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.
St. Clair Holdings, LLC - St. Clair Apartments
St. Clair Holdings is a real estate investment company focused on a combination of opportunistic acquisitions and value-added programs that lead to high yield investment opportunities throughout the Southeast and Midwest United States. The firm focuses on three strategic investment areas: student housing, residential development, and apartments. St. Clair has over $300 million in assets under management between its three investment strategies.
St. Clair Apartments is St. Clair Holdings' existing multi-family investment arm. They seek to acquire underperforming properties in prime locations across the Southeast and transform them into well-managed, vibrant communities that deliver attractive yields for investors. Through well-conceived asset renovations and increasing operational efficiency, St. Clair Apartments seeks to offer optimally-located housing options that provide superior residential experiences while generating a strong return for investors.
http://www.stclairholdings.com/-
W. Colin Cavill - Managing Principal - St. Clair Holdings, LLCManaging Principal -
David P. Lang - Managing Principal - St. Clair Holdings, LLCManaging Principal -
Robert Mascaro - President - St. Clair ApartmentsPresident
W. Colin Cavill has over 25 years of success on two continents in leadership, operations and capital markets and with deep experience as an entrepreneur, real estate investor and developer, operator, and business owner. An Australian native, Colin began his commercial real estate career in Brisbane. Colin is very well known in the real estate industry for setting standards, an eye for detail, creativity, and driving results. For over 15 years, Colin served as a Partner and broker for industrial assets with Colliers International where he specialized in complex investment sales, equity placement, and joint ventures. During his tenure with Colliers, Colin completed over 370 transactions in 32 states and represented over $1.3 billion in volume.
Colin takes an active, hands-on approach to his work, from rezoning negotiations, site development, construction, leasing, operational support, and asset management. He leads his current company, St. Clair Holdings, LLC with impeccable integrity and believes that the key to success is to build equity, trust, and life-long partnerships. His repeat institutional partners include JP Morgan, Lubert-Adler, and Protective Life Insurance.
Colin holds a Bachelor of Business in Real Estate Valuation from the University of Queensland and the Australian designation of chartered surveyor, Australian Valuers and Land Economists, AVLE (Econ). Colin has been a lifelong supporter of Children’s causes and serves in leadership roles for both The Empty Stocking Fund and Downtown Children Development Center. Colin also serves on the Trust for Public Land Advisory Board and the national Sustainable Development Council for ULI.
With 27 years of experience, David Lang is an expert in value investing in the real estate industry. His primary investment philosophy is to risk the profit, but not the principle. Prior to forming St Clair Holdings, David founded DPL Ventures in 2006, where he has been engaged as a consultant on various mixed-use land development projects valued in excess of $500 million. Since 2010, David has purchased and profitably sold a number of distressed multi-family properties, often acquiring control through note purchases.
From 1994 to 2005, David served as Executive Vice President for a private equity fund where he led acquisition efforts. In this role, he purchased over $750 million of office and multi-family properties. From 1986 to 1994, David launched his real estate career as an investment analyst and broker at CBRE in Chicago, Illinois. In this role, he sold apartments, office and industrial buildings for institutions and private investors.
David holds a Masters of Business Administration from the Thunderbird School of Global Management and a Bachelor of Arts in International Relations from Michigan State University.
With 40 years of experience, Robert Mascaro is an expert in real estate acquisition and value creation. As President of St. Clair Apartments, a division of St Clair Holdings, Bob is responsible for transforming underperforming multifamily communities into high yield returns for investors. He leverages his deep and expert industry knowledge to assess, acquire, and lead physical and operational strategies to restore these communities’ vibrancy and value.
Prior to joining St. Clair, Bob served as the VP of Acquisition for GFI Capital Resource where he led the acquisition of income producing properties in the Southeast. In this role, Bob purchased over $500 million multifamily properties (5,670 units). From 2003 to 2006, Bob served as CEO for Wilkinson Real Estate Advisors. During his tenure with Wilkinson, Bob purchased over $100 million in multifamily assets totaling 2,700 units. From 1996 to 2003 Bob was Senior Vice President at the Atlanta Housing Authority (AHA), where he oversaw the privatization of AHA’s housing portfolio. During his stint with AHA, he established the agency’s acquisition group and secured its first replacement housing property. From 1981 to 1996, Bob served as Regional VP of the Southeast office for Dain Corp, a real estate syndicator based in Minneapolis. Bob grew the portfolio to over $150 million (3,500 units).
Bob is a Certified Property Manager and licensed Real Estate Broker in Georgia. He attended Penn State University, majoring in real estate and real estate law.
| Property Name | Location | Asset Type | # of Units | Total Capitalization | $/Unit | ||
|---|---|---|---|---|---|---|---|
| Azalea Woods | Valdosta, GA | Multifamily | 81 | $4,235,000 | $52,284 | ||
| Park at Riverview | Atlanta, GA | Multifamily | 228 | $12,768,000 | $56,000 | ||
| Peachtree Memorial | Atlanta, GA | Multifamily | 50 | $6,783,335 | $135,667 | ||
| Peachtree Hills | Atlanta, GA | Multifamily | 118 | $11,189,220 | $94,824 | ||
| Stacks on Main | Nashville, TN | Multifamily | 268 | $42,511,518 | $158,625 | ||
| SubTotals/Averages | 745 | $77,487,073 | $104,009 | ||||
| University | Property Name | Location | Asset Type | # of Units |
# of Beds | Total Capitalization | $/Unit | $/Bed |
|---|---|---|---|---|---|---|---|---|
| East Tennessee State | The Heights at 1301 | Johnson City, TN | Student Housing | 132 | 528 | $15,368,533 | $116,428 | $29,107 |
| Middle Tennessee State | Raiders Crossing | Murfreesboro, TN | Student Housing | 96 | 276 | $9,522,365 | $99,191 | $34,501 |
| Middle Tennessee State | University Gables | Murfreesboro, TN | Student Housing | 180 | 648 | $17,598,323 | $97,768 | $27,158 |
| Middle Tennessee State | Woods at Greenland | Murfreesboro, TN | Student Housing | 78 | 276 | $8,753,103 | $112,219 | $31,714 |
| Sam Houston State | Montgomery Village | Huntsville, TX | Student Housing | 48 | 192 | $5,970,350 | $124,382 | $31,096 |
| University of Alabama | University Downs | Tuscaloosa, AL | Student Housing | 225 | 435 | $24,330,575 | $108,136 | $55,932 |
| University of NC - Greensboro | Fulton Place | Greensboro, NC | Student Housing | 86 | 244 | $9,784,144 | $113,769 | $40,099 |
| University of NC - Greensboro | The Parc | Greensboro, NC | Student Housing | 94 | 336 | $12,323,478 | $131,101 | $36,677 |
| Valdosta State | Brooks Trace | Valdosta, GA | Student Housing | 49 | 98 | $4,661,523 | $95,133 | $47,567 |
| Valdosta State | Brookwood Forrest | Valdosta, GA | Student Housing | 56 | 112 | $4,638,529 | $82,831 | $41,415 |
| Valdosta State | Jackson Square | Valdosta, GA | Student Housing | 80 | 168 | $8,737,025 | $109,213 | $52,006 |
| Valdosta State | Little Jo Court | Valdosta, GA | Student Housing | 32 | 64 | $4,251,452 | $132,858 | $66,429 |
| Valdosta State | Sustella Townhomes | Valdosta, GA | Student Housing | 42 | 126 | $5,935,034 | $141,310 | $47,103 |
| Valdosta State | Azalea Woods | Valdosta, GA | Student Housing | 117 | 334 | $4,200,000 | $35,897 | $12,575 |
| West Georgia | Campus Walk | Carrolton, GA | Student Housing | 121 | 204 | $5,800,000 | $47,934 | $28,431 |
| West Georgia | University Lofts | Carrolton, GA | Student Housing | 45 | 180 | $4,070,000 | $90,444 | $22,611 |
| Western Michigan | 1324 Lafayette | Kalamazoo, MI | Student Housing | 237 | 422 | $14,699,672 | $62,024 | $34,833 |
| Western Michigan | Greenwood | Kalamazoo, MI | Student Housing | 33 | 65 | $2,264,168 | $68,611 | $34,833 |
| Western Michigan | Fraternity Drive | Kalamazoo, MI | Student Housing | 32 | 154 | $5,364,335 | $167,635 | $34,833 |
| Subtotals/Averages | 1,783 | 4,862 | $168,272,609 | $94,376 | $34,610 | |||
| Overall Totals/Averages** | 2,528 | 4,862* | $245,759,682 | $198,386 | $34,610* | |||
*Note: Overall Totals per bed figures only consider student housing assets held by Saint Clair.
**Note: Sponsor has additional investments in development projects which are not included in the above table.
In this transaction, RealtyMogul.com investors will invest in Realty Mogul 65, LLC. Realty Mogul 65, LLC will subsequently invest in SCH Scott Blvd Owner, LLC, the entity that will hold title to the Property.
Soon after the acquisition, the Sponsor intends to begin implementing an external capital expenditure plan across the Property. The Sponsor intends to replace roofing across the six buildings while touching-up the parking lot, updating the public stairwells in the buildings and updating landscaping across the Property. In addition to the external renovations the Sponsor has planned, an internal capital expenditure plan of approximately $6,300 per unit is also budgeted for the Property. The money set aside for the interiors will be focused primarily on upgrading the bathrooms in the units, with the Sponsor anticipating improving the plumbing, vanities and restroom floorings across the Property. In addition to the restroom renovations, the Sponsor plans to improve and replace flooring, countertops, HVAC, and water heating systems across the Property as necessary.
The Sponsor intends to notify tenants that upon their lease expirations that their rent will be increased to $1,175 and the renovations completed. Should the existing tenants elect to stay the Sponsor has said that implementing the planned internal capital expenditure can be done in a short amount of time without moving the tenants out of their units. Should existing tenants choose to leave upon receiving notice of the increase in rental rates then the Sponsor will be positioned to quickly implement the capital improvements in the vacated unit and begin marketing the newly improved unit for release.
A summary of the capital expenditure planned at the Property is as follows:
RealtyMogul.com, along with St. Clair Holdings, LLC (the "Sponsor"), is providing the opportunity to invest in the acquisition and ownership of a 24-unit apartment complex in Decatur, GA (the "Property"). The Property is comprised of six buildings with four identical two bedroom, one bathroom units in each.
The primary objective of this investment is to acquire the Property below replacement cost, successfully implement planned interior and exterior capital expenditures, bring the in-place rents up to market, and sell the Property within approximately two (2) years.
The Sponsor sees this investment as an opportunity to acquire a well-located apartment complex, increase its current rents through planned capital expenditures and active leasing efforts, and potentially achieve upside appreciation upon the sale of the asset.
Built in 1955 and 1961, the Property is comprised of 24 two bedroom, one bathroom units across six buildings. The units have effectively identical floorplans, and are about 850 square feet each. The seller of the Property, Habersham Properties, has upgraded the kitchens in 20 of the 24 units at the Property with new cherry cabinetry and new appliances. The lot size of 2.0 acres is relatively large for a 24-unit apartment complex in the area, as most new construction is allowed to have a greater unit density per lot size than The Westchester does. The site is laid out in two groups of three buildings facing Scott Boulevard in a half circle. The Property has parking behind the buildings and away from the road, with 1.75 parking spaces per unit. The site layout allows for a central lawn area between the buildings and Scott Boulevard, creating communal outdoor area at the Property.
| Address | Sale Date | # of Units | Year Built | Purchase Price | $ per Unit |
|---|---|---|---|---|---|
| 70 Spruce Street, Atlanta, GA | July 2015 | 28 | 1962 | $2,985,000 | $106,607 |
| 913 Briarcliff Road, Atlanta, GA | July 2015 | 19 | 1963 | $2,225,000 | $117,105 |
| 1931 Briarcliff Circle, Atlanta, GA | December 2016 | 82 | 1980 | $13,750,000 | $167,683 |
| 493 N Highland Avenue, Atlanta, GA | January 2016 | 17 | 1969 | $2,340,300 | $137,665 |
| Average | September 2015 | 37 | 1969 | $5,235,075 | $145,892 |
| Subject | June 2016 | 24 | 1955 & 1961 | $2,470,000 | $104,167 |
| Deal | Year Built | Average Square Feet / Unit | Average Rental Rate / Unit | Average Rental Rate / Square Foot |
|---|---|---|---|---|
| 411 Drexel Avenue, Decatur, GA | 1964 | 985 | $1,035 | $1.05 |
| 142 Scott Boulevard, Decatur, GA | 1961 | 1,049 | $1,350 | $1.29 |
| 432 Sycamore Drive, Decatur, GA | 1950 | 790 | $1,150 | $1.46 |
| 219-A Garden Lane, Decatur, GA | 1948 | 1,034 | $1,250 | $1.21 |
| 119 Willow Lane, Decatur, GA | 1948 | 1,130 | $1,195 | $1.06 |
| 510 Coventry Road, Decatur, GA | 1963 | 923 | $1,095 | $1.19 |
| Average | 1956 | 985 | $1,179 | $1.20 |
| Subject - In-Place | 1955 / 1961 | 985 | $906 | $1.07 |
| Subject - Projected Post-Renovation | 1955 - 1961 | 985 | $1,175 | $1.38 |
The appraiser who completed the Property's appraisal is local to Atlanta and thus was able to source lease comps from smaller, niché properties. The lease comps the appraiser used are similar in age and quality to the Property. However, it should be noted that the lease comparables used are entirely duplex / triplex / quadplexes, whereas The Westchester is a 24-unit apartment complex.
The Property is located approximately 1.5 miles from Downtown Decatur and is about 6.5 miles from Downtown and Midtown Atlanta. Both Downtown and Midtown are approximately a 15 - 20 minute commute from the Property, which sits on Scott Boulevard, a thoroughfare which averages 43,000 vehicles per day. The Property is located directly across the street from Westchester Elementary School and is approximately one mile from Downtown Decatur, GA and Decatur High School. Downtown Decatur has several restaurant options, a new Sprouts, and access to the East-West metro line into Downtown Atlanta. With such a wealth of dining and entertainment options, Livability recently ranked Decatur as the 36th best small town in the United States. In addition to the metro line in Downtown Decatur, there is a bus line that runs down Scott Boulevard into Downtown Atlanta. The Property's relatively close access to both Downtown and Midtown Atlanta make it a logical suburban living option for Atlanta locals working in either part of town. Additionally, the Property is about a six minute commute to both the Emory Hospital and Center for Disease Control (approximately 16,000 employees) and the Atlanta VA Medical Hospital, two of the major employers in the Decatur area.
Market Overview
According to Colliers, the fundamentals in the Atlanta multi-family market either improved or remained strong across the board in 2015. With market vacancy at approximately 5% and rent growth of almost 7% for 2015, Atlanta was a strong national performer in 2015, and Colliers projects underlying fundamentals to either remain consistent or continue to improve during 2016. The strong growth and other economic indicators across the Atlanta multi-family market in 2015 led to a total sales transaction volume which put the Atlanta market fourth in the national rankings despite it only being the ninth most populous metropolitan area in the US.
Submarket Overview
According to CoStar Portfolio Strategy, the Decatur multi-family submarket has seen falling vacancy (currently at 5.5% overall) and strong rent growth (7.6% over the past year) despite an influx of new properties being added to the submarket. Additionally, the vacancy in older and cheaper product in the submarket, such as The Westchester, is below the overall market vacancy of about 5%.
Thanks to Downtown Decatur, the Decatur submarket offers a concentration of restaurants, bars, shopping, transportation and employment options to residents. The combination of Downtown Decatur's social appeal, the submarket's strong job economy and the ease of access to jobs in Downtown and Midtown Atlanta from the area have not only allowed for improving fundamentals, but have led to a larger concentration of families earning $100,000+ in the submarket in recent years. The increase in high-earner families in the submarket should help dampen the expected increase in vacancies among newly constructed apartments in the coming year, as more residents in the submarket will be able to afford the new, more expensive apartment options.
Demographic Information
| Demographics | 1 Mile | 3 Miles | 5 Miles | |
| Population | 13,383 | 101,066 | 325,599 | |
| Projected Growth (2015-2020) | 4.18% | 4.07% | 5.41% | |
| Median HH Income | $53,028 | $60,257 | $53,095 | |
| Median Home Value | $285,066 | $303,054 | $254,199 | |
| % of Renter Households | 47.19% | 45.16% | 52.43% | |
Demographic information above was obtained from CoStar
| Total Capitalization | ||
| Sources of Funds | ||
| Debt | $1,910,000 | |
| Equity | $1,103,006 | |
| Total Sources of Funds | $3,013,006 | |
| Purchase Price | $2,470,000 | |
| CapEx Reserve | $262,706 | |
| Sponsor Acquisition Fee | $50,000 | |
| Sponsor Legal Costs | $35,000 | |
| North Capital Broker Dealer Fee | $35,000 | |
| Lender Origination and Legal | $34,113 | |
| Title and Due Diligence | $29,687 | |
| Interest Rate Cap | $12,000 | |
| Legal Fees paid to Outside Counsel | $10,000 | |
| Operating Reserve | $40,000 | |
| Closing Costs & Prorations | $34,500 | |
| Total Uses of Funds | $3,013,006 | |
The projected terms of the debt financing are as follows:
- Lender: State Bank & Trust Company
- Proceeds: $1,190,000
- Term: 35 months
- Rate: LIBOR + 2.95%* - Rate Locks first day of Month 13**
- Amortization: 25 years
- Interest Only Period: 12 months
- Prepayment Fee: None
*Note: Anticipated effective interest rate at the time of the Property's purchase is 3.43%.
**Note: Anticipated effective interest rate at the time of the rate locking for the Property is 3.70%.
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.
SCH Scott Blvd Owner, LLC intends to make distributions to Realty Mogul 65, LLC as follows: pro rata to the Members (including Realty Mogul 65, LLC) until all Members have received a 10.0% Internal Rate of Return ("IRR"), then a 77/23 (77% to members, 23% to Sponsor) of excess cash flows and appreciation to a 15.0% IRR to the Members. Thereafter excess cash flow and appreciation shall be split 65/35. Realty Mogul 65, LLC will distribute 100% of its share of excess cash flow (after expenses and fees) to the members of Realty Mogul 65, LLC (the RealtyMogul.com investors). The manager of Realty Mogul 65, LLC will receive a portion (up to 10%) of the Sponsor's promote interest.
Distributions are projected to start in December 2016 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.
| Year 1 | Year 2 | |
|---|---|---|
| Effective Gross Revenue | $268,591 | $319,812 |
| Total Operating Expenses | $127,801 | $133,145 |
| Net Operating Income | $140,790 | $186,666 |
| Annual Debt Service | $68,368 | $113,246 |
| Distributions to Realty Mogul 65, LLC Investors | $48,907 | $1,213,097 |
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 Fee | $50,000 | Sponsor | Capitalized Equity Contribution | 2.02% of the property purchase price |
| Broker-Dealer Fee | $35,000 | North Capital (1) | Capitalized Equity Contribution | 3.66% of Realty Mogul 65, LLC invested equity |
| Recurring Fees: | ||||
| Construction Management Fee | 9.0% of Hard Costs | Sponsor | Capital Expenditure Reserve | |
| Asset Management Fee | 2.0% of Effective Gross Income | Sponsor | Operating Cash Flow | |
| Management and Administrative Fee | 1.0% of amount invested in Realty Mogul 65, LLC | RM Manager, LLC | Distributable Cash | RM Manager, LLC is the Manager of Realty Mogul 65, 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 65, 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.