FORMALIZED DUE DILIGENCE PROCESS 
Sponsors

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.

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* Unless otherwise disclosed, escrow accounts are not required for some investments that accommodate 1031 investments where the property is already acquired.

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Confidentiality Agreement
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Funded
Estimated Hold Period 3 Years
Estimated First Distribution 9/2024
FUNDED 100%
...
View Our Due Diligence Process
Offered By
Bond Companies
Investment Strategy Development
Investment Type Equity
Minimum Investment 35000
Overview
Ground-up development of a Class A, 46-unit boutique multifamily building in the growing Echo Park neighborhood of Los Angeles, named by Forbes magazine as one of the coolest neighborhoods in the US.
Market

The Echo Park submarket of Los Angeles has excellent long-term fundamentals, a result of the high barrier of entry. Its central location to the Hollywood, Glendale, and the Downtown Los Angeles job centers, in addition to the growing base of local and nationally renowned retailers, restaurants, and entertainment venues make it a highly sought after neighborhood. Inspire Court is strategically located in the most convenient area of Echo Park, allowing residents to take advantage of these top recreational areas in the immediate vicinity, in addition to the premium amenity offerings within the building itself.

Location

Inspire Court benefits from an easily accessible transit-orientated location that is advantageously positioned along the LA Content-Media “S-Curve.” The region, extending from Glendale and Burbank, through the heart of Hollywood and Downtown LA, into the Westside, is home to some of the most prominent technology and entertainment companies in the Nation. The median home value has seen more than 80% growth since 2015, with single-family home prices in Echo Park now average ~$1.1 million, extending the renter lifecycle. Inspire Court provided the highly coveted suburban lifestyle with urban Los Angeles the renters desire.

Management

Bond Companies is a premier, award-winning real estate development company with a tremendous track record, consisting of an experienced team of professionals that handle all aspects of real estate development. Bond Companies has significant experience in the Echo Park submarket of Los Angeles having completed Inspire Belmont (69 Units) in 2017 and Inspire Colton (47 units on the adjacent block to Inspire Court) in 2021. Vertically integrated, Bond Companies' Property Management arm has intimate knowledge of Echo Park and the rental demographic.  

Property at a glance
# of Units 46
Construction Completion Date September 2023
Parking Ratio 1:1
Target Return on Cost 5.5%
Exit Cap Rate 4.0%
Acquisition Price $3,694,120
Investment Highlights
Walking distance to an abundance of outdoor amenities, including Vista Hermosa Park, Echo Park Lake, Elysian Park, and the #1 rated public pool.
Echo Park is “the coolest neighborhood of Los Angeles” – Forbes Magazine
This boutique Class A building will feature both downtown LA and Mountain Views.
Walking distance to the commercial corridors along Glendale and Sunset Boulevard.
Bond Companies has received numerous national awards including winning the coveted “Residential Developer of the Year” by the Los Angeles Business Journal.
Management
Cumulative Distributions

Bond Companies

Bond Companies is a premier, award-winning real estate development company with a long track record and proven ability to own, develop and manage all asset classes. Bond consists of an experienced team of professionals that handle all aspects of real estate development, investment, and management, including but not limited to acquisition, project/construction management, asset management, property management, accounting, and disposition. Chicago and LA-based Bond and its subsidiaries currently own 15 projects nationwide, with its recent activity focused on mixed-use and multifamily assets in Los Angeles, Chicago, and the Southeast.

Not only have The Company's latest two projects won awards (Spoke won the Silver prize for "Best Overall Project in the U.S." and gold for "Best Amenity Package" & Inspire Southpark won the "Heavy Hitters Award" for the best development in Charlotte) but so has The Company itself, being named Residential Developer of the Year by Los Angeles Business Journal and top 3 National Finalist for National Association of Home Builders - Freddie Mac Multifamily Development Firm of the Year.

All told, Bond Company has won almost 30 awards since 2000. 

Bond Companies is recognized with the first LEED Gold office space in Los Angeles, the first development company in the Chicago metro area to complete a LEED Silver mixed-use project, Center on Halsted in Chicago, Illinois, and the first in greater Chicago to complete a LEED Gold shopping center with its project Springbrook Prairie Pavilion in Naperville.

Those accomplishments have only been possible because of Bond's commitment to fostering invaluable relationships with leaders throughout the financial, real estate, and civic sectors. Those relationships ensure the Company's success now and in the future.

 

 

https://bondcompanies.com/
  • Larry Bond
    Co-Founder and Chairman
  • Rob Bond
    Co-Founder and President
Larry Bond
Co-Founder and Chairman

Larry Bond co-founded Bond Companies along with his brother Robert Bond in 1987 and serves as its Chairman. Bond Companies has offices in Los Angeles and Chicago. Larry heads the Los Angeles office.

The Los Angeles Business Journal has honored Bond Companies as “Residential Developer of the Year”. In addition, the National Association of Home Builders honored the company by selecting it as one of three finalists for the Freddie Mac Multifamily Developer of the Year for the United States. All told, the company has won dozens of awards for its innovative developments throughout the United States.

Mr. Bond has been developing mixed-use properties for more than twenty years including the award-winning, Sunset & Vine, a 750,000 square foot mixed-use project in Hollywood at the intersection bearing its name. Sunset & Vine won more than a dozen national awards including “Project of the Year”, “Best Urban Mixed-Use Project”, “Best Urban Retail Center” and “Best Residential Project”. This includes the highly coveted “Golden Nugget” award for best real estate development.

Rob Bond
Co-Founder and President

Robert J. Bond is a co-founder and president of Bond Companies, an award-winning real estate development and investment firm with offices in Chicago and Los Angeles. Rob is based in Chicago.

With a national platform, Bond Companies has completed several high-profile projects in Oakland, San Francisco, and Los Angeles, and in the Chicago metropolitan area. Having won multiple awards and improving the fabric of those communities, Mr. Bond has always kept the local community and their needs in high regard and consideration during each project. The firm has expertise in mixed-use, adaptive re-use, retail and multi-family developments.

Track Record

Bond Companies Track Record

Bond Companies has developed dozens of projects worth more than $3 billion including 22 multifamily assets of approximately $1.2 billion, resulting in an average equity multiple of 2.54X, and a 33% IRR.

Property  Location Deal Type Deal Status Number of Units
Tamarus Park Apartments Las Vegas, NV Value Add Sold 245
Remington Canyon Las Vegas, NV Development Sold 284
Woodbridge Apartments Las Vegas, NV Value Add Sold 324
Bridgeview Towers San Francisco, CA Development Sold 245
The Aurora San Francisco, CA Development Sold 160
Capitol Towers Sacramento, CA Value Add Sold 409
5555 Hollywood Hollywood, CA MF Land Sold 110
Inspire Belmont Los Angeles, CA Development Own 69
Hawk Hollow Chicago, IL MF Land Sold 136
The Pointe Chicago, IL MF Land Sold 40
Wilcox Cole Hollywood, CA MF Land Sold 50
Sunset & Vine Hollywood, CA Development Sold 300
Blossom Plaza Los Angeles, CA Development Sold 268
Spoke Apartments Chicago, IL Development Own 363
Axis Apartments Nashville, TN Value Add Own 130
Mosaic Apartments Nashville, TN Value Add Own 233
Inspire Southpark Charlotte, NC Development Sold 369
Inspire Colton Los Angeles, CA Development Own 47
Inspire Court Los Angeles, CA Development Under Development 46
Inspire West Town Chicago, IL Development Under Development 130
Inspire Echo Park Los Angeles, CA Development Under Development 90
Inspire Hollywood Los Angeles, CA Development Under Development 200
Total       4,248

The above bios and track record were provided by the Bond Companies and have not been independently verified by RealtyMogul.

Bond Companies Past Projects:

Inspire Colton

Inspire SouthPark

Second Home Hollywood

Bond Companies (the "Sponsor") is pleased to present the opportunity to invest in Inspire Court, a ground-up residential development located in the Echo Park submarket of Los Angeles. Inspire Court will bring 46 Class A units to one of the most desirable neighborhoods in all of Los Angeles, located between the employment hubs of Downtown Los Angeles and Hollywood. 

Located a block and a half from the main commercial corridor of Glendale Blvd, residents are centrally located for live, work, & play. A short walk, bike, or scooter ride brings residents to numerous neighborhood favorites, including critically acclaimed restaurants, coffee shops, and bakeries, while being within 7 miles of the most sought after entertainment venues in Los Angeles - LA Live, which includes Staples Center and the Microsoft Theater, the Hollywood Bowl, and the Greek Theater. 

The total project costs are $23.3M, which reflects a negotiated GC contract. The Sponsor is seeking an equity investment of $5.8M.

The Project represents the opportunity to invest in an urban infill project located in a highly sought-after submarket, with excellent sponsorship and a proven track record in the immediate neighborhood.

Development Budget

Land Costs $ Amount Per SF Per SF
Land Acquisition Cost $3,085,000 $67,065 $94
Closing Costs $459,120 $9,981 $14
Acquisition Financing - Interest Reserve $150,000 $3,261 $5
Total Land Costs $3,694,120 $80,307 $112
       
Hard Costs $ Amount Per SF Per SF
Hard Costs (GC) $13,651,874 $296,780 $415
Architect / Engineering $804,782 $17,495 $24
Permits $709,900 $15,433 $22
Utilities $326,250 $7,092 $10
Insurance $374,501 $8,141 $11
FF&E $262,500 $5,707 $8
Hard Cost Contingency $830,685 $18,058 $25
Total Hard Costs $16,960,492 $368,706 $516
       
Soft Costs $ Amount Per SF Per SF
Developer's Fee $716,140 $15,568 $22
Professional Fees - General Legal $230,300 $5,007 $7
Other Costs $160,000 $3,478 $5
Marketing - Miscellaneous/Other $43,500 $946 $1
OP Shortfall - Real Estate Taxes $125,000 $2,717 $4
Operating Deficit  $83,861 $1,823 $3
Additional Contingency $450,000 $9,783 $14
Total Soft Costs $1,808,801 $39,322 $55
       
Financing Costs(1)  $891,373 $19,378 $27
Grand Total $23,354,786 $507,713 $710

(1) Financing Costs include construction loan interest reserve. 

Property Information

Inspire Court, designed as a 6-story, Class A project, will include 46 residential units (715 NRSF avg. unit size), on-site parking (48 spaces), and various high-end amenities. The unit interior finishes and amenity packages are designed to lead the submarket, incorporating the most popular features found at Bond Companies' top-performing communities across the nation. Inspire Court is an opportunity to invest in a high-end luxury community in a high-demand submarket lacking modern supply. The Property will provide the highly coveted suburban lifestyle in Los Angeles.  

Building Amenity List:

  • Gym
  • Coworking Lounge
  • Outdoor Kitchen
  • Sky Lounge Entertainment Room w/ Chef’s Kitchen
  • Expansive Rooftop Deck with Fire Pits, BBQ’s, Cabana’s & Daybeds
  • Resident Lobby with Smart Package Machine
  • Resident Storage
  • Covered Parking
  • Secure Managed Wifi Throughout the Building

Unit Amenity List:

  • In-unit Washer & Dryer
  • Stainless Steel Appliances
  • Quartz Countertops
  • Dishwasher
  • Central A/C
  • Concrete or Wood Flooring
  • Built-in Closet Space
  • Recessed Lighting with Dimmer Controls
  • Keyless Entry
  • Custom Designed Management Application
  • Patio/Balconies and Furnishings available in Select Units

Unit Mix

Market # of Units Avg SF/Unit Avg Rent  Rent per SF
0x1 17 367 $2,100 $5.72
2x1 7 800 $3,143 $3.93
3x3 5 1,093 $4,500 $4.12
4x3 10 1,187 $4,975 $4.19
Affordable  # of Units Avg SF/Unit Avg Rent Rent per SF
0x1 2 367 $522 $1.42
1x1 3 522 $696 $1.33
2x1 2 708 $923 $1.30
Total/Averages 46 715 $2,933 $4.10
Comparables

Lease Comparables

  Inspire Belmont Inspire Colton HoM Temple Alexan Bahay The Dillon Silver Lake Averages Subject
Year Built 2017 2020 2015 2020 2019 2018 2023
# of Units 69 45 68 200 49 86 46
Average Rental Rate $3,421 $3,117 $3,017 $2,647 $2,845 $3,010 $2,933
Average Unit Size 917 SF 718 SF 1,069 SF 904 SF 819 SF 885 SF 715 SF
Average $/SF $3.73 $4.34 $2.82 $2.93 $3.48 $3.46 $4.10
Distance from subject 0.4 mi 0.1 mi 1.6 mi 0.7 mi 1.9 mi 0.7 mi  
               
$/Unit (Studio) $2,132 $2,529     $1,871 $2,177 $1,934
SF (Studio) 460 558     539 519 367
$/SF (Studio) $4.63 $4.53     $3.47 $4.21 $5.27
               
$/Unit (1x1) $2,818 $2,963 $2,150 $2,341 $2,942 $2,643 $696
SF (1x1) 740 656 709 783 710 720 522
$/SF (1x1) $3.81 $4.52 $3.03 $2.99 $4.14 $3.70 $1.33
               
$/Unit (2x2) $3,732 $0 $3,285 $3,126 $2,952 $2,619 $2,649
SF (2x2) 1,079 0 1,188 1,094 900 852 779
$/SF (2x2) $3.46 $0.00 $2.77 $2.86 $3.28 $2.47 $3.40
               
$/Unit (3x2) $4,951 $4,874 $3,649   $4,131 $4,401 $4,500
SF (3x2) 1,296 1,328 1,215   1,230 1,267 1,093
$/SF (3x2) $3.82 $3.67 $3.00   $3.36 $3.46 $4.12
               
$/Unit (4x3)             $4,975
SF (4x3)             1,187
$/SF (4x3)             $4.19

Sales Comparables

  nVe Fairfax Vues on Gordon Metropolitan at Lachmont 5727 La Mirada The Highland Averages Subject
Date Sold Dec-19 Nov-19 Aug-19 Feb-19 Jul-18   Sep-24
Year Built 2018 2018 2017 2018 2016 2017 2023
# of Units 63 47 34 28 76 50 46
Average Unit Size 783 SF 844 SF 820 SF 1,470 SF 855 SF 954 SF 715 SF
Sale Price $36,000,000 $23,500,000 $19,200,000 $17,700,000 $52,000,000 $29,680,000 $28,963,948
$/Unit $571,429 $500,000 $564,706 $632,143 $684,211 $590,498 $629,651
$/SF $730 $592 $688 $430 $801 $648 $881
Cap Rate 4.00% 4.29% 3.75% 4.32% 3.60% 3.99% 4.00%
Building Size 49,315 SF 39,696 SF 27,907 SF 41,163 SF 64,919 SF 44,600 SF 32,886 SF
Distance from subject 6.6 mi 5.0 mi 4.6 mi 4.6 mi 6.6 mi 5.5 mi  
Location Information

Market Overview

Los Angeles is amid a severe housing shortage and residential neighborhoods like Echo Park are in high demand and lack modern supply. Record-low inventory of single-family homes coupled with underbuilding due to supply-side constraints has pushed ownership out of reach for most. In 2020, Los Angeles overtook San Francisco as the least affordable homeownership market in the US. Inspire Court will offer the market high-quality, modern, amenity rich units to meet this market demand. The competitiveness within the local housing market has continued to drive up median home prices at a faster rate than the City of Los Angeles as well as the nation. Echo Park's home values have increased 8.8% over the past year. This rising cost even with record-low mortgage rates has put homeownership out of reach for many individuals while renting presents the only affordable option. 

Though strong demographics in regions like Echo Park are expected to increase demand over the long term, the housing affordability issue in major markets, like Los Angeles, remains a critical challenge. As such, strategies targeting well-located, high-quality, more affordable rental options remain a key focus for both renters and investors alike. Single Family Home prices in Echo Park now average almost $1.1 million showing the desirability of the area and that the homes are priced out of the reach of most renters. The median home value has seen more than 80% growth since 2015 (source: Zillow). 

In recent years, tenant demand has mostly kept pace with rising supply levels across the nation. And though the multi-housing sector is experiencing weaker demand in the near term, the sector is poised to ultimately benefit well from the pent-up demand created by COVID-19. Over the next decade, the most attractive opportunities for investors will occur primarily around the ‘Middle Market’ and ‘Workforce’ pricing segments, allowing investors to service an expanding pool of price-sensitive renters while maintaining focus on delivering high-quality, well-located units as will be done at Inspire Court. 

 

Submarket Overview

Echo Park is a neighborhood within the City of Los Angeles. Specifically, Echo Park lays 2.5 miles northwest of Downtown Los Angeles (DTLA). Over the past several years, the neighborhood has become one of the most sought-after neighborhoods in all of Los Angeles, boasting an affluent yet hip demographic which has attracted an abundance of award-winning restaurants, cafes, and entertainment venues. The historic soul has combined with a newer, trendier atmosphere to make Echo Park what many refer to as “the greatest neighborhood in Los Angeles.”

Although Echo Park has experienced elevated demand from renters, rental rates still trail the metro significantly, indicating an opportunity for the neighborhood to significantly outperform the Los Angeles MSA. Surrounded by public parks and hillside scenery, Inspire Court offers a distinct living experience from the high-density communities being delivered today. Each project is within walking distance to some of the lushest and gorgeous parks, and nature preserves in Greater Los Angeles. Additionally, new award-winning restaurants and coffee shops are continuously emerging throughout the neighborhood intensifying the area’s attraction. The highly walkable neighborhood has all the resources to satisfy its occupiers: schools, natural amenities, culture and hip retail, restaurants, and a central location relative to many of the major business districts. Furthermore, Echo Park has central access to some of the predominant highways that are used to commute throughout Los Angeles.

Cap Stack
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Debt $16,932,220 $368,092
GP Investor Equity $642,567 $13,969
LP Investor Equity $5,780,000 $125,652
Total Sources of Funds $23,354,786 $507,713
     
Uses of Funds $ Amount $/Unit
Land & Acquisition Cost1 $3,694,120 $80,307
Financing Costs $891,373 $19,378
Hard Costs $16,960,492 $368,706
Soft Costs $1,808,891 $39,324
Total Uses of Funds $23,354,786 $507,713

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:

  • Term: 3 Years
  • Loan-to-Value: 70.0% (72.5% LTC)
  • Estimated Proceeds: $16,932,220
  • Interest Type: Floating
  • One Month spread over LIBOR: 2.75%
  • Interest-Only Period: 36 Months
  • Amortization: 30 Years

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

The Bond Companies intends to make distributions from Inspire Court RM, LLC as follows:

  1. Pari Passu to the members until each member has recieved an amount equal to a 9% IRR preferred return and its capital contribution has been returned; 

  2. 80% / 20% (80% to Members / 20% Promote to Real Estate Company) to a 13% IRR; 

  3. 70% / 30% (70% to Members / 30% Promote to Real Estate Company) to a 15% IRR; 

  4. 50% / 50% (50% to Members / 50% Promote to Real Estate Company) thereafter. 

The Bond Companies 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 September 2024 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of The Bond Companies, who may decide to delay distributions for any reason, including maintenance or capital reserves. The Bond Companies will receive a promote as indicated above, and a portion of this promote may be received by RM Admin, LLC for administrative services.

Cash Flow Summary        
    Year 1 Year 2 Year 3
Effective Gross Revenue   $0 $0 $1,360,164
Total Operating Expenses   $0 $35,801 $561,543
Net Operating Income   $0 ($35,801) $798,622
         
Project-Level Cash Flows        
  Year 0 Year 1 Year 2 Year 3
Net Cash Flow ($6,422,566) $0 $0 $12,934,223
         
Investor-Level Cash Flows*        
  Year 0 Year 1 Year 2 Year 3
Net Cash Flow ($5,780,000) $0 $0 $10,008,191
         
Investor-Level Cash Flows - Hypothetical $50,000 Investment*    
  Year 0 Year 1 Year 2 Year 3
Net Cash Flow ($50,000) $0 $0 $86,576

*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 The Bond Companies' materials for details. The following fees and compensation will be capitalized(3)(4)(5):

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From
Development Fee 4.4% of Hard and Soft Costs Bond Companies JV
Disposition Fee1 0.50% of Gross Sales Price Bond Companies JV
         
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From
Administrative Services Fee 1.0% of Equity Invested2 RM Admin3 Cash Flow
Asset Management Fee 1.0% of EGI Bond Companies Cash Flow
Property Management Fee 3.0% of EGI Bond Companies Cash Flow

(1) Disposition is contingent on both (a) return to Investors of initial invested capital and (b) Investors realizing 10% IRR on initial invested capital

(2) Only applies to equity raised through the RealtyMogul Platform

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

(4) 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.

(5) 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.

The following offering documents have been prepared and are being delivered by the Sponsor of this investment opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are not otherwise responsible for, the Sponsors offering documents posted below or any content therein.
RM Securities, LLC and its Affiliates Compensation

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, LLC

Sponsor 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 Documents

The 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 Investment

This 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 Assumptions

Sponsor 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 Performance

Any 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 Debt

A 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 Registered

Sponsor’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 Advice

Nothing 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 Risk

Internal 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.

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