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 Project has a moderate leverage with a fixed-rate loan yet still has enough upside through enhanced management, as well as strategic renovations and property enhancements to provide investors with a strong return.
Portland has substantially inhibited developers in recent years. 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.
The asset has a great location conveniently located near high-end retail as well as job centers and transportation. These transportation corridors have extensive retail and lifestyle services and easy access to Portland and the surrounding metro areas. Nestled between Beaverton Town Square and Cedar Hills Crossing, The Huntley is just minutes from lifestyle centers with numerous stores and service offerings, including restaurants, retail, boutiques, and first-run movie theaters. In addition, TriMet’s Beaverton Transit Center is just steps from The Huntley, connecting the metro area’s regional bus service, nationally recognized MAX light rail system, and WES Commuter Rail. With 90 stations and 60 miles of track, the MAX light rail connects cities and neighborhoods through Portland’s metro area, including Beaverton. Just minutes away from these national retailers: Fred Meyer, Trader Joe’s, BestBuy, Target, and Home Depot.
Next Wave Investors
Next Wave Investors, LLC (“Next Wave”) is a Southern California-based private equity investment firm with a specialized focus in value-add multifamily investments throughout the Western United States. With more than $400 million in acquisitions to date, Next Wave is exceptionally skilled in identifying well-located, underappreciated properties where they can create value through professional operations and capital improvements. Drawing upon an 18-year track record and hands-on experience in the ownership, operation, and enhancement of multifamily properties, the firm consistently delivers value on behalf of individual and institutional investors throughout the globe.
https://nextwaveinvestors.com/-
Jordan FisherPrincipal -
David SloanPrincipal
With nearly two decades of experience acquiring, redeveloping, and managing multifamily properties, Jordan Fisher is a multifamily investment expert. As Principal of Next Wave, Fisher spearheads the company’s investment strategy, and oversees property selection, renovations, and repositionings to ensure strong results.
Prior to joining the executive ranks in commercial real estate, Fisher was founder and CEO of TPG Consulting, LLC, a web development and digital marketing company. Under his leadership, the firm grew from two employees to over 110 with revenues over $21.5 million. TPG was recognized as an INC 500 company as well as one the Los Angeles Business Journal’s 100 fastest-growing private companies. In 2014, after running the company for over seven years, Fisher successfully sold the company to a Beijing-based multi-national Business Services firm.
Prior to founding TPG, Fisher worked at Deloitte Consulting and served as a Captain in the United States Army. A graduate of the U.S. Military Academy at West Point, Fisher earned his MBA from the UCLA Anderson School of Business.
A seasoned attorney with tremendous hands-on experience in real estate, David Sloan is an expert in multifamily real estate transactions, as well as asset and project management. As Principal for Next Wave, Sloan oversees all of the firm’s acquisitions and investments to ensure accuracy, legality and efficiency.
Earlier in his career, Sloan served as Senior Vice President – General Counsel of Sunstone Hotel Investors, Inc. (“Sunstone”), a publicly traded REIT. In that role, he managed all legal functions, including securities matters and real estate transactions. Prior to joining Sunstone, Sloan was engaged in the private practice of law in San Diego. He holds a B.S. degree from Ball State University and a J.D. degree (cum laude) from Thomas Jefferson School of Law.
| Property | City | State | Asset Type | Acq Date | Units or SF | Purchase Price | Sale Price |
| Skyline Terrace | Las Vegas | NV | MultiFamily | 7/1/2015 | 44 | $2,625,000 | $3,175,000 |
| Skyline Place | Las Vegas | NV | MultiFamily | 7/1/2015 | 87 | $4,750,000 | $6,075,000 |
| Skyline Parc | Las Vegas | NV | MultiFamily | 7/1/2015 | 193 | $7,000,000 | $11,000,000 |
| Skyline Villas | Las Vegas | NV | MultiFamily | 7/1/2015 | 94 | $3,825,000 | $7,385,000 |
| Casa Vista | Las Vegas | NV | MultiFamily | 3/1/2016 | 23 | $910,000 | $1,200,000 |
| Oakridge | Henderson | NV | MultiFamily | 3/1/2016 | 42 | $1,750,000 | $2,500,000 |
| Skyline Park | Tucson | AZ | MultiFamily | 3/1/2016 | 60 | $1,920,000 | $2,600,000 |
| Villa Pacific | Tucson | AZ | MultiFamily | 7/1/2016 | 176 | $5,400,000 | $7,282,500 |
| Quails | Tucson | AZ | MultiFamily | 8/1/2016 | 288 | $9,400,000 | $12,200,000 |
| Sycamore Cove | Tucson | AZ | MultiFamily | 12/1/2016 | 67 | $1,322,000 | $2,400,000 |
| Landing Point | Salt Lake City | UT | MultiFamily | 10/24/2017 | 126 | $13,000,000 | $17,600,000 |
| Commons on 2nd | Salt Lake City | UT | MultiFamily | 10/24/2017 | 72 | $5,800,000 | $8,300,000 |
| Bella Vista | St. George | UT | MultiFamily | 2/9/2018 | 148 | $13,200,000 | $18,200,000 |
| Orange Tree Village | Tucson | AZ | MultiFamily | 3/16/2018 | 110 | $10,550,000 | $15,850,000 |
| Harlow | Las Vegas | NV | MultiFamily | 3/29/2018 | 98 | $17,100,000 | $21,500,000 |
| Cypress Springs | Las Vegas | NV | MultiFamily | 6/1/2018 | 144 | $15,000,000 | $20,000,000 |
| Park Station | Midvale | UT | MultiFamily | 7/20/2018 | 96 | $10,750,000 | $15,600,000 |
| Bella Vida | Las Vegas | NV | MultiFamily | 10/16/2018 | 72 | $12,525,000 | $15,000,000 |
| La Estrella Vista | Phoenix | AZ | MultiFamily | 5/16/2019 | 96 | $13,175,000 | $16,750,000 |
| Aspen Village | West Valley City | UT | MultiFamily | 3/18/2019 | 90 | $12,175,000 | $18,500,000 |
| Townhomes at Mountain Ridge | S. Salt Lake | UT | MultiFamily | 5/23/2019 | 63 | $12,500,000 | |
| Cove on Bruce | Clearfield | UT | MultiFamily | 9/21/2018 | 76 | $7,600,000 | $15,250,000 |
| Westover Parc | Phoenix | AZ | MultiFamily | 9/1/2019 | 160 | $20,000,000 | $41,625,000 |
| Tompkins Cove | Las Vegas | NV | MultiFamily | 2/4/2020 | 88 | $14,500,000 | $18,600,000 |
| Shiloh Park Townhomes | Plano | TX | MultiFamily | 11/18/2020 | 73 | $14,850,000 | |
| Park Central Luxury Townhomes | Phoenix | AZ | MultiFamily | 12/16/2020 | 56 | $25,500,000 | |
| Spanish Oaks | Las Vegas | NV | MultiFamily | 2/12/2021 | 216 | $28,500,000 | |
| River Lofts | Tualatin | OR | MultiFamily | 4/23/2021 | 74 | $14,200,000 | |
| Serrano | Spokane | WA | MultiFamily | 4/26/2021 | 300 | $34,400,000 | |
| Spyglass Hills | Las Vegas | NV | MultiFamily | 7/1/2021 | 56 | $8,500,000 | |
| Ashley Terrace | Vancouver | WA | MultiFamily | 8/4/2021 | 118 | $23,850,000 | |
| Willow Creek | Prescott | AZ | MultiFamily | 12/1/2021 | 160 | $58,000,000 | |
| Park Place Apartments | Spokane Valley | WA | MultiFamily | 10/15/2021 | 65 | $8,000,000 | |
| Ivy Apartments | Roy | UT | MultiFamily | 12/10/2021 | 64 | $10,100,000 | |
| Total | $442,677,000 | $298,592,500 |
The above bios and track record were provided by Next Wave Investors and have not been independently verified by RealtyMogul.
The objective of the Managing Member’s business plan is to maximize net operating income and generate consistent returns and appreciation during the anticipated three-year ownership period by implementing a professional leasing and management program, completing strategically planned renovations and repairs to the Property, increasing revenue, and improving overall operations.
The Real Estate Company has budgeted approximately $933,762 in capital expenditures which will be allocated to both interior and exterior renovations. Interior and exterior/common area renovations are expected to be as follows:
Interior Renovations. The Seller has completed interior upgrades in all but nine (9) units. The Real Estate Company plans to renovate the remaining nine (9) units and expects such upgrades to cost an average of $17,000 per unit. The interior renovation plan will entail new stainless-steel appliances, lighting fixtures, plumbing fixtures, vinyl plank-like flooring in common areas, new carpet in bedrooms, hard surface countertops, new cabinet doors, brushed nickel hardware in the kitchens and bathrooms, new interior paint, balcony/patio repairs, new electrical plates and the addition of washers and dryers. These upgrades will produce a blended average renovation premium of $272 per unit, representing a 19.2% return on cost.
In addition to the above-mentioned unit renovations, the Real Estate Company plans to install new wall-mounted HVAC units in all 62 units. This feature will greatly enhance the tenant experience during the summer months. For instance, last year Portland experienced record-breaking high temperatures of 116°F leaving residents without HVAC units to suffer. According to the American Housing Survey of 2019, Portland ranks third lowest in all metros that are air-conditioned in the nation. This added amenity will enhance the competitiveness of these units in the eyes of prospective tenants.
Exterior and Common Area Renovations. The Real Estate Company has plans to make strategic exterior and common area improvements that cost on average $6,726 per unit. Exterior enhancements will include refreshing the exterior paint on all buildings, roofing and walkway repairs, parking lot resurfacing, and improvements to the Property landscape. These upgrades will add value and help enhance the overall image and curb appeal of the Property. Amenity improvements will include installing new carports and a minor refresh to other amenities. The Real Estate Company expects new carports to cost an average of $2,500/space and anticipates being able to charge up to $50/month for each space, representing a 24% return on cost.
Project Uses and CapEx Budget
| Acquisition Cost | $ Amount | Per Unit |
| Purchase Price | $18,000,000 | $290,323 |
| Closing Costs(1) | $591,238 | $9,536 |
| Mortgage Brokerage Fee | $115,000 | $1,855 |
| Acquisition Fee | $360,000 | $5,806 |
| Total Acquistion Costs | $19,066,238 | $307,520 |
| Capital Expenditures - Hard Costs | ||
| Interior Renovations (9 Units) | $135,000 | $15,000 |
| Air Conditioning Unit Installation | $124,000 | $2,000 |
| Parking Lot Resurfacing | $80,000 | $1,290 |
| Landscaping | $75,000 | $1,210 |
| Balcony/Patio Restoration | $40,000 | $645 |
| Carport Installations | $155,000 | $2,500 |
| Exterior Paint | $40,000 | $645 |
| Water Heater Replacements | $15,500 | $250 |
| Miscellaneous | $127,000 | $2,048 |
| Hard Cost Contingency | $39,575 | $638 |
| Total Hard Costs | $831,075 | $13,404 |
| Capital Expenditures - Soft Costs | ||
| Construction Management Fee | $62,331 | $1,005 |
| On Site Project Supervision Costs | $40,356 | $651 |
| Total Soft Costs | $102,687 | $1,656 |
| Grand Total | $20,000,000 | $322,581 |
(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. The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.
The Huntley Apartments provides an opportunity for a value-add project in an excellent location with in-place cash flow. With this attractive going-in cash flow, the Sponsor will be able to add value both with interior renovations and amenity enhancements. The Sponsor has secured an attractive fixed-rate loan with moderate leverage in order to mitigate any interest rate risk during the hold period of the Project.
Unit Mix
| Renovated | # of Units | Avg SF/Unit | Avg Rent | Rent per SF |
| 1 Bed / 1 Bath | 18 | 745 | $1,327 | $1.78 |
| 2 Bed / 1 Bath | 20 | 973 | $1,560 | $1.60 |
| 3 Bed / 2 Bath | 15 | 1,100 | $1,804 | $1.64 |
| Non-Renovated | ||||
| 1 Bed / 1 Bath | 5 | 745 | $1,239 | $1.66 |
| 2 Bed / 1 Bath | 4 | 973 | $1,375 | $1.41 |
| Total/Averages | 62 | 919 | $1,514 | $1.65 |
Lease Comparables
| Willow Grove | Cedar Hills | Arbor Creek | Cedar Crest | Oak and Iron Flats | Comp Averages | The Huntley Apartments | |
| Address | 11981 SW Center St, Beaverton, OR 97005 | 11700 SW Butner Road, Beaverton, OR 97225 | 3280 SW 170th Avenue, Beaverton, OR 97003 | 4800 SW Mueller Drive, Beaverton, OR 97078 | 11595 SW Center Street, Beaverton, OR 97005 | 12310 SW Center Street, Beaverton, OR 97005 | |
| Year Built | 1989 | 1975 | 1984 | 1991 | 1980 | 1984 | 1972 |
| Units | 119 | 180 | 440 | 254 | 128 | 224 | 62 |
| Average Rental Rate | $2,085 | $1,619 | $1,657 | $1,956 | $1,673 | $1,766 | $1,818 |
| Average SF | 921 | 822 | 681 | 952 | 851 | 845 | 919 |
| Average $/SF | $2.27 | $1.97 | $2.43 | $2.06 | $1.97 | $2.09 | $1.98 |
| # Units (1x1) | 40 | 74 | 220 | 32 | 60 | 85 | 23 |
| $ (1x1) | $1,841 | $1,545 | $1,600 | $1,633 | $1,595 | $1,615 | $1,600 |
| SF (1x1) | 750 | 780 | 610 | 700 | 775 | 683 | 745 |
| $/SF (1x1) | $2.45 | $1.98 | $2.62 | $2.33 | $2.06 | $2.37 | $2.15 |
| # Units (2x1) | 72 | 24 | 52 | 76 | 38 | 52 | 24 |
| $ (2x1) | $2,192 | $1,849 | $1,900 | $1,785 | $1,795 | $1,927 | $1,850 |
| SF (2x1) | 990 | 950 | 980 | 880 | 970 | 950 | 973 |
| $/SF (2x1) | $2.21 | $1.95 | $1.94 | $2.03 | $1.85 | $2.03 | $1.90 |
| # Units (3x2) | 7 | 68 | 38 | 15 | |||
| $ (3x2) | $2,384 | $2,300 | $2,308 | $2,100 | |||
| SF (3x2) | 1,180 | 1,150 | 1,153 | 1,100 | |||
| $/SF (3x2) | $2.02 | $2.00 | $2.00 | $1.91 | |||
| Distance from Subject | 0.2 miles | 1.5 miles | 2.3 miles | 1.6 miles | 0.3 miles |
Sales Comparables
| Seven West at the Trails | Hanover | Arrive Murray Hills | Sunset Summit | Milo at Mountain Park | Total/Averages | The Huntley Apartments | |
| Date | Oct '21 | Under Contract | Dec '21 | Dec '21 | Oct '21 | Nov '21 | May '22 |
| Submarket | Greenway | Beaverton | Greenway | West Haven | Westlake | Beaverton | |
| Year Built | 1985 | 1998 | 1975 | 1989 | 1991 | 1988 | 1972 |
| SF | 346,860 | 77,076 | 118,404 | 224,199 | 125,001 | 178,308 | 56,978 |
| Units | 423 | 84 | 138 | 261 | 129 | 207 | 62 |
| Average SF | 820 | 918 | 858 | 859 | 969 | 885 | 919 |
| Sale Price | $145,250,000 | $26,500,000 | $47,000,000 | $80,750,000 | $44,200,000 | $68,740,000 | $18,000,000 |
| $/Unit | $343,381 | $315,476 | $340,580 | $309,387 | $342,636 | $330,292 | $290,323 |
| $/SF | $419 | $344 | $397 | $360 | $354 | $375 | $316 |
| Distance from Subject | 4.1 miles | 1.5 miles | 2.4 miles | 2.9 miles | 6.0 miles | 3.4 miles |
Market Overview
The Portland Metro Area is one of the strongest apartment markets in the nation. The area’s diversified job market and high quality of life continue to attract new residents. In March 2021 the state economist released a report estimating that net in-migration will average 30,000 people per year in 2021 and 35,000 people per year in 2022 and beyond. The majority, between 55-70 people per day, move to the Portland metro area. Meanwhile, new apartment permit applications construction has not caught up to meet housing demand. The Portland Metro Area consistently ranks among the nation’s lowest apartment vacancy rates. According to the U.S. Census Bureau, Portland’s third-quarter 2021 vacancy rate was 5.0% compared to the U.S. vacancy rate of 5.8%. Portland is known for its extremely well-educated workforce and is among the top U.S. cities with advanced college degrees.
Submarket Overview
The City of Beaverton (pop. 97,494) is a major economic hub in the Portland metro area, along with being Portland’s second-largest suburb and the fifth-largest city in Oregon. Over the past two decades, Beaverton has attracted numerous high-tech businesses and is one of Oregon’s fastest developing areas. Between 2010 and 2020, the city’s population has increased by 8.5% (US Census).
Beaverton is a large, robust community that is home to major companies such as Nike Inc. and Columbia Sportswear. Several high-tech employers including Intel and Genentech are located along the Highway 26/Sunset Corridor, which includes nearby Hillsboro. The growing tech hub west of Portland includes more than 300 high-tech businesses that have made their home in what is called the “Silicon Forest.” As an increasing number of high skilled workers are drawn to the area, Beaverton rents have been increasing, and are forecasted to continue this trend at a healthy pace. As a result, rents in the Beaverton area rose 8.7% in 2021, and vacancy has remained below 5.0% (per Costar). In addition, planned future improvements at Cedar Hills Crossing demonstrate the sentiment for continued employment and rent growth in the area.
Total Capitalization
| Sources of Funds | $ Amount | $/Unit |
| Debt | $11,500,000 | $185,484 |
| GP Investor Equity | $850,000 | $13,710 |
| LP Investor Equity | $7,650,000 | $123,387 |
| Total Sources of Funds | $20,000,000 | $322,581 |
| Uses of Funds | $ Amount | $/Unit |
| Purchase Price | $18,000,000 | $290,323 |
| Closing Costs (1)(2) | $1,066,238 | $17,197 |
| Hard Costs | $831,075 | $13,405 |
| Soft Costs | $102,687 | $1,656 |
| Total Uses of Funds | $20,000,000 | $322,581 |
(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. The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.
(2) See PPM for details.
The expected terms of the debt financing are as follows:
- Lender: Umpqua Bank
- Term: 30 Years
- Loan-To-Value: 63.9%
- Estimated Proceeds: $11,500,000
- Interest Type: Fixed
- Annual Interest Rate: 3.27%
- Interest-Only Period: 36 Months
- Amortization: 360 Months
- Prepayment Terms: 3-1-1-1
- Extension Requirements: None
- Modeled Refinance: No
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.
Next Wave Investors intends to make distributions as follows:
- To the Investors, pari passu, all operating cash flows to an 8.0% Compounded Annually;
- 67.5% / 32.5% (67.5% to Investors / 32.5% to Managing Member) of excess cash flow to a 17.0% Compounded Annually;
- 45% / 55% (45% to Investors / 55% to Managing Member) of excess cash flow thereafter.
Next Wave Investors 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 September 2022 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Next Wave Investors, who may decide to delay distributions for any reason, including maintenance or capital reserves.
Next Wave Investors 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 | ||
| Effective Gross Revenue | $1,248,002 | $1,489,685 | $1,599,966 | $1,680,794 | |
| Total Operating Expenses | $429,649 | $443,902 | $458,060 | $456,149 | |
| Net Operating Income | $818,353 | $1,045,784 | $1,141,906 | $1,224,645 | |
| Project-Level Cash Flows | |||||
| Year 0 | Year 1 | Year 2 | Year 3 | ||
| Net Cash Flow | ($8,500,000) | $437,080 | $663,466 | $13,475,927 | |
| Investor-Level Cash Flows(1) | |||||
| Year 0 | Year 1 | Year 2 | Year 3 | ||
| Net Cash Flow | ($4,000,000) | $139,821 | $244,081 | $5,791,409 | |
| Investor-Level Cash Flows - Hypothetical $50,000 Investment(1) | |||||
| Year 0 | Year 1 | Year 2 | Year 3 | ||
| Net Cash Flow | ($50,000) | $1,748 | $3,051 | $72,393 | |
(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 LXMI Capital's materials for details. The following fees and compensation will be paid(1)(2):
| Real Estate Company Fees: | ||||
| Type of Fee | Amount of Fee | Received By | Paid From | |
| Acquisition Fee | 2.0% of Purchase Price | Sponsor | Capitalization | |
| Construction Management Fee | 7.5% of Hard Costs | Sponsor | Capitalization | |
| Recurring Fees: | ||||
| Type of Fee | Amount of Fee | Received By | Paid From | |
| Administrative Solution Fee | flat quarterly fee of $125 per investor serviced through the Administration Solution | RM Technologies, LLC(2) | Distributions | |
| Asset Management Fee | 2.0% of Effective Gross Income | Sponsor | EGI | |
| Property Management Fee | 3.0% of Effective Gross Income | Sponsor | EGI | |
(1) Fees may be deferred to reduce impact to investor distributions.
(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.
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.