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 Dallas/Fort Worth market is one the strongest multifamily markets in the nation, and well-maintained Class C properties such as this one tend to fare well in the event of an economic downturn.
The Sponsor is acquiring the Property at a low price per unit, based on comps of similar vintage, condition, and location. This favorable basis may provide immediate equity and cash flow for investors, in addition to proven upside through continuing to mark post-rehab rents to market, as the Property is already achieving proforma rents on remodeled units. The Sponsor also plans to implement a Ratio Utility Billing System (RUBS), which the management company has confirmed to be the plan with all of the five properties they operate in this submarket.
The Property will continue to be managed by a large locally-based property manager who has successfully managed the asset for years and who manages multiple comparable properties in the submarket, providing a unique inside perspective on current and proforma operations of this property as well as operations of many of the most relevant comps.
Productive Capital Associates
Productive Capital Associates ("PCA" or the "Sponsor") was founded in 2014 and acquires and operates large, off-market value-add apartment communities, located in stable or growing US markets, with a primary focus on Texas markets. PCA improves properties and their surrounding communities through vetted operational efficiencies supported by strategic capital expenditures that are led by curated business plans based on the location, demographics, condition, and comps of the target property. PCA’s goal is to drive value and exit relatively quickly so as to maximize return on equity and IRR for its investors, returning the properties to the market as nicer assets, and much better places to live and work. As of January 2022, PCA will have owned and operated nearly 2,000 multifamily units, with a value of over $175 million.
Some of PCA’s investment highlights include the following:
• Achieved 150%+ ROI within ~2 years for multiple commercial real estate projects, spanning multifamily, self-storage, and retail assets
• Tripled income within 12 months for a 220+ unit apartment community in Central Texas, adding millions of dollars of value in year one
• Doubled NOI in 7 months for a 250+ unit apartment community in Central Texas, adding millions of dollars in value in year one
• Repositioned a distressed self-storage facility in Central Texas, more than tripling occupancy, income, and value of the asset within 18 months
• Repositioned an apartment community in Columbus, OH, achieving 130%+ ROI within two years
• Repositioned a distressed retail strip center in Central Florida, more than doubling the value of the asset within two years
• Currently repositioning a large student housing project in Denver, in addition to multiple large apartment communities in AR and TX, with each asset projecting a deal-level equity multiple of ~2x on a 3-year hold
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David BarrFounding Principal
After buying his first investment property while in high school — a *tiny* condo near Aspen, CO — David was hooked, although it would be years before he would again invest in real estate.
Why? He'd sold his tiny condo during college for a nice profit and confidently rolled the gains into a red-hot stock market, which eventually crashed, eliminating both his hard-earned real estate gains and principal. It was a difficult lesson; however, he never forgot that real estate made him money and that the stock market took it away.
After spending time in Corporate America, where he had saved enough cash to buy income properties, David began investing in real estate full-time. Beginning with SFR’s, he parlayed cash flow from houses into down payments on more houses, eventually buying and repositioning self-storage, then retail, and now large multifamily (apartment complexes).
David is passionate about improving properties and their surrounding communities and thrives off of the sourcing, underwriting, negotiating, closing, repositioning, and eventually exiting projects, leaving them as much nicer assets, and much better places to live and work.
Named company-wide “Rookie of the Year” for the sales division of a $10+ billion company with over 60,000 employees, David has been recognized for sales, marketing, and finance accolades on a national level, and has led multiple commercial real estate projects to 150%+ ROI within ~2 years, spanning multifamily, self-storage and retail assets.
David holds a B.A. with High Honors from Emory University and studied Finance, Accounting, and Marketing at the UC Berkeley Haas School of Business via the BASE Program.
Specialties: Commercial Real Estate Investment and Repositioning, Strategic Deal-Structuring, Operations, Management, Finance, Sales, and Negotiation.
| City, State | Asset Type | Purchase Date | Units | Deal Status | Purchase Price | Sale Price/Est. Value |
| Killeen, TX | Multifamily | 10/24/2017 | 256 | Sold | $10,300,000 | $15,000,000 |
| Columbus, OH | Multifamily | 10/12/2017 | 64 | Sold | $3,300,000 | $4,510,000 |
| Killeen, TX | Multifamily | 9/17/2018 | 178 | Sold | $6,450,000 | $11,300,000 |
| Killeen, TX | Multifamily | 10/30/2019 | 222 | Sold | $4,500,000 | $12,800,000 |
| North Little Rock, TX | Multifamily | 7/20/2020 | 242 | Under Renovation | $6,150,000 | $9,075,000 |
| Killeen, TX | Multifamily | 8/14/2020 | 250 | Under Renovation | $6,500,000 | $11,250,000 |
| Killeen, TX | Multifamily | 8/30/2021 | 148 | Under Renovation | $6,145,000 | $8,800,000 |
| Denver, CO | Student Housing | 9/17/2021 | 120 | Under Renovation | $40,005,000 | $45,000,000 |
| Killeen, TX | Multifamily | 12/16/2021 | 266 | Under Renovation | $41,075,000 | $42,000,000 |
| Total | 1,746 | $124,425 | $157,935,000 |
The management overview and track record detailed above were provided by Productive Capital Associates and have not been verified by RealtyMogul.
Productive Capital Associates has selected a recently remodeled apartment community in one of the hottest multifamily markets in the nation, and is purchasing the Property pre-market at a low basis, providing day one cash flow with value-add upside through strategic capital investment, as well as continuing to mark-to-market proven proforma post-renovated rents and implementing RUBS. The company plans to continue to renovate the remaining classic units, including new flooring, light fixtures, plumbing, hardware, backsplash, resurfaced counters, and tub surrounds, black appliances, grey paint, and installation of baseboards. The Company also plans to invest additional CapEx into the exterior of the Property, including rebranding, upgrading the parking area and adding 50 additional reserved parking spaces (reserved spaces are currently 100% occupied and leasing for $50/mo.), repainting the exterior of the property, adding stone grilling stations in the courtyards and enhancing landscaping. Proforma rents are already being achieved on remodeled units, and RUBS is being implemented across each of the local comps managed by the highly experienced (25k+ units) management company that will continue to manage the Property. With the goal to stabilize the Property within 3 years or less, the Company plans to exit at the end of year 3, so as to maximize IRR and return on equity for investors. As such, the Company is securing 3-year bridge debt, with optional extensions for 2 additional years, if needed.
CapEx Breakdown:
| $ Amount | Per Unit | |
| Interior Renovation Budget | ||
| Interior Renovations for Studios (2 units) | $8,500 | $4,250 |
| Interior Renovations for 1x1s (22 units) | $110,000 | $5,000 |
| Interior Renovations for 2x1s (3 units) | $16,500 | $5,500 |
| Total Interior Renovation Budget | $135,000 | $5,000 |
| Exterior Renovation Budget | ||
| Fire Extinguisher Inspection | $250 | $1 |
| Install Lever Action Hardware at the Leasing Office Door | $100 | $1 |
| Install a Roll-Under Sink at the Leasing Office Restroom | $350 | $2 |
| Parking Lot Addition | $79,200 | $463 |
| Asphalt Repairs/ Sealcoat & Re-stripe | $10,708 | $63 |
| Grill Stations | $14,500 | $85 |
| Exterior Paint | $114,750 | $671 |
| Landscaping/Irrigation/Tree Trim - Removal | $10,000 | $58 |
| Monument Signs/Signage | $10,000 | $58 |
| Total Exterior Renovation Budget | $239,858 | $1,403 |
| Contingency (10%) | $37,486 | $219 |
| Grand Total | $412,344 | $1,622 |
Productive Capital Associates (PCA) is offering the opportunity to invest in a recently remodeled property in one of the hottest markets in the nation, pre-market at a low basis, providing day one cash flow with value-add upside through continuing to mark-to-market proven proforma post-renovated rents and implementing RUBS. The company plans to continue to renovate the remaining classic units, as well as to invest additional CapEx into the Property, including rebranding, upgrading the parking area, and adding additional reserved parking spaces (currently 100% occupied and leasing for $50/mo.), repainting the exterior of the property, adding stone grilling stations in the courtyards, and enhancing landscaping. Pro forma rents are already being achieved on remodeled units and RUBS is being implemented across each of the local comps managed by the highly experienced (25k+ units) management company that will continue to manage the Property.
| Unit Type | # of Units | Avg SF/Unit | Avg Rent (In-Place) | Avg Rent (Post-Reno) | Avg Rent Per SF (In-Place) | Avg Rent Per SF (Post-Reno) |
| Renovated | ||||||
| Studio | 1 | 396 | $755 | $775 | $1.91 | $1.96 |
| 1x1 | 143 | 531 | $865 | $899 | $1.63 | $1.69 |
| 2x1 | 3 | 827 | $1,150 | $1,150 | $1.39 | $1.39 |
| Non-Renovated | ||||||
| Studio | 2 | 396 | $775 | $799 | $1.96 | $2.02 |
| 1x1 | 22 | 531 | $869 | $899 | $1.64 | $1.69 |
| Total/Averages | 171 | 534 | $869 | $902 | $1.63 | $1.69 |
Lease Comparables
| In Place Apartments | Villa Encanto Apartments | Westwood Apartments | Averages | Subject (Post-Reno Rents) | |
| Year Built | 1973 | 1974 | 1964 | 1970 | 1974 |
| Building Class | C | C | C | C | C |
| # of Units | 80 | 72 | 103 | 85 | 171 |
| Average Rental Rate | $987 | $849 | $1,213 | $1,016 | $902 |
| Average Unit Size | 579 SF | 542 SF | 894 SF | 672 SF | 534 SF |
| Average $/SF | $1.70/SF | $1.56/SF | $1.36/SF | $1.54/SF | $1.69/SF |
| Levels | 2 | 2 | 2 | 2 | 2 |
| Occupancy | 100% | N/A | N/A | 100% | 95.9% |
| Distance from subject | 0.1 mi | 0.2 mi | 0.5 mi | 0.3 mi | |
| $/Unit (Studio) | $765 | $735 | $900 | $800 | $775 |
| SF (Studio) | 435 SF | 484 SF | 500 SF | 473 SF | 396 SF |
| $/SF (Studio) | $1.76/SF | $1.52/SF | $1.80/SF | $1.69/SF | $1.96/SF |
| $/Unit (1x1) | $896 | $920 | $1,095 | $970 | $899 |
| SF (1x1) | 550 SF | 528 SF | 615 SF | 564 SF | 531 SF |
| $/SF (1x1) | $1.63/SF | $1.74/SF | $1.78/SF | $1.72/SF | $1.69/SF |
| $/Unit (2x1) | $1,112 | $1,150 | $1,450 | $1,237 | $1,150 |
| SF (2x1) | 660 SF | 1,097 SF | 864 SF | 874 SF | 827 SF |
| $/SF (2x1) | $1.68/SF | $1.05/SF | $1.68/SF | $1.47/SF | $1.39/SF |
Sales Comparables
| The Ayva at Oakland | Trinity Apartments | Residence at Lake Highlands | Infinity on the Mark | Orchids of Carrollton | Teruko Springs Apartments | Averages | Subject (Going-in) | |
| Date Sold | 6/20/2021 | 9/24/2021 | 10/28/2021 | 6/9/2021 | 5/24/2021 | 4/21/2021 | Q1 2022 | |
| Year Built | 1972 | 1984 | 1969 | 1986 | 1984 | 1964 | 1977 | 1974 |
| Building Class | C | B | C | B | C | C | C | |
| # of Units | 121 | 496 | 247 | 373 | 131 | 71 | 240 | 171 |
| Average Unit Size | 716 SF | 850 SF | 870 SF | 760 SF | 858 SF | 831 SF | 814 SF | 534 SF |
| Sale Price | $11,600,000 | $66,500,000 | $30,000,000 | $46,350,000 | $20,800,000 | $5,725,000 | $30,162,500 | $14,900,000 |
| $/Unit | $95,868 | $134,073 | $121,457 | $124,263 | $158,779 | $80,634 | $119,179 | $87,135 |
| $/SF | $72/SF | $157/SF | $341/SF | $154/SF | $176/SF | $94/SF | $166/SF | $163/SF |
| Cap Rate | N/A | 4.16% | 4.30% | 5.65% | N/A | 5.00% | 4.78% | 4.83% |
| Building Size | 161,994 SF | 422,880 SF | 87,859 SF | 300,549 SF | 118,124 SF | 61,215 SF | 192,104 SF | 91,284 SF |
| Distance from subject | 5.5 mi | 9.4 mi | 10.9 mi | 11.9 mi | 11.9 mi | 12.5 mi | 10.4 mi |
Market Overview
Per CoStar, the Dallas-Fort Worth apartment market is performing well compared to other major markets, despite the widespread economic disruption to the local economy in the past year. Leasing activity has surged in 2021 with the highest net absorption on record. With a surge in demand, rent growth has accelerated, registering the best performance on record. The trend is pervasive across asset classes and communities in both urban and suburban settings. That rapid turnaround is after steep rent cuts in the urban core and supply-heavy submarkets, leaving rent growth in the market essentially flat last year.
Robust economic underpinnings have fostered a healthy apartment market, and Dallas-Fort Worth's employment base has essentially recovered from the pandemic and recession through September 2021. Healthy job growth and continuous in-migration are two primary drivers of apartment demand in the metroplex; before the latest recession, Dallas-Fort Worth consistently added jobs at an annual rate of around 3.5%, down from a peak of 6% set in 2017. In terms of demographic growth, the metroplex led the country in nominal population growth, up 120,000 new residents from 2019 to 2020. Despite a continuous flow of new properties coming to the market, the renter pool continues to absorb new units at a steady pace.
Submarket Overview
Per CoStar, Northwest Dallas is a growing submarket within urban Dallas. It is home to plenty of well-paying jobs, thanks to the Southwestern Medical District and extends along the Dallas North Tollway from the trendy Uptown/Park Cities Submarket. The unit mix in Northwest Dallas caters to this cross-section of renters in Dallas, as about two-thirds of all units are one-bedrooms or studios. Renters priced out by rents in Uptown/Park Cities who still want a live/work/play environment often select Northwest Dallas. Several dining destinations spill over in the area along Maple and Oak Lawn, within the Design District, making this area attractive to renters. In the past five years, developers have added an outsized number of units in and around the Southwestern Medical District and south of Love Field, taking advantage of infill opportunities. Retail development has also chased this growth, activating overlooked parcels once dominated by aging industrial and flex space.
Total Capitalization
| Sources of Funds | $ Amount | $/Unit |
| Debt | $12,300,000 | $71,930 |
| GP Investor Equity(2) | $556,344 | $3,253 |
| LP Investor Equity | $3,300,000 | $19,298 |
| Total Sources of Funds | $16,156,344 | $94,482 |
| Uses of Funds | $ Amount | $/Unit |
| Purchase Price | $14,900,000 | $87,135 |
| Acquisition Fee | $298,000 | $1,743 |
| Loan Fee | $246,000 | $1,439 |
| Closing Costs(1) | $200,000 | $1,170 |
| CapEx | $412,344 | $2,411 |
| Lender Reserves | $100,000 | $585 |
| Total Uses of Funds | $16,156,344 | $94,482 |
The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.
(1) RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform. RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the Platform and for Platform-related services. Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC.
(2) Lender required that the Sponsor contribute an additional ~$110,000 of equity into the deal which is currently not reflected in the projected returns but is not anticipated to materially impact economic projections. The exact amount required by the lender will be reflected at closing.
The expected terms of the debt financing are as follows:
- Term: 3 years + 2 one-year extension options
- Loan-to-Cost: 76.1%
- Estimated Proceeds: $12,300,000
- Interest Type: Floating
- Spread Above One-Month LIBOR: 4% with a floor of 10 bps; 1% rate cap is purchased to protect the first two years of the loan
- Interest-Only Period: Full-term
- Amortization: N/A
- Prepayment Terms: 1% exit fee unless refinanced with Arbor into permanent loan
- Extension Requirements: The Extended Term may be extended for twelve (12) months (the “Second Extended Term”), provided that: (i) Arbor receives written notice of Borrower’s election to extend the Extended Term at least thirty (30) days prior to the expiration of the Extended Term (the “Second Notice of Extension”); (ii) along with the Second Notice of Extension, Borrower delivers to Arbor an extension fee in an amount equal to one percent (1%) of the maximum Loan Amount; (iii) no event of default shall have occurred and no event shall have occurred that with notice, passage of time or both would constitute an event of default; (iv) the Interest Reserve (defined below) is resized by Arbor in its sole discretion and is replenished by Borrower; (v) Borrower shall purchase a new Rate Cap in form and substance acceptable to Arbor; and (vi) the Property shall achieve a debt service coverage ratio of no less than 1.25:1.00, using the greater of (a) the then current Interest Rate, (b) the then prevailing market constant for Fannie Mae, and (c) the then prevailing market constant for conduit ten-year fixed rate loans (the “Second DSCR Extension Test”), provided that if the Property fails to meet the Second DSCR Extension Test, then, in order to qualify for the Second Extended Term, Borrower shall rebalance the Loan by making a payment in an amount necessary to cause the debt service coverage ratio, as determined by Arbor in its sole discretion, to satisfy the Second DSCR Extension Test.
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.
Productive Capital Associates intends to make distributions from 3001 Kendale Drive JV, LLC as follows:
- To the Investors, pari passu, all operating cash flows to a 9.0% IRR;
- 70% / 30% (70% to Investors / 30% to Promoted/Carried Interest) of excess cash flow to a 15.0% IRR;
- 50% / 50% (50% to Investors / 50% to Promote/Carried Interest) of excess cash flow thereafter.
Productive Capital Associates 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 August 2022 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Productive Capital Associates, who may decide to delay distributions for any reason, including maintenance or capital reserves.
Productive Capital Associates 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 | ||||
| Effective Gross Revenue | $1,752,189 | $1,883,807 | $2,026,602 | |||
| Total Operating Expenses | $1,033,110 | $1,028,498 | $1,050,502 | |||
| Net Operating Income | $719,080 | $855,308 | $976,100 | |||
| Project-Level Cash Flows | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | |||
| Net Cash Flow | ($3,856,344) | $197,690 | $314,695 | $6,539,393 | ||
| Investor-Level Cash Flows(1) | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | |||
| Net Cash Flow | ($3,300,000) | $106,182 | $204,054 | $4,914,248 | ||
| Investor-Level Cash Flows - Hypothetical $50,000 Investment(1) | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | |||
| Net Cash Flow | ($50,000) | $1,609 | $3,092 | $74,458 | ||
(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 Productive Capital Associates' materials for details. The following fees and compensation will be paid(1)(2)(3)(4):
| One-Time Fees: | |||||
| Type of Fee | Amount of Fee | Received By | Paid From | ||
| Acquisition Fee | 2.0% of Purchase Price | Productive Capital Associates | Capitalized Equity Contribution | ||
| Recurring Fees: | |||||
| Type of Fee | Amount of Fee | Received By | Paid From | ||
| Asset Management Fee | 2.0% of EGI | Productive Capital Associates | Distributable Cash | ||
| Administrative Services Fee | 1.0% of Equity(1) | RM Admin, LLC(4) | Distributable Cash | ||
(1) Only applies to equity raised through the RealtyMogul Platform
(2) Fees may be deferred to reduce impact to investor distributions.
(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 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.
(4) 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.