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 Portland-Vancouver-Hillsboro MSA has recorded cumulative rent growth of 47.2% over the last ten years. The submarket of Gresham has exceeded that mark with rent growth of 58.8% over the same period based on data from CoStar. Over each of the past six years, rent growth in Gresham has been stronger than metro-wide performance in Portland.
Per research from JLL, from 2015 to 2019 an average of 27 permits were issued annually totaling 3,230 multifamily units in Multnomah County. In 2021, only two building permits were issued for a total of 352 units. Considering the City of Portland’s implementation of Inclusionary Housing in 2017 and the Urban Growth Boundary, the MSA is one of the more challenging markets to develop in across the country.
Edison offers desirable open concept floorplans with modern design touches. All units have in-unit washers and dryers, as well as air conditioning. 60 of the 64 units are large 2bed/2bath, and the average unit is 900 square feet. Compared to the City of Portland's average apartment size of 765 square feet, renters at the Edison have over 17% more living space on average.
RM Communities
RM Communities is an owner/operator of multifamily assets with a proprietary playbook to deliver strong risk-adjusted returns. RM Communities acquired its first investment in May of 2019 and has since grown to nearly 2,000 multifamily units and over $300 million in real estate with a fully dedicated team of acquisitions, underwriting and asset management professionals.
RM Communities is a sister-company to RealtyMogul, one of the leading real estate crowdfunding platforms. After working with third party operating partners for 10+ years at RealtyMogul, we observed how the best operators stood out – their processes, acquisition targets, execution models, reporting materials and communication styles that informed our strategic objectives for RM Communities. Today, we execute against that playbook as we seek to deliver strong risk-adjusted returns across a variety of multifamily opportunities.
RM Communities 2023 Outlook Webinar
Todd Hanson, Managing Director of RM Communities, discussed the RM Communities portfolio performance and also provided his 2023 strategic outlook. This discussion included his thoughts on multifamily risks and opportunities and how best to navigate the 2023 investment environment. Watch the Webinar
-
Todd HansonManaging Director -
Derek JensenDirector of Acquisitions, West & Florida -
Daniel WeisbergerAssistant Vice President of Acquisitions
Todd Hanson is the Managing Director for RM Communities across the US and has responsibility for planning and execution of overall strategy and directing the investment and financing activities of the company. He is actively involved in maintaining existing client relationships and developing new capital and partnership opportunities for the company. Mr. Hanson was previously EVP and Head of Investments at The ConAm Group, a private equity multifamily investment firm.
Derek Jensen is a Director of Acquisitions for RM Communities, the direct acquisition arm of RealtyMogul, and has responsibility for overseeing direct acquisitions of multifamily opportunities in the western half of the United States. Mr. Jensen has over 20 years of real estate experience, concentrated in the acquisition, management and disposition of over 10,000 multifamily units including market rate, value-add, affordable housing and fractured condominiums. Mr. Jensen has held positions at several private and institutional firms including Pacifica Companies and GFI Partners.
Daniel Weisberger is an Assistant Vice President of Acquisitions for RM Communities, responsible for direct acquisitions of multifamily opportunities. Mr. Weisberger has experience in the real estate and financial services industries having transacted and advised on over $15 billion of real estate debt and equity investments. He was previously a Development Analyst at a national multifamily developer and a Senior Associate at PricewaterhouseCoopers in the Real Estate Valuation and Transaction Advisory group. Mr. Weisberger is a licensed Certified Public Accountant.
| 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 for Edison is to professionally operate the Property and maintain the high occupancy while moving the rents to market. After an extensive market rent survey, RM Communities concluded that in-place rents for the Property are ~$250 below market rates. This delta is primarily a result of the initial lease-up process at the Property. This presents the opportunity at renewal or releasing of units and in conjunction with anticipated capital improvements to capture rent increases that meet or exceed current market rates. With an 890 SF two-bedroom recently leasing for $1,750/mo and a 957 SF two-bedroom signing for $1,798/mo, there is proof of concept that this business plan can be successfully executed.
The Sponsor plans to invest $194,547 in exterior, interior, and common area upgrades during the first year of ownership. These improvements include: $75,000 for exterior wood upgrades, $31,861 for the addition of an outdoor grill and kitchen area, $20,000 for package lockers, $15,000 for a dog park, and $5,000 for utilities closets. They also have an additional $30,000 reserved for future projects and improvements and $17,686 for contingency reserve.
The Sponsor anticipates financing the Property with a 10-year agency loan that is full-term interest-only. On 2/2/2022, they rate locked the loan providing a hedge against the current inflationary and rising interest rate environment. At the end of the third year of ownership, they project adding a seasoned supplemental loan coterminous with the acquisition debt.
The Sponsor plans to exit after ten years at a projected 4.50% cap rate.
Capital Improvement Budget
| Exterior/Interior Upgrades | Total | Per Unit |
| Package Lockers | $20,000 | $313 |
| Utilities Closets | $5,000 | $78 |
| Exterior Wood Treatment | $75,000 | $1,172 |
| Dog Park | $15,000 | $234 |
| Outdoor Kitchen/BBQ | $31,861 | $498 |
| Future CapEx | $30,000 | $469 |
| Total | $176,861 | $2,763 |
| Summary | Total | Per Unit |
| Interior Upgrades | $5,000 | $78 |
| Exterior Upgrades | $171,861 | $2,685 |
| Contingency (10%) | $17,686 | $276 |
| Total | $194,547 | $3,119 |
Edison Apartments is a stabilized, 2020-built property comprised of 64 units located in Gresham, immediately east of Portland. Gresham is currently the fourth largest city in Oregon. Benefiting from strong momentum in the regional economy, access to major employers, and proximity to various recreational amenities, Gresham has seen tenants flow into the market as they seek less dense neighborhoods, more space, and greater affordability.
Featuring one- and two-bedroom floor plans, Edison is just a 20-minute drive from downtown Portland. The Property is within a mile of a MAX Light Rail station. There are several nearby community gardens.
| Type | # of Units | Unit SF | Total SF | In-Place Rent | Stabilized Rent | Rent / SF |
| 1/1 S - ADA | 2 | 478 | 956 | $1,195 | $1,350 | $2.82 |
| 1/1 L - ADA | 2 | 777 | 1,554 | $1,195 | $1,400 | $1.80 |
| 2/2 S | 35 | 890 | 31,150 | $1,504 | $1,810 | $2.03 |
| 2/2 L | 24 | 957 | 22,968 | $1,624 | $1,860 | $1.94 |
| 2/2 L - ADA | 1 | 957 | 957 | $1,550 | $1,860 | $1.94 |
| Total/Average | 64 | 900 | 57,585 | $1,531 | $1,802 | $2.00 |
Lease Comparables
1 Bedroom / 1 Bathroom S
| Property | SF | Stabilized Rent | Per SF | YOC |
| Edison Apartments | 478 | $1,350 | $2.82 | 2020 |
| The Byway | 438 | $1,439 | $3.29 | 2020 |
| Lumina | 438 | $1,439 | $3.29 | 2020 |
| Brookside | 584 | $1,426 | $2.44 | 2021 |
| Twelve Mile Crossing | 600 | $1,450 | $2.42 | 2021 |
| Comp Average | 547 | $1,439 | $2.63 |
1 Bedroom / 1 Bathroom L
| Property | SF | Stabilized Rent | Per SF | YOC |
| Edison Apartments | 777 | $1,400 | $1.80 | 2020 |
| The Byway | 780 | $1,520 | $1.95 | 2020 |
| Lumina | 672 | $1,497 | $2.23 | 1994 |
| Brookside | 808 | $1,758 | $2.18 | 2021 |
| Columbia Trails | 672 | $1,554 | $2.31 | 2003 |
| Comp Average | 723 | $1,545 | $2.14 |
2 Bedroom / 2 Bathroom S
| Property | SF | Stabilized Rent | Per SF | YOC |
| Edison Apartments | 890 | $1,810 | $2.03 | 2020 |
| The Byway | 872 | $2,077 | $2.38 | 2020 |
| Lumina | 854 | $1,973 | $2.31 | 1994 |
| Brookside | 845 | $1,788 | $2.12 | 2021 |
| Twelve Mile Crossing | 898 | $1,710 | $1.90 | 2021 |
| Comp Average | 867 | $1,887 | $2.18 |
2 Bedroom / 2 Bathroom L
| Property | SF | Stabilized Rent | Per SF | YOC |
| Edison Apartments | 957 | $1,860 | $1.94 | 2020 |
| The Byway | 991 | $2,214 | $2.23 | 2020 |
| Lumina | 1,019 | $2,030 | $1.99 | 1994 |
| Columbia Trails | 1,038 | $2,135 | $2.06 | 2003 |
| 3rd Central | 1,051 | $1,725 | $1.64 | 2009 |
| Comp Average | 1,025 | $2,026 | $1.98 |
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 |
| Edison Apartments | Mt Hood | 1833 SE 6th Street | Gresham | 4/1/2022 | $19,500,000 | 64 | 57,585 | $304,688 | $339 | 2020 | A |
| Ascot 146 Apartments | Gateway | 235 SE 146th Avenue | Portland | 8/12/2021 | $8,750,000 | 45 | 18,000 | $194,444 | $486 | 2019 | B |
| Misty Ridge Apartments | Rock Creek | 12846 SR 157th Avenue | Happy Valley | 10/19/2021 | $44,000,000 | 103 | 120,000 | $427,184 | $367 | 2018 | A |
| Mountain Knolls | Gresham | 3180 NW Division Street | Gresham | 10/7/2021 | $13,200,000 | 60 | 59,100 | $220,000 | $223 | 1990 | B |
| Minnehaha Meadows | Walnut Grove | 6000 NE 64th Street | Vancouver | 9/21/2021 | $16,450,000 | 49 | 63,112 | $335,714 | $261 | 2021 | A |
| Roosevelt Commons | Walnut Grove | 2812 Falk Road | Vancouver | 9/21/2021 | $12,550,000 | 36 | 50,149 | $348,611 | $250 | 2020 | A |
| Brookside Apartments | Gresham | 20711 SE Start Street | Gresham | 9/1/2021 | $31,010,000 | 104 | 104,000 | $298,173 | $298 | 2021 | A |
Location: Gresham, Oregon
Gresham, Oregon is a growing city located approximately 11 miles east of Portland. With over 111,800 residents, its population is comprised of young professionals, growing families, and long-time residents. Offering a more moderate cost of living for such an accessible West Coast city, it has seen ample population growth over the last two decades.
The city is well located between the I-205 and I-84 highways, and Portland International Airport is within a 20-minute drive. The historic downtown core has retained its charm and still serves as the community's cultural and economic hub. With over 150 shops, restaurants, and businesses, the area is also served by the Max Blue light rail line. Residents of Gresham can access Mt Hood National Forest within an hour's car ride.
Mt. Hood Community College has a substantial presence in the Gresham area. One of the submarket's largest employers, the college serves about 33,000 students annually, but provides no housing for students, benefitting local multifamily investors. Other larger employers in the Mt Hood submarket include the Gresham-Barlow School District, ON Semiconductor, and LaCrosse Footwear/Danner Boots.
Some of Portland's largest distribution centers are located around Gresham with major employment implications, including buildings fully occupied by Amazon (857,000 SF), Microchip Technology Incorporated (827,000 SF), Boeing (800,000 SF), and Subaru (600,000 SF), which recently completed a 236,000-SF expansion. U.S. Bank fully occupies a 338,000-SF building, other larger office tenants are primarily in the healthcare or government sectors, including the Multnomah County Department of Human Services (55,000 SF) and East County Pharmacy (29,000 SF).
Location: NE Industrial Spine
Gresham is home to one of the largest industrial submarkets in the Portland MSA. Spanning along the shores of the Columbia River and home to over 45 million square feet of industrial space. Companies located within this spine include Amazon Distribution, Boeing, Micro Chip, On Semiconductor, Distribution Industrial, Frito Lay, Pella NW, and Iberdrola. De Beers, a diamond manufacturing company, is investing $94 million to develop a 60,000 square foot diamond factory at Gresham Vista Business Park. Notably, Amazon employs over 1,500 people at its 855,000-square-foot distribution center and Boeing employs over 1,600 at its 87-acre facility.
The Gresham Vista Business Park is home to Subaru’s 600,000-square-foot master parts distribution center. The business park is owned by the Port of Portland and provides tenants with ready-to-develop sites with expedited permitting. There are also various tax advantages, as well as the benefit of being in a foreign trade zone that allows for tariff exemptions.
Market Overview: Portland MSA
The Portland MSA excels in both economic and recreational opportunities, which continues to draw new residents to the area. Since the pandemic, the metro’s job market has undergone a great resurgence, with an unemployment rate of 5.7% (BLS). The highly educated workforce is a major draw for high tech companies that desire an urban setting rich with amenities while being more affordable than other major West Coast Cities. By the end of 2025, the metro GDP is expected to grow 15% - 20% faster than the national forecast of 13%.
The region’s high quality of life has continued to drive in-migration figures, which has supported the metro’s apartment demand. Over the last decade, Portland’s population has grown by 11.5%, which equates to 1.1% on an annual basis. This is well ahead of the national trend of 6.4% over the same period (0.6% average yearly gains).
Total Capitalization
| Sources | Amount | $/Unit | % |
| Senior Loan | $11,190,000 | $174,844 | 54.1% |
| Investor Equity | $9,481,153 | $148,143 | 45.9% |
| Total | $20,671,153 | $322,987 | 100.0% |
| Uses | Amount | $/Unit | % |
| Purchase Price | $19,500,000 | $304,688 | 94.3% |
| Loan Fee | $83,925 | $1,311 | 0.4% |
| Closing Costs | $310,000 | $4,844 | 1.5% |
| CapEx Budget | $194,547 | $3,040 | 0.9% |
| Acquisition Fee | $390,000 | $6,094 | 1.9% |
| Taxes and Insurance | $16,933 | $265 | 0.1% |
| Working Capital | $125,000 | $1,953 | 0.6% |
| Interest & CF Reserve | $50,749 | $793 | 0.2% |
| Total | $20,671,153 | $322,987 | 100.0% |
The expected terms of the debt financing are as follows:
Senior Debt:
- Loan Type: Agency
- Lender: Freddie Mac
- Total Loan Amount: $11,190,000
- Loan Term: 10 Years
- Interest Rate: 3.58%
- Interest-Only Period: 10 Years
- Initial Loan-to-Value: 57.4%
- Loan-to-Cost: 56.8%
Subordinated Debt:
- Loan Date: Month 36
- Total Loan Amount: $3,320,000
- Loan Term: 7 Years
- Interest-Only Period: 7 Years
- Interest Rate: 4.25%
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 Edison Investors, LLC as follows:
Operating Cash Flow:
- To the Investors, pari passu, all operating cash flows to an 8.0% preferred return;
- 70% / 30% (70% to Investors / 30% to Promote) of excess cash flow to a 13% IRR;
- 50% / 50% (50% to Investors / 50% to Promote) of excess cash flow thereafter.
Capital Event:
- To the Investors, pari passu, all operating cash flows to an 8.0% preferred return;
- Return of Capital to Members
- 70% / 30% (70% to Investors / 30% to Promote) of excess cash flow to a 13% IRR;
- 50% / 50% (50% to Investors / 50% to Promote) of excess cash flow thereafter.
RM Communities 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 July 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(1) | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | ||
| Effective Gross Income (EGI) | $1,301,507 | $1,450,467 | $1,508,428 | $1,567,077 | $1,624,797 | $1,681,647 | $1,739,996 | $1,800,371 | $1,862,844 | $1,927,487 | |
| Expenses | $408,709 | $421,252 | $434,870 | $448,884 | $463,258 | $478,005 | $493,210 | $508,901 | $525,094 | $541,806 | |
| Net Operating Income | $892,798 | $1,029,215 | $1,073,558 | $1,118,193 | $1,161,539 | $1,203,642 | $1,246,786 | $1,291,470 | $1,337,749 | $1,385,681 | |
| Total Property Cash Flow | $472,674 | $606,856 | $3,925,371 | $552,985 | $595,465 | $636,715 | $678,984 | $722,762 | $768,104 | $17,726,315 | |
| Projected Investor Cash Flow | |||||||||||
| Year 0 | Year 1 | Year 2 | Year 3(1) | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | |
| Investor-Level Cash Flows - Hypothetical $50,000 Investment(2) | ($50,000) | $2,469 | $3,177 | $20,677 | $2,839 | $2,991 | $3,138 | $3,279 | $3,424 | $3,570 | $74,574 |
(1) In year three of the projections, a $3.3M supplemental loan is assumed, resulting in increased cash flow during Year 3.
(2) Projected returns are net of all fees.
RM Technologies, LLC and its affiliates do 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 |
| Acquisition Fee | 2.0% of Purchase Price | RM Communities |
| Recurring Fees | ||
| Type of Fee | Amount of Fee | Received By |
| Asset Management Fee | 1.5% of Effective Gross Income (EGI) | RM Communities |
| Property Management Fee | Greater of (i) 3.0% of collected rental income, and (ii) $3,000/mo. | FPI, Third Party Property Manager |
(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.