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.
Exchange Right
ExchangeRight is committed to providing long-term, stable income and asset preservation to accredited 1031 investors. Their goal is to consistently deliver 1031-exchangeable DST portfolios of long-term, net-leased properties backed by investment grade corporations. They target corporate tenants that successfully operate in the necessity retail space to provide investors with stable and predictable income. ExchangeRight’s long-term exit strategy is to provide greater diversification and value to investors by combining multiple portfolios of investment grade, net-leased assets in a portfolio sale or 721 exchange roll-up.
http://www.exchangeright.com/Offering | Description | Projected Annualized Return | Actual Annualized Return* | ||||||
Net-Leased Preferred Equity Company 1 | Shorter-term fund to acquire and sell net-leased assets for the Sponsor. Performing as expected. | Range of 12-20% | Range of 13-17%** | ||||||
Net-Leased Preferred Equity Company 2 | Shorter-term fund to acquire and sell net-leased assets for the Sponsor. Performing as expected. |
Range of 8-12% | 10-12%** | ||||||
Acquisitions Notes II | Company that issues short term debt capital to the Sponsor to acquire and sell net-leased assets. Performing as projected. | Range of 8-12% | 10-12%** | ||||||
Net-Leased Portfolio 1 | Portfolio of two long-term net-leased properties leased to Family Dollar. One of the two properties sold in January, 2015 at a 10.59% annualized net profit to investors. Current remaining property return shown in chart and is exceeding projections. | 7.25% | 7.39% | ||||||
Net-Leased Portfolio 2 | Portfolio of seven long-term net-leased properties leased to Family Dollar (6) and Dollar General (1). Performing as projected. | 7.23% | 7.23% | ||||||
Net-Leased Portfolio 3 | Portfolio of nine long-term net-leased properties leased to Family Dollar (8) and Dollar General (1). Performing as projected. | 7.30% | 7.30% | ||||||
Net-Leased Portfolio 4 | Portfolio of eleven long-term net-leased properties leased to Family Dollar (8), Dollar General (1), Aaron's (1) and Advance Auto Parts (1). Performing as projected. | 8.02% | 8.02% | ||||||
Net-Leased Portfolio 5 | Portfolio of fourteen long-term net- leased properties leased to Family Dollar (5), Dollar General (4), Advance Auto Parts (2), AutoZone (1), Sherwin Williams (1) and The Christ Hospital (1). Performing as projected . | 7.50% | 7.50% | ||||||
Net-Leased Portfolio 6 | Portfolio of sixteen long-term net- leased properties leased to Family Dollar (3), Dollar General (8), Advance Auto Parts (1), AutoZone (1), CVS (1), Dollar Tree (1) and Tractor Supply (1). Performing as projected. | 7.51% | 7.51% | ||||||
Net-Leased Portfolio 7 | Portfolio of sixteen long-term net- leased properties leased to Family Dollar (4), Dollar General (8), Advance Auto Parts (1), CVS (1), Napa Auto Parts (1), and O'Reilly Auto Parts (1). Performing as projected. | 7.75% | 7.75% | ||||||
Net-Leased Portfolio 8 | Portfolio of thirteen long- term net- leased properties leased to Advance Auto Parts (3), AutoZone (2), CVS (1), Dollar General (2), Family Dollar (1), Franciscan Alliance (1), Ross Stores (1) and Tractor Supply (2). Performing as projected. | 7.32% | 7.32% | ||||||
Net-Leased Portfolio 9 | Portfolio of twenty-two long- term net- leased properties leased to Advance Auto Parts (4), AutoZone (4), CVS (1), Dollar General (9), Hobby Lobby (1), Napa Auto Parts (2) and TCF National Bank (1). Performing as projected. | 7.03% | 7.03% | ||||||
Net-Leased Portfolio 10 | Portfolio of twenty-two long-term net- leased properties leased to Advance Auto Parts (3), AutoZone (1), CVS (1), Dollar General (5), Dollar Tree (1), Family Dollar (4), Napa Auto Parts (2), O'Reilly Auto Parts (2), PNC Bank (1) and Tractor Supply (2). Performing as projected. | 7.03% | 7.03% | ||||||
Net-Leased Portfolio 11 | Portfolio of seventeen long-term net- lease properties leased to Advance Auto Parts (3), CVS (1), Dollar General (5), Family Dollar (2), Hobby Lobby (1), Napa Auto Parts (3), Sherwin- Williams (1) and Walgreens (1) |
6.75% | 6.75% | ||||||
Multifamily 1 - Van Mark Creek Apartments | One (1) apartment community consisting of 144 units. Performing as projected. | 7.05% | 7.05% | ||||||
Mira Bella and San Martin | One (1) apartment community consisting of 378 units. Performing as projected. | 6.51% | 6.51% |
*These returns were provided by and calculated by the Sponsor
**These investment opportunities are open-ended (i.e. Investors come into the fund at different times) resulting in a range of returns.
Over a period from January 14, 2016 through May 10, 2016, the Sponsor acquired the Properties with an average lease term in place of 12.6 years. The Sponsor then assigned all of the Properties to the Trust pursuant to the terms of the Trust Agreement. The Properties are now owned 100% by the Trust. In conjunction with the purchase of the Properties, ExchangeRight NLP 12 Master Lessee ("Master Lessee") became the lessor under the Tenants’ leases. The Trust is a passive owner of the Properties and will not be involved in any manner in the active management of the Properties. The Manager has been appointed to manage the Trust pursuant to the Trust Agreement.
The Trust expects to provide the Owners a return on their investment in two primary ways: (i) in the form of monthly cash distributions to the Owners; and (ii) upon any Disposition of the Properties. The Trust intends to dispose of all of the assets in the Portfolio in a single disposition of the Properties. This strategy is anticipated to provide investors with the opportunity to perform a 1031 exchange following the disposition.
Investors are being offered the opportunity to invest in a portfolio of nineteen (19) single-tenant, long-term net-leased retail assets (the "Portfolio", or the "Properties") that are currently 100% occupied. The Portfolio is composed of a diversified tenant base:
- 21% Grocery Retail (Kroger)
- 21% Pharmacy & Medical Care (Walgreens & Fresenius)
- 32% Discount Retailers (Dollar General & Family Dollar)
- 15% Auto Retailers (NAPA Auto Parts & Advance Auto Parts)
- 10% Farming & Outdoor Retail (Tractor Supply Co.)
ExchangeRight Net-Leased Portfolio 12 DST, a Delaware Statutory Trust ("DST"), owns the Portfolio, and ExchangeRight Real Estate, LLC ("Sponsor") is offering beneficial interests in the trust to investors. The Sponsor is retaining at least a 1.0% ownership interest in the Portfolio and is offering up to 99.0% of the beneficial interests in the DST to accredited investors ("Beneficial Owners"). The Trust expects to provide the Owners a return on their investment in two primary ways: (i) in the form of monthly cash distributions to the Beneficial Owners; and (ii) upon any Disposition of the Properties.
The total offering amount is $52,290,000, of which $27,440,000 is equity and $24,850,000 is long-term fixed-rate financing.
This offering is designed for two types of investors. "Existing 1031 Investors" who have already sold or are planning to sell an existing property that is 1031 eligible and want to invest in this offering to complete their 1031 exchange. As well as "Cash Investors" who are investing with funds that are not part of an existing 1031 exchange but want the option for future sales to be 1031 exchange eligible. Existing 1031 Investors may invest for a minimum of $100,000; Cash Investors may invest for a minimum of $25,000.
Tenant | Location | Credit Rating* | Size | Yr Built | Annual Rent | Lease Type | Lease Expiration |
Advance Auto Parts | Greenville, SC | BBB- | 6,803 | 2005 | $93,133 | NN | 12/31/2025 |
Advance Auto Parts | Steubenville, VA | BBB- | 6,887 | 2015 | $115,534 | NN | 7/31/2030 |
Advance Auto Parts | Heath, O | BBB- | 6,806 | 1997 | $67,175 | NN | 12/31/2025 |
Dollar General | Alorton, IL | BBB- | 9,297 | 2011 | $82,000 | NNN | 11/30/2026 |
Dollar General | Dupo, IL | BBB- | 9,230 | 2010 | $75,225 | NN | 3/31/2025 |
Dollar General | Denham Springs, LA | BBB- | 9,147 | 2015 | $101,440 | NNN | 6/30/2030 |
Dollar General | Hammond, LA | BBB- | 9.195 | 2013 | $97,651 | NN | 4/30/2028 |
Dollar General | Hickory, NC | BBB- | 9,054 | 2012 | $93,981 | NNN | 2/28/2027 |
Dollar General | Hickory, NC | BBB- | 8,963 | 2011 | $102,357 | NN | 9/30/2026 |
Dollar General | Gastonia, NC | BBB- | 9,169 | 2012 | $88,389 | NNN | 5/31/2027 |
Dollar General | Cincinnati, OH | BBB- | 9,233 | 2013 | $101,840 | NNN | 7/31/2028 |
Dollar General | Hamilton, OH | BBB- | 9,511 | 2013 | $115,464 | NNN | 12/31/2026 |
Family Dollar | Baton Rouge, LA | N/A | 9,327 | 2016 | $97,281 | NNN | 9/30/2030 |
Fresenius Medical Care | Nashville, TN | BBB- | 8,800 | 1966 | $268,752 | NN | 6/30/2030 |
Kroger** | Hamilton, OH | BBB | 95,390 | 2006 | $630,528 | NN | 12/31/2026 |
NAPA Auto Parts | Belvidere, IL | NAIC - Investment Grade 2 | 4,904 | 2010 | $86,997 | NNN | 2/2/2036 |
NAPA Auto Parts | Freeport, IL | NAIC - Investment Grade 2 | 4,938 | 2011 | $87,008 | NNN | 2/2/2036 |
Tractor Supply Co. | Woods Cross, UT | N/A | 22,505 | 2015 | $284,913 | NN | 10/31/2030 |
Walgreens | Fort Worth, TX | BBB | 14,438 | 2003 | $362,249 | NNN |
6/30/2028
|
*Credit Ratings are from S&P (Standard & Poor) and NAIC (National Association of Insurance Commissioners)
**While the DST technically owns 95,390 square feet, approximately 14,000 square feet of in-line shop space is ground leased to the original owner of the shopping center.
Headquartered in Roanoke, Va., Advance Auto Parts, Inc., the largest automotive aftermarket parts provider in North America, serves both the professional installer and do-it-yourself customers. Advance operates over 5,200 stores, over 100 Worldpac branches and serves approximately 1,300 independently owned Carquest branded stores in the United States, Puerto Rico, the U.S. Virgin Islands and Canada. Advance employs approximately 74,000 Team Members. Advance Auto Parts trades on the New York Stock Exchange under the AAP symbol.
Dollar General Corporation, incorporated on May 29, 1998, is a discount retailer in the United States. The Company offers a selection of merchandise, including consumables, seasonal, home products and apparel. Its merchandise includes national brands from manufacturers, as well as private brand selections with prices at discounts to national brands. It offers its merchandise at everyday low prices through its convenient small-box locations, with selling space averaging approximately 7,400 square feet. The Company sells national brands from manufacturers, such as Procter & Gamble, PepsiCo, Coca-Cola, Nestle, General Mills, Unilever, Kimberly Clark, Kellogg's and Nabisco, which are typically found at higher retail prices elsewhere. Additionally, its private brand consumables offer even greater value with options to purchase value items and national brand equivalent products at substantial discounts to the national brand. The Company operates approximately 11,879 stores located in 43 states located in the southern, southwestern, midwestern and eastern United States.
For more than 50 years, Family Dollar has been providing value and convenience to customers in easy-to-shop neighborhood locations. Family Dollar’s mix of name brands and quality, private brand merchandise, appeals to shoppers in more than 8,100 stores in rural and urban settings across 46 states.
Fresenius Medical Care (NYSE: FMS) provides dialysis and related products, inpatient/outpatient care products, and services such as engineering to hospitals and related facilities. Fresenius operates more than 2,100 dialysis centers in North America and has over 100,000 employees. These facilities routinely provide medically necessary renal care to hundreds of thousands of patients with chronic kidney failure, a condition that affects more than 2.1 million individuals globally.
Kroger was founded over 130 years ago. It is the largest supermarket chain in America by revenue. Its assets total over $30 billion. It is also the second largest general retailer and the 23rd largest company. It was ranked 24th on the Fortune 500 in 2014, during which its stock rose over 90%, making it the 10th best-performing stock on the list. It moved up to #20 on the Fortune 500 in 2015, #4 in the Food and Drug Store industry on the industry's list of the World’s Most Admired Companies, and #1 for Financial Soundness. As of December 2015, Kroger operates 2,600+ supermarkets and department stores, 2,120+ pharmacies, 1,350+ fuel centers, 780+ convenience stores, 320+ jewelry stores, and 35+ food processing or manufacturing facilities, which together serve over 8 million customers daily. Kroger employs over 400,000 individuals throughout 34 states. Kroger operates under 20+ local names, including City Market, Dillons, Food 4 Less, Fred Meyer, Fry's, Jay C, King Soopers, Pick 'n Save, QFC, Ralphs and Smith's. Kroger recently expanded its footprint by more than 150 stores through its $800 million acquisition of Roundy’s, adding the Wisconsin geography and over 30 Mariano's locations in Chicago.
In the U.S., NAPA includes over 60 distribution centers, 15,000 NAPA AutoCare Centers and more than 6,000 independently-owned and company-owned stores. NAPA carries an extensive inventory of more than 400,000 parts for automotive and industrial applications. A division of Genuine Parts Company (NYSE: GPC) and a global automotive aftermarket leader, NAPA operates NAPA Canada, Auto Todo in Mexico and Repco in Australia and New Zealand.
Tractor Supply Co. (NASDAQ: TSCO) is a leading chain of retail stores that each carry products related to home improvement, agriculture, truck maintenance, livestock, equine care, and household pet care. It employs over 17,000 individuals and operates over 1,200 stores across 47 states. Stores are strategically located in towns outlying major metropolitan areas and in rural communities. It was listed by Forbes among the 100 fastest growing businesses.
Walgreens is the largest drug retailing chain in the United States. As of February 29, 2016, the company operated 8,177 stores in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. It was founded in Chicago, Illinois, in 1901. The Walgreens headquarters office is in the Chicago suburb of Deerfield, Illinois. In 2014, the company agreed to purchase the remaining 55% of Switzerland-based Alliance Boots that it did not already own to form a global business. Under the terms of the purchase, the two companies merged to form a new holding company, Walgreens Boots Alliance Inc., on December 31, 2014. Walgreens became a subsidiary of the new company, which retains its Deerfield headquarters and trades on the Nasdaq under the symbol WBA (wiki)
Appraisals for all properties available upon request. Please email investor-help@realtymogul.com.
The Portfolio contains properties located in the following cities and states:
- Steubenville, OH
- Heath, OH
- Greenville, SC
- Hamilton, OH (2 properties)
- Alorton, IL
- Cincinnati, OH
- Dupo, IL
- Hammond, LA
- Gastonia, NC
- Denham Springs, LA
- Hickory, NC (2 properties)
- Baton Rouge, LA
- Nashville, TN
- Freeport, IL
- Belvidere, IL
- Wood Cross, UT
- Fort Worth, TX
Total Capitalization | ||
Debt | $24,850,000 | |
Equity | $27,440,000 | |
Total Sources of Funds | $52,290,000 | |
Purchase Price | $46,457,382 | |
Acquisition Fee | $308,788 | |
Broker-Dealer Fee and Marketing Allowance | $2,195,200 | |
Third Party Diligence | $237,500 | |
Syndication Costs | $95,000 | |
Closing Costs & Other Fees | $2,074,865 | |
Organizational & Offering Costs | $411,600 | |
Marketing, Distribution & Sponsorship Cost | $137,200 | |
Reserves | $372,465 | |
Total Uses of Funds | $52,290,000 |
The Portfolio has existing debt:
- Loan Origination Date: 5/10/2016
- Lender: Barclays Bank PLC
- Loan Proceeds: $24,850,000
- Loan to Cost:47.52%
- Interest Rate: Fixed (4.659%)
- Amortization: 10-year interest-only
- Recourse: Non-recourse to the Trust, but recourse to the Trust and principals of the Sponsor for certain (i) "bad acts," and (ii) environmental indemnification
- Term: 10 years
- Prepayment Penalty: Subject to Yield Maintenance fee if loan repaid before February 6, 2026
The Sponsor will make distributions directly to investors who own a beneficial interest in the DST on a pro-rata basis.
Distributions are projected to start for each investor within 60 days of the completion of that investors beneficial interest in the DST. Distributions are projected to continue on a monthly basis thereafter. These distributions are at the discretion of the Sponsor and made directly by the Sponsor, neither Realty Mogul Co. nor any of its affiliates have any control or discretion on the timing or amount of distributions.
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 | $308,788 | Sponsor | Capitalized Equity Contribution | 1.13% of the offering amount. |
Broker-Dealer Fee | 7.0% | Broker Dealers | Capitalized Equity Contribution | Paid to North Capital(1) or other licensed broker-dealers based on the amount of equity capital raised. Surplus fees retained by Sponsor. |
Marketing & Due Diligence Fee | 1.0% | Broker Dealers | Capitalized Equity Contribution | 1.0% based on the amount of equity invested by investors through RealtyMogul.com, third-party Broker Dealers (including North Capital(1)) are entitled to additional fees based on equity they originate. Surplus fees retained by Sponsor. |
Syndication Costs | $95,000 | Sponsor or Third Parties | Capitalized Equity Contribution | |
Organizational & Offering Costs | $411,600 | Sponsor | Capitalized Equity Contribution | 1.5% of maximum offering amount. |
Recurring Fees: | ||||
Asset Management Fee | 0.85% - 2% of gross rental income | Manager | Operating Cash Flow | Asset Management Fee starts at 1% of Gross Rental Income in Year 1 and vary from 0.85 in Year 5 up to 2% by Year 10. Average across a 10 year hold is 1.28%. |
Master Lease Operating Profit | N/A | Master Lessee | Operating Cash Flow | Master Lessee will retain operating revenues from the Properties that exceed the annual base rent. |
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.
The above presentation is based upon information supplied by the Sponsor or others. Realty Mogul, Co. along with its 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.