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Funded
Multifamily
Idlewood Park
Houston, TX
INVESTMENT STRATEGY
Value-Add
INVESTMENT TYPE
Equity
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100% funded
Offered By ParaWest Group
18.7%* TARGET IRR 17.7%-19.7%
5.9%* TARGET AVG CASH ON CASH
1.97X* TARGET EQUITY MULTIPLE
Estimated Hold Period 4 Years
Estimated First Distribution 5/2022
Minimum Investment 35000
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
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Explore this Project
Overview
Idlewood Park, located in Houston, Texas, is a value-add investment to renovate a 268-unit, well-maintained, well-designed, and well-located mid 80's apartment community alongside a seasoned sponsor.
Basis

MAI Appraisal dated November 2020 indicates an as-is value of $24,460,000 while this investment opportunity is presented to investors based on a discounted value of $23,000,000 (plus renovation and transaction costs).

Location

Idlewood Park is a Class B property located in southwest Houston one mile west of Beltway 8 on the outskirts of the City of Sugarland, one of the fastest-growing and most desirable cities in the nation. As a testament to the marketability and demand for this location, there have been two new apartment communities opened within the past year located 1/4th of a mile and 1 mile from the Property, respectively. The closer new property is 100% occupied at rents ranging from $205-$235/month higher than Idlewood's current rents while the second property, currently in lease-up, has rent rates of $265-$295/month higher than Idlewood. Both properties are considered workforce housing and are similar in design and comparison to Idlewood.

Capital Appreciation

The Property's design and construction represent among the best of its age group and class, which together with the planned improvements, upgrades, and competitively projected rent rates should enable Idlewood to compete strongly with the newer and best apartment communities in the area.

Property At A Glance
# of Units 268
Year Built 1984
# of Buildings 17
Current Occupancy 96%
Parking Ratio 1.62 Per Unit
Acquisition Price

$23,000,000

Investment Highlights
ParaWest Group plans to recapitalize the Property for $23,000,000 ($85,821 per unit), while the appraisal dated November 2020 indicates a value of $24,460,000.
ParaWest Group has budgeted $750,000 ($2,799 per unit) for interior unit renovations and $800,000 for exterior improvements.
ParaWest Group Principals have participated in over 20 acquisitions in the Houston Market since 2010. Idlewood Park is within a 20 mile radius of 12 ParaWest Group Principal Acquisitions.
The Property is managed by an affiliate of the Real Estate Company, ParaWest Management, which is vertically integrated and has experience managing more than forty multifamily properties in Houston.
The exit strategy is to sell the Property in four years at an expected cap rate of 5.50%.
Management
Cumulative Distributions

ParaWest Group

ParaWest Group (PWG)(1) brings together the collective experience of Curtis Haines, Michael Salkeld, Delane Salkeld, and CRSC Residential, Inc. through its President and CEO, Bryan Krizek. These principals bring to the table decades of experience in multi-family investments and operations both individually and collectively resulting in in-depth knowledge and experience that is unsurpassed in the industry. PWG focuses solely on multi-family properties in select markets. As an investment arm of these principals, PWG is an investment platform that includes ParaWest Management(2), thus creating a fully integrated platform for multi-family investments. This platform extends from sourcing and acquisitions to financing and equity structuring, renovation and operations, and ultimately disposition. ParaWest Group, through its principals, has created a strategic advantage in sourcing, underwriting, and closing opportunistic value-add multi-family properties and since its inception in 2012, has participated in the acquisition and investment in twenty-three properties totaling more than 4,000 units.

As a repeat Sponsor on the RealtyMogul Platform, Bay Island at Lake Ray Hubbard will be ParaWest Group’s fifth transaction with Realty Mogul. The first two deals have now gone full cycle (i.e. through sale) with the first having closed in June 2022, and generated an IRR to Investors of 27%, and the second, currently in escrow and scheduled to close during the third quarter, generating a projected Investor IRR of 24%. Both deals had proforma returns of 15.9% each.

Notes:
1) ParaWest Group, LLC  is a pass-through entity and its principals invest as individuals in single ownership entities on each transaction. 
2) ParaWest Management has been in business since 2003 and is solely owned by Michael and Delane Salkeld.         

http://www.parawestgroup.com/
  • Michael Salkeld
    Co-Founder / Managing Partner
  • Delane Salkeld
    Co-Founder / Partner
  • Curtis Haines
    Partner
  • CRSC Residential, Inc.
    Principal
Michael Salkeld
Co-Founder / Managing Partner

Prior to cofounding ParaWest in 2003, Mr. Salkeld served as Regional Vice President of Pinnacle Realty Management's Arizona Office between 1990 and 2001, where he developed and supervised a fee management portfolio of more than 6,000 units in Arizona, Nevada, California, and New Mexico.  Before that (1982-1989) he served as Executive V.P. of Property Management and Development for Urban Investment Corporation.

Delane Salkeld
Co-Founder / Partner

Prior to serving as principal for ParaWest, Mrs. Salkeld served as Senior Investment Manager for Pinnacle Realty Management, Inc. (1990-2000).  Mrs. Salkeld is certified as a Licensed Real Estate Broker in AZ, and as a Property Manager (CPM).  She is also a member of the Arizona Multi-Housing Associate Board of Directors.

Curtis Haines
Partner

As of January 2021, Mr. Haines is invested in more than 100 multifamily properties as Key Principal with an aggregate value of more than $1.9 billion. Prior to engaging in multifamily investing, Mr. Haines founded, developed, and sold one of Houston's largest Permanent Placement Firms designated by Inc. Magazine as one of the "Fastest-Growing Private Companies in the U.S." before moving into Apartment Investment and applying the same diligence, fortitude, and insightfulness that has made him one of Houston's most prodigious apartment owner-operators.

CRSC Residential, Inc.
Principal

CRSC Residential, Inc. as an affiliate of CRS, Inc. owns and operates multi-family properties in Virginia, Kansas, and Arizona, and has investment interests in properties in Texas. Total wholly-owned properties together with Investments in Property Operating interests exceed $100 million.

Track Record

ParaWest Group's Track Record

ParaWest Group Principals - Managing Members - Current SREO
Property Units Location Built  Value   Value/Unit   Debt   Total Equity  Lender Date Acquired MMR2
Idlewood Park1 268 Houston, Texas 1984  $24,460,000  $91,269  $16,710,000  $7,750,000 Berkeley Point Capital (FNMA) Nov-13 MS
Fountain Park 176 Stafford, Texas 1969  $14,960,000  $85,000  $7,100,000  $7,860,000 Berkeley Point Capital (FNMA) Oct-13 CH
Plantation at Quail Valley 124 Missouri City, Texas 2004  $16,415,886  $132,386  $8,118,612  $8,297,274 Keybank Nov-13 CH
Springfield 100 Missouri City, Texas 1977  $8,846,615  $88,466  $2,553,573  $6,293,042 Arbor (FNMA) Sep-14 CH
Briar Court 201 Houston, Texas 1973  $28,200,000  $140,299  $15,200,000  $13,000,000 MF1 Jun-19 MS
Lexington at Champions 89 Houston, Texas 2003  $13,500,000  $151,685  $10,878,750  $2,621,250 Arbor Sep-21 MS
Total/Avg 958      $106,382,501  $689,105  $60,560,935  $45,821,566      
 
ParaWest Group Principals - Managing Members - Exited Deals
Property Units Location Built  Sales Price   Price/Unit   Date Sold  Date Acquired MMR2    
Mirabella Galleria 160 Houston, Texas 1965  $14,700,000  $91,875 Aug-18 Jun-12 CH    
Beverly Palms 362 Houston, Texas 1968  $31,338,000  $86,569 May-18 Aug-12 MS    
Stoney Brook 113 Houston, Texas 1966  $11,550,000  $102,212 Apr-18 Jan-10 CH    
Legacy at Westchase 324 Houston, Texas 1977  $25,000,000  $77,160 Aug-17 Jun-14 MS    
Idlewood Park1 268 Houston, Texas 1981  $22,258,000  $83,052 Jun-17 Oct-13 MS    
Jacinto Palms 128 Houston, Texas 1972  $6,765,000  $52,852 Jan-16 Jun-14 CH    
Barcelona 118 Houston, Texas 1963  $6,500,000  $55,085 Dec-13 Jul-09 CH    
Carrington Court 111 Houston, Texas 1963  $11,000,000  $99,099 Apr-19 Mar-11 CH    
Watermill 192 Houston, Texas 1970  $17,477,000  $91,026 Apr-19 Aug-11 CH    
Quail Valley 176 Missouri City, Texas 1978  $16,192,000  $92,000 Aug-19 Sep-14 CH    
Colonade 192 Grand Prairie, Texas 2001  $22,000,000  $114,583 Dec-18 Oct-15 Other    
Somerset 264 Fort Worth, Texas 1985  $24,245,000  $91,837 Jan-22 Oct-16 Other    
Stratton Park 264 Fort Worth, Texas 1985  $24,245,000  $91,837 Jan-22 Oct-16 Other    
Valencia 263 Fort Worth, Texas 263  $22,345,000  $84,962 Jan-22 Jul-17 Other    
Corners 242 Dallas, Texas 242  $21,250,000  $87,810 Jan-22 Nov-17 Other    
Landmark at Laurel Heights 286 Mesquite, Texas 286  $37,915,000  $132,570 Jan-22 Dec-17 Other    
Briarstone2 97 Rosenberg, Texas 1997  $12,500,000  $128,866 Mar-21 Oct-18 MS    
Tiffany Square 84 Houston, Texas 1971  $7,896,000  $94,000 Feb-22 Dec-12 CH    
Residences 2727 171 Houston, Texas 1995  $23,350,000  $136,550 May-21 Oct-17 CH    
Palms on Westheimer 798 Houston, Texas 1974  $70,224,000  $88,000 Dec-21 Jul-15 CH    
Montclair Estates 113 Garland, Texas 1983  $17,050,000  $150,885 June-22 Oct-19 MS    
Total/Avg 4,726      $445,800,000  $244,982          
 
ParaWest Group Principals -  Co-Managing Member Investors - Current SREO
Property Units Location Built  Value   Value/Unit   Debt   Total Equity  Lender Date Acquired MMR2
Park on Spring Creek 278 Plano, Texas 1983  $45,935,467  $       165,235  $    32,500,000  $13,435,467 NXT Capital Dec-17 Other
Total/Avg 278      $45,935,467  $       165,235  $    32,500,000  $13,435,467      
 
ParaWest Group Principals -  Investors - Current SREO3
Property Units Location Built  Value   Value/Unit   Debt   Total Equity  Lender Date Acquired MMR2
Forest Oaks 164 Arlington, Texas 1980  $24,600,000  $150,000  $8,925,000  $15,675,000 Berkadia (Freddie Mac) Aug-16 Other
Braesridge 542 Houston, Texas 1982  $70,460,000  $130,000  $23,280,000  $47,180,000 Freddie Mac Jun-15 Other
Summer Cove 376 Houston, Texas 1983  $43,240,000  $115,000  $18,160,000  $25,080,000 Holliday Fenoglio Fowler Sep-15 Other
Highland Bluffs 357 Dallas, Texas 1984  $30,345,000  $85,000  $7,631,000  $22,714,000 FNMA Dec-14 Other
Total/Avg 1,439      $168,645,000  $120,000  $57,996,000  $110,649,000      

Notes

1) Idlewood Park was restructured in 2021.

2)"MMR" denotes Managing Member.  CH - Curtis Haines; MS - Michael Salkeld; Other - Non ParaWest Group Managing Member.

3) Individual Principals SREO's (attached) may include properties invested in separately from ParaWest Group.

4) Values are derived from estimated market-based capitalization rates applied to net operating income. Actual values as determined by any future appraisal or sale may vary.

The bio and track record reflect those of ParaWest Group Principals, and were provided by the Sponsor and have not been verified by RealtyMogul

Business Plan

ParaWest Group has owned and operated the Property since 2013 and is recapitalizing the Project to take advantage of the value add potential still remaining in the asset. By recapitalizing, Idlewood Park interior and exterior renovations coupled with updates to critical building system components will allow ownership to increase rents and commensurate value as Idlewood Park becomes more competitive with newer properties in the area, stabilizes revenue, and operates at more efficient expense levels consistent with better maintained properties in this market

Idlewood Park has previously undergone a modest Tier-1 renovation approximately six years ago that addressed exterior deferred maintenance, upgraded the office and amenities, and upgraded units through flooring and appliances. The Sponsor will implement a Tier-2 renovation going forward, which will upgrade the exterior and interior presentation, amenities, and fixtures as well as replacement of critical building components and systems (e.g. parking lots, sidewalks, structural concrete, etc.). The Tier-2 renovation will bring the remaining unit interiors to contemporary market levels consistent with new properties recently developed nearby. In conjunction with this value-add plan, rental rates will be increased to market levels while maintaining a competitive pricing differential with the newest comparable properties in this submarket.

CapEx Breakdown

Item Amount CM Fee Total Per Door Comments
Exterior Rehab          
Exterior Carpentry $200,000 $10,000 $210,000 $784  
Full Exterior Paint $152,000 $7,600 $159,600 $596  
Landing Repairs $160,000 $8,000 $168,000 $627  
Concrete Repairs $35,000 $1,750 $36,750 $137  
Welding Repairs $90,000 $4,500 $94,500 $353  
Gutter Repairs $8,552 $428 $8,980 $34  
Brick Tuck Point $40,000 $2,000 $42,000 $157  
Foundation Repairs $76,353 $3,818 $80,171 $299  
           
Total Exterior $761,905 $38,095 $800,000 $2,985  
           
Interior Rehab          
Interior Fixtures $101,600 $5,080 $106,680 $398.06 25%
Black on Black Appliances $197,796 $9,890 $207,686 $774.95 60%
Flooring $67,500 $3,375 $70,875 $264.46 Classic Units
Two Tone Paint $26,800 $1,340 $28,140 $105.00 25%
Interior Doors 6 panel $146,390 $7,320 $153,710 $573.54 100%
Cabinet Resurface $174,200 $8,710 $182,910 $682.50 100%
Total Interior $714,286 $35,714 $750,000 $2,799  
           
Contingency $190,476 $9,524 $200,000 $746  
           
Grand Total $1,666,667 $83,333 $1,750,000 $6,530  
Property
Property Details

Idlewood Park is a Class B property located in southwest Houston one mile west of Beltway 8 on the outskirts of the City of Sugarland, one of the fastest-growing and most desirable cities in the nation. The Property will be renovated to contemporize unit interiors, building exteriors, and common area amenities in order to reposition it as a submarket leader and achieve rent levels at the top of its market.

Unit Mix

Unit Type # of Units Avg SF/Unit Avg Rent (In-Place) Avg Rent (Stabilized) Post-reno rent per SF
1x1 60 474 $741 $825 $1.74
1x1 60 584 $776 $870 $1.49
1x1 48 680 $834 $910 $1.34
2x1 36 788 $961 $995 $1.26
2x2 24 860 $996 $1,035 $1.20
2x2 32 956 $1,039 $1,140 $1.19
2x2 8 1,084 $1,099 $1,160 $1.07
Total/Averages 268 688 $864 $940 $1.41
Comparables

Lease Comparables

Property Name Year Built # of Units Avg Unit SF 1 Bed 2 Bed Rent/SF
Aria at Kirkwood 2020 108 767 $989 $1,259 $1.43
Camden Sugar Grove 1997 380 917 $1,112 $1,379 $1.36
Advenir at Milan 2006 360 935 $1,007 $1,278 $1.25
Timbers of Keegans Bayou 1982 152 739 $824 $1,009 $1.19
Resort Townhomes 1982 294 1,092 $1,071 $1,341 $1.15
Windfield Townhomes 1983 294 1,147 $1,026 $1,367 $1.09
Cambridge Crossing 1977 132 1,225   $1,059 $0.91
Average     975 $1,005 $1,242 $1.20
Idlewood Park (Subject) 1981 268 688 $794 $1,032 $1.28

Sales Comparables

Property Name Siena on Westheimer Los Prados Apartments Arlington Place Apartments Cashel Springs The Atrium at 5606 Average Subject (Going-in)
Location Houston, TX Houston, TX Houston, TX Houston, TX Houston, TX   Houston, TX
Land Size (Acres) 15.31 7.68 8.91 9.89 4.13 9.18 10.51
Rentable Area (SF) 478,936 206,320 205,476 230,364 129,488 250,117 184,392
Number of Units 643 264 230 300 144 316 268
Average Unit Size (SF) 745 782 893 768 899 817 688
Year Built 1969 1977 1972 1982 1970 1974 1984
Year Renovated N/A 2017 N/A 2019 2017   N/A
Occupancy 90% 90% 91% 92% 98% 92% 96%
Condition Average Good Average Average N/A   Average
Price $53,167,417 $23,350,000 $21,233,465 $23,300,000 $13,455,779 $26,901,332 $23,000,000
Price per SF $111.01 $113.17 103.34 $101.14 $103.92 $106.52 $125
Price per Unit $82,686 $88,447 $92,319 $77,667 $93,443 $86,912 $85,821
Cap Rate 5.00% 6.50% 5.64% 5.22% 5.00% 5.47%  
Location

Market Overview

The Houston economy remains among the top performers in the country. As the fourth largest MSA, Moody's projects Houston to have the largest population gain in the U.S. from 2020-2025 (550,000 additional residents), and second in job growth among the twenty largest MSAs from 2020-2025 with an average annual job gain of just under 80,000. Houston's multifamily market ranked third in the nation last year in terms of demand, with positive net absorption of approximately 12,500 units.

Submarket Overview

Idlewood Park is located in southwest Houston at the confluence of two submarkets: Alief to the north and west, and Sugar Land to the south and west. Located at the intersection of two primary arterials, Bellfort and Kirkland, the property enjoys outstanding street frontage, excellent proximity to all of Sugar Land, and easy access via Beltway 8 or Hwy 59 to other areas of Houston located just 8 miles from the inner Loop and 12 miles from downtown Houston. A recent survey of Idlewood Park residents indicated that 37% work, and a significant 77% shop and/or recreate, in Sugar Land.  Sugar Land is known as a regional employment center, home to numerous high-profile regional and international corporations. Its center, known as "Sugar Land Town Square" serves as the primary entertainment district in the area with more than 240,000 square feet of retail and restaurants and a public plaza that hosts festivals and other public events. Idlewood's location just outside of Sugar Land provides residents an economic alternative to the higher rents in Sugar Land while enjoying all that the community has to offer. This submarket area is among the most ethnically diverse in the Houston SMSA and has seen average rent growth of just under 3% over the past ten years with average occupancy levels of 93%.  

Photos
Financials
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Debt $16,202,695 $60,458
GP Investor Equity $2,573,130 $9,601
LP Investor Equity $7,000,000 $26,119
Total Sources of Funds $25,775,825 $96,178
     
Uses of Funds   $/Unit
Purchase Price $23,000,000 $85,821
Acquisition Fee $345,000 $1,287
Loan Fee $283,547 $1,058
Closing Costs(1) $297,278 $1,110
CapEx $1,750,000 $6,530
Working Capital $100,000 $373
Total Uses of Funds $25,775,825 $96,178

The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.

(1) RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform.  RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the Platform and for Platform-related services.  Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC. 

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: Fannie Mae (Berkeley Point Capital LLC)
  • Term: 6 Years
  • Loan-to-Value: 70.4%
  • Estimated Proceeds: $16,202,695
  • Interest Type: Fixed
  • Annual Interest Rate: 4.44%
  • Interest-Only Period: N/A
  • Amortization: 30 Years
  • Loan Fees: Estimated at 1% of existing loan balance

There can be no assurance that the Sponsor will secure debt on the rates and terms noted above, or at all.  All of the Sponsor’s estimated 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 risk of loss.  If the Sponsor were unable to pay the payments on the borrowed funds (called a "default"), the lender might foreclose, and the Sponsor could lose its investment in its property.

Distributions

ParaWest Group intends to make distributions from Idlewood Investors LLC as follows:

  1. To the Investors, pari passu, all operating cash flows to a 10.0% IRR;
  2. 65% / 35% (65% to Investors / 35% to Promoted/Carried Interest) to a 14.0% IRR;
  3. 50% / 50% (50% to Investors / 50% to Promoted/Carried Interest)of excess cash flow thereafter. 

ParaWest Group intends to make distributions to investors after the payment of both company's liabilities (loan payments, operating expenses, and other fees as more specifically set forth in the LLC agreements, in addition to any member loans or returns due on member loan).

Distributions are expected to start in May 2022 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of ParaWest Group, who may decide to delay distributions for any reason, including maintenance or capital reserves. ParaWest Group will receive a promoted/carried interest as indicated above, and a portion of this promoted/carried interest may be received by RM Admin, LLC for administrative services.

Cash Flow Summary
    Year 1 Year 2 Year 3 Year 4
Effective Gross Revenue   $2,923,470 $3,233,231 $3,412,536 $3,535,031
Total Operating Expenses   $1,525,619 $1,564,554 $1,649,057 $1,693,160
Net Operating Income   $1,397,851 $1,668,677 $1,763,479 $1,841,871
               
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3 Year 4
Net Cash Flow ($9,573,130) $390,836 $658,565 $751,574 $18,743,718
               
Investor-Level Cash Flows*
  Year 0 Year 1 Year 2 Year 3 Year 4
Net Cash Flow ($7,000,000) $215,785 $411,551 $479,561 $12,385,152
               
Investor-Level Cash Flows - Hypothetical $50,000 Investment*
  Year 0 Year 1 Year 2 Year 3 Year 4
Net Cash Flow ($50,000) $1,541 $2,940 $3,425 $88,465

*Returns are net of all fees.  Such Fees include fees paid to RM Admin, an affiliate of RealtyMogul, who charges an annual fixed administrative fee for providing certain ongoing administrative services to the Sponsor.  Please see the Fees and Disclaimers sections and Disclaimers sections below for additional information concerning fees paid to RM Admin. 

RM Technologies, LLC and its affiliates does not provide any assurance of returns.  The content on this Page, including Sponsor’s pro forma projections, was provided by the Sponsor or an affiliate thereof.  Although RM Technologies, LLC believes the Sponsor reliably produced this content, RM Technologies, LLC makes no representations or warranties as to the accuracy of such information and accepts no liability therefor.  The assumptions and projections included in the content on this Page, including the Sponsor’s pro forma projections, are not reflective of the position of RM Technologies, LLC or any other person or entity other than the Sponsor or its affiliates.  There can be no assurances that all or any of the Sponsor’s assumptions will be true, that actual performance will bear any relation to these hypothetical illustrations, or that the Sponsor’s investment objectives will be achieved.  For additional information concerning the Sponsor’s assumptions and projections, and the significant risks involved in investing in real estate, please see the Disclaimers section below. 

 

Fees

Certain fees and compensation will be paid over the life of the transaction; please refer to ParaWest Group'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
Transaction Fee 1.5% of Recap Value ParaWest Capitalized Equity Contribution
Construction Management Fee 5.0% of CapEx Budget ParaWest Capitalized Equity Contribution
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From
Asset Management Fee 1.0% of EGI ParaWest Distributable Cash
Property Management Fee 3.5% of EGI ParaWest Distributable Cash
Administrative Services Fee 1.0% of Equity* RM Admin(3) Distributable Cash

*Only applies to equity raised through the RealtyMogul Platform

(1) Fees may be deferred to reduce impact to investor distributions.

(2) RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform.  RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the RM Technologies, LLC’s proprietary Platform and receive Platform-related services.  An estimate of this fee is included in the Closing Costs above and is intended to be capitalized into the transaction at the discretion of the Sponsor.  The Platform fees received by RM Technologies, LLC are disclosed in the relevant operating agreement(s).  RM Technologies LLC’s receipt of Platform fees creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.

(3) RM Admin, an affiliate of RealtyMogul, charges an annual fixed administrative fee for providing certain ongoing administrative services to the Sponsor.  RM Admin’s administrative services and fees are disclosed in the relevant operating agreement(s). RM Admin’s receipt of administrative fees creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.

Disclaimers/FAQs
Disclaimers

The content on this Page was provided by the Sponsor or an affiliate thereof.  Although RM Technologies, LLC believes the Sponsor reliably produced this content, RM Technologies, LLC makes no representations or warranties as to the accuracy of such information and accepts no liability therefor.  No part of the content and information on this Page is intended to be binding on RM Technologies, LLC or its affiliates, or to supersede any of the Sponsor’s offering materials.  None of the opinions expressed on this Page are the opinions of, nor are they endorsed by, RM Technologies, LLC or its affiliates.

The content on this Page, including of the principal terms of the Sponsor’s offering, is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s offering documents, including, without limitation, the Private Placement Memorandum, Operating Agreement, Subscription Agreement and all exhibits and other documents attached thereto or referenced therein (collectively, the "Investment Documents").  The content on this Page is not complete, and each prospective investor should carefully read all of the Investment Documents and any supplements thereto, copies of which are available by clicking the links above or upon request, before deciding whether to make an investment.  The content on this page should not be used as a primary basis for an investor’s decision to invest.  In the event of an inconsistency between the content on this Page and the Investment Documents, investors should rely on the information contained in the Investment Documents.  The content on this Page and the information in the Investment Documents are subject to last minute changes up to the closing date at the discretion of the Sponsor. 

Assumptions and projections included in the content on this Page are not reflective of the position of RM Technologies, LLC or its affiliates, or any other person or entity other than the Sponsor or its affiliates.  There can be no assurance that the Sponsor’s methodology used for calculating any projections, including Target IRR, Target Annualized Cash-on-Cash Return, and Target Equity Multiple (“Targets”), are appropriate or adequate.  The Sponsor’s Targets are hypothetical, are not based on actual investment results, and are presented solely for the purpose of providing insight into the Sponsor’s investment objectives, detailing its anticipated risk and reward characteristics and for establishing a benchmark for future evaluation of the Sponsor’s performance. The Sponsor’s Targets are not a predictor, projection or guarantee of future performance.  There can be no assurance that the Sponsor’s Targets will be met or that the Sponsor will be successful in meeting these Targets.  Target returns should not be used as a primary basis for an investor’s decision to invest.

This real estate investment is speculative and involves substantial risk.  There can be no assurances that all or any of the assumptions will be true or that actual performance will bear any relation to the hypothetical illustrations herein, and no guarantee or representation is made that investment objectives of the Sponsor will be achieved.  In the event that actual performance is below the Sponsor’s Targets, your investment could be materially and adversely affected, and there can be no assurance that investors will not suffer significant losses.  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.  Please see the Sponsor’s Investment Documents for additional information, including the Sponsor’s discussion concerning risk factors.

Please see the applicable Investment Documents for disclosure relating to forward-looking statements.  All forward-looking statements attributable to the Sponsor or its affiliates apply only as of the date of the offering and are expressly qualified in their entirety by the cautionary statements included elsewhere in the Investment Documents.  Any financial projections are preliminary and subject to change; the Sponsor undertakes no obligation to update or revise these forward-looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.  Inevitably, some assumptions will not materialize, and unanticipated events and circumstances may affect the ultimate financial results. Projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic and competitive risks, and the assumptions underlying the projections may be inaccurate in any material respect. Therefore, the actual results achieved may vary significantly from the forecasts, and the variations may be material.

The interests offered by the Sponsor 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 interests will not be registered under any state securities laws in reliance on exemptions from registration.  Such 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 RealtyMogul Platform are intended solely for “Accredited Investors,” as that term is defined Rule 501(a) of the Securities Act.  Prospective investors must certify that they are Accredited Investors and provide either certain supporting documents or third party verification, and must acknowledge that they have received and read all investment materials.

RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform.  RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the RM Technologies LLC’s proprietary Platform and receive Platform-related services.  An estimate of this fee is included in the Closing Costs above and is intended to be capitalized into the transaction at the discretion of the Sponsor.  The Platform fees received by RM Technologies, LLC are disclosed in the relevant operating agreement(s). RM Technologies LLC’s receipt of Platform fees creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.

RM Admin, an affiliate of RealtyMogul, charges an annual fixed administrative fee for providing certain ongoing administrative services to the Sponsor.  RM Admin’s administrative services and fees are disclosed in the relevant operating agreement(s). RM Admin’s receipt of administrative fees creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.

RealtyMogul is not a registered broker-dealer, investment adviser or crowdfunding portal.  Nothing on this Page should not be regarded as investment advice, either on behalf of 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, and we recommend that you consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any real estate investment.

For additional information on risks and disclosures visit https://www.realtymogul.com/investment-disclosure.

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