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.
Trion Properties
Trion Properties focuses on potentially maximizing investor returns by increasing net operating income throughout the holding period through a hands-on management style of heavy renovation and aggressive lease-up. Trion Properties is a private equity investment company which acquires opportunistic real estate investments that need moderate to heavy rehab on a mid to long term investment horizon.
Founded in 2005, Trion has successfully closed over $160 million in transactions through either the purchase of the fee simple interest or taking ownership of the asset through acquiring the non-performing debt. Trion Properties is managed by principals whose combined experience spans over 20 years in West Coast real estate markets and is in excess of one billion dollars in transactions.
http://www.trion-properties.com/
Sponsor Portfolio | ||||||||||
Currently Owned Properties | ||||||||||
Property Address | City | Property Type | Date Acquired |
# of Units |
Square Feet | Status | Purchase Price |
Total Cost Basis | BOV/ Appraisal | Valuation Date |
3536 Watt Ave | Sacramento, CA | MF | 4/1/2013 | 128 | - | 2016 Sale | $4,900,000 | $5,932,025 | $10,000,000 | 2/1/2016 |
24510 Town Center Dr | Valencia, CA | Retail | 10/22/2013 | - | 26,186 | 2016 Sale | $6,900,000 | $7,900,000 | $11,000,000 | 11/10/2015 |
5416 Jackson St | North Highlands, CA | MF | 1/28/2014 | 185 | - | 2016 Sale | $9,300,000 | $10,738,981 | $16,000,000 | 1/15/2016 |
412 S Lake St | Los Angeles, CA | MF | 8/1/2013 | 41 | - | Cash-out Refi | $1,600,000 | $4,181,454 | $8,500,000 | 2/1/2016 |
4620 S Slauson Ave | Los Angeles, CA | MF | 9/12/2014 | 28 | - | Cash-out Refi | $6,750,000 | $7,418,379 | $10,000,000 | 2/17/2016 |
1802-1820 Pacific Coast Hwy | Redondo Beach, CA | Retail | 11/24/2014 | - | 20,191 | Stabilized | $5,781,250 | $6,962,500 | $9,800,000 | 7/10/2015 |
Penn St | Whittier, CA | N/A | 6/1/2012 | - | N/A | Entitlement | $1,100,000 | $1,100,000 | n/a | n/a |
28955 Pacific Coast Hwy | Malibu, CA | Retail/ Office | 2/28/2014 | - | 16,711 | Renovating | $5,750,000 | $7,500,000 | n/a | n/a |
1804 NE 104th St | Portland, OR | MF | 5/14/2015 | 74 | - | Renovating | $6,642,598 | $8,122,000 | n/a | n/a |
3635 College Ave | San Diego, CA | MF | 6/15/2015 | 98 | - | Renovating | $9,650,000 | $12,441,030 | n/a | n/a |
6180 Aldama | Los Angeles, CA | MF | 7/31/2015 | 15 | - | Renovating | $3,375,000 | $4,113,253 | n/a | n/a |
2222 SW Spring Garden | Portland, OR | MF | 8/14/2015 | 44 | - | Renovating | $4,450,000 | $5,713,266 | n/a | n/a |
324 S Catalina St | Los Angeles, CA | MF | 11/23/2015 | 47 | - | Renovating | $7,540,000 | $8,245,741 | n/a | n/a |
23924 2nd St | Hayward, CA | MF | 12/23/2015 | 30 | - | Renovating | $6,650,000 | $7,830,000 | n/a | n/a |
348 Estabrook | San Leandro, CA | MF | 1/4/2016 | 38 | - | Renovating | $7,200,000 | $8,574,811 | n/a | n/a |
Total | 728 | 63,088 | $87,588,848 | $106,773,440 | ||||||
Sold Properties | ||||||||||
Property Address | City | Property Type | Date Acquired |
# of Units |
Square Feet | Purchase Price |
Total Cost Basis | Sale Value | Sale Date | |
909 Sunshine Ave | El Cajon, CA | MF | 4/10/2013 | 22 | - | $2,350,000 | $2,619,213 | $3,740,000 | 5/7/2015 | |
3298 Mooney Blvd | Visalia, CA | Retail | 12/31/2012 | - | 57,254 | $2,746,650 | $2,756,277 | $4,000,000 | 6/1/2013 | |
7629-7633 Normal Ave | La Mesa, CA | MF | 11/20/2012 | 21 | - | $1,900,000 | $2,263,689 | $3,580,000 | 6/9/2015 | |
Arden Loan Portfolio | Sacramento, CA | MF | 7/26/2012 | 224 | - | $5,750,000 | $6,085,860 | $7,134,385 | 2/1/2013 | |
1535 N Cedar Ave | Fresno, CA | MF | 7/13/2012 | 124 | - | $3,248,750 | $4,435,709 | $5,500,000 | 3/4/2015 | |
4318 Avalon | Los Angeles, CA | MF | 1/3/2012 | 11 | - | $515,000 | $563,902 | $680,000 | 7/18/2012 | |
2280 South Drive | Auburn, CA | MF | 12/30/2011 | 16 | - | $1,350,000 | $1,727,568 | $2,400,000 | 7/12/2012 | |
210 43rd Place | Los Angeles, CA | MF | 9/26/2011 | 30 | - | $949,000 | $1,040,393 | $1,480,000 | 6/25/2012 | |
8833 Tobias Ave | Panorama City, CA | MF | 9/21/2011 | 20 | - | $1,169,000 | $1,278,675 | $1,430,000 | 12/30/2011 | |
225 N Avenue 53 | Los Angeles, CA | MF | 4/28/2011 | 20 | - | $1,249,463 | $1,526,243 | $2,075,000 | 5/12/2012 | |
4620 Coliseum | Los Angeles, CA | MF | 12/17/2010 | 35 | - | $1,800,000 | $1,985,773 | $2,550,000 | 12/29/2011 | |
1324 57th St | Los Angeles, CA | MF | 11/23/2010 | 14 | - | $875,000 | $977,018 | $1,155,000 | 10/28/2011 | |
6407 10th Ave | Los Angeles, CA | MF | 5/5/2010 | 28 | - | $1,500,000 | $1,763,512 | $2,125,000 | 7/29/2011 | |
East West Bank Portfolio | Los Angeles County, CA | MF | 8/14/2009 | 21 | - | $725,000 | $740,024 | $960,000 | 9/1/2010 | |
13490-13520 Foothill Blvd | Sylmar, CA | MF | 6/4/2007 | 81 | - | $11,150,000 | $11,786,570 | $12,850,000 | 7/1/2008 | |
7445 Vineland | Sun Valley, CA | MF | 4/10/2007 | 20 | - | $1,867,125 | $1,928,485 | $2,250,000 | 8/5/2008 | |
4632 Laurel Canyon (1) | Valley Village, CA | MF | 3/20/2007 | 44 | - | $5,225,000 | $5,529,035 | $4,851,125 | 5/29/2009 | |
12717 Barbara Ann | North Hollywood, CA | MF | 11/2/2006 | 24 | - | $2,625,000 | $2,800,887 | $3,200,000 | 4/10/2009 | |
417 W Los Feliz | Glendale, CA | MF | 12/30/2005 | 34 | - | $2,200,000 | $2,444,000 | $3,495,000 | 5/17/2007 | |
7355 - 7359 Vineland | Sun Valley, CA | MF | 12/28/2005 | 12 | - | $1,147,466 | $1,263,093 | $1,600,000 | 4/11/2007 | |
Realized Total | 801 | 57,254 | $50,342,454 | $55,515,926 | $67,055,510 | |||||
Combined Portfolio Total | 1,529 | 120,342 | $137,931,302 | $162,289,366 |
In this transaction, RealtyMogul.com investors will invest in Realty Mogul 64, LLC. Realty Mogul 64, LLC is to subsequently invest in 180 Buckingham Avenue, LLC, a limited liability company that plans to (through another wholly-owned entity) acquire, renovate, and manage the Property. This will be RealtyMogul.com's second equity raise with the Sponsor.
Trion Properties (the "Sponsor") believes that rents at the Property are currently below market, and plans to implement approximately $968,000 ($20.2k/unit) of interior and exterior renovations to achieve rental increases averaging $689/unit, a 40% increase over average in-place rents and an 18% increase over the highest rents that have been achieved at the property. Interior renovations will include vinyl wood plank flooring, stainless steel appliances and stovetops, new cabinetry, quartz countertops, new doors, window treatments, plumbing and fixtures, smart locks, vanities, re-glazed bathtubs, paint, and lighting. Exterior renovations will include new paint, wood paneling, new fixtures, an elevator, lounge improvements, landscaping, and new signage.
The Sponsor also intends to enhance the overall operations of the Property through improved management and marketing efforts, drawing from their ownership experience of over 1,500 multifamily units to date.
RealtyMogul.com, along with Trion Properties (the "Sponsor"), is providing the opportunity to invest in the acquisition and renovation of a 48-unit multi-family property located in Redwood City, CA (the "Property").
The primary objective of this investment is to acquire the Property, perform interior and exterior renovations, bring rents up to market, and sell the Property within approximately five (5) years.
The Sponsor sees this investment as an opportunity to capitalize on an under managed asset that is currently leasing at below market rents. Recent leasing at the Property suggests that average in-place rents are currently below market, and the Rent Comps survey suggests that the Property is 32% below market when compared to renovated properties in the area that are comparable to the product that the Sponsor intends to deliver. The Sponsor plans to implement a $968,000 ($20.2k/unit) renovation that is expected to increase rents and bring them in line with the market.
Built in 1962, the Property is a three-story apartment building comprised of 48 non-rent controlled units, including studio, one bedroom/one bath, and two-bedroom/one bath floor plans. Situated on .57 acres and offering 34,125 of residential square feet, the Property features covered and subterranean parking, on-site laundry facilities, a BBQ area and a courtyard. The Property is currently 96% occupied.
Unit Mix | |||||
Unit Type | # Units | % of Total | Unit SF | Avg. In-Place Rent | Avg. In-Place Rent/ SF |
Studio | 3 | 6.25% | 475 | $1,627 | $3.43 |
1 Bed / 1 Bath | 37 | 77.08% | 700 | $1,669 | $2.38 |
2 Bed / 1 Bath | 8 | 16.67% | 850 | $2,097 | $2.47 |
Total/ Average | 48 | 100.00% | 711 | $1,738 | $2.46 |
Buckingham Apartments is conveniently located in Redwood City, CA, 28 miles from downtown San Francisco and 2.5 miles from Menlo Park. The Property is approximately two miles from US-101 and 4 miles from I-280, offering access to the greater Bay Area. SamTrans, which provides bus service throughout San Mateo County and portions of San Francisco and Palo Alto, has a stop within half a mile of the Property, and Caltrain has a stop within a mile and half, which offers a rail system between San Francisco and San Jose.
Box.com, Google, Facebook, Electronic Arts, and Oracle all have significant office spaces within 5.5 miles of the Property. Atherton, the most expensive zip code in the U.S. according to Forbes in 2015, is less than two miles from the Property. Stanford University is 3.9 miles away and is constructing a 1.5 million square foot satellite campus in Redwood City only 2.3 miles from the Property.
Major Silicon Valley Employers | Industry | Location | Distance from Property | Approx. Headcount in Region |
Internet/Technology | Headquarters | <10 miles | 19,000 | |
Stanford University | Education | Main Campus | <4 miles | 11,128 |
Oracle | Internet/Technology | Headquarters | <6 miles | 6,750 |
Internet/Technology | Headquarters | <6 miles | 2,800 | |
Electronic Arts | Internet/Technology | Headquarters | <6 miles | 2,367 |
Box.com | Internet/Technology | Headquarters | <2 miles | 950 |
Shutterfly | Internet/Technology | Headquarters | <8 miles | 481 |
*The information above was obtained from Google Maps, cnbc.com, businessinsider.com, redwoodcity.org, statista.com, oracle.com, nytimes.com, forbes.com, finance.yahoo.com, bbb.org, and facts.stanford.edu |
Market Overview
Redwood City is home to approximately 83,000 residents, while the greater Silicon Valley, which sits just to the south, boasts an estimated three million people inhabiting the area. Silicon Valley constitutes 9.6% of California’s annual GDP and 9.3% of its jobs. Job growth in Silicon Valley reached 4.1%, in 2015, the highest it’s been since 2000, adding nearly 58,000 jobs (bringing the total to 1.48 million in Q2 2014) and exceeding the 2013-2014 job growth rate of the Bay Area as a whole (+3.5%), San Francisco (+3%), California (+2.5%) and the nation (+1.8%). Forty-seven percent of Silicon Valley residents have a bachelor’s, graduate or professional degree, compared with only 32% in California and 29% in the United States (jointventure.org).
Submarket Overview
According to Axiometrics, the South San Mateo submarket had the highest occupancy in the entire San Francisco-Redwood City-South San Francisco Metropolitan Statistical Area (out of seven submarkets), with a Q1 2016 average occupancy of 96.6%. Axiometrics predicts a 3.9% average vacancy rate over the next five years for the submarket, along with an effective average annual rent growth of 3.3% over the same period.
Axiometrics Market Performance Summary Report | |||||
2017 | 2018 | 2019 | 2020 | 2021 | |
Vacancy Rate | 4.0% | 3.7% | 3.3% | 3.6% | 3.9% |
Rent Growth | 2.4% | 3.2% | 4.4% | 3.9% | 2.7% |
Demographic Information
Demographics | 1 Mile | 3 Miles | 5 Miles | |
Population (2015) | 39,116 | 138,113 | 267,332 | |
Growth (2010-2015) | 9.3% | 9.7% | 7.3% | |
Growth (2015-2020) | 6.7% | 6.7% | 6.3% | |
Median Household Income (2015) | $58,158 | $93,141 | $97,939 |
Demographic information above was obtained from CoStar and Census.gov
Total Capitalization | |
Sources of Funds | |
Debt | $12,780,000 |
Equity | $4,468,078 |
Total Sources of Funds | $17,248,078 |
Uses of Funds | |
Purchase Price | $15,000,000 |
Unit Renovation | $768,000 |
Interest Reserves | $454,478 |
CapEx Budget | $200,000 |
Loan Fees and Rate Caps Purchase | $255,600 |
Working Capital | $300,000 |
Acquisition Fee (1%) | $150,000 |
Broker Dealer Fee (3%) | $45,000 |
Closing Costs | $75,000 |
Total Uses of Funds | $17,248,078 |
The projected terms of the debt financing are as follows:
Bridge Loan
- Lender: Thorofare Capital
- Principal Balance: $12,780,000
- Term: Two Years
- Rate: 30-Day LIBOR + 515 bps (with a 0.45% LIBOR floor)
- Amortization: Interest Only
- Extension Options: Two (2) six month extension options
- Loan to Cost: 74%
- Loan to Purchase Price: 85%
Permanent Loan
- Principal Balance: $14,210,549
- Rate: 4.00%
- Amortization: 30 Years
There can be no assurance that a lender will provide debt on the rates and terms noted above, or at all. All 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.
180 Buckingham Avenue, LLC will make distributions to Realty Mogul 64, LLC as follows:
Order of Distributions to Realty Mogul 64, LLC (Operating Income, Sales, or Refinance Proceeds)
- First, to members for any accumulated unpaid preferred return, based on an 8% cumulative, non-compounding preferred return
- Second, to the Sponsor until it has received an amount equal to 30% of the sum of all Preferred Returns paid to members (the "Catch-Up")
- Third, to the Sponsor to pay any accrued but unpaid Cost Overrun Returns(1)
- Fourth, to the Sponsor until all unreturned Cost Overrun Contributions(1) have been returned to zero (0)
- Fifth, to members, until their Capital Contribution balance has been returned to zero (0)
- Then, any excess balance will be split 70% to members pari passu and 30% to the Sponsor
If, upon the final liquidation of assets, the Company does not have enough money to return 100% of members' capital contributions, the Sponsor entity will repay any Catch-Up received previously, up to the total amount of all Catch-Up payments received, and apply the refunded amounts to a pro-rata repayment of the members' Capital Contributions. Realty Mogul 64, LLC will distribute 100% of its share of cash flow (after expenses) to the members of Realty Mogul 64, LLC (the RealtyMogul.com investors). The manager of Realty Mogul 64, LLC will receive a portion (up to 10%) of the Sponsor's promote interest.
Distributions are projected to start in December 2017 and are projected to continue on a quarterly basis thereafter. These distributions are at the discretion of the Sponsor, who may decide to delay distributions for any reason, including maintenance or capital reserves.
Cash Flow Projections | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Effective Gross Revenue | $664,133 | $1,402,981 | $1,445,070 | $1,488,422 | $1,533,075 | ||
Total Operating Expenses | $396,541 | $433,225 | $445,790 | $460,323 | $478,409 | ||
Net Operating Income | $267,592 | $969,756 | $999,280 | $1,028,099 | $1,054,666 | ||
Distributions to Realty Mogul 64, LLC Investors | $0 | $421,286 | $58,061 | $67,736 | $2,642,719 |
(1) In the event there is a capital shortfall as a result of renovation costs exceeding the budgeted costs for the same, then the Sponsor shall contribute additional capital to the Company in an amount necessary to meet such cost overruns. Such capital contributions shall be considered “Cost Overrun Contributions,” and such amounts shall accrue interest at a rate equal to the interest of the senior loan on the Property (the “Cost Overrun Return”).
Certain fees and compensation will be paid over the life of the transaction. The following fees and compensation will be paid:
Type of Fee | Amount of Fee | Received By | Paid From | Notes |
One-Time Fees: | ||||
---|---|---|---|---|
Acquisition/ Guarantor Fee | $150,000 | Sponsor | Capitalized Equity Contribution | 1.0% of the Property purchase price |
Broker-Dealer Fee | 3.0% | North Capital (1) | Capitalized Equity Contribution | 3.0% based on the amount of equity invested by Realty Mogul 64, LLC |
Mortgage Broker Fee | 1.0% | Continental Funding Group | Capitalized Equity Contribution | 1.0% of the loan amount. Continental Funding Group is a separate but affiliated entity of the Sponsor and its principals.
|
Recurring Fees: | ||||
Property Management Fee | 4.0% | Sponsor | Operating Cash Flow | The greater of 4.0% of Effective Gross Income or $2,500/month |
Management and Administrative Fee | 1.0% | RM Manager, LLC | Distributable Cash | 1.0% of amount invested in Realty Mogul 64, LLC. RM Manager, LLC is the Manager of Realty Mogul 64, LLC and a wholly-owned subsidiary of Realty Mogul, Co. (2) |
Notes:
(1) Certain employees of Realty Mogul, Co. are registered representatives of, and are paid commissions by, North Capital Private Securities Corp., a Delaware corporation ("North Capital"). In addition, North Capital pays a technology provider services fee to Realty Mogul, Co. for licensing and access to certain technology, reporting, communications, branding, entity formation and administrative services performed from time to time by Realty Mogul, Co., and North Capital and Realty Mogul, Co. are parties to a profit sharing arrangement.
(2) Fees may be deferred to reduce impact to investor distributions
The above presentation is based upon information supplied by the Sponsor or others. Realty Mogul, Co., RM Manager, LLC, and Realty Mogul 64, LLC, along with their respective affiliates, officers, directors or representatives (the "RM Parties") hereby advise you that none of them has independently confirmed or verified any of the information contained herein. The RM Parties further make no representations as to the accuracy or completeness of any such information and undertake no obligation now or in the future to update or correct this presentation or any information contained herein.
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.