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.
The Meadows is a 10-minute drive from West Tech Park, a dense business park that is home to over 25 businesses. Notable employers include Bosch Group, Nissan Technical Center, Farmington Hills Public Works, I-Tech USA, Lordstown Motor Research, Five-Hour Energy and many others. The Property is also within 15 minutes of various lifestyle and entertainment areas such as Twelve Oaks Mall, the Novi Town Center, Farmington Hills Golf Course, and Founders Sports Park.
Current ownership has spent $13 million on significant exterior upgrades as well as full unit renovations on all 424 units over the past four years. With the interior renovations complete, the Sponsor's plan is to continue to improve the exterior, curb appeal, and communal spaces throughout the Property to create a resort-style feel for tenants. There is significant loss to lease, concessions, and vacancy that the Sponsor plans to improve since the renovation and "lease up" is complete.
The Property offers the potential for healthy cash flow on 424 units with a potential high IRR for investors.
The GSH Group
The GSH Group (“The Sponsor") is a real estate investment company focused on class B/workforce housing across the United States. The leadership team has over 40 years of combined experience and the company has over $1 billion assets under management(1), made up of 8,333 multifamily units(2), inclusive of partner legacy assets.
With demonstrated experience as advisors, managers, and resolving problem loans, GSH is attuned to the needs and processing of Special Servicers for the quick disposition of assets. The Sponsor employs a tactical strategy for value creation. Value enhancement is approached from multiple angles and scenarios. These include, but are not limited to, organic rental growth due to market inefficiencies, rent premiums generated through unit upgrades, and decreasing expenses through management efficiencies.
GSH uses applicable, real-time software to help manage all assets on a minute-by-minute basis. Using real-time data, they can effectively keep all projects on track to ensure the business plan's proper implementation. Additionally, GSH is vertically integrated, employing an affiliated general contractor and construction team to ensure projects stay on budget and on time.
(1) Portfolio value includes an assumed value based on current T1/T12 financials and a capitalization rate of 5.00%. This includes certain legacy properties owned and managed by partners.
(2) Units include legacy units owned by the partners as well as units sold.
https://gshrealestate.com/-
Gideon PfefferManaging Partner -
Shmuel CohenPartner -
Hannan LisPartner
Gideon is responsible for strategic partnership initiatives and ventures, financing and debt opportunities, overseeing investment performance, strategic partner’s performance, and approving decisions on investments and acquisitions. He also oversees daily operations. Prior to GSH, Gideon operated a highly successful aggregation and renovation firm focused on single-family homes in the Midwest and Southeast.
Shmuel is responsible for asset management and Israeli Investor relations. An Israeli citizen, Shmuel also owns a separate portfolio of over 1,300 units in multifamily properties in Michigan and North Carolina. His experience as an owner and operator is an invaluable resource and he is responsible for the continued success of raising private capital in Israel for The GSH Group.
Hannan is responsible for banking, investor relations, and branding. He is an experienced real estate investor, owns several businesses, and is an active member of a prominent family office in Michigan. Hannan is president of WW Group, which holds Weight Watchers franchises for Michigan and Ontario, Canada. The company was formerly the largest franchisee in the Americas.
GSH Group Track Record
| Property | City, State | Asset Type | Acq Date | Units | Purchase Price | Sale Price |
| Cadieux | Detroit, MI | Multifamily | 2012 | 131 | $900,000 | $1,900,000 |
| Greenfield | Detroit, MI | Multifamily | 2016 | 99 | $1,750,000 | $2,424,500 |
| Cornerstone Apartments | Detroit, MI | Multifamily | 2016 | 476 | $8,900,000 | $12,025,000 |
| Chapel Oaks Apartments | Fort Wayne, IN | Multifamily | 2017 | 320 | $7,500,000 | $10,500,000 |
| Holcomb, Chicago, Collage, & Jefferson | Detroit, MI | Multifamily | 2012 | 210 | $2,450,000 | $3,645,000 (1) |
| Whittier & Morang | Detroit, MI | Multifamily | 2012 | 44 | $460,000 | Under Management |
| Chapel Court | Detroit, MI | Multifamily | 2013 | 184 | $2,090,000 | Under Management |
| Pallister | Detroit, MI | Multifamily | 2016 | 187 | $7,400,000 | Under Management |
| Marina Bay | Gibraltar, MI | Multifamily | 2016 | 137 | $4,900,000 | Under Management |
| Wakefield Apartments | Southfield, MI | Multifamily | 2017 | 67 | $7,200,000 | Under Management |
| Ridge Pointe Apartments | Conover, NC | Multifamily | 2017 | 160 | $11,000,000 | Under Management |
| Holiday Garden Apartments | Mount Clemens, MI | Multifamily | 2017 | 64 | $2,575,000 | Under Management |
| Eastland Village | Harper Woods, MI | Multifamily | 2017 | 408 | $21,750,000 | Under Management |
| Utica Square Apartments | Roseville, MI | Multifamily | 2018 | 266 | $11,000,000 | Under Management |
| Barwin Place | Mount Clemens, MI | Multifamily | 2018 | 48 | $2,100,000 | Under Management |
| Birch Hill Apartments | Westland, MI | Multifamily | 2018 | 173 | $10,650,000 | Under Management |
| Hoover Square | Warren, MI | Multifamily | 2018 | 342 | $18,950,000 | Under Management |
| Colony Club | Bedford, OH | Multifamily | 2019 | 588 | $35,515,200 | Under Management |
| Louis Apartments | Detroit, MI | Multifamily | 2019 | 28 | $962,000 | Under Management |
| Pickford Apartments | Detroit, MI | Multifamily | 2019 | 35 | $1,122,500 | Under Management |
| Stacey Ann Apartments | Detroit, MI | Multifamily | 2019 | 49 | $1,565,500 | Under Management |
| Polo Club | Marshall, MI | Multifamily | 2019 | 80 | $3,400,000 | Under Management |
| The Loop On Greenfield | Oak Park, MI | Multifamily | 2019 | 717 | $59,700,000 | Under Management |
| Glengarry Park | Waterford, MI | Multifamily | 2020 | 300 | $22,650,000 | Under Management |
| Foote Hills | Grand Rapids, MI | Multifamily | 2020 | 182 | $24,950,000 | Under Management |
| BLVD West Apartments(2) | Lansing, MI | Multifamily | 2021 | 144 | $23,000,000 | Under Management |
| The Landings on East Hill(2) | Grand Blanc, MI | Multifamily | 2021 | 148 | $14,800,000 | Under Management |
| Veridian Castleton(2) | Indianapolis, IN | Multifamily | 2021 | 398 | $44,500,000 | Under Management |
| Laurel Pines(2) | Laurel, MD | Multifamily | 2021 | 235 | $38,250,000 | Under Management |
| The Orion | Lake Orion, MI | Multifamily | 2021 | 200 | $27,375,000 | JV-Under Management |
| The Preserve at Spring Lake(2) | Altamonte Springs, FL | Multifamily | 2021 | 320 | $62,800,000 | Under Management |
| The Meadows at Capitol Heights | Capitol Heights, MD | Multifamily | 2021 | 272 | $49,100,000 | Under Management |
| Sherwood Oaks | Riverview, FL | Multifamily | 2021 | 199 | $35,000,000 | JV-Under Management |
| The Meadows at Canton(2) | Canton, MI | Multifamily | 2021 | 736 | $125,715,000 | Under Management |
| The Meadows at Farmington Hills(2) | Farmington Hills, MI | Multifamily | 2021 | 424 | $81,350,000 | Under Management |
| Total | 8,333 | $773,580,200 |
(1) Holcomb, Chicago, Collage, and Jefferson were a portfolio acquisition totaling 210 units in 2012. Holcomb, which makes up 90 of the 210 total units, was sold for $3,645,000. All of the other properties are still under management.
(2) JV Equity raised through RealtyMogul Platform.
The above bios and track record were provided by GSH Group and have not been independently verified by RealtyMogul.
The current ownership has already renovated all of the units at The Meadows at Farmington Hills. Since the Property is the only pre-1980 apartment community in the Farmington Hills submarket with freshly renovated units, they have set themselves up as the more affordable option for potential tenants that are looking for a modern unit but cannot afford the rents at recently built apartment communities. Also, since it took ownership 4 years to fully renovate the Property, loss to lease, concessions, and vacancy have been higher than normal during their four-year ownership period. The Sponsor expects to be able to significantly lower all those items, and continue on the excellent trajectory started by ownership, through a comprehensive marketing and management process that will quickly complete the exterior and common area renovations and focus on realizing the benefits of the plan which were delayed by the COVID-19 pandemic pause.
CapEx Breakdown
| Exterior Renovations | $ Amount | Per Unit |
| Resurface and Mill Parking Lot | $500,000 | $1,179 |
| Touch up Paint Exterior | $200,000 | $472 |
| Carport Restoration | $150,000 | $354 |
| Deck Repair | $200,000 | $472 |
| Landscaping | $250,000 | $590 |
| Hallway Refresh | $350,000 | $825 |
| Signage | $50,000 | $118 |
| Exterior Lighting | $75,000 | $177 |
| Split System - Furnaces | $166,500 | $393 |
| Split System - A/C Condensers | $124,800 | $294 |
| HVAC Magic Pack | $67,200 | $158 |
| Hot Water Tanks | $90,000 | $212 |
| Clubhouse | $150,000 | $354 |
| Playground/grilling areas | $200,000 | $472 |
| Sliding Doors | $70,000 | $165 |
| MISC/Contingency | $1,000,000 | $2,358 |
| Concrete Replacement | $200,000 | $472 |
| Plumbing Repairs | $100,000 | $236 |
| Trash Receptacles | $50,000 | $118 |
| Tuck Pointing | $75,000 | $177 |
| Porch Repair | $80,000 | $189 |
| Tree Removal | $25,000 | $59 |
| Entry Doors | $150,400 | $355 |
| Gutter Extenders/Maintenance | $40,000 | $94 |
| Grading | $50,000 | $118 |
| Total Renovation Costs | $4,413,900 | $10,410 |
The Meadows at Farmington Hills (the "Property") is a 424-unit multifamily community located in a suburb of Metro Detroit. The Property is located in one of Michgan's most affluent counties, Oakland County, which has the highest income per capita of all Michigan counties per the 2019 Bureau of Economic Analysis report. The Property benefits from short commute times to major employment hubs and retailers, and provides tenants with easy access to Metro Detroit's major highways, I-696 an I-275. There have been $13 million dollars of renovations put into the Property since 2017, which allows tenants to enjoy updated and modern units and amenities throughout the Property.
| Unit Type | # of Units | AVG SF | Avg Rent (In-Place) | Rent PSF |
| 1x1 | 91 | 939 | $1,329 | $1.42 |
| 2x1 | 47 | 960 | $1,390 | $1.45 |
| 2x2 | 286 | 1,039 | $1,504 | $1.45 |
| Total/Averages | 424 | 1,009 | $1,454 | $1.44 |
Lease Comparables
| Spring Valley | Diamond Forest | Summit | Averages | Subject (Proforma) | |
| Year Built | 1986 | 1985 | 1980 | 1984 | 1975 |
| Average Rental Rate | $1,520 | $1,384 | $1,752 | $1,552 | $1,440 |
| Average Unit Size | 928 | 1065 | 1750 | 1248 | 1020 |
| Average $/SF | $1.64 | $1.30 | $1.00 | $1.31 | $1.42 |
| $/Unit (1x1) | $1,391 | $1,170 | $1,281 | $1,326 | |
| SF (1x1) | 820 | 880 | 850 | 926 | |
| $/SF (1x1) | $1.70 | $1.33 | $1.51 | $1.43 | |
| $/Unit (2x1) | $1,390 | ||||
| SF (2x1) | 960 | ||||
| $/SF (2x1) | $1.45 | ||||
| $/Unit (2x2) | $1,649 | $1,597 | $1,752 | $1,666 | $1,604 |
| SF (2x2) | 1,035 | 1,250 | 1,750 | 1,345 | 1,173 |
| $/SF (2x2) | $1.59 | $1.28 | $1.00 | $1.29 | $1.37 |
The Meadows at Farmington Hills offers two-bedroom units ranging from 960-1800 SF.
Values are averages based on unit type.
Sales Comparables
| Pavilion Court | Village Green Townhomes | Fountain Park Novi(1) | Fountain Park Westland(1) | Averages | Subject | |
| Date Sold | 2/24/2021 | 8/19/2021 | 10/1/2021 | 10/1/2021 | ||
| Year Built | 1986 | 1951 | 1988 | 1987 | 1978 | 1975 |
| # of Units | 377 | 374 | 264 | 448 | 366 | 424 |
| Sale Price | $66,500,000 | $65,000,000 | $57,500,000 | $73,500,000 | $65,625,000 | $81,350,000 |
| $/Unit | $176,393 | $173,797 | $217,803 | $164,063 | $183,014 | $191,863 |
(1) Properties under contract
Market Overview
The Detroit MSA is home to over 4.3 million residents, making it the second-most populous metro in the Midwest and the 14th-most populous in the nation. While the Detroit economy is primarily known for automobile manufacturing, this economy has gone through significant diversification over the past decade. Today, more than 315,000 companies - including ten Fortune 500 companies and 18 Fortune 1000 companies employ over 820,000 people. These major corporations generate a combined revenue of over $443 billion annually. The largest industries across the metro include technology, logistics, smart manufacturing, research, engineering & design, corporate & professional services, and financial services.
Submarket Overview
The Meadows is a well-located property in Farmington Hills, Michigan. Farmington Hills is one of the largest upper middle-income communities in Southeast Michigan, located in Oakland County. The Property's location on 12 Mile Road just west of Middlebelt Road and north of I-696, gives it terrific linkages to major employment hubs located off of I-696 and I-275 in Farmington Hills, Novi, and Southfield. Major area employers are located in and around the Southfield Town Center Complex, and along several large business parks that flank I-696 and I-275. The Property is surrounded by regional shopping such as the retail cluster anchored by Twelve Oaks Mall in Novi, the regional retail area at 12 Mile and Telegraph, and the Orchard Lake Road Retail corridor. Farmington Hills schools are excellent, and the community recently transformed an adjacent high school into a 22 million dollar community recreation center called The Hawk
Total Capitalization
| Sources of Funds(1) | $ Amount | $/Unit |
| Debt | $68,973,000 | $162,672 |
| GP Investor Equity | $3,554,000 | $8,382 |
| LP Investor Equity | $14,725,000 | $34,729 |
| Senior Loan Reserved for CapEx | $3,927,000 | $9,262 |
| Total Sources of Funds | $91,179,000 | $215,045 |
| Uses of Funds(1) | $ Amount | $/Unit |
| Purchase Price(2) | $81,350,000 | $191,863 |
| Legal Fee & Third Party Consulting Fees | $707,000 | $1,667 |
| Acquisition Fee (2% of Purchase Price) | $1,627,000 | $3,837 |
| Closing, Due Diligence, & Financing Fees(3) | $1,357,000 | $3,200 |
| Tax, Insurance, Covid Reserves | $974,000 | $2,297 |
| Initial Capital Plan Funds | $4,414,000 | $10,410 |
| Working Capital & Reserves | $750,000 | $1,769 |
| Total Uses of Funds | $91,179,000 | $215,045 |
The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.
(1) Values are rounded to the nearest thousand
(2) There is an additional buyer broker fee of 2% paid to an affiliate of GSH from the seller's proceeds
(3) RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform. RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the Platform and for Platform-related services. Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC.
The expected terms of the debt financing are as follows:
- Lender: Arbor
- Term: 3 Years
- Loan to Cost: 80.0%
- Estimated Proceeds: $72,900,000
- Interest Type: Floating
- Spread Above One-Month LIBOR: 3.55%
- Interest-Only Period: Term of the Loan
- Amortization: N/A
- Loan Fees: 1.0% to Lender, 0.75% to Broker
- Extension Requirements:
- Two 12-month extensions:
- 1st extension requires written notice 30 days prior to original expiration, an extension fee of .25%, interest reserve is resized, new rate cap to be purchased, and may be issued a new DSCR.
- 2nd extension requires written notice 30 days prior to expiration of extended term, an extension fee of 0.25%, interest reserve is resized, new rate cap to be purchased, and may be issued new DSCR.
- Two 12-month extensions:
Modeled Refinance:
- Refinance Date: 11/1/2024
- Lender: Fannie Mae
- Term: 7 Years
- Estimated Proceeds: $77,945,000
- Interest Type: Fixed
- Annual Interest Rate: 4.25%
- Interest-Only Period: 5 Years
- 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.
The GSH Group intends to make distributions from Farmington Hills Domestic Investors, LLC as follows:
- To the Investors, pari passu, all operating cash flows to a 9.0% Preferred Return;
- 65% / 35% (65% to Investors / 35% to Promote/Carried Interest) of excess cash flow thereafter.
The GSH Group intends to make distributions to investors after the payment of the 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 May 2022 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of the GSH Group, who may decide to delay distributions for any reason, including maintenance or capital reserves.
The GSH Group will receive a promoted/carried interest as indicated above, and a portion of this promoted/carried interest may be received by RM Admin, LLC.
| Cash Flow Summary | ||||||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | ||||
| Effective Gross Revenue | $6,998,763 | $7,499,396 | $7,905,417 | $8,142,580 | $8,386,857 | $8,638,463 | $8,897,617 | |||
| Total Operating Expenses | $2,672,252 | $2,818,919 | $2,908,918 | $2,996,186 | $3,086,071 | $3,178,653 | $3,274,013 | |||
| Net Operating Income | $4,326,511 | $4,680,476 | $4,996,499 | $5,146,394 | $5,300,786 | $5,459,810 | $5,623,604 | |||
| Project-Level Cash Flows | ||||||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | |||
| Net Cash Flow | ($18,279,000) | $1,436,722 | $1,569,968 | $6,219,777 | $1,869,720 | $1,793,170 | $1,847,161 | $37,395,912 | ||
| LP Cash Flows | ||||||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | |||
| Net Cash Flow | ($14,725,000) | $1,157,379 | $1,264,718 | $5,010,461 | $1,506,189 | $1,444,522 | $1,488,016 | $23,297,281 | ||
| Investor-Level Cash Flows(1) | ||||||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | |||
| Net Cash Flow | ($7,000,000) | $480,197 | $531,224 | $2,311,883 | $646,015 | $616,700 | $637,376 | $11,005,108 | ||
| Investor-Level Cash Flows - Hypothetical $50,000 Investment(1) | ||||||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | |||
| Net Cash Flow | ($50,000) | $3,430 | $3,794 | $16,513 | $4,614 | $4,405 | $4,553 | $78,608 | ||
(1) Returns are net of all fees. Such Fees include fees paid to RM Admin, an affiliate of RealtyMogul, who charges an annual fixed administrative fee for providing certain ongoing administrative services to the Sponsor. Please see the Fees and Disclaimers sections and Disclaimers sections below for additional information concerning fees paid to RM Admin.
RM Technologies, LLC and its affiliates does not provide any assurance of returns. The content on this Page, including Sponsor’s pro forma projections, was provided by the Sponsor or an affiliate thereof. Although RM Technologies, LLC believes the Sponsor reliably produced this content, RM Technologies, LLC makes no representations or warranties as to the accuracy of such information and accepts no liability therefor. The assumptions and projections included in the content on this Page, including the Sponsor’s pro forma projections, are not reflective of the position of RM Technologies, LLC or any other person or entity other than the Sponsor or its affiliates. There can be no assurances that all or any of the Sponsor’s assumptions will be true, that actual performance will bear any relation to these hypothetical illustrations, or that the Sponsor’s investment objectives will be achieved. For additional information concerning the Sponsor’s assumptions and projections, and the significant risks involved in investing in real estate, please see the Disclaimers section below.
Certain fees and compensation will be paid over the life of the transaction; please refer to The GSH 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 | Notes | |
| Acquisition Fee | 2.0% of Purchase Price | GSH Group, LLC | Capitalization | ||
| Buyer Broker Fee | 2.0% of Purchase Price | Momentum Realty, LLC | Seller Proceeds | Momentum Realty, LLC is an affiliate to the principals at GSH | |
| Refinance Fee | 1.0% of Loan Proceeds | GSH Group, LLC | Loan Proceeds | To be paid out on the sale of the property. | |
| Recurring Fees: | |||||
| Type of Fee | Amount of Fee | Received By | Paid From | Notes | |
| Asset Management Fee | 2.0% of EGI | GSH Group, LLC | Operations | ||
| Administrative Service Fee | 1.0% of Equity* | RM Admin(3) | Cash Flow | ||
*Only applies to equity raised through the RealtyMogul Platform
(1) Fees may be deferred to reduce impact to investor distributions.*Only applies to equity raised through the RealtyMogul Platform
(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.
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.