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.
Favorable financing due to the Sponsor Principal’s Personal Guarantee, resulting in a fixed rate loan that achieves a projected IRR of 160 basis points higher than non-recourse debt available in today’s market.
Bay Island's location, size, design, and upgrade enhancements all combine to present an outstanding value-add opportunity projected to achieve $160 rent increases on post renovated units.
Outstanding suburban Dallas location within the Dallas Fort Worth Metroplex, one of the fastest-growing SMSA's in the nation in population and employment growth. Immediate surrounding area median HH Incomes exceed $98,000.
ParaWest Group
ParaWest Group (PWG)(1) brings together the collective experience of Curtis Haines, Michael Salkeld, Delane Salkeld, and CRSC Residential, Inc. through its President and CEO, Bryan Krizek. These principals bring to the table decades of experience in multi-family investments and operations both individually and collectively resulting in in-depth knowledge and experience that is unsurpassed in the industry. PWG focuses solely on multi-family properties in select markets. As an investment arm of these principals, PWG is an investment platform that includes ParaWest Management(2), thus creating a fully integrated platform for multi-family investments. This platform extends from sourcing and acquisitions to financing and equity structuring, renovation and operations, and ultimately disposition. ParaWest Group, through its principals, has created a strategic advantage in sourcing, underwriting, and closing opportunistic value-add multi-family properties and since its inception in 2012, has participated in the acquisition and investment in twenty-three properties totaling more than 4,000 units.
As a repeat Sponsor on the RealtyMogul Platform, Bay Island at Lake Ray Hubbard will be ParaWest Group’s fifth transaction with Realty Mogul. The first two deals have now gone full cycle (i.e. through sale) with the first having closed in June 2022, and generated an IRR to Investors of 27%, and the second, currently in escrow and scheduled to close during the third quarter, generating a projected Investor IRR of 24%. Both deals had proforma returns of 15.9% each.
Notes:
1) ParaWest Group, LLC is a pass-through entity and its principals invest as individuals in single ownership entities on each transaction.
2) ParaWest Management has been in business since 2003 and is solely owned by Michael and Delane Salkeld.
-
Michael SalkeldCo-Founder / Managing Partner -
Delane SalkeldCo-Founder / Partner -
Curtis HainesPartner -
CRSC Residential, Inc.Principal
Prior to cofounding ParaWest in 2003, Mr. Salkeld served as Regional Vice President of Pinnacle Realty Management's Arizona Office between 1990 and 2001, where he developed and supervised a fee management portfolio of more than 6,000 units in Arizona, Nevada, California, and New Mexico. Before that (1982-1989) he served as Executive V.P. of Property Management and Development for Urban Investment Corporation.
Prior to serving as principal for ParaWest, Mrs. Salkeld served as Senior Investment Manager for Pinnacle Realty Management, Inc. (1990-2000). Mrs. Salkeld is certified as a Licensed Real Estate Broker in AZ, and as a Property Manager (CPM). She is also a member of the Arizona Multi-Housing Associate Board of Directors.
As of January 2021, Mr. Haines is invested in more than 100 multifamily properties as Key Principal with an aggregate value of more than $1.9 billion. Prior to engaging in multifamily investing, Mr. Haines founded, developed, and sold one of Houston's largest Permanent Placement Firms designated by Inc. Magazine as one of the "Fastest-Growing Private Companies in the U.S." before moving into Apartment Investment and applying the same diligence, fortitude, and insightfulness that has made him one of Houston's most prodigious apartment owner-operators.
CRSC Residential, Inc. as an affiliate of CRS, Inc. owns and operates multi-family properties in Virginia, Kansas, and Arizona, and has investment interests in properties in Texas. Total wholly-owned properties together with Investments in Property Operating interests exceed $100 million.
ParaWest Group's Track Record
| ParaWest Group Principals - Managing Members - Current SREO | ||||||||||
| Property | Units | Location | Built | Value | Value/Unit | Debt | Total Equity | Lender | Date Acquired | MMR2 |
| Idlewood Park1 | 268 | Houston, Texas | 1984 | $24,460,000 | $91,269 | $16,710,000 | $7,750,000 | Berkeley Point Capital (FNMA) | Nov-13 | MS |
| Fountain Park | 176 | Stafford, Texas | 1969 | $14,960,000 | $85,000 | $7,100,000 | $7,860,000 | Berkeley Point Capital (FNMA) | Oct-13 | CH |
| Plantation at Quail Valley | 124 | Missouri City, Texas | 2004 | $16,415,886 | $132,386 | $8,118,612 | $8,297,274 | Keybank | Nov-13 | CH |
| Springfield | 100 | Missouri City, Texas | 1977 | $8,846,615 | $88,466 | $2,553,573 | $6,293,042 | Arbor (FNMA) | Sep-14 | CH |
| Briar Court | 201 | Houston, Texas | 1973 | $28,200,000 | $140,299 | $15,200,000 | $13,000,000 | MF1 | Jun-19 | MS |
| Lexington at Champions | 89 | Houston, Texas | 2003 | $13,500,000 | $151,685 | $10,878,750 | $2,621,250 | Arbor | Sep-21 | MS |
| Total/Avg | 958 | $106,382,501 | $689,105 | $60,560,935 | $45,821,566 | |||||
| ParaWest Group Principals - Managing Members - Exited Deals | ||||||||||
| Property | Units | Location | Built | Sales Price | Price/Unit | Date Sold | Date Acquired | MMR2 | ||
| Mirabella Galleria | 160 | Houston, Texas | 1965 | $14,700,000 | $91,875 | Aug-18 | Jun-12 | CH | ||
| Beverly Palms | 362 | Houston, Texas | 1968 | $31,338,000 | $86,569 | May-18 | Aug-12 | MS | ||
| Stoney Brook | 113 | Houston, Texas | 1966 | $11,550,000 | $102,212 | Apr-18 | Jan-10 | CH | ||
| Legacy at Westchase | 324 | Houston, Texas | 1977 | $25,000,000 | $77,160 | Aug-17 | Jun-14 | MS | ||
| Idlewood Park1 | 268 | Houston, Texas | 1981 | $22,258,000 | $83,052 | Jun-17 | Oct-13 | MS | ||
| Jacinto Palms | 128 | Houston, Texas | 1972 | $6,765,000 | $52,852 | Jan-16 | Jun-14 | CH | ||
| Barcelona | 118 | Houston, Texas | 1963 | $6,500,000 | $55,085 | Dec-13 | Jul-09 | CH | ||
| Carrington Court | 111 | Houston, Texas | 1963 | $11,000,000 | $99,099 | Apr-19 | Mar-11 | CH | ||
| Watermill | 192 | Houston, Texas | 1970 | $17,477,000 | $91,026 | Apr-19 | Aug-11 | CH | ||
| Quail Valley | 176 | Missouri City, Texas | 1978 | $16,192,000 | $92,000 | Aug-19 | Sep-14 | CH | ||
| Colonade | 192 | Grand Prairie, Texas | 2001 | $22,000,000 | $114,583 | Dec-18 | Oct-15 | Other | ||
| Somerset | 264 | Fort Worth, Texas | 1985 | $24,245,000 | $91,837 | Jan-22 | Oct-16 | Other | ||
| Stratton Park | 264 | Fort Worth, Texas | 1985 | $24,245,000 | $91,837 | Jan-22 | Oct-16 | Other | ||
| Valencia | 263 | Fort Worth, Texas | 263 | $22,345,000 | $84,962 | Jan-22 | Jul-17 | Other | ||
| Corners | 242 | Dallas, Texas | 242 | $21,250,000 | $87,810 | Jan-22 | Nov-17 | Other | ||
| Landmark at Laurel Heights | 286 | Mesquite, Texas | 286 | $37,915,000 | $132,570 | Jan-22 | Dec-17 | Other | ||
| Briarstone2 | 97 | Rosenberg, Texas | 1997 | $12,500,000 | $128,866 | Mar-21 | Oct-18 | MS | ||
| Tiffany Square | 84 | Houston, Texas | 1971 | $7,896,000 | $94,000 | Feb-22 | Dec-12 | CH | ||
| Residences 2727 | 171 | Houston, Texas | 1995 | $23,350,000 | $136,550 | May-21 | Oct-17 | CH | ||
| Palms on Westheimer | 798 | Houston, Texas | 1974 | $70,224,000 | $88,000 | Dec-21 | Jul-15 | CH | ||
| Montclair Estates | 113 | Garland, Texas | 1983 | $17,050,000 | $150,885 | June-22 | Oct-19 | MS | ||
| Total/Avg | 4,726 | $445,800,000 | $244,982 | |||||||
| ParaWest Group Principals - Co-Managing Member Investors - Current SREO | ||||||||||
| Property | Units | Location | Built | Value | Value/Unit | Debt | Total Equity | Lender | Date Acquired | MMR2 |
| Park on Spring Creek | 278 | Plano, Texas | 1983 | $45,935,467 | $ 165,235 | $ 32,500,000 | $13,435,467 | NXT Capital | Dec-17 | Other |
| Total/Avg | 278 | $45,935,467 | $ 165,235 | $ 32,500,000 | $13,435,467 | |||||
| ParaWest Group Principals - Investors - Current SREO3 | ||||||||||
| Property | Units | Location | Built | Value | Value/Unit | Debt | Total Equity | Lender | Date Acquired | MMR2 |
| Forest Oaks | 164 | Arlington, Texas | 1980 | $24,600,000 | $150,000 | $8,925,000 | $15,675,000 | Berkadia (Freddie Mac) | Aug-16 | Other |
| Braesridge | 542 | Houston, Texas | 1982 | $70,460,000 | $130,000 | $23,280,000 | $47,180,000 | Freddie Mac | Jun-15 | Other |
| Summer Cove | 376 | Houston, Texas | 1983 | $43,240,000 | $115,000 | $18,160,000 | $25,080,000 | Holliday Fenoglio Fowler | Sep-15 | Other |
| Highland Bluffs | 357 | Dallas, Texas | 1984 | $30,345,000 | $85,000 | $7,631,000 | $22,714,000 | FNMA | Dec-14 | Other |
| Total/Avg | 1,439 | $168,645,000 | $120,000 | $57,996,000 | $110,649,000 | |||||
Notes
1) Idlewood Park was restructured in 2021.
2)"MMR" denotes Managing Member. CH - Curtis Haines; MS - Michael Salkeld; Other - Non ParaWest Group Managing Member.
3) Individual Principals SREO's (attached) may include properties invested in separately from ParaWest Group.
4) Values are derived from estimated market-based capitalization rates applied to net operating income. Actual values as determined by any future appraisal or sale may vary.
The bio and track record reflect those of ParaWest Group Principals, and were provided by the Sponsor and have not been verified by RealtyMogul
Improving on existing features and amenities, the Sponsor’s value-add improvements will include further upgrades to the swimming pool area, office/clubhouse, and garden areas as well as introducing interior features such as a hi-tech “Smart Home Package” including learning thermostats, wifi door lock hardware, wifi light switches, and home hub, in addition to upgraded six-panel doors, resurfaced cabinet fronts, and two-tone paint throughout.
Emphasizing the Lakeshore Lifestyle, the property will offer recreational lake toys for checkout by residents including paddle boards and kayaks as well as lakeshore picnic accessories such as portable shade canopies, cornhole, lawn bowling and giant pong games, all for checkout and use by residents of Bay Island. Additionally, Bay Island at Lake Ray Hubbard community activities will include Lakefront bbq’s, volleyball and other events focused on Lakeside Living!
These combined value-add components will result in placing Bay Island at Lake Ray Hubbard in a superior competitive position in its submarket. Our investment strategy is to take advantage of this positioning by achieving significant rent increases (averaging $150 over current rates while still pricing at a tier under the top of the market to secure the highest levels of occupancy and stability.
Investors will further benefit from the negotiated financing we have obtained due to Sponsor Principal Personal Guarantee, resulting in a fixed rate loan that achieves a projected IRR of 160 Basis Points higher than non-recourse debt available in today’s market. Fixed-rate financing will reduce risk as interest rates rise in the near term, and provides a higher overall return to investors than would be achievable with variable-rate bridge financing utilized on most value-add transactions in today’s market.
CapEx Breakdown
| $ Amount before CM Fee | CM Fee (5%) | Total | Per Unit | |
| Interior Renovations | ||||
| Interior Fixtures | $50,000 | $2,500 | $52,500 | $438 |
| In-house Renovation Labor | $40,000 | $2,000 | $42,000 | $350 |
| Black-on-black Appliances | $104,000 | $5,200 | $109,200 | $910 |
| Flooring | $112,000 | $5,600 | $117,600 | $980 |
| Two-Tone Paint | $60,000 | $3,000 | $63,000 | $525 |
| Smart Package | $77,543 | $3,877 | $81,420 | $679 |
| Interior Doors 6 Panel | $69,600 | $3,480 | $73,080 | $609 |
| Cabinet Resurface | $72,000 | $3,600 | $75,600 | $630 |
| Total Interior Renovation Costs | $585,143 | $29,257 | $614,400 | $5,120 |
| Exterior Renovations | ||||
| Exterior Carpentry/Stucco | $90,000 | $4,500 | $94,500 | $788 |
| Gutter/Downspout Repairs | $12,000 | $600 | $12,600 | $105 |
| Exterior Paint | $90,000 | $4,500 | $94,500 | $788 |
| Drivelane/Trip Hazards | $30,000 | $1,500 | $31,500 | $263 |
| Amenity Enhancement | $50,000 | $2,500 | $52,500 | $438 |
| Total Exterior Renovation Costs | $272,000 | $13,600 | $285,600 | $2,380 |
| Contingency (11%) | $95,238 | $4,762 | $100,000 | $833 |
| Grand Total | $952,381 | $47,619 | $1,000,000 | $8,333 |
Rare value-add opportunity located steps away from Lake Ray Hubbard in one of the hottest markets in the country.
| Unit Type | # of Units | Avg SF/Unit | Avg Rent (In-Place) | Avg Rent (Post-Reno) | Avg Rent Per SF (In-Place) | Avg Rent Per SF (Post-Reno) |
| Studio | 8 | 564 | $835 | $940 | $1.48 | $1.67 |
| A1 (1x1) | 32 | 660 | $940 | $1,150 | $1.42 | $1.74 |
| B1 TH (1x1.5) | 8 | 870 | $1,114 | $1,275 | $1.28 | $1.47 |
| A2 (2x1) | 21 | 910 | $1,025 | $1,375 | $1.13 | $1.51 |
| B2 (2x2) | 8 | 922 | $1,203 | $1,425 | $1.31 | $1.55 |
| B4 TH (2x2) | 14 | 1,084 | $1,346 | $1,560 | $1.24 | $1.44 |
| B3 TH (2x1.5) | 21 | 1,004 | $1,263 | $1,485 | $1.26 | $1.48 |
| C1 (3x2) | 8 | 1,184 | $1,494 | $1,950 | $1.26 | $1.65 |
| Total/Averages | 120 | 873 SF | $1,118 | $1,362 | $1.28/SF | $1.55/SF |
Lease Comparables
| Hubbard's Ridge | Boulders Apartments | Newport Apartments | Averages | Subject (Post-Reno) | |
| Year Built | 1983 | 1984 | 1983 | 1983 | 1972 |
| Class | C | B | B | C | |
| # of Units | 196 | 348 | 152 | 232 | 120 |
| Average Unit Size | 783 SF | 771 SF | 754 SF | 769 SF | 873 SF |
| Levels | 3 | 3 | 2 | 3 | 2 |
| Occupancy | 97.5% | 93.0% | 100.0% | 96.8% | 97.0% |
| Distance from subject | 0.6 mi | 4.9 mi | 6.4 mi | 3.9 mi | |
| $/Unit (Studio) | - | $1,161 | - | $1,161 | $940 |
| SF (Studio) | - | 507 SF | - | 507 SF | 564 SF |
| $/SF (Studio) | - | $2.29/SF | - | $2.29/SF | $1.67/SF |
| $/Unit (1x1) | $1,208 | $1,177 | $1,193 | $1,193 | $1,150 |
| SF (1x1) | 657 SF | 663 SF | 694 SF | 671 SF | 660 SF |
| $/SF (1x1) | $1.84/SF | $1.77/SF | $1.72/SF | $1.78/SF | $1.74/SF |
| $/Unit (2x1) | - | $1,385 | $1,338 | $1,362 | $1,375 |
| SF (2x1) | - | 827 SF | 921 SF | 874 SF | 910 SF |
| $/SF (2x1) | - | $1.67/SF | $1.45/SF | $1.56/SF | $1.51/SF |
| $/Unit (2x2) | $1,916 | $1,495 | - | $1,705 | $1,511 |
| SF (2x2) | 1,145 SF | 888 SF | - | 1,017 SF | 1,025 SF |
| $/SF (2x2) | $1.67/SF | $1.68/SF | - | $1.68/SF | $1.47/SF |
| $/Unit (3x2) | - | $2,204 | - | $2,204 | $1,950 |
| SF (3x2) | - | 1,024 SF | - | 1,024 SF | 1,184 SF |
| $/SF (3x2) | - | $2.15/SF | - | $2.15/SF | $1.65/SF |
Sales Comparables
| Boulders Apartments | Saddletree Apartments | Gateway Place | Nova Park | Averages | Subject (Going-in) | |
| Date Sold | Feb-22 | Sep-21 | Feb-22 | Nov-21 | ||
| Year Built | 1984 | 1983 | 1983 | 1983 | 1983 | 1972 |
| # of Units | 348 | 224 | 142 | 198 | 228 | 120 |
| Average Unit Size | 771 SF | 812 SF | 857 SF | 888 SF | 832 SF | 873 SF |
| Sale Price | $54,805,000 | $34,800,000 | $22,195,000 | $33,000,000 | $36,200,000 | $19,750,000 |
| $/Unit | $157,486 | $155,357 | $156,303 | $166,667 | $158,953 | $164,583 |
| $/SF | $204/SF | $191/SF | $182/SF | $188/SF | $191/SF | $188/SF |
| Distance from subject | 4.9 mi | 5.1 mi | 5.5 mi | 14.4 mi | 7.5 mi |
Market Overview
Located within the Dallas Fort Worth Metroplex (DFW), one of the most desirable and fastest-growing metro areas in the nation with a population exceeding 7.5 million residents and projected to exceed 10 million residents by 2030. DFW ranked third in employment growth over the past year, having added 650,000 jobs over the past 5 years, and is home to over 1,500 corporate headquarters including 25 Fortune 500 companies.
Submarket Overview
Located just 19 miles northeast of Downtown Dallas, Garland is one of the state’s most populous and inviting cities. It has a suburban feel, strong employment base with more than 300 manufacturing companies, a highly rated school system, and recreational and entertainment opportunities galore.
Residents of Bay Island at Lake Ray Hubbard benefit from close and direct access to major freeways as well as numerous economic and employment drivers which include Texas Instruments’ headquarters, The “Telecom Corridor”, Park Central Business Park, Town East Mall, and Downtown Dallas.
Lake Ray Hubbard, bordering Garland to the southeast, has been described by one Dallas Real Estate Professional as "so gorgeous it’s absurd!" As one of the largest lakes in north Texas at 22,000 acres, the lake is known for its abundant parks, beaches, and recreational opportunities including windsurfing, skiing, kayaking, boating, fishing and just plain relaxing on or by its tranquil waters. As testimony to Lake Ray Hubbard’s appeal and real estate value, two new, multi-use developments, Bayside (with residences under construction) and the billion-dollar Saphire Bay, anchored by a Hyatt Hotel, are currently underway on its western shores.
Total Capitalization
| Sources of Funds | $ Amount | $/Unit |
| Debt | $14,340,000 | $119,500 |
| GP Investor Equity(1) | $804,968 | $6,708 |
| LP Investor Equity | $6,500,000 | $54,167 |
| Total Sources of Funds | $21,644,968 | $180,375 |
| Uses of Funds | $ Amount | $/Unit |
| Purchase Price | $19,750,000 | $164,583 |
| Acquisition Fee | $296,250 | $2,469 |
| Loan Fee | $71,700 | $598 |
| Closing Costs | $427,018 | $3,558 |
| CapEx | $1,000,000 | $8,333 |
| Working Capital | $100,000 | $833 |
| Total Uses of Funds | $21,644,968 | $180,375 |
(1) The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.
The expected terms of the debt financing are as follows:
- Lender: MidFirst Bank
- Term: 5 Years
- Loan-to-Cost: 66.3%
- Estimated Proceeds: $14,340,000
- Interest Type: Fixed
- Annual Interest Rate: 5.95%
- Interest-Only Period: 24 Months
- Amortization: 25 Years
- Prepayment Terms: Clear after 3 years
- Extension Requirements: N/A
(2) A substantial portion of the total acquisition for the Property will be paid with borrowed funds, i.e., debt. Please carefully review the Disclaimers section below for additional information concerning the Sponsors use of debt.
ParaWest Group intends to make distributions as follows:
- To the Investors, pari passu, all operating cash flows to a 10.0% IRR;
- 70% / 30% (70% to Investors / 30% to Promoted/Carried Interest) of excess cash flow to a 14.0% IRR;
- 50% / 50% (50% to Investors / 50% to Promote/Carried Interest) of excess cash flow thereafter.
ParaWest Group 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 February 2023 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of ParaWest Group, who may decide to delay distributions for any reason, including maintenance or capital reserves.
ParaWest Group will receive a promoted/carried interest as indicated above.
| Cash Flow Summary | ||||||
| Year 1 | Year 2 | Year 3 | ||||
| Effective Gross Revenue | $2,091,066 | $2,316,027 | $2,496,320 | |||
| Total Operating Expenses | $925,957 | $1,009,147 | $1,103,793 | |||
| Net Operating Income | $1,165,109 | $1,306,880 | $1,392,527 | |||
| Project-Level Cash Flows | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | |||
| Net Cash Flow | ($7,304,968) | $290,968 | $430,489 | $13,560,002 | ||
| Investor-Level Cash Flows(3) | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | |||
| Net Cash Flow | ($6,500,000) | $193,905 | $318,052 | $10,595,019 | ||
| Investor-Level Cash Flows - Hypothetical $50,000 Investment(3) | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | |||
| Net Cash Flow | ($50,000) | $1,492 | $2,447 | $81,500 | ||
(3) RM Technologies, LLC and its affiliates do not provide any assurance of returns. Returns presented are net of all fees. Please carefully review the Fees and Disclaimers sections below for additional information concerning Sponsor’s use or projected returns and fees paid to Sponsor and RM Technologies, LLC.
Certain fees and compensation will be paid over the life of the transaction; please refer to ParaWest Group's materials for details. The following fees and compensation will be paid(4)(5):
| One-Time Fees: | |||
| Type of Fee | Amount of Fee | Received By | Paid From |
| Acquisition Fee | 1.5% of purchase price | ParaWest Group | Equity at Closing |
| Technology Solution Licensing Fee(5) | Flat one-time licensing fees of $15,000 plus $1,500 per each prospective investor onboarded by Sponsor through its license and use of RM Technologies’ Technology Solution | RM Technologies, LLC |
Capitalization (at Sponsor’s discretion) |
| Recurring Fees: | |||
| Type of Fee | Amount of Fee | Received By | Paid From |
| Property Management Fee | 3.5% of effective gross income | ParaWest Group | Cash Flow |
| Asset Management Fee | 1.0% of effective gross income | ParaWest Group | Cash Flow |
| Construction Management Fee | 5.0% of hard costs | ParaWest Group | Cash Flow |
| Administration Solution Licensing Fee(5) | Flat quarterly licensing fee of $125 per investor serviced by Sponsor through the license and use of RM Technologies’ Administration Solution | RM Technologies, LLC | Cash Flow |
(4) Fees may be deferred to reduce impact to investor distributions.
(5) Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC.
.
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.