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Funded
Multifamily
Lexington at Champions
Houston, TX
INVESTMENT STRATEGY
Value-Add
INVESTMENT TYPE
Equity
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100% funded
Offered By ParaWest Group
15.0%* TARGET IRR 14.0%-16.0%
9.0%* TARGET AVG CASH ON CASH
1.71X* TARGET EQUITY MULTIPLE
Estimated Hold Period 4 Years
Estimated First Distribution 8/2022
Minimum Investment 25000
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
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Project Summary
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Explore this Project
Overview
Lexington at Champions is an 89-unit boutique property with value-add potential located in Houston, Texas, one of the fastest-growing SMSA's in the nation in population and employment growth.
Asset Quality

The Property was built in 2003 and is in institutional-quality condition with an amenity package more representative of a larger property and unit design and features competitive with the newest properties in the market, including 9’ ceilings, full-size washers and dryers, walk-in closets, individual hot water heaters, as well as garage parking and detached storage units in select units.

Location

The Property is located in a suburb of Houston where the area median household income is $92,000 and is expected to grow 8% by 2025. The Houston Metro Area is one of the fastest-growing SMSA's in the nation in population and employment growth.

Value-Add

The Property is currently 97% occupied with average rents $90 below comparable properties in the area. There is an opportunity to increase rents on day one and take advantage of the in-place value-add program. Additionally, favorable financing drives the investment return projections to 9.0%+ year one and over 10% thereafter with IRR yields exceeding 15%.

Property At A Glance
# of Units 89
Year Built 2003
Parking Ratio 1.66 per unit
Current Occupancy 97%
# of Buildings 4
Acquisition Price

$13,500,000

Investment Highlights
The Real Estate Company is purchasing the Property for $151,685 per unit, which represents a going-in cap rate of 5.43% on year one net operating income.
The Real Estate Company has budgeted for interior unit renovations of approximately $2,800 per unit, and $250,000 for exterior improvements.
ParaWest Group Principals have participated in over 20 acquisitions in the Houston Market since 2010. Lexington at Champions is within a 20 mile radius of 12 ParaWest Group Principal Acquisitions.
The Property will be 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 5.00%.
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

The business plan has two components. The first is to implement rent increases on units recently upgraded by the seller who has not brought rents to current market levels prior to bringing the property to market for sale. Market data indicates nearby comparable properties are achieving rents as much as $175 higher than Lexington's upgraded units. The second component is the value-add, which consists of renovating/improving the amenity package and upgrading/updating unit interiors to levels commensurate with the newest properties in this suburban market and thereby maximizing rent rate levels for Champions at Lexington.

CapEx Breakdown

Item Amount CM Fee Total Per Unit
Exterior Rehab        
Exterior Carpentry $34,695 $1,735 $36,430 $409
Full Exterior Paint $53,400 $2,670 $56,070 $630
Concrete Repairs $20,000 $1,000 $21,000 $236
Welding Repairs $10,000 $500 $10,500 $118
Gutter Repairs $10,000 $500 $10,500 $118
Pool Renovation $20,000 $1,000 $21,000 $236
Leasing Office/Model $50,000 $2,500 $52,500 $590
Landscape/Irrigation/Tree Trim $20,000 $1,000 $21,000 $236
Total Exterior $218,095 $10,905 $229,000 $2,573
         
Interior Rehab        
Interior Fixtures $31,500 $1,575 $33,075 $371.63
Black on Black Appliances $32,500 $1,625 $34,125 $383.43
Flooring $50,000 $2,500 $52,500 $589.89
Two Tone Paint $44,500 $2,225 $46,725 $525.00
Interior Doors 6 panel $17,500 $875 $18,375 $206.46
Cabinet Resurface $18,750 $938 $19,688 $221.21
Smart Home Package $58,584 $2,929 $61,513 $691.16
Total Interior $253,334 $12,667 $266,001 $2,989
         
Contingency $100,000 $5,000 $105,000 $1,180
         
Grand Total $571,429 $28,571 $600,000 $6,742
Property
Property Details

Lexington at Champions is an 89-unit boutique property in institutional-quality condition, with an amenity package more representative of a 200-unit property and unit design and features competitive with the newest properties in the market.

Unit Type # of Units Avg SF/Unit Avg Rent (In-Place) Avg Rent (Stabilized) Post-reno rent per SF
A1 (1x1) 36 788 $1,010 $1,090 $1.38
B1 (2x1) 24 954 $1,224 $1,335 $1.40
B2 (2x2) 12 1,063 $1,321 $1,385 $1.30
B3 (2x2) 16 1,144 $1,356 $1,470 $1.28
B4 (2x2) 1 1,200 $1,479 $1,535 $1.28
Total/Averages 89 938 $1,177 $1,269 $1.36
Comparables

Lease Comparables

  Champions Green Apartments Highpoint at Cypresswood Villages of Cypress Creek Averages Subject (Stabilized)
Year Built 1984 2014 2001   2003
# of Units 192 336 384   89
Levels 2 4 3   3
Class C B B   B
Occupancy 93% 94% 96%    
Distance from subject 2.8 mi 5.5 mi 5.7 mi    
           
$/Unit (1x1) $976 $1,202 $1,136 $1,105 $1,090
SF (1x1) 712 697 768 726 788
$/SF (1x1) $1.37/SF $1.72/SF $1.48/SF $1.52/SF $1.38/SF
           
$/Unit (2x1)     $1,344 $1,344 $1,335
SF (2x1)     905 905 954
$/SF (2x1)     $1.49/SF $1.49/SF $1.40/SF
           
$/Unit (2x2) $1,127 $1,478 $1,512 $1,372 $1,437
SF (2x2) 805 1,084 1,116 1,002 1,112
$/SF (2x2) $1.40/SF $1.36/SF $1.35/SF $1.37/SF $1.29/SF

Sales Comparables

 

  Century Galleria Lofts Melia Medical Center Addicks Stone Village Fairmont on San Felipe Averages Subject (Going-in)
Date Sold Apr-21 Dec-20 Dec-20 Sep-20    
Year Built 2004 2002 2010 2008 2006 2003
# of Units 223 252 70 359   89
Average Unit Size 991 SF 979 SF 2,240 SF 909 SF   938 SF
Sale Price $33,400,000 $39,500,000 $13,650,000 $62,825,000   $13,500,000
$/Unit $149,776 $156,746 $195,000 $175,000 $169,130 $151,685
$/SF $151 $160 $87 $193 $148 $89
Cap Rate 4.50% - 5.25% 4.40% 4.72% 5.43%
Gross Building Area 221,104 SF 246,813 SF 156,806 SF 326,330 SF   151,707 SF
Distance from subject 24.5 mi 27.3 mi 23.5 mi 24.1 mi    

 

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 with 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

The Lexington at Champions is strategically located in the Champions neighborhood in suburban northwest Houston. With a household median income of $92,000, this submarket has seen recent rent growth of more than four percent, and CoStar Analytics projects increases greater than 5% of the remainder of 2021 before settling into the 3% range going forward. Major employers within close proximity include Houston Northwest Medical Center, Houston Methodist Willowbrook Hospital, George Bush Intercontinental Airport, and Pinto Business Park. Nearby shopping includes Hobby Lobby, Big Lots, Ross, and TJ Maxx within walking distance and Walmart, Target, Kroger's, Petco, Foodtown, and the upscale Willowbrook shopping mall featuring Macy's, Dillards, Michel Coors, Forever 21, and Nordstrom Rack within a five-mile radius.

Photos
Financials
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Debt $10,878,750 $122,233
GP Investor Equity $438,825 $4,931
LP Investor Equity $3,500,000 $39,326
Total Sources of Funds $14,817,575 $166,490
     
Uses of Funds $ Amount $/Unit
Purchase Price $13,500,000 $151,685
Acquisition Fee $202,500 $2,275
Loan Fee $217,575 $2,445
Closing Costs(1) $197,500 $2,219
CapEx $600,000 $6,742
Working Capital $100,000 $1,124
Total Uses of Funds $14,817,575 $166,490

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: Arbor Realty (Bridge Debt)
  • Term: 3 + 1 + 1
  • Loan to Value: 80.6%
  • Estimated Proceeds: $10,878,750
  • Interest Type: Floating
  • Spread above one-month LIBOR: 3.25%
  • Interest-Only Period: Full-term
  • 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

ParaWest Group intends to make distributions from Lexington at Champions Investors LLC as follows:

  1. To the Investors, pari passu, all operating cash flows to a 10.0% IRR;
  2. 70% / 30% (70% to Investors / 30% to Promote) of excess cash flow to a 15.0% IRR;
  3. 50% / 50% (50% to Investors / 50% to Promote) 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 loans).

Distributions are expected to start in August 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 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
Effective Gross Revenue   $1,320,566 $1,389,752 $1,441,537 $1,489,456
Total Operating Expenses   $587,364 $627,126 $644,387 $661,927
Net Operating Income   $733,202 $762,626 $797,150 $827,529
               
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3 Year 4
Net Cash Flow -$3,938,825 $355,558 $384,290 $418,296 $5,723,519
               
Investor-Level Cash Flows*
  Year 0 Year 1 Year 2 Year 3 Year 4
Net Cash Flow -$3,500,000 $280,946 $306,476 $336,694 $4,909,215
               
Investor-Level Cash Flows - Hypothetical $50,000 Investment*
  Year 0 Year 1 Year 2 Year 3 Year 4
Net Cash Flow -$50,000 $4,014 $4,378 $4,810 $70,132

*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
Acquisition Fee 1.5% of Purchase Price ParaWest Management Capitalized Equity Contribution
Construction Management Fee 5.0% of CapEx Budget ParaWest Management Capitalized Equity Contribution
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From
Asset Management Fee 1.0% of EGI ParaWest Management Distribution Cash
Property Management Fee 3.5% of EGI ParaWest Management Distribution Cash
Administrative Services Fee 1.0% of Equity* RM Admin(3) Distribution 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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