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.

Escrow accounts

We require unaffiliated sponsors to use an unaffiliated third-party escrow agent.* When an investor makes an investment with such sponsors using the RealtyMogul platform, the investor’s money is transferred directly into a third-party escrow account. All closing conditions in connection with a sponsor’s contingency offering need to be met before the third-party escrow agent will approve releasing investor funds to the issuer or general partner. For example, if an issuer or general partner plans to use funds for a real estate acquisition that does not ultimately transact, the third-party escrow agent will not transfer investor funds to the issuer or general partner, and funds will be returned to investors.

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

Boots on the ground

Our processes typically includes visiting certain properties (or a subset of properties if it's a fund) to confirm the real estate is what and where the real estate is supposed to be. For certain properties that accommodate 1031 exchange investments, the team will review third-party prepared due diligence reports in lieu of a site visit.

Detailed Checklists

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Confidentiality Agreement
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By clicking the ‘I Agree’ button below:
Funded
Estimated Hold Period 7 Years
Estimated First Distribution 2/2022
FUNDED 100%
...
View Our Due Diligence Process
Offered By
RM Communities
Investment Strategy Value-Add
Investment Type Equity
Minimum Investment 35000
Overview
Roosevelt Commons is a brand new, 2020 built property comprised of 36 townhome style units located in Vancouver, Washington projecting double-digit average cash on cash with low 63% loan-to-value leverage.
Desirable Product Type

Roosevelt Commons is a brand new, 2020 built property comprised of 36 townhome style units. Interior finishes include stainless steel appliance packages, luxury vinyl plank flooring, and modern flat panel cabinetry amongst various other design touches which allow the property to achieve above market rents.

10-Year Tax Abatement

Eight of the units have been reserved for residents earning 80% Area Median Income (AMI). This qualifies the Property to receive a 10-year tax abatement from Vancouver's MFTE program which runs through the year 2030. By not having to pay taxes on the improvements to the land, the Property averages a tax savings of over $120,000 a year throughout the hold period.

Market

Roosevelt Commons is in Vancouver, a city just north of Portland on the Washington state side of the metro. Being in Washington state, Vancouver has no income tax. With over thirty-one thousand multifamily units, it is the largest submarket in the region. Vancouver's rent growth has outperformed the overall Portland metro for the past six years, and year-over-year submarket gains are significantly stronger than Portland's performance.

Property at a glance
# of Units 36
Property Type Townhomes
Year Built 2020
Current Occupancy 97%
Class A
Acquisition Price $12,550,000
Investment Highlights
RM Communities is acquiring the Property for $12.55 million, which represents a going-in cap rate of 4.24% on expected year one net operating income.
Roosevelt Commons brings a highly desirable new construction 4-bedroom townhome style product to a supply-constrained market. Within the Portland-Vancouver-Hillsboro market, three-plus bedroom units account for only 8.6% of all existing inventory. Paired with Vancouver’s submarket vacancy rate of 1.8% in 2Q21, the Property is poised to trend rents throughout the hold period.
RM Communities believes in-place rents are 30% below market as the Property leased up in the midst of the Covid pandemic. They believe within the first year of ownership they can trend rents towards market and the max allowable rents for the affordable units.
RM Communities plans to obtain a supplemental loan of ~$1.6MM in year two of the hold period. This projected capital event would return ~30% of the equity invested in the Project.
As of July 2021, the Property appraised for $150,000 over the purchase price.
Roosevelt Commons participates in the MFTE (Multi-Family Tax Exemption Program) in conjunction with the City of Vancouver. In exchange for keeping a minimum of 20% of units (8) restricted to households earning up to 80% AMI, the Property will receive a 100% tax abatement on the improvements. This will result in an annual average tax savings of $120,000.
RM Communities will retain FPI Management, a nationally recognized property management company. RM Communities has historical experience with FPI as their property manager. With a strong regional base in the Pacific Northwest, they are confident in partnering with FPI to achieve the Property’s projected performance.
The exit strategy is to sell the Property in 7 years at an anticipated cap rate of 5.0%.
Management
Cumulative Distributions

RM Communities

RM Communities is an owner/operator of multifamily assets with a proprietary playbook to deliver strong risk-adjusted returns. RM Communities acquired its first investment in May of 2019 and has since grown to nearly 2,000 multifamily units and over $300 million in real estate with a fully dedicated team of acquisitions, underwriting and asset management professionals.

RM Communities is a sister-company to RealtyMogul, one of the leading real estate crowdfunding platforms.  After working with third party operating partners for 10+ years at RealtyMogul, we observed how the best operators stood out – their processes, acquisition targets, execution models, reporting materials and communication styles that informed our strategic objectives for RM Communities. Today, we execute against that playbook as we seek to deliver strong risk-adjusted returns across a variety of multifamily opportunities.

RM Communities 2023 Outlook Webinar

Todd Hanson, Managing Director of RM Communities, discussed the RM Communities portfolio performance and also provided his 2023 strategic outlook. This discussion included his thoughts on multifamily risks and opportunities and how best to navigate the 2023 investment environment. Watch the Webinar

  • Todd Hanson
    Managing Director
  • Derek Jensen
    Director of Acquisitions, West & Florida
  • Daniel Weisberger
    Assistant Vice President of Acquisitions
Todd Hanson
Managing Director

Todd Hanson is the Managing Director for RM Communities across the US and has responsibility for planning and execution of overall strategy and directing the investment and financing activities of the company. He is actively involved in maintaining existing client relationships and developing new capital and partnership opportunities for the company.  Mr. Hanson was previously EVP and Head of Investments at The ConAm Group, a private equity multifamily investment firm.  

Derek Jensen
Director of Acquisitions, West & Florida

Derek Jensen is a Director of Acquisitions for RM Communities, the direct acquisition arm of RealtyMogul, and has responsibility for overseeing direct acquisitions of multifamily opportunities in the western half of the United States. Mr. Jensen has over 20 years of real estate experience, concentrated in the acquisition, management and disposition of over 10,000 multifamily units including market rate, value-add, affordable housing and fractured condominiums. Mr. Jensen has held positions at several private and institutional firms including Pacifica Companies and GFI Partners.

Daniel Weisberger
Assistant Vice President of Acquisitions

Daniel Weisberger is an Assistant Vice President of Acquisitions for RM Communities, responsible for direct acquisitions of multifamily opportunities. Mr. Weisberger has experience in the real estate and financial services industries having transacted and advised on over $15 billion of real estate debt and equity investments. He was previously a Development Analyst at a national multifamily developer and a Senior Associate at PricewaterhouseCoopers in the Real Estate Valuation and Transaction Advisory group. Mr. Weisberger is a licensed Certified Public Accountant.

Track Record

Property Name Location Multifamily Class No. of Units Year Built Purchase Price CapEx Budget Status
Terrace Hill El Paso, TX B 310 1983 $18,700,000 $4,095,000 Full Cycle. 22% deal-level IRR, 18% LP-level IRR*
La Privada El Paso, TX B 240 1982 $11,700,000 $1,867,000 Closed
The Hamptons Virginia Beach, VA B 212 1973 $19,051,000 $3,792,000 Closed
Pohlig Box Factory & Superior Warehouse Richmond, VA A- 93 & 7,700 Retail SF 2004 $15,900,000 $1,348,000 Closed
Lubbock Medical Office Building Lubbock, TX B 20,880 SF 1966 $8,350,000 $0 Closed
Turtle Creek Fenton, MO A- 128 2018 $24,875,000 $596,000 Closed
The Orion Orion Township, MI B+ 200 1995 $27,375,000 $2,308,000 Closed
Kings Landing Creve Coeur, MO A- 152 & 9,229 Retail SF 2005 $40,100,000 $3,885,850 Closed
Minnehaha Meadows Vancouver, WA A 49 2021 $16,450,000 $83,950 Closed
Roosevelt Commons Vancouver, WA A 36 2020 $12,550,000 $78,200 Closed
Bentley Apartments Grove City, OH A- 138 2020 $30,200,000 $650,000 Closed
Sherwood Oaks Riverview, FL B 199 1984 $35,000,000 $1,266,725 Closed
Haverford Place Georgetown, KY A- 160 2001 $31,050,000 $2,836,734 Closed
Edison Apartments Gresham, OR A 64 2020 $19,500,000 $203,390 Closed
Ridgeline View Townhomes Vancouver, WA A 50 2022 $18,100,000 $37,500 Pending
Brookside Apartments Raleigh, NC B 68 1986 $9,400,000 $1,402,680 Pending
Total     2,099   $319,601,000 $23,049,752  

The acquisitions of the Terrace Hill Apartments, La Privada, The Hamptons, and Pohlig Box Factory & Superior Warehouse properties preceded the formation of the RM Communities, LLC.  Consequently, these real estate assets are managed by an affiliate of RM Communities, LLC.  They are included as part of the RM Communities, LLC portfolio because these real estate assets were acquired and are managed under the same executive leadership in Jilliene Helman and according to the same investment strategy employed by RM Communities, LLC.

Note: Totals include Terrace Hill (sold).

*Past performance is not indicative of future performance.

Roosevelt Commons is a stabilized cash-flowing deal with below market rents. The Property opened for leasing in the midst of the COVID pandemic. Current ownership initially focused on leasing up the Property quickly to maximize occupancy instead of pushing rent. RM Communities believes in-place rents are 30% below market rent. For the income restricted units, they project to burn off loss-to-lease on those units by trending toward the max allowable rents for 4-bedroom units in the city of Vancouver. The market rate units will be pushed to $2,100 per unit.

Additionally, the Sponsor has set aside $71,400 for property amenity upgrades which include: Amazon Lockers, covered BBQ area, pet waste station, exterior signage, and a trail to connect the Property to the Burnt Bridge Creek Greenway. 

The Property will be financed with highly attractive debt from Freddie Mac taking advantage of record-low interest rates. The Sponsor anticipates a 7-year loan with full term interest only. In addition, they are modeling a supplemental loan to be added to the Property in month 24 of the hold.

RM Communities plans to exit in seven years at a 5.00% cap rate.

CapEx Breakdown

Exterior, Common Area Upgrades, and Repairs Total Per Unit
Amenity/BBQ Area $25,000 $694
Walkway to Trail $2,500 $69
Amazon Lockers $20,000 $555
Pet Station & Signage $500 $14
Property Signage $10,000 $278
Misc. Repairs $3,400 $94
Future CapEx/Exterior Paint $10,000 $278
Subtotal $71,400 $1,983
     
Summary Total Per Unit
Exterior and Common Area $71,400 $1,983
Contingency (10%) $7,140 $198
Total $78,540 $2,182
Summary

Property Information

Roosevelt Commons is a brand new, 2020 built property comprised of 36 townhome style units located in Vancouver, the largest suburb of Portland, OR. Benefiting from being on the Washington state side of the metro, residents continue to flow in to take advantage of no income tax.

Featuring large 4-bedroom floor plans, Roosevelt Commons is just a 20-minute drive from downtown Portland. The Property is currently 97% occupied.

Unit Mix

Units* Type Unit SF Total SF In-Place Rent** Stabilized Rent Rent/SF
8 4 Bed / 3 Bath - Affordable 1,393 11,144 $1,190 $1,736 $1.25
28 4 Bed / 3 Bath - Market 1,393 39,004 $1,605 $2,100 $1.51

**Occupancy and in-place rent are as of 7/14/2021

Comparables

Lease Comparables

4B/3B SF Stabilized Rent Per SQFT YOC Notes
Roosevelt Commons 1,393 $2,019 $1.45 2020  
Minnehaha Meadows 1,288 $2,050 $1.59 2021 Sister Property
Stonebridge  1,450 $2,070 $1.42 2017 Full Amenities
Lakespur Place 1,507 $2,156 $1.43 1995 Minor Updates
Creekside Village 1,452 $2,051 $1.41 1991 Recent Reno
Carriage House 1,315 $1,871 $1.42 1993 Dated Design
Comp Average 1,402 $2,039 $1.45    

Sales Comparables

Property Name Submarket Property Address City, State Sale Date Sale Price # of Units Building SQFT Price Per Unit Price Per SQFT Actual Cap Rate
Roosevelt (Subject) Bagley 2812 Falk Rd  Vancouver, WA Pending $12,550,000 36 50,148 $348,611 $250 4.24%
Bethany's Bethany 15420 NW Marianna St  Portland, OR 8/1/2019 $19,200,000 67 64,614 $286,567 $297 5.15%
Midtown Downtown 513 E 16th St Vancouver, WA 1/14/2019 $10,830,000 48 30,368 $225,625 $357 5.34%
Latitude 45 Landover 11202 NE 20th St Vancouver, WA 9/17/2020 $20,500,000 90 90,000 $227,778 $228 4.77%

 

Location Information

Market Overview: Portland

Portland's multifamily sector is weathering the lingering effects of COVID-19 relatively well. Record-high job losses ate away at apartment demand in the early months of the pandemic, but leasing intensified in the first and second quarters of 2021 as the local economy found its footing. In contrast to many Western U.S. metros, vacancies declined slightly in Portland in 2020, and rent levels have fully recovered to eclipse pre-pandemic levels. As vaccines to combat the virus become more widely distributed, people will be able to return to a more normal daily routine, which should help bring more business and demand to the heavily battered urban cores.

Portland is coming off a massive construction wave that boosted apartment inventory by about 30% over the past decade, including a 3.5% increase over the past year. The region's affordability and high quality of life are driving robust in-migration, which underpins apartment demand. Some newly remote workers are leaving pricey coastal cities for less dense, less expensive options, and Portland seems to be reaping the benefits of that trend.

Portland is home to the headquarters of Fortune 500 companies Nike and Lithia Motors. Fortune 1000 companies headquartered in Portland include Columbia Sportswear, Greenbrier Cos. and Portland General Electric. Additionally, Fortune 500 companies based outside Oregon with major operations in Portland are Precision Castparts and Intel. Companies that have opened major branches in Portland include: Airbnb, Google, Squarespace, Mozilla, SurveyMonkey, Salesforce, and New Relic

Submarket Overview: Vancouver

As the largest suburb in the Portland metro, Vancouver is known for strong employment, great schools, no income taxes, and an abundance of retail, recreation, and transportation options. Vancouver has seen significant investment in many of the city’s business and infostructure, attracting a host of premier technology, healthcare, and financial services.

Vancouver is the 4th most populous city in Washington, and one of its most significant draws is a purely practical one. The housing is relatively affordable when compared to the major Pacific Northwest cities.  In addition, there are ample outdoor recreational activities within a car drive away which include Mount Adams, Mount St. Helens, the Olympic Peninsula, and the Gifford Pinchot National Forest.

The Vancouver waterfront is undergoing a $1.5 billion redevelopment project and will deliver 250,000 sf of new retail and restaurants, and 1.25M sf of new class A office. A 138-key Hotel Indigo is also part of the plans and a public market space.

With no state income tax, proximity to outstanding outdoor recreation, an active downtown area, a revitalized waterfront, and various historical attractions, Vancouver has much to offer. Vancouver residents enjoy Portland’s metro area’s urban and cultural amenities, a low crime rate, lower cost of living, and easy access to the Columbia River. One of the city’s most popular outdoor events is its farmer’s market, held in downtown’s Esther Short Park. Vancouver has two school districts—Vancouver and Evergreen. Split between East and West Vancouver, the two districts encompass 43 elementary schools, 12 middle schools, and 14 high schools. Vancouver has been hard at work revitalizing its Columbia River waterfront area. This phenomenal development represents a giant step toward modernizing the city’s image and bringing new life downtown.

Cap Stack
Sources & Uses

Total Capitalization

Sources Amount $/Unit %
Senior Loan $7,940,000 $220,556 59.7%
Equity $5,350,521 $148,626 40.3%
Total $13,290,521 $369,181 100%
       
Uses Amount $/Unit %
Purchase Price $12,550,000 $348,611 94.4%
Loan Fee $79,400 $2,205 0.6%
Closing, Legal Costs $215,000 $5,972 1.6%
Capex Budget $78,540 $2,182 0.6%
Acquisition Fee $251,000 $6,972 1.9%
Taxes and Insurance Escrow $16,581 $111 0.1%
Working Capital $100,000 $2,778 0.8%
Total $13,290,521 $369,181 100%
Debt Assumptions

The expected terms of the debt financing are as follows:

  • Loan Type: Freddie Mac
  • Lender: JLL Real Estate Capital, LLC
  • Loan Amount: $7,940,000
  • Interest Rate: 2.70%
  • Remaining Loan Term: 7 Years
  • Remaining Interest-Only: 7 Years
  • Amortization: 30 Years
  • Current Loan-to-Value: 63.27%
  • Loan-to-Cost: 61.44%
  • Extension Options: None

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

RM Communities intends to make distributions from Roosevelt Commons Investors, LLC as follows:

Operating Cash Flow

  1. 8% Preferred Return
  2. 70%/30% (70% to Members/30% to RM Communities) to a 12% IRR
  3. 50%/50% (50% to Members/50% to RM Communities) thereafter

Capital Event

  1. 8% Preferred Return
  2. Return of Capital
  3. 70%/30% (70% to Members/30% to RM Communities) to a 12% IRR
  4. 50%/50% (50% to Members/50% to RM Communities) thereafter

RM Communities 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 RM Communities, who may decide to delay distributions for any reason, including maintenance or capital reserves. 

Cash Flow Summary

  Year 1 Year 2* Year 3  Year 4 Year 5 Reversion 
Effective Gross Income (EGI)  $712,448 $895,182 $947,889 $980,274 $1,013,773 $1,164,978
Expenses  $180,735 $189,333 $195,418 $200,908 $206,554 $344,802
Net Operating Income (NOI)  $531,713 $705,849 $752,471 $779,366 $807,219 $820,176
Total Property Cash Flow  $306,963 $2,065,777 $455,799 $479,991 $482,953  

* Supplemental loan proceeds at the end of year 2.

Projected Investor Cash Flows

  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Net Earnings to Investor -Hypothetical $50,000 Investment(1) ($50,000) $2,826 $19,262 $3,763 $3,982 $3,880 $4,031 $55,069

(1) Returns are net of all fees. 

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 RM Communities' materials for details. The following fees and compensation will be paid(1):

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From
Acquisition Fee 2.0% of Purchase Price RM Communities Capitalized Equity Contribution
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From
Asset Management Fee 1.5% of Effective Gross Income RM Communities Distributable Cash
Property Management Fee 3.5% of Effective Gross Income FPI, Third Party Property Manager Distributable Cash
 

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

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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