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.
NAPA Ventures, LLC
NAPA Ventures, LLC also known as NAPA, is a multifamily and commercial real estate investment company focused on the acquisition, rehabilitation and operation of value-add and core asset investment properties in Texas. NAPA is currently continuing to aggressively and profitably expand their real estate holdings within Texas and other growth markets of the USA.
NAPA currently has ownership in over 3,700 existing units. Realty Mogul investors have previously invested with NAPA on the Woodbridge Townhomes and Ravenwood Apartments transactions.
http://napa-ventures.com/-
Shravan ParsiPrincipal and Co-Founder -
Glenn GonzalesPrincipal and Co-Founder
Shravan Parsi is an entrepreneur and an innovator with a background in two diversified professional fields: real estate investments and pharmaceutical research.
Shravan is the Co-CEO & Co-Founder of NAPA, LLC, which has acquired 7 apartment complexes and 2 commercial properties in the past 18 months. NAPA will continue to aggressively grow with a forecasted pipeline of $150MM in planned acquisitions in 2016. Shravan is a featured speaker at Texas CEO Magazine’s 2015 Enlightened Speaker series event & was recently featured as a value investor in the Austin American Statesman for the commercial real estate investment he purchased adjacent to the Formula 1 Race Track prior to the inaugural US Grand Prix in Austin, Texas.
By education, Shravan is a Pharmaceutical Scientist, owns investments in Medical Device & Health-Tech space. Shravan has published articles in the academic journals and made presentations to FDA and American Association of Pharmaceutical Scientists (AAPS).
With 11 years of RE Investment experience and 12 years of Pharma industry scientific and management experience, Shravan brings a unique skill set and strategic business vision to NAPA investments. He is currently a member of prestigious entrepreneur network TIGER 21, Central Texas Angel Network (CTAN), and the Austin Technology Council (ATC), and a past member of Entrepreneurs Org (EO).
Mr. Glenn Gonzales is an entrepreneurial individual able to leverage 25 years of commercial real estate experience. Glenn served as Treasurer on the Board of Directors for the Washington Multi-family Housing Association, and was elected as President of the association in 2006. From 1994 to 1998, Glenn was a board member for the Utah Apartment Association. He also served a two-year term as the Chairman of the Public Relations Committee and a one-year term as the Secretary-Treasurer for the Institute of Real Estate Management (IREM). Since 1994, Glenn has also been an instructor for the Apartment Associations in his local markets.
| Property Name | Location | Asset Type | Date Acquired |
# of Units |
Purchase Price |
|||
|---|---|---|---|---|---|---|---|---|
| Encinal | San Antonio, TX | Multifamily | 12/19/2013 | 201 | $4,818,750 | |||
| Lakeview Apartments | Killeen, TX | Multifamily | 4/4/2014 | 62 | $1,175,000 | |||
| Morgan Manor | San Antonio, TX | Multifamily | 9/26/2014 | 157 | $3,650,000 | |||
| Summerlyn | Killeen, TX | Multifamily | 1/6/2015 | 200 | $6,300,000 | |||
| Sante Fe | San Antonio, TX | Multifamily | 6/30/2015 | 327 | $7,300,000 | |||
| Montecito Creek | Dallas, TX | Multifamily | 9/30/2015 | 650 | $34,000,000 | |||
| Oates Creek | Mesquite, TX | Multifamily | 6/30/2016 | 280 | $15,700,000 | |||
| Parkside Townhomes | Arlington, TX | Multifamily | 7/14/2016 | 144 | $11,500,000 | |||
| Woodbridge Townhomes | Arlington, TX | Multifamily | 8/24/2016 | 91 | $6,225,000 | |||
| Westwood Apartments | Dallas, TX | Multifamily | 8/31/2016 | 187 | $7,400,000 | |||
| Ravenwood Apartments | Fort Worth, TX | Multifamily | 10/12/2016 | 122 | $4,900,000 | |||
| Brandon Mill | Dallas, TX | Multifamily | 9/26/2016 | 300 | $12,160,000 | |||
| Eagle Point | Dallas, TX | Multifamily | 11/15/2016 | 156 | $6,961,100 | |||
| Pleasant Creek | Lancaster, TX | Multifamily | 12/30/2016 | 159 | $8,580,000 | |||
| Oyster Creek | Lake Jackson, TX | Multifamily | 2/28/2017 | 201 | $15,900,000 | |||
| Treasure Bay | Lake Jackson, TX | Multifamily | 2/28/2017 | 200 | $15,100,000 | |||
| Prescott Woods | Tulsa, OK | Multifamily | 5/12/2017 | 256 | $8,300,000 | |||
| Totals | 3,749 | $169,969,850 | ||||||
The Sponsor's bio and track record were provided by the Sponsor and have not been verified by RealtyMogul.com or NCPS
In this transaction, RealtyMogul.com investors are to invest in Realty Mogul 68, LLC. Realty Mogul 68, LLC is to subsequently invest in NAPA Ventures Woodbridge, LLC, the entity that will hold title to the Property.
Within the first three to five months of acquiring the Property, the Sponsor intends on implementing an approximately $550,000 exterior capital improvement plan to address deferred maintenance and mechanical issues, make improvements to the common areas, and increase the Property's curb appeal. The Sponsor has also budgeted for interior renovations of $7,500 per unit for approximately 50% of the units, which will include new countertops, new appliances, refreshing of cabinetry, new paint and new carpet. The Sponsor estimates that upon renovation, the renovated units will be able to achieve rental premiums of approximately 23.5% above in place rents. It is expected that all interior renovations will be completed in approximately 16 months, with an average of three (3) units being renovated per month. Upon completion of all renovations, the Sponsor intends on selling the Property within three years, although if if the renovations are successfully implemented ahead of schedule and market conditions allow for a favorable sale, the hold period could be shorter.
A summary of the capital expenditures planned at the Property is as follows:
| CapEx Item | Cost |
|---|---|
| Interior Rehab ($7,500 each for 46 units) | $345,000 |
| Exterior Painting | $90,000 |
| Roofing | $80,000 |
| Siding and Fascia | $70,000 |
| Wood Rot | $55,000 |
| HVAC | $39,000 |
| Patio Enclosures | $35,000 |
| Landscaping | $30,000 |
| Concrete and Striping | $30,000 |
| Rail Road Ties | $25,000 |
| Signs | $25,000 |
| Leasing Office | $20,000 |
| Pool Leak | $10,000 |
| Contingency 5.0% | $42,700 |
| Subtotal | $896,700 |
| Construction Management Fee 3.0% | $26,901 |
| Total | $923,601 |
Sponsor Case Study - Montecito Creek Apartments
Per discussions with the Sponsor, the Montecito Creek Apartments complex, which was purchased approximately nine months ago, recently received an unsolicited offer to purchase at approximately the year three underwritten exit value for the property. The Sponsor stated that the business plan for Montecito, which is located in Dallas, TX, was effectively similar to that of the Property, with the Sponsor intending to renovate approximately 50%-60% of the units and then sell the asset with additional value add potential left for the buyer. Instead, the Sponsor has renovated approximately two thirds of the total intended units (about 40% of all units at the property), and has already received an offer to buy Montecito which they expect they will accept. The Sponsor anticipates accepting this purchase offer should yield a net return to investors in excess of their initial underwritten projections.
Before and after pictures of the Montecito property are as follows:
Note: The above case study details were provided by the Sponsor and have not been independently verified by RM, though RM did tour the Montecito property with the Sponsor.
RealtyMogul.com, along with Network Acquisition Partnership Alliance, LLC (“NAPA” or the “Sponsor”), is providing the opportunity to invest in the acquisition and ownership of Woodbridge Townhomes (the "Property"), a 91 unit, garden-style apartment complex in Arlington, TX. The Property is comprised of 24 buildings which are almost entirely two-story townhomes, although the leasing office and one residential building are a single story.
The primary objective of this investment is to acquire the Property at an attractive basis, implement exterior and interior capital improvements, increase rental rates, and sell the Property within three (3) years.
The Property is a 91 unit garden-style apartment complex located at 2403 Brown Boulevard, Arlington, Texas. The Property was built in 1981 and is 90% leased as of May 2016. The unit mix consists of 41 one (1) bedroom, 1.5 bathroom units and 50 two (2) bedroom, 2.5 bathroom units. Almost all the units are two-story townhomes, which is a desirable, atypical trait when compared to other comps in the area. Average in-place rents for one bedroom units are $791 per month, with two bedroom units averaging $933 per month.
Amenities at the Property include one storage closet per townhome unit, a swimming pool, and one laundry facility. Interior finishes include ceiling fans, microwave ovens, dishwashers, wood-burning fireplaces, and patios/balconies with exterior storage closets.
| Unit Type | # of Units | Avg SF/Unit | In-Place Rent | Rent/SF | Post-Reno Rent* | Rent/SF | % Variance** |
|---|---|---|---|---|---|---|---|
| 1 Bed, 1.5 Bath | 2 | 642 | $780 | $1.12 | $905 | $1.41 | 16.0% |
| 1 Bed, 1.5 Bath | 19 | 795 | $770 | $0.97 | $940 | $1.18 | 22.1% |
| 1 Bed, 1.5 Bath | 20 | 997 | $813 | $0.82 | $1,085 | $1.09 | 33.5% |
| 2 Bed, 2.5 Bath | 35 | 1,080 | $900 | $0.83 | $1,120 | $1.04 | 24.5% |
| 2 Bed, 2.5 Bath | 15 | 1,268 | $1,010 | $0.80 | $1,140 | $0.90 | 12.8% |
| Total | 91 | 1,024 | $869 | $0.85 | $1,073 | $1.05 | 23.5% |
Note: Only 46 of 91 units at the Property are anticipated to be fully renovated during the hold period.
*Note: These projected post-renovation rent assumptions are used in the Estimated Financials of this offering and are consistent with projections made in the PNC appraisal attached to this offering.
**Note: This figure is representative of the projected achievable rents for post-renovation units as a percentage of in-place rents.
| Address | Sale Date | # of Units | Year Built | Purchase Price | $ per Unit |
|---|---|---|---|---|---|
| 1705 Big Sur Dr., Arlington, TX | March 2016 | 68 | 1984 | $5,000,000 | $73,529 |
| 513 W Dickey Ave., Grand Prairie, TX | October 2015 | 100 | 1980 | $7,000,000 | $70,000 |
| 2015 Randy Snow Rd, Arlington, TX | January 2015 | 408 | 1984 | $28,000,000 | $68,627 |
| Average | August 2015 | 192 | 1983 | $13,333,333 | $70,719 |
| Subject | July 2016 | 91 | 1981 | $6,225,000 | $68,407 |
| Address | Year Built | Avg. Sq. Ft. / Unit (1 bed) | Avg. Rent / Sq. Ft. (1 bed) | Avg. Rental / Sq. Ft. (1 bed) | Avg. Sq. Ft. / Unit (2 bed) | Avg. Rent / Unit (2 bed) | Avg. Rent / Sq. Ft. (2 bed) |
|---|---|---|---|---|---|---|---|
| 500 Tish Circle, Arlington, TX | 1980 | 709 | $800 | $1.12 | 980 | $924 | $0.94 |
| 2121 Madison Dr, Arlington, TX | 1979 | 690 | $720 | $1.04 | 1,096 | $925 | $0.84 |
| 2624 Southern Hills Blvd, Arlington, TX | 1983 | 721 | $701 | $0.97 | 917 | $837 | $0.91 |
| 2506 North Forty Circle, Arlington, TX | 1980 | 657 | $703 | $1.07 | 1,002 | $825 | $0.82 |
| 707 Washington Dr, Arlington, TX | 1978 | 698 | $765 | $1.10 | 1,003 | $957 | $0.95 |
| Average | 1980 | 695 | $738 | $1.06 | 1,000 | $894 | $0.89 |
| Subject - In-Place | 1981 | 886 | $791 | $0.89 | 1,136 | $933 | $0.82 |
| Subject - Projected Post-Renovation | 1981 | 886 | $1,008 | $1.14 | 1,386 | $1,138 | $0.82 |
Note: Leasing comparables are almost all smaller per unit on a per square foot basis than the Property, and do not have townhome style units as does the Property. After renovations at the Property are completed, renovated units at the Property should be superior to these comps.
The Property is located on Brown Boulevard directly off of State Highway 360, approximately two (2) miles from Six Flags Over Texas, Six Flags Hurricane Harbor and the Globe Life Park in Arlington where the Texas Rangers play. AT&T Stadium, where the Dallas Cowboys play, is another half mile down the road from the Property. AT&T Stadium is a $1.2 billion, 101,000 seat, state-of-the art facility which was built in 2009. Trammell Crow recently received approval for the development of Stadium View, a project that could bring up to one million square feet of Class A office space to the areas adjacent to the Cowboys and Rangers stadiums. Looking into the more distant future, the city of Arlington has initially approved a new $1 billion baseball stadium for the Texas Rangers as well, and it is anticipated it would be constructed south of the existing baseball stadium, approximately three (3) miles from the Property. The Cordish Companies have also announced “Texas Live!,” a $200 million mixed-use development adjacent to the Rangers’ Globe Life Park expected to open sometime during the 2017-2018 baseball season.
Much of the area surrounding the Property is comprised of similar apartment communities and single family home neighborhoods. There are several restaurants located south of the Property, near the intersection of I-30 and Highway 360. This area is directly adjacent to Six Flags, and is also home to several hotels. The Property is located within a mile of both the local elementary and high school. Additionally, the Property is within a six-minute drive of both Riverside Golf Club and Chester W. Ditto Golf Course.
Market Overview
According to the 2015 Census Bureau, the Dallas-Fort Worth metroplex includes over 7.1 million people. Population growth from the period of April 2010 to July 2015 was 11.5% (2.3% annualized).
Per CoStar, while other major markets in Texas, such as Houston and Austin, have struggled with declining energy prices, the Dallas-Fort Worth market has remained fairly stable with an economy not centered around oil and energy. Instead, the metroplex is home to many corporate headquarters and houses a fair amount of electronics and telecommunications companies. The area is also home to several major U.S. defense contractors.
Also via CoStar, while the 4.5% market vacancy in the greater Dallas-Fort Worth metroplex is not quite as low as the Arlington multifamily submarket, it still significantly below the historical market average of 7.2%. Vacancy in the market has been within 0.50% of its current level since the beginning of 2014 despite the market adding over 30,000 new units in that timeframe, with almost half of that new product being delivered over the past twelve months. With the glut of construction and the tight but stable levels of vacancy in the market rent growth has remained robust, with rents increasing 7.0% over the preceding twelve months and the forward projections remaining high at 5.6% for the coming twelve months.
Submarket Overview
According to CoStar, post-recession vacancies in Arlington have fallen significantly, to levels well below their historical average. Vacancy was at 3.5% as of the first quarter of 2016, up from but still near the all-time low of 3.2% seen in the third quarter of 2015. New high-quality supply delivering in nearby submarkets has not been drawing renters away from Arlington since renters in this submarket usually cannot afford these premium rents. Arlington has flown beneath developers’ radars for years, which should buffer it from the higher risk of volatility due to new construction felt by other submarkets. With a relatively low percentage of new supply expected, Arlington’s vacancy rate is expected to remain relatively tight over the next few years.
Demographic Information
| Distance from Property | 1 Mile | 3 Miles | 5 Miles |
| Population | 17,636 | 76,439 | 240,558 |
| Projected Growth (2015-2020) | 8.44% | 9.11% | 8.24% |
| Median HH Income | $46,290 | $43,033 | $41,329 |
| Average HH Income | $67,905 | $61,110 | $56,996 |
| Median Home Value | $181,406 | $149,008 | $118,319 |
| % of Renter Households | 75.35% | 72.76% | 62.76% |
Demographic information above was obtained from CoStar.
| Sources of Funds | Cost |
|---|---|
| Debt | $5,000,000 |
| Equity | $2,550,048 |
| Total Sources of Funds | $7,550,048 |
| Uses of Funds | Cost |
| Purchase Price | $6,225,000 |
| CapEx Reserve | $923,601 |
| Sponsor Acquisition Fee | $62,250 |
| Sponsor Legal Costs | $65,000 |
| North Capital Broker Dealer Fee | $68,850 |
| Lender Origination Fee | $54,750 |
| Title and Due Diligence | $46,500 |
| Legal Fees paid to Outside Counsel | $10,000 |
| Operating Reserve | $35,000 |
| Taxes and Insurance Escrows | $56,597 |
| Other Pursuit Costs | $2,500 |
| Total Uses of Funds | $7,550,048 |
The projected terms of the debt financing are as follows:
- Lender: PNC
- Loan Type: Agency (Fannie Mae)
- Proceeds: $5,000,000
- Term: 12 Years
- Rate: 4.43% as of June 21, 2016
- Amortization: 30 years
- Interest Only Period: 24 months
- Prepayment Fee: 11.5 Years Yield Maintenance; Followed by 1.0%, with last 90 days at Par
- Assumption Fee: 1.0%
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.
NAPA Ventures Woodbridge, LLC intends to make distributions to Realty Mogul 68, LLC as follows:
- To the Members, pari passu, all excess cash flows and appreciation to a 10.0% IRR to the Members,
- 81.0 / 19.0 (81.0% to Realty Mogul 68, LLC / 19.0% to the Sponsor) of excess cash flows and appreciation to a 17.0% IRR to Realty Mogul 68, LLC,
- 67.5 / 32.5 of excess cash flow and appreciation to a 20.0% IRR to Realty Mogul 68, LLC, and
- 54.0 / 46.0 of excess cash flow and appreciation thereafter.
Note that these distributions will occur after the payment of the Company's liabilities (loan payments, operating expenses and other fees as set forth in the LLC agreement, in addition to any member loans or returns due on member loans).
Please note, the language defining the distribution structure has been updated to mirror the language in the legal agreement between Realty Mogul 68, LLC and Network Acquisition Partnership Alliance, LLC. There are no material changes as a result of this update.
Realty Mogul 68, LLC will distribute 100% of its share of excess cash flow (after expenses and fees) to the members of Realty Mogul 68, LLC (the RealtyMogul.com investors).
Distributions are projected to start in December 2016 and are projected to continue on a quarterly basis thereafter. These distributions are at the discretion of the Sponsor, who may decide to delay distributions for any reason, including maintenance or capital reserves.
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Effective Gross Revenue | $973,837 | $1,171,795 | $1,215,215 |
| Total Operating Expenses | $610,893 | $629,980 | $643,596 |
| Net Operating Income | $362,943 | $541,815 | $571,619 |
| Annual Debt Service | $220,500 | $220,500 | $301,521 |
| Distributions to Realty Mogul 68, LLC Investors | $146,339 | $251,582 | $3,361,804 |
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 | $62,250 | Sponsor | Capitalized Equity Contribution | 1.0% of the property purchase price |
| Disposition Fee | 0.5% of Gross Sales Price | Sponsor | Sales Proceeds | |
| Broker-Dealer Fee | $68,850 | North Capital (1) | Capitalized Equity Contribution | 3.0% of Realty Mogul 68, LLC invested equity |
| Recurring Fees | ||||
| Property Management Fee | 3.5% of Effective Gross Income | Sponsor-Affiliated Party | Distributable Cash | |
| Construction Management Fee | 3.0% of Total Costs | Sponsor | Capital Expenditure Reserve | |
| Asset Management Fee | 1.0% of Effective Gross Income | Sponsor | Operating Cash Flow | |
| Management and Administrative Fee | 1.0% of amount invested in Realty Mogul 68, LLC | RM Manager, LLC | Distributable Cash | RM Manager, LLC is the Manager of Realty Mogul 68, LLC and a wholly-owned subsidiary of Realty Mogul, Co. (2) |
Notes:
(1) Certain employees of Realty Mogul, Co. are registered representatives of, and are paid commissions by, North Capital Private Securities Corp., a Delaware corporation ("North Capital"). In addition, North Capital pays a technology provider services fee to Realty Mogul, Co. for licensing and access to certain technology, reporting, communications, branding, entity formation and administrative services performed from time to time by Realty Mogul, Co., and North Capital and Realty Mogul, Co. are parties to a profit sharing arrangement.
(2) Fees may be deferred to reduce impact to investor distributions.
The above presentation is based upon information supplied by the Sponsor or others. Realty Mogul, Co., RM Manager, LLC, and Realty Mogul 68, LLC, along with their respective affiliates, officers, directors or representatives (the "RM Parties") hereby advise you that none of them has independently confirmed or verified any of the information contained herein. The RM Parties further make no representations as to the accuracy or completeness of any such information and undertake no obligation now or in the future to update or correct this presentation or any information contained herein.
RM Securities, LLC, its registered representatives, affiliates, associated persons, and personnel of its affiliates who may also be associated with it, including our associated persons and personnel of our affiliates who are also be associated with RM Securities, LLC (it (“RM Securities,” “we,” “our,” or “us”) will receive fees, expense reimbursements, and other compensation (“Fees”) from the issuer of this investment offering, its sponsor, or an affiliate thereof (“Sponsor”), or otherwise in connection with Sponsor’s offering. The Fees paid to us are in addition to other fees you will pay to Sponsor or in connection with Sponsor’s investment offering. You will pay Fees to Sponsor, either directly or indirectly as an investor in the Sponsor’s offering. Sponsor will use the Fees you pay, as well as funds you invest in the relevant offering, to compensate us. The Fees paid to us will directly or indirectly be borne by you as the investor (typically, but not always, in the form of an expense of the Sponsor’s offering in which you invest) because such Fees will reduce the proceeds available for distribution to you and reduce the amount you earn over time.
For more information on the Fees paid to us, or any other Fees you will pay in connection with Sponsor’s offering, please carefully review the Sponsor’s Investment Documents. Please also carefully review RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.
No Approval, Opinion or Representation, or Warranty by RM Securities, LLCSponsor has provided, approved, and is solely responsible in all aspects for the information on this webpage (“Page”), including Sponsor’s offering documentation, which may include without limitation the Private Placement Memorandum, Operating or Limited Partnership Agreement, Subscription Agreement, the Project Summary and all exhibits and other documents attached thereto or referenced therein (collectively, the “Investment Documents”). The Investment Documents linked on this page have been prepared and posted by Sponsor, and not by RM Securities. We did not assist in preparing, do not adopt or endorse, and we are not otherwise responsible for, the Sponsor’s Investment Documents. We make no representations or warranties as to the accuracy of information on this Page or in the Sponsor’s Investment Documents and we accept no liability therefor. No part of the information on this Page or in the Sponsor’s Investment Documents is intended to be binding on us.
Sponsor’s Information Qualified by Investment DocumentsThe information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.
Risk of InvestmentThis investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.
No Reliance on Forward-Looking Statements; Sponsor AssumptionsSponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Neither RM Securities nor Sponsor are obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.
Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.
No Reliance on Past PerformanceAny description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.
Sponsor’s Use of DebtA substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.
Sponsor’s Offering is Not RegisteredSponsor’s securities offering will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement”). In addition, the offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership interests) are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.
No Investment AdviceNothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments. For additional information on RM Securities’ involvement in this offering, please carefully review the Sponsor’s Investment Documents, and RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.
1031 Exchange RiskInternal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts and certain tax consequences may vary depending on the individual circumstances of each investor. RM Securities and its affiliates make no representation or warranty of any kind with respect to the tax consequences of your investment or that the IRS will not challenge any such treatment. You should consult with and rely on your own tax advisor about the tax aspects with respect to your particular circumstances.