exterior Renovation Costs | $730,656 | $2,444 |
Deferred Maintenance | ||
Walkway Decking & Landing Repairs | $105,964 | $354 |
Asphalt Repairs | $175,000 | $585 |
Roof Preventative Maintenance | $50,000 | $167 |
Gutters & Downspouts Replacement | $50,000 | $167 |
Water Heater Replacement | $63,538 | $213 |
HVAC Replacement | $89,700 | $300 |
Total Deferred Maintenance | $534,202 | $1,787 |
Contingency (10%) | $411,893 | $1,378 |
Miscellaneous* | $821,828 | $2,749 |
Construction Management | $339,812 | $1,136 |
Grand Total | $5,000,000 | $16,722 |
* Miscellaneous includes: PM Interior Renovation Coordination Charge, Capitalized Renovation Technician (Labor), and On Site Project Supervision Costs in Lieu of General Contractor Fees.
Serrano North and South (the "Property") is an adjacent two property Class C+, garden style multifamily portfolio located in the Nevada Lidgerwood submarket of Spokane, Washington. 119 Units (Serrano South Apartments) were built in 1981 and 180 units (Serrano North Apartments) were built in 1984 bringing the total unit count to 299. The unit mix is comprised of studio, one-, two-, and three-bedroom floorplans and all units maintain their original 1980’s finishes. All units are equipped with ample closet space, air conditioning, and private patios or balconies. Top floor units enjoy vaulted ceilings and wood burning fireplaces as well. Community amenities include a pool, a playground, BBQ and picnic areas, a community center, five laundry facilities, and central courtyards for tenants to enjoy. Occupancy at the Property is currently 97.7%.
Unit Mix
Unit Type | # Units | Avg SF/Unit | Avg Rent (In-Place) |
Avg Rent (Stabilized Yr 1) |
Studio | 1 | 480 | $500 | $674 |
1 Bed x 1 Bath | 30 | 680 | $719 | $948 |
2 Bed x 1 Bath A | 87 | 780 | $779 | $1,009 |
2 Bed x 1 Bath B | 45 | 845 | $821 | $1,049 |
2 Bed x 1 Bath C | 46 | 902 | $825 | $1,075 |
2 Bed x 1 Bath D | 48 | 931 | $836 | $1,140 |
3 Bed x 1 Bath | 1 | 980 | $965 | $1,181 |
3 Bed x 1.5 Bath | 41 | 987 | $965 | $1,267 |
Total | 299 | 851 | $819 | $1,075 |
Lease Comps
Rosewood Club* | Gogo Heights** | Rock Creek on Nevada | Center Court Apartments | Comp Averages | Serrano North & South (Subject) | |
Year Built | 1977 | 1989 | 1996 | 1979 | 1985 | 1984 |
Units | 155 | 138 | 132 | 153 | 145 | 299 |
Distance to Subject | 1.2 Miles | 0.2 Miles | 0.6 Miles | 0.6 Miles | 0.7 Miles | |
$/Unit (1x1) | $1,025 | $1,100 | $770 | $991 | $939 | |
SF (1x1) | 680 | 750 | 611 | 684 | 674 | |
$/SF (1x1) | $1.51 | $1.47 | $1.26 | $1.45 | $1.39 | |
$/Unit (2x1) | $975 | $1,350 | $1,075 | $1,020 | $1,117 | $1,058 |
SF (2x1) | 780 | 1,025 | 1,010 | 714 | 878 | 850 |
$/SF (2x1) | $1.25 | $1.32 | $1.06 | $1.43 | $1.27 | $1.25 |
$/Unit (3x1.5) | $1,550 | $1,490 | $1,491 | $1,265 | ||
SF (3x1.5) | 1,360 | 1,250 | 1,252 | 987 | ||
$/SF (3x1.5) | $1.14 | $1.19 | $1.19 | $1.28 |
*Rosewood Club and Gogo Heights are professionally managed.
**Gogo Heights is the only lease comp that is currently renovating.
Sales Comps
Northern Heights | Willowbrook Apartments | Northstar Lodge | Total/Averages | Subject | |
Date | Nov '19 | Dec '19 | Dec '19 | Mar '21 | |
Submarket | West Spokane | Opportunity | Town and Center | Nevada Lidgerwood | |
Total SF | 191,011 | 94,062 | 116,563 | 133,879 | 270,788 |
Units | 232 | 110 | 114 | 152 | 299 |
Year Built | 2018 | 1991 | 2008 | 2006 | 1981/1984 |
Average SF | 823 | 855 | 1,022 | 900 | 906 |
Purchase Price | $34,000,000 | $15,850,000 | $19,683,500 | $23,177,833 | $35,000,000 |
$/Unit | $146,552 | $144,091 | $172,662 | $154,435 | $117,057 |
Distance from Subject (mi.) | 9.7 Miles | 8.2 Miles | 1.2 Miles | 6.4 Miles |
Market Overview
Per CoStar, the vacancy rate in the North Spokane Submarket has remained stable over the past year at 4.7%. This is consistent with the long-term average, showing that Covid-19 had virtually no impact on occupancy in this submarket.
Serrano North and South is situated right along US 2, providing seamless connectivity to the I-90, downtown Spokane, and the greater Spokane MSA. The Property is conveniently located less than four miles from Gonzaga University, Washington State University, and downtown Spokane. Additionally, the Property is located less than 10 miles from the Spokane International Airport and 20 miles from Mt. Spokane, an attractive local ski destination. Residents of Serrano North and South enjoy direct access to Franklin Park - a city park boasting large play and sports areas - and the NorthTown Mall. The NorthTown Mall is located one mile from the Property and contains over 100 stores, dining and entertainment options, and a 16-screen Regal Cinema.
After a slow recovery from the Great Recession, Spokane's multifamily market has picked up steam in the last few years and vacancies are below the historical average. The pandemic shook the market but the area is benefitting from in-migration from larger cities throughout the Pacific Northwest and beyond. New construction has been met with high absorption over the past decade as residents from across the country move to the area, and vacancies in Spokane have compressed to below both the historical and national averages. Unlike big cities throughout the Pacific Northwest, Spokane has maintained tight vacancies during the pandemic, as people who can work from home relocate to the area.
Year-over-year rent growth has maintained its strong momentum, and daily rents have held steady compared with other Washington markets since mid-March when the outbreak began. The near-term forecast calls for a slowdown in rent growth, but the level is still expected to be higher than the national average.
Renting at the Property is a 14.4% discount to the average cost of home ownership in the submarket. Additionally, the median income to stabilized rent ratio is 3.52x.
Building stock in the market is primarily developed and held by local families. The Real Estate Company sourced this off-market opportunity by strength of their network as an owner in the submarket.
Sources of Funds | $ Amount | $/Unit |
Debt | $32,050,000 | $107,191 |
GP Investor Equity | $945,000 | $3,161 |
RM Investor Equity | $5,000,000 | $16,722 |
Other LP Investor Equity | $3,260,000 | $10,903 |
Total Sources of Funds | $41,255,000 | $137,977 |
Uses of Funds | $ Amount | $/Unit |
Purchase Price | $34,400,000 | $115,050 |
Acquisition Fee | $344,000 | $1,151 |
Closing Costs (1) | $545,702 | $1,825 |
CapEx, TI, LC | $5,000,000 | $16,722 |
Working Capital | $25,000 | $84 |
Loan Placement Reserve | $496,775 | $1,661 |
Prepaid/Expense Reserve | $341,346 | $1,142 |
Rate Cap Cost | $102,177 | $342 |
Total Uses of Funds | $41,255,000 | $137,977 |
Please note that the NextWave's equity contribution may consist of friends and family equity and equity from funds controlled by NextWave. Additionally, the numbers represented above can change prior to closing depending on final loan proceeds, property condition assessments, appraisals, final closing costs, and other lender-mandated expenses.
(1) RM Technologies operates the RealtyMogul platform. RM Technologies charges a fixed, non-percentage-based fee for real estate companies to use the marketplace. An estimate of this fee is included in the Closing Costs and is intended to be capitalized into the transaction at the discretion of the Manager.
The expected terms of the debt financing are as follows:
- Total Estimated Proceeds: $32,050,000
- Estimated Rate (Floating): 3.45% + LIBOR (with a 0.25% LIBOR Floor)
- Amortization: 30 years
- Term: 5 years
- Interest Only: 3 Year + Two 1 Year Extensions
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.
Next Wave intends to make distributions from NWI Serrano, LLC to Investors as follows:
1. Pari Passu to 10.0% IRR
2. 67.5%/32.5% (67.5% to Investors/32.5% to The Real Estate Company) to 15% IRR
3. 50%/50% (50.0% to Investors/50.0% to The Real Estate Company) 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 October 2021 and are projected to continue on a quarterly basis thereafter. These distributions are at the discretion of NextWave, who may decide to delay distributions for any reason, including maintenance or capital reserves. The Real Estate Company will receive a promote as indicated above, and a portion of this promote may be received by RM Admin for administrative services.
Cash Flow Summary
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Effective Gross Revenue | $3,123,214 | $3,708,208 | $3,984,321 | $4,316,710 | $4,559,801 | ||
Total Operating Expenses | $1,533,116 | $1,618,093 | $1,686,514 | $1,737,779 | $1,787,517 | ||
Net Operating Income | $1,590,098 | $2,090,115 | $2,297,808 | $2,578,932 | $2,772,284 |
Project-Level Cash Flows
Year 0 | Year 1 | Year 2 | Year 3 | Year 4* | Year 5 | |||
Net Cash Flow | -$9,205,000 | $272,386 | $763,628 | $940,221 | $593,121 | $19,358,154 |
*Debt I/O expiration
Investor-Level Cash Flows
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Net Cash Flow | -$8,260,000 | $158,197 | $602,632 | $761,096 | $449,630 | $14,924,303 |
Investor-Level Cash Flows - Hypothetical $50,000 Investment*
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Net Cash Flow | -$50,000 | $958 | $3,648 | $4,607 | $2,722 | $90,341 |
*Returns are net of all fees including RealtyMogul's 1.0% annual administrative services fee.
NO ASSURANCE OF RETURN: The Company's pro-forma projections are based on assumptions regarding future events, such as the timing and extent of the recovery of the residential market and the stabilization of the debt markets. While the Manager believes that these assumptions are reasonable and achievable, the likelihood of its occurrence is subject to many factors that are not within the control of the Company or its Manager and that could impair the ability of the Company to meet its projections.
Certain fees and compensation will be paid over the life of the transaction; please refer to NextWave's materials for details. The following fees and compensation will be paid(1)(2)(3):
One Time Fees: | |||||
Type of Fee | Amount of Fee | Received By | Paid From | ||
Acquisition Fee | 1% of Gross Acquisition Price | Next Wave | Capitalization | ||
Construction Management Fee | 7.5% of Total Construction Costs | Next Wave | Capitalization | ||
Disposition Fee* | 1.0% of Gross Sales Price | Next Wave | Sales Proceeds | ||
Recurring Fees: | |||||
Type of Fee | Amount of Fee | Received By | Paid From | ||
Property Management Fee | 3.0% of EGI | Next Wave | Property Cashflow | ||
Asset Management Fee | 1.5% of EGI | Next Wave | Property Cashflow | ||
Administrative Services Fee | 1.0% of amount invested | RM Admin (3) | Distributable Cash |
*Disposition Fee – 1% of the gross sales price of the Project, contingent on both (A) return to Investors of initial invested capital and (B) Investors realizing 10% IRR on initial invested capital.
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.
(1) Fees may be deferred to reduce impact to investor distributions
(2) RM Technologies operates the RealtyMogul platform. RM Technologies charges a fixed, non-percentage-based fee for real estate companies to use the marketplace. An estimate of this fee is included in the Closing Costs and is intended to be capitalized into the transaction at the discretion of the Manager.
(3) RM Admin will be providing the following services:(a) responding to inbound investor inquiries regarding how to subscribe to the Project, (b) distribution of all annual tax forms (after receipt of same from Project Sponsor), (c) processing distributions that are payable from RM Investors to Investors, however, RM Admin will not be deemed to have custody of client funds, (d) distribution of all quarterly reports (after receipt of same from Project Sponsor) and (e) summarizing sponsor information on property performance, responding to investor inquiries regarding sponsor performance information as well as the real estate market generally.
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.