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Funded
Mobile Home Park
Mobile Home Park Fund VII
Multiple Locations
INVESTMENT STRATEGY
INVESTMENT TYPE
Equity
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100% funded
Offered By MHCA Management
18.0%* TARGET IRR 18.0%-%
7.9%* TARGET AVG CASH ON CASH
* TARGET EQUITY MULTIPLE
Estimated Hold Period Up to 10 Years
Estimated First Distribution 12/2016
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
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Project Summary
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Explore this Project
Overview
Mobile Home Park fund run by an experienced fund manager. Geographic Diversification with 18 properties under contract spread across eight states.
Property At A Glance
Number of Parks (Currently Under Contract) 18
Number of Spaces (Currently Under Contract) 1,956
Occupancy (Currently Under Contract) 93.6%
Investment Highlights
In Place Cash Flow with Upside Potential
Geographic Diversification
Experienced Fund Manager
Management
Cumulative Distributions

MHCA Management

The members of MHCA Management​ (the "Fund Manager") have over 75 years of combined experience. They (and their affiliated companies) are estimated to own or control fifth largest number of mobile home lots in the country, with 199 MHCs and over 20,000 lots under management in 26 states (1). 

They have long-established relationships with key market participants such as MHC lenders, insurance companies, real estate agents and brokers, and have steady deal flow from various sources. Their experience in the ownership, control, and operation of MHCs helps them quickly assess investments, determine risks, evaluate possible turn-around plans, and analyze future growth potential. They also act as educators and consultants, having authored books and written articles on MHCs, as well as conducted educational workshops and seminars.

The Fund Manager is backed by an extended team from an affiliate company, RV Horizons, Inc. (“RVH”): Dave Reynolds is the owner and CEO of the 600+ employee company that provides property management services for various affiliated funds and partnerships. The Fund Manager works with RVH to enact turn-around plans and perform the day-to-day operation of the properties acquired by the fund. RVH is headquartered in Cedaredge Colorado, but also has employees in Montrose, Colorado, Littleton, Colorado and Niles, Michigan (along with on-site managers and field supervisors across the country). The team at RVH includes, but is not limited to, corporate office staff, acquisitions team, training team, on-site management, district management, regional managers and rehab crews who work with on-site managers.

RVH Corporate Office Team

The corporate office for RVH is headed by Chief Operating Officers Wes Hays and Todd Burget, as well as Chief Financial Officer Brad Rymer. Wes has experience in large portfolio management, including both manufactured home communities and apartment properties, while Todd has knowledge and experience in all facets of manufactured home community operations. Brad is a results driven executive that has comprehensive experience in financial forecasting, development and management of multi-family specific operating systems, and investment banking, including Wall Street. Brad brings a quantitative and analytical ability to the Executive team. Human Resources is managed by Vice-President Renee Poutre, who has ten plus years of experience in managing HR, payroll and company benefit offerings for real estate, consultant and property management firms. There are five full-time Park Relations Coordinators and Deposit Coordinators who work directly with the managers in the field to oversee data entry, tenant paperwork, leases and licenses for each property. In addition, there is a dedicated sales team including Regional Sales Managers that oversee and drive occupancy goals and home sales. Rounding out the Corporate team are a title department, legal department, and an accounting department of twelve that includes accounts payable and billing departments that are focused on ensuring all payments are reconciled, approved, and paid on time.

RVH On-Site Management Team

Each manufactured home community has an on-site property manager and, in larger properties, maintenance personnel. The on-site manager is responsible for collecting and depositing rent, property maintenance, showing available lots and homes to prospective residents, enforcing rules and regulations of the community, handling resident problems and questions, and all other facets required to operate the property.

RVH District Management Team

RVH currently has seventeen full-time district managers who oversee approximately ten to fifteen property managers each. They are responsible for ensuring that all properties run properly and for communications between the corporate office and on-site property managers. In addition, they typically make bi-monthly visits (or more if necessary) to each property in their portfolio to check on the property condition and its management. The district managers are also in charge of overseeing the renovation of homes and community capital expenditures.

RVH Regional Management Team

RVH currently employs four regional managers. Each regional manager oversees approximately five district managers. Regional managers are personally responsible for the performance of all of the properties and employees under their control. All regional managers have property management experience, specifically in management of multi-community portfolios, and are experienced at creating an atmosphere to motivate employees to meet or exceed their goals.​

RVH Acquisition Management Team

When a property is first acquired, there are certain steps required to bring it up to a reasonable standard, as well as enact collections and rules enforcement systems. In some cases, this can require complicated and expensive capital improvements. The Acquisition Management Team is focused on enacting the company’s protocol as smoothly and quickly as possible, as well as completing capital improvements on time and on budget.

RVH Training Team

Due to the size and continued growth of the enterprise, there is a constant need for hiring and training new employees. The Training Team is responsible for coaching and teaching each employee the company’s basic systems and corporate culture, empowering them with the skills necessary to succeed. The Training Team also works to ensure each community's work space is safe and supportive, implementing educational theories and methods to design, develop and implement specialized training for RVH’s diverse workforce. Proper training is the building block for each team member to accomplish their respective objectives.

RVH Rehab Team

At any given time RVH oversee the rehabilitation of as many as 100 manufactured homes. As such, RVH typically employ’s as many as ten full-time rehabbers plus at least five independent full-time contractors who travel from property to property and may stay from two weeks to three months at a time. Additionally, they renovate common area structures, such as office buildings, apartments and single-family homes, as well as verse the demolition of manufactured homes that are in a condition too costly to be saved.

(1) Per MobileHomeUniversity.com

  • Dave Reynolds
  • Frank Rolfe
  • Ryan Smith
  • Jamie Smith
  • Eric Siragusa
Dave Reynolds

Mr. Reynolds has specialized in the acquisition of MHCs and RV Parks for over 20 years, and has managed companies that have owned and operated numerous MHCs. He currently co-manages multiple MHC investment funds across the U.S. Mr. Reynolds is the owner and CEO of RV Horizons, Inc., which provides property management and accounting services for MHCs. He is a licensed Colorado real estate broker and has been involved in additional MHC transactions in that capacity. He has authored four books on the subject of investing in MHC’s and has developed several websites dedicated to the MHC industry, including MobileHomeParkStore.com. Mr. Reynolds has a B.S. in Accounting from Mesa State College, and has completed additional graduate courses in accounting and taxation at Colorado State University.

Frank Rolfe

Frank Rolfe has been active in all facets of the MHC business for over two decades, where he has managed companies that have owned and operated MHCs across the U.S. He currently co-manages multiple investment funds, which specialize in investing in MHCs. Mr. Rolfe has performed due diligence on hundreds of MHCs, and is an author and speaker at MHC related events. Since June 2008, Frank has conducted MHC boot camps. Prior to his MHC business, he was the largest private owner of billboards in Dallas/Ft. Worth.

Ryan Smith

Ryan Smith brings with him more than fifteen years of business experience in market evaluation, property analysis, management systems, due diligence and investor relations. Mr. Smith is the co-manager of multiple investment funds, which specialize in investing in MHCs. Mr. Smith graduated from the University of Tampa with a Bachelor’s of Science in Computer Science. An athlete, he was highly recruited for both baseball and basketball and was drafted as a senior in high school by the Baltimore Orioles, and again in college by the Anaheim Angels. Mr. Smith pursued his athletic talents by playing baseball throughout his college experience. His foresight and ability to communicate the state of the marketplace has allowed him to be a featured commentator alongside the likes of Mayor Rudy Giuliani, General Colin Powell and other notable individuals. He is currently on the board of Young Life College – UCF and is a member of the Advisory Board for the National Christian Foundation’s Orlando chapter. Mr. Smith lives in Orlando with his wife and two children.

Jamie Smith

Jamie Smith is a real estate investor with over 12 years of experience investing in MHCs, single family residential and storage units. Mrs. Smith is the co-manager of multiple investment funds, which specialize in investing in MHCs. Mrs. Smith has experience overseeing the management of various types of real estate properties, focusing on investor relations, capital raising, and acquisitions. Mrs. Smith has managed a rent collection company, and is the manager of the Ryan and Jamie Smith Foundation. She authored a book on investing in MHCs and has spoken at numerous conferences on the topic. Mrs. Smith graduated from the University of Central Florida with a double major in Business and Psychology. She lives in Orlando with her husband and her two children.

Eric Siragusa

Mr. Siragusa currently co-manages multiple funds, which specialize in investing in MHCs across the U.S. Mr. Siragusa has been involved in investor relations, capital raising, and acquisitions including due diligence and underwriting of MHC’s. He holds a Ph.D. in Electrical Engineering from the University of California at San Diego and has received multiple patents. Since 2008, he has served as President of the non-profit North San Diego Real Estate Investors Association, Inc. (NSDREI), a San Diego-based real estate education and networking organization. Mr. Siragusa also serves as an educator, mentor and consultant to other real estate Investors and professionals. He is blessed with a wonderful wife and two daughters.

Track Record

Performance of Prior Funds (as of 3/31/2016) *

The members of the Fund Manager (and their affiliated companies) have been active in mobile home park investing for approximately two decades. Since 2010, they have raised more than $150 million from private investors for 15 funds. However, as with any investment, past performance is no guarantee of future results.

  MHPI I MHPS Alumni MHPS Alumni 2 MHPI II MHPS Alumni 3 AHCF 1 AHCF 2 AHCF 3 MHPI III AHCF 4 MHPI IV AHCF 5 MHPI V ** AWA Fund AHCF 6 **
Date Fully Subscribed Feb-10 May-10 Oct-10 Nov-10 Jun-11 Feb-12 Oct-12 Jul-13 Feb-14 Jul-14 Nov-14 May-15 Aug-15 Dec-15 May-16
Capital Raised $2M $2M $2M $5M $3M $5M $10M $10M $10M $20M $15M $25M $16.71M $29.36M $50M
Capital Returned $500k $450k $0 $750k $300k $0 $1.5M $0 $0 $0 $0 $0   $0  
Unreturned Capital $1.51M $1.55M $2.02M $4.2M $2.7M $5M $8.5M $10M $10M $20M $15M $25M   $5M  
Current MHCs Owned Fully 3 3 2 4 2 5 3 5 1 21 9 10   1  
Current MHCs Owned Partially 1 1 2 11 6 10 15 9 18 22 10 25   46  
MHC Lots (Ownership % Adjusted) 397 372 492 508 502 780 1,192 1,109 1,010 2,690 1,365 2,783   2,552  
Occupancy % 84% 88% 85% 79% 78% 84% 89% 84% 76% 76% 81% 79%   80%  

* This information has been provided by the Fund Manager and has not been verified by Realty Mogul or North Capital Private Securities. As with any investment, past performance is no guarantee of future results.
** Operating less than a year and still in the acquisition phase.​
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Business Plan

In this transaction, RealtyMogul.com investors will invest in Realty Mogul 49, LLC (the "Company"). The Company will invest in MHC America Fund, LLC (the "Fund"). The Fund will be a "semi-blind" fund as prospective members of the Fund can see the Manufactured Housing Communities ("MHCs") currently under contract for acquisition by the Fund, but all future acquisitions have not yet been identified or acquired.

The Fund's primary strategy is to acquire, add value, and reposition MHCs that are currently generating income yet are under-valued, under-managed, under-performing, and/or improperly capitalized. MHCA Management, LLC (the "Fund Manager") intends to devise turnaround plans for each MHC that should maximize cash flow and appreciation. The goal is for each resident to own their home, while the Fund owns and maintains the underlying land and infrastructure such as roads, utilities, and amenities (if any). The Fund Manager believes this owner-resident relationship, and the fact that MHCs aren’t actually very mobile (due to the high cost and risk to move them), leads to resident longevity and other unique investment advantages. Furthermore, they feel MHCs provide a potential solution to one of America’s long-standing yet growing problems – the lack of affordable housing. Yet, at the same time, there is a limited supply of new MHCs and a high barrier-to-entry for new MHC development.

The Fund's exit strategy for individual MHCs is to sell them once repositioned when the Fund Manager believes their values have peaked and market conditions are deemed to be favorable for a sale. The duration of the Fund may be ​up to 10 years, or possibly longer, unless a completed roll-up transaction or initial public offering occurs prior. The Fund may re-invest capital to acquire new MHCs for the first five (5) years of the Fund.

Property

NOTE: The funding bar pictured above represents an aggregate total of RealtyMogul.com participation in Mobile Home Park Fund VII through two investment entities RM 49, LLC and RM 66, LLC.

RealtyMogul.com, along with MHCA Management, LLC (the "Fund Manager") are providing the opportunity to invest in ​MHC America Fund, LLC (the "Fund").

The investment objective of the Fund is to assemble a diversified portfolio of cash-flowing Manufactured Housing Communities ("MHCs") across the United States.

The Fund Manager considers this an investment that offers both the possibility of immediate cash flow and the potential for longer term capital appreciation.

Property Details

To date, the Fund Manager has identified eighteen (18) MHCs for potential acquisition that are currently under contract. They believe these MHCs represent an opportunity to invest in quality assets that have been undervalued and not managed efficiently. They also feel that transitioning the management of these MHCs to their affiliate management company, RV Horizons, presents an opportunity to increase their overall success and growth potential.

Park Name City State # of Parks Purchase Price Total # of Spaces Occupied # of Spaces Occupancy %
Golf Site MHP Seguin TX 1 $2,000,000 82 66 80.5%
Donahue Elite New Braunfels TX 1 $1,850,000 51 47 92.2%
La Villa Las Vegas NV 1 $3,200,000 67 67 100.0%
Canada San Miguel Deer Park TX 2 $9,200,000 250 250 100.0%
La Coste Village La Coste TX 1 $2,350,000 84 83 98.8%
Hampton Park MHC Boise ID 1 $2,275,000 52 52 100.0%
Pecan Village & Shawnee MHP Shawnee & Tecumseh OK 2 $2,500,000 191 180 94.2%
Regional MHP Hurst TX 1 $1,250,000 28 28 100.0%
Royal Oaks Dallas TX 1 $3,700,000 124 124 100.0%
Pleasant View Duluth MN 1 $2,700,000 89 87 97.8%
The Meadows at Carson Creek Del Valle TX 1 $8,500,000 149 147 98.7%
Karcher MHC Nampa ID 1 $3,900,000 151 151 100.0%
Ivanhoe Estates MHP Urbana IL 1 $12,375,000 323 290 89.8%
Forest Hills & Woodcrest Acres Saratoga Springs NY 2 $5,475,500 233 190 81.5%
Forest Park Mobile Homes Middletown RI 1 $2,050,000 82 68 82.9%
  Total 18 $63,325,500 1,956 1,830 93.6%
Comparables

Not available for nationwide MHC fund.

Location

The Fund Manager intends to acquire MHCs throughout the United States. They tend to target either larger markets or smaller growth markets with diversified employment. Locations having metro populations from 10,000 to 2,000,000 or more are typical, with a general concentration likely occurring in the Midwest and Great Plains regions. The members of the Fund Manager (and their affiliated companies) currently own and manage MHCs in 26 states.

Photos
Financials
Sources & Uses

Sample Total Capitalization (1)
Sources of Funds  
Debt (2) $215,570,000
Equity $100,000,000
Total Sources of Funds $315,570,000
   
Uses of Funds  
Purchase Price $307,950,000
Acquisition Fee $3,120,000
Placement Fees $2,500,000
Organizational and Offering Expenses $1,500,000
FundAmerica Fees $500,000
Total Uses of Funds $315,570,000

(1) - Note the above is only a representation of the possible capitalization based on the fund maximum offering total of $100M. The capitalized costs and structure is a reflection of the fees and allocations as laid forth by the Fund Manager detailed herein. Realty Mogul has assumed an allocation of $2M. 

(2) - The Fund manager anticipates bank or seller financing will generally account for 60%-70% of the gross fair market value of each asset, with a maximum portfolio LTV of 75%. 

Debt Assumptions

MHCA Management, LLC (the "Fund Manager") anticipates bank or seller financing will generally account for 60-70% of the gross fair market value of each asset, with a maximum portfolio LTV of 75%.

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.

Distributions

MHCA Management, LLC (the "Fund Manager") intends to make distributions to Realty Mogul 49, LLC (the "Company") as follows: 

Order of Distributions to the Company (Net Cash Flow after Debt Service)

  • First, to the Company until a cumulative, preferred annualized return is received. This cumulative, preferred annualized return will vary depending on the respective year of the hold as follows:
    • Year 1: 8%
    • Year 2: 9%
    • Year 3 - 10 +: 10%
  • Second, to the Fund Manager for any asset management fees earned (current or deferred and accrued)
  • Any excess balance will be split 50% to the Company, based on its ownership of the Fund, and 50% to the Fund Manager

Order of Distributions to the Company (Refinance, and Sales Proceeds) *

  • First, to the Company until a cumulative, preferred annualized return is received. This cumulative, preferred annualized return will vary depending on the respective year of the hold as follows:
    • Year 1: 8%
    • Year 2: 9%
    • Year 3 - 10 +: 10%
  • Second, to the Company until a return of one hundred percent (100%) of its initial capital contribution is received;
  • Third, to the Fund Manager for any asset management fees earned (current or deferred and accrued)
  • Any excess balance will be split 50% the Company, based on its ownership of the Fund, and 50% to the Fund Manager

* The Fund Manager may decide to use some or all of the proceeds from a capital event (i.e., refinance or sale): a) to purchase additional properties; or b) to increase reserves, improve existing properties, or pay down debt owed by the Fund. Proceeds from a capital event may only be used for additional acquisitions within the first five (5) years of the Fund.

The manager of the Company will distribute 100% of its share of excess cash flow (after expenses and fees) to its members (the Realty Mogul 49, LLC investors). A management and administrative fee will be charged to Realty Mogul 49, LLC investors contributing less than $250,000. Realty Mogul 49, LLC investors contributing at least $250,000 will not be subject to this fee, the amount of which is further detailed in the fees table below.

Distributions are projected to start in December 2016 and are projected to continue on a quarterly basis thereafter. Distributions will be evaluated on a quarterly basis by the Fund Manager. The Fund Manager will strive to make quarterly distributions, although the Fund Manager shall, at a minimum, make annual distributions. These distributions are at the discretion of the Sponsor, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Fees

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 Up to 1.0% of total acquisition cost Fund Manager Capitalized Equity Contribution Paid at the closing of each respective MHC acquisition
Loan Fees (if required by lender)

Loan Guarantee Fee - Up to 2.5% of loan amount

Limited-Recourse Guarantee Fee - Up to 0.75% of loan amount

Any party providing a personal guarantee Capitalized Equity Contribution and/or Operating Cash Flow The Loan Guarantee Fee will be paid in equal installments over the term of the loan. If the loan is refinanced prior to maturity, the remaining scheduled payments associated with that loan will no longer be due.
Placement Fees * (inclusive of the below Broker-Dealer Fee) Up to 2.5% of gross proceeds from capital raise Various broker-dealers Capitalized Equity Contribution This fee is an estimate of what will be paid to broker-dealers for equity placement (inclusive of the Broker-Dealer Fee described below).
* Broker-Dealer Fee (included in the above Placement Fees estimate) 4.0% of the amount invested by the Company into the Fund North Capital (1) Capitalized Equity Contribution Included in the Placement Fees estimate described above; paid upon investment(s) made into the Fund.
FundAmerica Fee 0.5% of gross proceeds from capital raise FundAmerica Capitalized Equity Contribution  
Recurring Fees:
Property Management Fee Commensurate with local property management fees RV Horizons, Inc., an affiliate of the Fund Manager Operating Cash Flow  
Asset Management Fee Year 1: 0.5%; Year 2: 0.75%; Year 3+: 1.0% Fund Manager Operating Cash Flow Fee based on total acquisition costs of all assets in the fund. If an appraisal is completed on any of the assets, the greater of the two values will then be used for this calculation.
Management and Administrative Fee

RealtyMogul.com investors contributing less than $250,000: Year 1: 0%; Year 2: 1%; Year 3+: 2%

RealtyMogul.com investors contributing equal to or greater than $250,000: 0%

RM Manager, LLC Distributable Cash Fee based on amount invested in the Company. RM Manager, LLC is the manager of the Company and a wholly-owned subsidiary of Realty Mogul, Co. (2)

Disposition Fee

Up to 1.0% of sale price Fund Manager, or an affiliate Upon sale of property(ies) May only be earned on a sale that would be profitable to the Fund after such fee was paid

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 Fund Manager or others.  Realty Mogul, Co., RM Manager, LLC, and Realty Mogul 49, 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.

Disclaimers/FAQs
Disclaimers


Review of Fund PPM

Before making any investment decision, potential investors in the Company should carefully review the Private Placement Memorandum of the Fund (“PPM”), including but not limited to the Risk Factor section of the PPM and all exhibits of the PPM. The PPM contains additional risk factors and information regarding the Fund that are not contained herein.


Competition Could Impact Occupancy or Market Rental Rates of Mobile Home Parks

Properties owned by the Fund will compete with other housing alternatives to attract residents, including other mobile home parks, apartments, condominiums and single-family homes that are available for rent or sale. Competitive residential housing in a particular area could affect the Fund’s ability to sell its mobile homes, rent its mobile home lots for occupancy, and/or to increase or maintain lot rental rates. Improvements to each investment property planned by the Fund will be designed to make them more attractive to new and existing occupants, in hopes of creating a competitive advantage as compared to other housing alternatives in the marketplace.


Market and Economic Conditions May Impact Revenue from Property Operations

Local conditions in the market of each mobile home park may significantly affect occupancy, rental rates, and the operating performance of a property. The risks that may adversely affect properties include the following:

  • Plant closings, industry slowdowns and other factors that affect the local economy.
  • An oversupply of, or a reduced demand for, mobile homes.
  • ​A decline in household formation or employment or lack of employment growth.
  • Rent control or rent stabilization laws, or other laws regulating mobile home parks, that could prevent the Fund from raising lot rents or selling mobile homes.
  • Economic conditions that could cause an increase in the Funds’ operating expenses, such as increases in property taxes, utilities, compensation of on-site associates and/or routine maintenance.

The Fund and Manager of the Fund Will Rely on Local Property Managers and Contractors

The Fund has no independent ability or resources to manage or renovate each property it acquires. The Fund will engage and rely on local property managers or contractors to manage each property and make renovations. The manager of the Fund will attempt to screen potential property managers and/or local contractors in much the same manner as screening new tenants and buyers, by carefully reviewing past experience, qualifications, and references and ensuring that contracts with such persons have appropriate termination clauses in the event of default.


Concentration

While the Fund Manager's stated objective is to assemble a diversified portfolio, there can be no assurances that the Fund will not be subject to concentration risk. The real estate market generally, and the Fund Manager's strategy in particular, may result in certain opportunities representing an outsized proportion of the total fund. The success or failure of such transactions may have a correspondingly outsized effect on the rates of return for investors in the Fund. Additionally, there can be no assurances regarding the extent of any correlation among all or any set of the Fund's acquisitions.


Separate Class of Interests

There are Class A and Class B interests in the Fund which have different rights and obligations. Class B interest holders are subject to a minimum investment of $50,000. The Company and other Class A interest holders are subject to a minimum investment of $250,000. The rights and obligations are more fully described in the PPM.


Lack of Control and Limited Voting Rights

The manager of the Fund will make all decisions with respect to the management of the Fund. The members will have no right or power to take part in the management of the Fund and, except as expressly provided in the PPM, will not have voting rights. The Fund Manager may be removed only under certain limited conditions set forth in the PPM.


Investment Timing

There will likely be a timing delay between the investment in the Company by a Subscriber and the investment in the Fund by the Company. The information presented by the Company assumes that any such timing delay will not have a material impact on the members of the Company. However, if such delay is long or if the Fund makes distributions immediately prior to the investment date by the Company into the Fund, such timing delays could theoretically be material.


Uncertainty Surrounding Future Sales Price

There is risk associated with the Sponsor being unable to sell the mobile homes in the Fund as projected.


Interest Rate Risk

The Federal Reserve has methodically reduced the amount of stimulus it was earlier injecting into the U.S. economy, and has signaled that increases in the federal funds rate may be forthcoming. This could potentially lead to rising interest rates offered by other lenders and could have a negative effect on the future value of the Fund (since higher loan interest rates might mean that potential buyers would face proportionately higher debt service expenses).


Management Risk

Investors will be relying solely on the general partner of the Fund for the execution of its business plan. That general partner in turn may rely on other key personnel with relevant experience and knowledge, including contractors and consultants. Members of the Fund (including Realty Mogul 49, LLC) will agree to indemnify the managers in certain circumstances, which may result in a financial burden if any litigation results from the execution of the business plan. Investors will be relying solely on the Fund Manager for the execution of its business plan. The Fund Manager may rely on other key personnel with relevant experience and knowledge, including contractors and consultants.


Tornado/Environmental Disaster Risk

Some of the Fund’s properties are expected to be located in areas of the United States that are subject to frequent and sometimes destructive tornadoes or other environmental catastrophes. There can be no assurance that a sizable tornado or other environmental catastrophe will not cause significant damage to one or more of the properties, in which case the business and financial condition of the Fund could be materially adversely affected.


Hurricane Risk

Some of the Fund’s properties are expected to be located in areas of the United States that are subject to frequent and sometimes destructive hurricanes. There can be no assurance that a sizable hurricane will not cause significant damage to the properties, in which case the business and financial condition of the Fund could be materially adversely affected.


Mortgage Risk

The Fund Manager is seeking financing and intends to work with appropriate lenders to complete the debt portion of future transactions for the Fund. Financing risk is inherent in the mortgage lending industry, and there can be no assurance that lenders will complete financing on rates and terms that are reasonable or forecasted. If the debt financing on acquisitions does not occur as anticipated there may be an adverse impact on the Fund’s performance.


Fluctuations in Interest Rates

Mortgage loans will be taken out on the properties owned by the Fund. Mortgage loan interest rates may be significantly affected by economic downturns or general economic conditions beyond the Company’s control and beyond the control of the Fund Manager. Any change in interest rates may drastically affect the value of your investment in the Company. Some of the properties may employ partial interest-only financing. By delaying principal payments, interest-only mortgages can make refinancing more difficult at maturity and increase the risk of the investment opportunity.


General Economic and Market Risks

Local conditions in the markets may significantly affect occupancy, rental rates, and the operating performance of each property.  These risks include plant closings, industry slowdowns, and other factors that could potentially affect the local economy. Rent control or rent stabilization laws, or other laws regulating single family homes, could also prevent the Fund raising rents or selling homes.  Adverse economic conditions such as increases in property taxes, utilities, compensation for on-site associates and routine maintenance could cause an increase in the Fund’s operating expenses, which would negatively affect the fund’s financial performance.   


Forward-Looking Statements

Investors should not rely on any forward-looking statements made regarding this opportunity, because such statements are inherently uncertain and involve risks. We use words such as “anticipated”, “projected”, “forecasted”, “estimated”, “prospective”, “believes”, “expects”, ”plans”, “future”, “intends”, “should”, “can”, “could”, “might”, “potential”, “continue”, “may”, “will” and similar expressions to identify these forward-looking statements.


Illiquid Investment - Transfer Restrictions & No Public Market

The transferability of membership interests in the Company are restricted both by the operating agreement for that entity and by U.S. federal and state securities laws. In general, investors will not be able to sell or transfer their interests. There is also no public market for the investment interests and none is expected to be available in the future. Persons should not invest if they require any of their investment to be liquid. This is particularly important for persons of retirement age, who should plan carefully to assure that their assets last throughout retirement.


Uncertain Distributions

The Fund Manager cannot offer any assurances that there will be sufficient cash available to make distributions to its members (including the Company) from either net cash from operations or proceeds from the sale or refinancing of the asset. The Fund Manager, in its discretion, may retain any portion of such funds for tenant improvements, tenant refurbishments and other lease-up costs or for working capital reserves. Distributions will be evaluated on a quarterly basis by the Fund Manager. The Fund Manager will strive to make quarterly distributions, although in the event the Fund is unable to make distributions on a quarterly basis, then the Fund Manager shall, at a minimum, make annual distributions. 


The above is not intended to be a full discussion of all the risks of this investment. Please see the Risk Factors in the Issuer Document Package for a discussion of additional risks.

The above presentation is based upon information supplied by the Fund Manager and others. Realty Mogul, Co., RM Manager, LLC, and Realty Mogul 49, 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.

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