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.
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.
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.
We have formalized processes and checklists for every private placement deal listed on the platform.
Bentley Apartments, delivered in 2020 and stabilized within one year, is positioned to perform immediately as a new, cash-flowing asset with little capital expenditure needed. Equipped with premium finishes and high-quality construction, the Property competes well against the new comparable properties in the submarket.
The Property was developed within a Community Reinvestment Area and received a 15-year full tax abatement on the improved value of the Property starting in tax year 2021. Due to the tax abatement, the potential to push rents organically, and the favorable interest rate environment, the Property is positioned to have strong cash flow.
Bentley Apartments is in Grove City, OH a thriving suburb south of Downtown Columbus. Through a mix of public-private projects in the Grove City downtown, the area has transformed over the past five years and attracted an influx of young professionals. Additionally, Bentley is located near a plethora of retail, dining, and entertainment options.
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
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.
The Business Plan is to acquire Bentley Apartments using long-term fixed agency debt and take advantage of the tax abatement starting in 2021. Rent comps and strong demand in the submarket indicate there is an average mark-to-market opportunity of $124 per unit. Additionally, RM Communities has identified value-add opportunities that will further increase rent by $75 per unit. The plan is to replace carpet flooring in two thirds of the units (2nd and 3rd floor units) with vinyl flooring, add backsplashes, add cabinet pulls, upgrade lighting, and add ceiling fans. Total interior budget is $3,700 per unit. For exterior and common area upgrades, RM Communities plans to upgrade the dog park with equipment, upgrade the pool area with furniture and a storage shed, install outdoor games, and other miscellaneous upgrades. Total interior CapEx is $510,000 and exterior and common area CapEx is $190,000; total CapEx including construction management fee and contingency is approximately $806,000.
RM Communities plans to finance the Property with a 10-year, fixed-rate Freddie Mac loan with four years of interest only at 70% LTV and 3.50%. Additionally, RM Communities plans to add a supplemental loan at the beginning of year 4 after the property have been fully renovated to capture the value added and return capital to investors. The plan is to exit in 10 years at a 4.75% cap rate.
CapEx Breakdown
Interior Upgrades | Cost of Upgrade | No. Units | Per Unit | Total |
Backsplashes | $500 | 138 | $500 | $69,000 |
Cabinet Pulls | $300 | 138 | $300 | $41,400 |
Lighting | $300 | 138 | $300 | $41,400 |
Ceiling Fans | $300 | 138 | $300 | $41,400 |
Flooring | $2,700 | 92 | $1,800 | $248,400 |
General Interior | $500 | 138 | $500 | $69,000 |
Total | $4,600 | - | $3,700 | $510,600 |
Exterior and Common Area Upgrades and Repairs | Per Unit | Total | ||
Rip Rap Shoring Rocks | $217 | $30,000 | ||
Landscaping & Drainage | $72 | $10,000 | ||
Pool Furniture & Outdoor Games | $109 | $15,000 | ||
Storage Shed | $72 | $10,000 | ||
Dog Park | $181 | $25,000 | ||
Future CapEx | $725 | $100,000 | ||
Subtotal | $1,377 | $190,000 | ||
Summary | Per Unit | Total | ||
Interior Upgrades | $3,700 | $510,600 | ||
Exterior & Common Area | $1,377 | $190,000 | ||
Construction Mgmt. Fee (5%) | $254 | $35,030 | ||
Contingency (10%) | $508 | $70,060 | ||
Total | $5,838 | $805,690 |
Bentley Apartments is in Grove City, OH, a growing suburb of the Columbus, OH MSA. The submarket has experienced strong growth over the past decade driven by a diverse employment base and convenient location to Downtown Columbus.
The Property consists of 138 units with a mixture of one, two, and three bedrooms. Built in 2020, Bentley features thoughtfully designed contemporary units, with premium amenities such as a pool, dog park, gym, and clubhouse. Bentley Apartments was developed within a Community Reinvestment Area and received a 15-year full tax abatement, and as a result, the Property has strong cash flow out of the gate.
Unit Mix
Units | Type | Unit SF | Total SF | In-Place Rent | Stabilized Rent | Rent / SF |
18 | 1/1 | 611 | 10,998 | $994 | $1,140 | $1.87 |
54 | 1/1 L | 722 | 38,988 | $1,057 | $1,200 | $1.66 |
54 | 2/2 | 1,053 | 56,862 | $1,318 | $1,575 | $1.50 |
12 | 3/2 | 1,298 | 15,576 | $1,560 | $1,825 | $1.41 |
138 | 887 | 122,424 | $1,195 | $1,393 | $1.57 |
Lease Comparables
1 Bed / 1 Bath | ||||
Property | SF | Stabilized Rent | Per SF | YOC |
Bentley Apartments | 611 | $1,140 | $1.87 | 2020 |
Broadway Station | 714 | $1,064 | $1.49 | 2017 |
Beulah Place | 660 | $1,078 | $1.63 | 2021 |
The Village at Gantz Meadows | 708 | $1,300 | $1.84 | 2017 |
Grove City Summit | 755 | $1,200 | $1.59 | 2015 |
Comp Average | 709 | $1,161 | $1.64 |
1 Bed /1 Bath Large | ||||
Property | SF | Stabilized Rent | Per SF | YOC |
Bentley Apartments | 722 | $1,200 | $1.66 | 2020 |
Broadway Station | 745 | $1,099 | $1.48 | 2017 |
Beulah Place | 743 | $1,219 | $1.64 | 2021 |
The Village at Gantz Meadows | 708 | $1,300 | $1.84 | 2017 |
The Crossing at Grove City | 863 | $1,161 | $1.35 | 2021 |
Comp Average | 765 | $1,195 | $1.56 |
2 Bed / 2 Bath | ||||
Property | SF | Stabilized Rent | PER SF | YOC |
Bentley Apartments | 1,053 | $1,575 | $1.50 | 2020 |
Broadway Station | 1,040 | $1,449 | $1.39 | 2017 |
Beulah Place | 1,128 | $1,653 | $1.47 | 2021 |
The Village at Gantz Meadows | 1,120 | $1,700 | $1.52 | 2017 |
Grove City Summit | 1,070 | $1,520 | $1.42 | 2015 |
Comp Average | 1,090 | $1,581 | $1.45 |
3 Bed / 2 Bath | ||||
Property | SF | Stabilized Rent | PER SF | YOC |
Bentley Apartments | 1,298 | $1,825 | $1.41 | 2020 |
Beulah Place (3/2.5) | 1,628 | $2,720 | $1.67 | 2021 |
The Crossing at Grove City | 1,186 | $1,762 | $1.49 | 2021 |
Grove City Summit (3/2.5) | 1,585 | $2,220 | $1.40 | 2015 |
Comp Average | 1,466 | $2,234 | $1.52 |
Sales Comparables
Property Name | Submarket | Property Address | City | Sale Date | Sale Price | Number of Units | Gross Building SF | Price Per Unit | Price per SF | Year Built | Building Class |
Bentley Apartments | Grove City | 3986 Parkmead Dr | Grove City, OH | TBD | $30,200,000 | 138 | 120,000 | $218,841 | $252 | 2020 | A- |
600 Goodale | Arena District | 600 W Goodale St | Columbus, OH | 10/29/2019 | $39,700,000 | 174 | 229,876 | $228,161 | $173 | 2013 | A |
Steel House | Tri-Village | 1211 Chambers Rd | Columbus, OH | 10/5/2018 | $25,350,000 | 113 | 96,000 | $224,336 | $264 | 2018 | A |
Harrison Park Apartments | Flytown | 565 W 1st Ave | Columbus, OH | 11/3/2016 | $20,200,000 | 108 | 166,048 | $187,037 | $122 | 2013 | A |
The Normandy | Discovery District | 315 E Long St | Columbus, OH | 6/27/2019 | $62,000,000 | 268 | 227,280 | $231,343 | $273 | 2014 | A |
Tribeca | Tri-Village | 720 W 3rd St | Columbus, OH | 12/5/2018 | $35,489,051 | 175 | 294,664 | $202,795 | $120 | 2013 | A |
Market Overview: Columbus MSA
Columbus is one of the fastest-growing cities in the nation—more than 15,000 people moved to the Columbus area in the past year—and it is the 16th largest city in the United States. Known for its low cost of living, top-ranked infrastructure, and talented workforce, the region is one of the most dynamic and diverse in the country. With a vibrant blend of arts and culture, exciting collegiate and professional sports, an entrepreneurial spirit, a burgeoning downtown, and a diverse array of welcoming neighborhoods, Columbus is a great place to live, visit, work, raise a family, and do business.
The metro’s economy is sheltered from extreme swings by a heavy concentration of government employment and the several Fortune 500 companies based in the area. Job growth has consistently outpaced the national average; thus, people from across the country are moving here making population growth robust.
Columbus MSA: Employment
The Columbus region has proven to be a strong business environment with an economy driven by a diversified base of employers as well as low startup and operating costs, pro-business tax environment, high public bond ratings, and a strong real estate market. The metro is home to a diverse concentration of Fortune 500 companies and higher-education institutions in the state of Ohio. The Urban Land Institute’s Emerging Trends 2021 report lists Columbus as one of the top markets for “Eds and Meds”, underscoring the area’s stability and growth prospects driven by the highly-ranked health systems in place and the strong university educational infrastructure Columbus has.
The Columbus metro area boasts an unemployment rate of 4.7% as of December 2020, almost half of the State’s average of 8.8%. The unemployment rate is expected to decline further with the addition of new distribution centers, major commercial leases, and the continued construction and expansion of local universities and hospitals.
Submarket Overview: Grove City
Located 10 miles from Downtown Columbus, Grove City, OH is a growing and established suburban community. Grove City has experienced strong growth over the past five years from population, business, and cultural standpoints. Through private and public investment, the area has seen an increase in younger residents looking for a high quality of life.
In 2019 Mount Carmel Health System, Columbus Metro’s 9th largest employer, opened a $361 million state of the art full-service hospital with 250 beds employing over 2,000 staff. A new 30-acre $63.5 development is working through an approval process that will provide over 390,000 SF of medical office space, and 5,000 SF of retail space. This is also accompanied by a 151,000 SF lease agreement by a major Fortune 500 company, only 1.4 miles from the property.
Grove City offers residents activities from hiking at metro parks, attending live performances, enjoying the Plum Run Winery, sipping a craft beer from a local brewery, or enjoying a good book at the new library as part of the multi million-dollar development of the downtown area. Adjacent to the property, a retail center with anchors such as Aldi and Planet Fitness is expected to deliver later in 2021.
Total Capitalization
Sources | Amount | $/Unit | % |
Senior Loan | $21,140,000 | $153,188 | 65.1% |
LP Investor Equity | $11,323,472 | $82,054 | 34.9% |
Total | $32,463,472 | $235,243 | 100.0% |
Uses | Amount | $/Unit | % |
Purchase Price | $30,200,000 | $218,841 | 93.0% |
Loan Fee | $158,550 | $1,149 | 0.5% |
Closings, Legal Fees | $340,000 | $2,464 | 1.0% |
CapEx Budget | $805,690 | $5,838 | 2.5% |
Acquisition Fee | $604,000 | $4,377 | 1.9% |
Taxes and Insurance | $91,915 | $666 | 0.3% |
Working Capital | $140,000 | $1,014 | 0.4% |
Interest Reserve | $123,317 | $894 | 0.4% |
Total | $32,463,472 | $235,243 | 100.0% |
The expected terms of the debt financing are as follows:
- Loan Type: Agency
- Total Loan Amount: $21,140,000
- Loan Term: 10 Years
- Lender: Freddie Mac
- Amortization: 30 Years
- Interest Rate: 3.50%*
- Interest-Only: 4 Years
- Initial Loan-to-Value: 70.0%
- Loan-to-Cost: 68.2%**
- Extension Options: None
* Fixed Rate
** LTC is based on Purchase Price and CapEx budget
NOTE: The Sponsor is expecting to add a supplemental loan at the beginning of year 4.
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.
RM Communities intends to make distributions from Bentley Investors LLC as follows:
Operating Cash Flow
- 8% Preferred Return
- 70%/30% (70% to Members/30% to RM Communities) to a 14% IRR
- 50%/50% (50% to Members/50% to RM Communities) thereafter
Capital Event
- 8% Preferred Return
- Return of Capital
- 70%/30% (70% to Members/30% to RM Communities) to a 14% IRR
- 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 April 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 | |
Effective Gross Income (EGI) | $2,156,841 | $2,362,837 | $2,490,693 | $2,604,053 | $2,699,078 |
Expenses | $638,231 | $653,848 | $674,747 | $695,715 | $716,650 |
Net Operating Income (NOI) | $1,518,610 | $1,708,988 | $1,815,946 | $1,908,339 | $1,982,428 |
Total Property Cash Flow | $746,357 | $933,646 | $1,038,686 | $6,459,808* | $463,394 |
Projected Investor Cash Flows
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | |
Net Earnings to Investor -Hypothetical $50,000 Investment(1) | ($50,000) | $3,276 | $4,103 | $4,461 | $28,142* | $1,971 | $2,187 | $2,404 | $2,621 | $2,841 | $66,977 |
* Proceeds include supplemental loan beginning of Year 4.
(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.
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 | ||
Construction Management Fee | 5.0% of Capital Improvement Budget | Village Green, Third Party Property Manager | 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 | 3.0% of Effective Gross Income & Incentive Fee if NOI Exceeds Budget | Village Green, Third Party Property Manager | Distributable Cash |
(1) Fees may be deferred to reduce impact to investor distributions.
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, LLCSponsor 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 DocumentsThe 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 InvestmentThis 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 AssumptionsSponsor 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 PerformanceAny 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 DebtA 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 RegisteredSponsor’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 AdviceNothing 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 RiskInternal 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.