
Trails at 2112 offers a significant return profile relative to the risks of the investment. Since acquiring the Property in January 2021, the Sponsor has fully renovated approximately 50% of the units. Construction risk continues to drive down every month as they complete 10-12 renovations each month with a targeted completion date of December 2021. Although the Property is subject to California rent control regulations, the tenancy risk continues to decline with the successful execution of the tenancy relocation plan. Over 90% of tenants have already accepted the transfer/renewal program. Market risk is diminishing as the Sponsor has successfully been able to achieve market rents that have surpassed their original proforma rents.
The Project has been a benefactor in the flight to affordability. Multifamily demand in the Modesto MSA has statistically proven to be resilient, market tested against both the ‘08 Great Financial Crisis and the COVID-19 Pandemic, with strong market dynamics due to an increasing desire for affordability in California housing. The submarket has been a benefactor of the current flight to suburbia, a strong workforce grounded in essential services, strong occupancy & collections, and overall strong market fundamentals.
The Property offers a mid-level luxury apartment product which represents just 5% of the current housing stocking in Modesto. The Property provides a highly desirable product that focuses on the unmet demand in the marketplace. A limited supply of new product and future delivery projections support the expectation for continued high occupancies and rent increases. During the past 12 months, absorption outpaced deliveries in Modesto. Only 100 new units were delivered (161 were absorbed). Aside from the new 100 units, there has not been any new construction of market-rate multifamily housing over the past 10 years. Furthermore, according to the Building Permits Survey (US Census), as of September 2020, year-to-date, there were no multifamily building (3+ units) permits pulled in Modesto.
$17,550,000

Valiance Capital
From the discovery and acquisition of dislocated market opportunities in high-demand, high-growth areas, to aesthetic upscale renovations and hospitality-driven property management; there’s a lot that goes into Valiance Capital's proven approach to multifamily real estate investing. To put it plainly, they seek to add value at every step of the investing process, no matter how seemingly insignificant the opportunity. This is what makes their properties so attractive to their residents, and in the end, what’s good for their residents is good for their business.
With a single-minded focus on achieving high risk-adjusted returns, Valiance Capital has engineered a vertically integrated approach to real estate investing through their family of companies: Valiance Capital, Bruno Construction, Inc., and The Berkeley Group. This synergy allows them to efficiently capitalize on undervalued opportunities in rapidly expanding, supply-constrained markets with highly-educated and highly-paid populations. Ultimately, their capital partners and stakeholders benefit from this exceptional efficiency, accelerating and amplifying their returns.
https://valiancecap.com/The above bios and track record were provided by Valiance Capital and have not been independently verified by RealtyMogul.
Thesis:
Trails at 2112 is a 1980’s vintage property with significant upside potential to capture unmet demand in the mid-level luxury category. Out of ~15,000 available housing units, only 100 new apartments were delivered in the last 10 years. Higher-end product is virtually nonexistent, and roughly 95% of the inventory is 1,2 & 3-star product. Further, the market is benefiting from a flight to affordability, and while there is land available to develop, the cost to construct new housing has proven to be difficult to pencil, thereby limiting new supply even more. Market demand is strong. Vacancy has remained low, and rents have been rising even through COVID-19.
Opportunity:
The Sponsor's strategy is to reposition the entire Property to provide a highly desirable product that can command market rents that are 31.4% higher than current levels. Capital investment will be deployed to rebrand the Property with enhancements to the curb appeal, existing amenities, and the installation of new amenities. The exterior upgrades will also coincide with a full interior renovation of all 97 units. The finishes will be superior compared to nearby communities, and key interior scope items will include:
- New LVP Flooring
- Recessed Lighting
- New Quartz Countertops
- New Vanities and Refinished Cabinets
- New Bathroom & Kitchen finishes
- New Stainless-Steel Appliances
Since the Sponsor's acquisition in January 2021, nearly 50% of the renovations have been completed, and the expected stabilization timeline has been cut in half, down from 24 months to now only 11 months. To date, all residents except for one have accepted to relocate, renew, or transfer within the Property, thereby solidifying the execution plan. The market has continued to show positive trends, and the Project is achieving rents above proforma with units leasing within one week of it being advertised.
The Sponsor intends to optimize a tax strategy called Cost Segregation to immediately accelerate the depreciation of the building and once stabilized, will accelerate depreciation of the Sponsor's capital expenditure. Based on an initial analysis, the cost segregation is expected to return $1.05 in tax shelter losses for every $1.00 invested.
Furthermore, through the increase in rental income upon stabilization, the Sponsor expects to execute an additional 59.8% cash-out refinance distribution in Year 2 through a supplemental loan with Fannie Mae, thereby returning a significant 63.5% cumulative return of original equity back to the Partnership over 2 years.
Summary:
In summary, an investment in Trails at 2112 represents a fantastic opportunity to generate a high cash on cash return of 11.6%, a 63.5% return of original equity over the first two years, and a stable cash flow generating investment return of 16.0% IRR over the proposed 8-year hold period. Given that the acquisition cost is significantly below replacement cost, there is a healthy margin of safety with a high return profile relative to the risks. Even the Sponsor's Year 8 exit price is below today’s replacement cost, which further supports their compelling investment thesis.
CapEx Breakdown
Hard Costs | |||
Exterior | Amount | Per Unit | Per SQFT |
Branding & Signage | $10,000 | $103 | $0.12 |
Security Gate Entrance System | $25,000 | $258 | $0.29 |
WIFI Fiber Optics System | $134,370 | $1,385 | $1.58 |
Security Cameras | $10,000 | $103 | $0.12 |
Amazon Locker | $17,150 | $177 | $0.20 |
Dog Park | $22,960 | $237 | $0.27 |
BBQ Patio Areas | $10,000 | $103 | $0.12 |
Gym Renovation | $16,744 | $173 | $0.20 |
Pool Area Improvements | $24,000 | $247 | $0.28 |
Community Mural | $7,500 | $77 | $0.09 |
Landscaping & Hardscape | $49,650 | $512 | $0.58 |
Exterior Painting | $38,800 | $400 | $0.46 |
Asphalt Repairs | $25,000 | $258 | $0.29 |
Tree Trimming | $15,000 | $155 | $0.18 |
Stair Repairs | $1,500 | $15 | $0.02 |
Concrete Repairs | $10,000 | $103 | $0.12 |
Exterior Lighting | $12,000 | $124 | $0.14 |
Contingency | $41,236 | $425 | $0.49 |
Exterior Total | $470,910 | $4,855 | $5.54 |
Interior | Amount | Per Unit | Per SQFT |
1x1 Renovated Units | $442,746 | $4,564 | $5.21 |
2x2 Renovated Units, Open Concept | $1,347,146 | $13,888 | $15.86 |
Non-Renovated 2x2 | $175,794 | $1,812 | $2.07 |
Total Interior | $1,965,687 | $20,265 | $23.14 |
Total Hard Costs | $2,436,597 | $25,120 | $28.68 |
Soft Costs | Amount | Per Unit | Per SQFT |
City Permit Fees | $7,000 | $72 | $0.08 |
Marketing, Staging, Photography | $15,000 | $155 | $0.18 |
Operational Costs | $9,874 | $102 | $0.12 |
Tenant Buyouts | $25,000 | $258 | $0.29 |
Engineering | $9,900 | $102 | $0.12 |
General Goods | $5,000 | $52 | $0.06 |
Onsite Storage | $2,478 | $26 | $0.03 |
Soft Cost Contingency | $3,200 | $33 | $0.04 |
Construction Fee | $125,702 | $1,296 | $1.48 |
Total Soft Costs | $203,154 | $2,094 | $2.39 |
Grand Total | $2,639,751 | $27,214 | $31.08 |
Built in 1985, Trails is a two-story garden style apartment community spread across 12 residential buildings on 5.32 acres. Designed with a great unit mix of spacious one-bedroom and two-bedroom floor plans, the Sponsor sees an opportunity in the market to renovate and deliver superior upgrades to capture unmet demand in the mid-level luxury category of apartment homes. Secured to purchase at $17,750,000—a price below replacement cost, Trails at 2112 represents an opportunity to generate a high cash on cash return of 11.6%, a 63.5% return of original equity within the first 2 years, and a stable cash flow generating investment return of a 16.0% IRR over the proposed 8-year hold period.
Unit Type | # of Units | Avg SF/Unit | Avg Rent (In-Place) |
Avg Rent (Stabilized) |
Rent per SF |
Studio | 1 | 550 | $1,015 | $1,400 | $2.55 |
1x1 | 28 | 707 | $1,253 | $1,650 | $2.33 |
2x2 | 68 | 950 | $1,419 | $1,850 | $1.95 |
Total/Averages | 97 | 876 | $1,265 | $1,674 | $1.91 |
Lease Comparables
Allure at 2920 | Brooks Landing | The Marc at 1600 | Summerview Apartments | Live Oak* | The Villas at Villagio* | Trails at 2112 | |
Address | 2920 Healthcare Way | 3055 Floyd Ave | 1600 Standiford Ave | 3601 Prescott Rd | 1900 Oakdale Rd | 2920 Floyd Ave | |
Year Built | 2020 | 2005 | 1989 | 1988 | 1988 | 2009 | 1985 |
Units | 100 | 231 | 100 | 136 | 328 | 240 | 97 |
Average Rental Rate | $1,931 | $1,901 | $1,860 | $1,835 | $1,648 | $1,726 | $1,792 |
Average SF | 725 | 977 | 799 | 813 | 761 | 774 | 825 |
Average $/SF | $2.66 | $1.95 | $2.33 | $2.26 | $2.17 | $2.23 | $2.17 |
# Units (1x1) | 48 | 67 | 50 | 68 | 160 | 72 | 28 |
$ (1x1) | $1,795 | $1,846 | $1,775 | $1,725 | $1,489 | $1,595 | $1,650 |
SF (1x1) | 679 | 786 | 682 | 700 | 680 | 707 | 550 |
$/SF (1x1) | $2.64 | $2.35 | $2.60 | $2.46 | $2.19 | $2.26 | $3.00 |
# Units (2x2) | 40 | 164 | 50 | 68 | 168 | 136 | 68 |
$ (2x2) | $2,095 | $1,924 | $1,945 | $1,945 | $1,799 | $1,795 | $1,850 |
SF (2x2) | 997 | 1,055 | 915 | 925 | 838 | 992 | 950 |
$/SF (2x2) | $2.10 | $1.82 | $2.13 | $2.10 | $2.15 | $1.81 | $1.95 |
Distance to Subject | 5.3 miles | 1.2 miles | 3.5 miles | 4.1 miles | 0.5 miles | 0.9 miles | |
Notes | *Unrenovated Property | *Unrenovated Property |
Acquisition Comparables
The Edge at Lakewood | Sedona | Park Lakewood | The Marc at 1600 | Summerview Apartments | Cameron Villa | Chardonnay Ridge | Trails at 2112 | |
Date | Apr '21 | Jan '19 | Dec '20 | Feb '20 | Apr '20 | Feb '19 | Jun '19 | Jan '21 |
Submarket | East Stanislaus | East Stanislaus | East Stanislaus | East Stanislaus | East Stanislaus | East Stanislaus | East Stanislaus | East Stanislaus |
Year Built | 1985 | 1987 | 1985 | 1989 | 1988 | 1977 | 1979 | 1985 |
SF | 153,328 | 43,176 | 97,180 | 79,982 | 115,752 | 61,200 | 85,900 | 84,946 |
Units | 196 | 42 | 116 | 100 | 136 | 68 | 116 | 97 |
Average SF | 782 | 1,028 | 838 | 800 | 851 | 900 | 741 | 825 |
Sale Price | $33,300,000 | $7,950,000 | $20,880,000 | $16,500,000 | $22,191,250 | $10,250,000 | $16,500,000 | $17,550,000 |
$/Unit | $169,898 | $189,286 | $180,000 | $165,000 | $163,171 | $150,735 | $142,241 | $180,928 |
$/SF | $217 | $184 | $215 | $206 | $192 | $167 | $192 | $207 |
Cap Rate | 5.77% | 5.79% | 6.07% | 5.16% | 5.16% | 4.00% | 6.76% | 6.18% |
Distance from Subject (mi.) | 2.0 Miles | 4.8 Miles | 1.4 Miles | 3.5 Miles | 4.1 Miles | 1.8 Miles | 0.9 Miles |
Please refer to the Project Summary in the Documents section for more details on comparables.
Market Overview
Central California is home to some of the most productive agricultural land in the country and produces nearly 25% of the nation's food supply. At an estimated production value of $17 billion per year, the region and local economy has been built around this core industry, and its continued production is what drives local jobs and employment, located just 20 minutes from Modesto.
Beginning in early May 2020, California permitted certain essential businesses to begin reopening. Modesto’s essential job employment sectors benefited from this and are the reason why Modesto is experiencing positive trends in high rent collections, increasing rents, and extremely low vacancy. Additionally, there is news that Amazon is opening a major fulfillment center of over 1.0 million square feet that will employ 1,000 workers in the neighboring city of Turlock, located just 20 minutes from Modesto.
Submarket Overview
The average Modesto multifamily rents are meaningfully lower than high cost urban cities of the San Francisco Bay Area, whose rents are 2.1x Modesto rents. Due to the pandemic, many sectors have transitioned to remote work, accelerating outflow from high rent centers like San Francisco and inflow to low rent centers like Modesto. This trend is evidenced by high vacancy rates in high rent centers like San Francisco (10.0%) and low vacancy rates in low-cost centers like Modesto (2.0%) during the pandemic. In Q4 2020, the submarket saw a 5.0% increase in market rents. In Q1 2021, the submarket saw an additional 5.7% increase in market rents.

Total Capitalization
Sources of Funds | $ Amount | $/Unit |
Debt | $13,065,000 | $134,691 |
GP Investor Equity | $1,850,000 | $19,072 |
LP Investor Equity | $5,850,000 | $60,309 |
Total Sources of Funds | $20,765,000 | $214,072 |
Uses of Funds | $ Amount | $/Unit |
Purchase Price | $17,550,000 | $180,928 |
Closing Costs(1) | $499,908 | $5,154 |
Interest & Cash Reserves | $75,341 | $777 |
Soft Costs | $203,154 | $2,094 |
Hard Costs | $2,436,597 | $25,120 |
Total Uses of Funds | $20,765,000 | $214,072 |
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.
The expected terms of the debt financing are as follows:
- Lender: Fannie Mae
- Term: 144 Months
- Loan to Value: 62.9%
- Estimated Proceeds: $13,065,000
- Interest Type: Fixed
- Annual Interest Rate: 4.42%
- Interest-Only Period: 34 Months
- Amortization: 30 Years
- Prepayment Terms: YM through 4/30/2029
- Extension Requirements: None
Supplemental Loan:
- Lender: Fannie Mae
- Term: Coterminous
- Estimated Proceeds: $5,177,663
- Interest Type: Fixed
- Annual Interest Rate: 4.59%
- Interest-Only Period: 0 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.
Valiance Capital intends to make distributions from RM 2112 Trails LLC as follows:
- To the Investors, pari passu, all operating cash flows to an 8.0% preferred return;
- 80% / 20% (80% to Investors / 20% to Promote) of excess cash flow to a 15% preferred return;
- 65% / 35% (65% to Investors / 35% to Promote) of excess cash flow to a 20% preferred return;
- 50% / 50% (50% to Investors / 50% to Promote) of excess cash flow thereafter.
Valiance Capital 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 February 2022 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Valiance Capital, who may decide to delay distributions for any reason, including maintenance or capital reserves. Valiance Capital 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 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | ||
Effective Gross Revenue | $1,599,782 | $1,989,627 | $2,132,456 | $2,191,582 | $2,252,349 | $2,314,801 | $2,378,987 | $2,238,569 | |
Total Operating Expenses | $598,077 | $624,330 | $633,005 | $646,118 | $659,506 | $673,175 | $687,130 | $642,246 | |
Net Operating Income | $1,001,705 | $1,365,297 | $1,499,451 | $1,545,464 | $1,592,843 | $1,641,627 | $1,691,857 | $1,596,323 | |
Project-Level Cash Flows | |||||||||
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | |
Net Cash Flow | ($7,700,000) | $283,431 | $4,919,715 | $327,878 | $282,415 | $324,115 | $369,253 | $415,754 | $10,521,593 |
Investor-Level Cash Flows* | |||||||||
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | |
Net Cash Flow | ($3,000,000) | $18,793 | $1,886,772 | $97,745 | $80,032 | $96,279 | $113,865 | $131,982 | $3,514,198 |
Investor-Level Cash Flows - Hypothetical $50,000 Investment* | |||||||||
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | |
Net Cash Flow | ($50,000) | $313 | $31,446 | $1,629 | $1,334 | $1,605 | $1,898 | $2,200 | $58,570 |
*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.
Certain fees and compensation will be paid over the life of the transaction; please refer to Valiance Capital'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 | Notes |
Completion Distribution | 2.00% of Stabilized Appraised Value | Valiance Capital | Refinance Proceeds | |
Construction Management Fee | 5.00% of Total CapEx | Bruno Construction | Partnership | Affiliate to Valiance Capital |
Recurring Fees: | ||||
Type of Fee | Amount of Fee | Received By | Paid From | Notes |
Asset Management^ | 2.25% of EGI | Valiance Capital | Partnership | |
Administrative Services Fee | 1% of Equity* | RM Admin(3) | RM Distributions |
*Only applies to equity raised through the RealtyMogul Platform
^Asset management fee is 5% of EGI, however, property management fee (2.75% of EGI) must be paid from asset management fee. Asset management is projected at 2.25% of EGI for illustrative purposes.
An acquisition fee of 1.75% of the purchase price was paid to Sponsor in January 2021, which is capitalized in the transaction.
(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.
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.