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* 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.
The Project is located in Baldwin County, which is the fastest-growing county in the State of Alabama. Since 2010, the population in Baldwin County and the City of Foley have grown by 25.8% and 46.7%, respectively. This impressive growth is driven by thousands of new high-paying jobs. Over this period, the new housing supply has been insufficient, which has resulted in low vacancy rates and strong rent growth. Effective rents have increased 18.2% over the prior five-year period, a trend that is projected to continue.
Following on the success of the Single Family Rental ("SFR") market, Cottages at Foley Farms incorporates all of the best aspects of SFR with the operational efficiency of professionally managed, highly amenitized apartment communities. The Property will offer a more affordable option for the many people being priced out of home ownership due to the increase in interest rates and home prices. This highly efficient product has been termed "Build-for-Rent" or "BFR." This Project marks the third prototype developed by the M4_Ritmo partnership.
Based on a 10-year hold period, the Sponsors estimate returns of more than 19% IRR and 3.5x EMX, generating strong cash flow and considerable long-term value creation for investors.
Ritmo Properties and M4 Development
The Cottages joint venture is sponsored by Ritmo Properties and M4 Development. Ritmo Properties is owned and operated by Steve and Christy Strazzella, who have collectively been in the residential and commercial real estate markets since 1989 performing their own development, design, and general contracting services on single-family homes, townhouses, and multifamily apartment buildings. Steve has managed more than $2 billion in multifamily real estate construction and development projects for some of the largest firms in the country.
M4 Development was formed in July 2010. Its Principals, Jonathan Meyers and Joseph Meyers, have in-depth experience in developing numerous product types within various real estate disciplines. Within the last five years, M4 has developed or has under construction 2 multi-family projects, 3 single-family subdivisions, and 3 build-for-rent communities. The thorough analysis of projects utilizing their extensive knowledge and background in development and construction has translated into the success of the projects they have pursued.
https://cottageapts.com/our-team-
Steve StrazzellaPresident -
Jonathan MeyersPrincipal -
Joseph MeyersPrincipal
Since 1989, Steve Strazzella has managed more than $2 Billion worth of development projects. Most recently he was President and Partner of Bozzuto Development Company and Bozzuto Homes Inc, where he spent nearly 20 years managing the development of over 15,000 apartments and homes in the major metropolitan markets on the U.S. East Coast. Prior to that, he served in various executive positions at the Clark Companies and Roy F. Weston, Inc. Steve holds a Bachelor of Civil Engineering degree from the Catholic University of America.
Some example projects are listed below:
Monroe Street Market
600+ unit apartment & retail mixed-use project
$150M+ Value
(by Bozzuto Development Company with Steve Strazzella as President)
Aperture Apartments at Wiehle Avenue
420+ unit apartment & retail mixed-use project
$120M+ Value
(by Bozzuto Development Company with Steve Strazzella as President)
The Abby Apartments at Quincy Transit Center
600+ unit apartment & retail mixed-use project
$300M+ Value
(by Bozzuto Development Company with Steve Strazzella as President)
Jonathan Meyers began his real estate career in the mid 1990’s working for a large commercial contractor on retail projects in Salt Lake Valley. He gained experience there as a Superintendent/Project Manager until he moved to a large interior fit-out contractor in Dallas, Texas where he oversaw and completed the largest national distribution center for AT&T, among other projects at Pacific Builders. In the late 1990’s he began working for one of the largest privately held contractors, Clark Construction, in Bethesda, MD, as a Project Manager. In 2000, Mr. Meyers began working with ARC, one of the top ten developers in the Washington, DC area. In that capacity, he worked as an Owner’s Rep and then VP of Development until his departure in 2005, when he left to start WPC in Bethesda, MD. While at ARC and WPC, Mr. Meyers's development experience includes the oversight, acquisition, entitlement, and development of over 6,000,000 SF of commercial, multifamily, and single-family development valued at over $1.4 billion.
He left to start M4 Development in 2009 with his partner and brother, Joseph Meyers. Since that time, he has partnered to oversee the growth of M4 Development from a startup to now having developed multiple single-family subdivisions, apartment communities, and Build-For-Rent communities.
Joseph Meyers has extensive experience in multifamily, SFR, and single-family development. As a partner, Joe has managed all field operations for M4 Development for the past 9 years.
Projects completed or under construction as part of The Cottages Partnership.
| Property | City, State | Asset Type | Acquisition Date | Units or SF | Purchase Price | Sale Price/Est. Value |
| Cottages at Oak Grove Dairy | Huntsville, AL | BFR | 9/27/2020 | 318 | $54,000,000 | $120,000,000 |
| Cottages at Dothan (Phase 1) | Dothan, AL | BFR | 1/1/2017 | 120 | $15,700,000 | $32,200,000 |
M4 Development Experience
| Project Descriptions | Year | Location | SF | Type | Use | Project Value |
| Orchard Park | 2013-2016 | Dothan, AL | 29 Lots | Subdivision | Residential | $5,365,000 |
| Mayberry Subdivision | 2017-2019 | New Brockton, AL | 70 Lots | Subdivision | Residential | $14,250,000 |
| Highland Cove | 2017-Present | Dothan, AL | 53 Lots | Subdivision | Residential | $17,225,000 |
| Camellia Apartments | 2018-Present | Enterprise, AL | 176 Units | Multifamily | Commercial/Residential | $28,000,000 |
| Cottages Bentonville, AR | 2020-Present | Bentonville, AL | 350 Units | Build for Rent (BFR) | Commercial/Residential | $94,000,000 |
| Cottages Dothan Phase 2 & 3 | 2019-Present | Dothan, AL | 90 Units | Build for Rent (BFR) | Commercial/Residential | $17,200,000 |
| Cottages Dothan Phase 5 & 6 | 2020-Present | Dothan, AL | 121 Units | Build for Rent (BFR) | Commercial/Residential | $21,237,000 |
| Cottages at Magnolia Place | 2020-Present | Foley, AL | 300 Units | Build for Rent (BFR) | Commercial/Residential | $81,421,000 |
| Total | 1,189 | $278,698,000 |
See Sponsorship section for a detailed list of experiences.
The above bios and track record were provided by Ritmo Properties and M4 Development and have not been independently verified by RealtyMogul.
Ritmo Properties and M4 Development (the "Sponsors") are proud to present an opportunity to invest in the ground-up development of Cottages at Foley Farms (the "Project"), a master-planned single-family rental community located in the City of Foley in Baldwin County, Alabama - the fastest growing county in the state.
The Project will consist of 321 single-story cottages with parking, storage, pool, and clubhouse amenities. The development will utilize a phased construction that will take an estimated 29 months to complete. The Project will consist of the construction of 321 cottages, 64 garages, 30 storage units, infrastructure, a clubhouse, a pool/grilling area, and a pet park.
The Project has been financed with a floating-rate construction loan provided by Regions Bank. The terms of the loan are approximately 75% loan-to-cost with a term of 4 years plus a 1-year extension option at a rate of 250 bps over SOFR (0.50% SOFR floor). Total Project costs are anticipated to be roughly $68 million (or $212,000 per cottage).
Current underwriting assumes a phased delivery and a lease-up pace of 25 cottages per month with a refinance in Year 5 based on a 75% LTV, 1.20x DSCR assuming a 5.50% interest rate, and a 5.50% exit cap rate. Disposition is underwritten in Year 10 at a 5.50% exit cap rate.
Upon stabilization, the Sponsors will determine whether to extend, modify or refinance the construction loan. The partnership plans to hold the asset for an estimated 7-10 years, however, the hold strategy is subject to change based on market conditions.
Cottages at Foley Farms will be a Class A development consisting of 321 single-family rental cottages with amenities featuring on-site storage, a centrally located clubhouse and pool, a business center, a pet park, and a fitness center. The Project will cater to the area's growing workforce and retirement population while fostering a community-focused environment through its numerous amenities and organized community events.
Unit Mix
| Unit Type | # of Units | Avg SF/Unit | $ / Unit | $ / SF | % of Total |
| A - 1x1 | 108 | 781 | $1,375 | $1.76 | 34% |
| B - 2x2 | 103 | 1162 | $1,735 | $1.49 | 32% |
| C - 2x2 | 110 | 1177 | $1,750 | $1.49 | 34% |
| Total/Averages | 321 | 1039 | $1,619 | $1.56 | 100% |
Lease Comparables
| Colonial Grand at Traditions Gulf Shores | Sevilla Place Apartments | The Reserve of Foley | Magnolia Landing Apartments | Subject | |
| Year Built | 2017/2021 | 2019 | 2018 | 2020 | 2024 |
| # of Units | 324 | 120 | 360 | 264 | 321 |
| Average Unit Size | 993 SF | 1,260 SF | 1,115 SF | 961 SF | 1,039 SF |
| Occupancy | 96% | 98% | 98% | 100% | |
| Distance from Subject | 4.0 mi | 1.2 mi | 1.9 mi | 1.4 mi | |
| $/Unit (1x1) | $1,373 | $1,168 | $1,350 | $936 | $1,375 |
| SF (1x1) | 816 | 951 | 945 | 842 | 781 |
| $/SF (1x1) | 1.68 | 1.23 | 1.43 | 1.11 | 1.76 |
| $/Unit (2x2) | $1,588 | $1,727 | $1,614 | $1,198 | $1,735 - $1,750 |
| SF (2x2) | 1,075 | 1,234 | 1,220 | 1,074 | 1,162 - 1,177 |
| $/SF (2x2) | 1.48 | 1.40 | 1.32 | 1.12 | 1.48 - 1.49 |
| Address | 6061 Colonial Pkwy, Gulf Shores, AL 36542 | 3151 Boulevard de Sevilla, Foley, AL 36535 | 21450 County Rd 12 S, Foley, AL 36535 | 9167 Hickory St S south, Foley, AL 36535 | County Rd 20 S & S McKenzie St, Foley, AL 36535 |
Sales Comparables
| Palladian at Daphne | The Village at Hickory | Meridian at the Port | Gulf Stream | Sandy Shores Village | Averages | Subject | |
| Date Sold | 12/1/2021 | 10/1/2021 | 10/1/2021 | 9/1/2021 | 7/1/2021 | 2032 | |
| Year Built | 2017 | 2021 | 2019 | 2021 | 2016 | 2019 | 2024 |
| # of Units | 120 | 120 | 267 | 64 | 108 | 321 | |
| Average Unit Size | 1794 SF | 1600 SF | 853 SF | 1440 SF | 1218 SF | 1381 SF | 1619 SF |
| Sale Price | $31,000,000 | $43,200,000 | $69,500,000 | $21,100,000 | $23,150,000 | $37,590,000 | $116,973,695 |
| $/Unit | $258,333 | $360,000 | $260,300 | $329,688 | $214,352 | $364,404 | |
| $/SF | $144 | $225 | $305 | $229 | $176 | $216 | $225 |
| Cap Rate | 4.37% | 4.30% | 3.92% | 4.24% | 4.50% | 4.27% | 5.50% |
| Distance from Subject | 27.4 mi | 2.6 mi | 44.4 mi | 9.4 mi | 21.0 mi | ||
| Address | 27821 State Highway 181, Daphne, AL 36526 | 904 Shagbark Rd, Foley, AL 36535 | 300 N Water St, Mobile, AL 36602 | 24802 Gulf Stream Cir, Orange Beach, AL 36561 | 25624 W Perdido Ave, Orange Beach, AL 36561 | County Rd 20 S & S McKenzie St, Foley, AL 36535 |
Market Overview
Over the last decade, demographic shifts have resulted in major population increases across the sunbelt, and Alabama has been one of its greatest beneficiaries. Baldwin County, along the coast of Alabama, has been the state’s greatest success story. The U.S. Census Bureau reported a population increase of 25.8% between 2010 and 2020 for the county; that increase equates to a net migration of 45,301 residents, making it the fastest growing county in the state and the top 3% among all counties in the U.S.
The population growth story in Baldwin County is primarily a result of the impressive employment growth in this business-friendly community. Baldwin County has added 20,123 new jobs since 2011, equating to an increase of 26%. Although population growth has been strong, it hasn’t been able to keep pace with job growth. The unemployment rate in Baldwin County was reported at 2.7% in July 2022, compared with the national average of 3.5% for the same month.
During a period of excessive growth in Baldwin County, there have been insufficient deliveries of new rental housing in the area. From 2011 to 2017, only 700 new multi-family units were delivered. During the same period, over 12,000 new jobs were added in the county. Delivery of new rental housing began to pick up in the latter half of the decade, averaging 300 units per year between 2016 and 2020. However, data shows that this new housing supply was insufficient, as Baldwin County absorbed an average of 294 units per year during the same period. 2021 saw the first above-average unit deliveries in years, reaching 360 units. However, during the same period, vacancy rates dropped to an average of 3.5%, pointing to pent-up demand for more housing.
Lastly, effective rents have increased 18.2% over the prior five-year period.
Submarket Overview
Foley, where the Project is located, has been one of the key drivers of Baldwin County’s impressive growth, having experienced a population increase of 46.7% since 2010. While COVID has impacted many economies, Baldwin County only experienced a minor retraction and has since expanded. Following a short-lived reduction in its employed population, Baldwin County has since expanded its employment by 3.2% from pre-pandemic levels. Baldwin County’s population growth, and specifically Foley, has included a high concentration of families. Value Tech Realty Services, Inc., a third-party market study provider, projects Foley to grow its household population by 11.9% over the next five years. This is important as families tend to prefer to have a yard, more space, and community activities, which the Project will provide. Furthermore, many of the families moving to Baldwin County are either uninterested or unable to buy homes, but still prefer the lifestyle of single-family living. Cottages at Foley Farms will deliver single-family living at a more affordable price point without the headache of home ownership.
Sources provided by Baldwin County Economic Development Alliance, Federal Reserve Economic Data, Economic Research Division, Federal Reserve Bank of St. Louis. Custom ordered market study for Cottages at Foley Farms provided by ValueTech Realty Services, Inc.
Total Capitalization
| Sources of Funds | $ Amount | $/Unit |
| Debt | $50,828,632 | $158,345 |
| GP Investor Equity | $171,863 | $535 |
| LP Investor Equity(1) | $17,014,379 | $53,004 |
| Total Sources of Funds | $68,014,874 | $211,884 |
| Uses of Funds | $ Amount | $/Unit |
| Residential Hard Costs | $30,593,216 | $95,306 |
| Amenity Hard Costs | $2,555,877 | $7,962 |
| Infrastructure | $17,923,300 | $55,836 |
| Soft Costs | $5,577,222 | $17,375 |
| Owner's Contingencies | $3,100,000 | $9,657 |
| Developers Fee | $2,408,756 | $7,504 |
| Operating Deficit & Interest Reserve | $2,039,860 | $6,355 |
| Loan Fee | $254,143 | $792 |
| Land | $3,562,500 | $11,098 |
| Total Uses of Funds(1) | $68,014,874 | $211,884 |
(1) RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform. RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the RM Technologies LLC’s proprietary Platform and receive Platform-related services. Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC. An estimate of this fee, in addition to estimated due diligence, travel, legal and other fees associated with the formation of the company and the related securities filings, in the amount of $200,000 is included in the Sources and Uses above; this estimated fee has also been factored into the calculation of projected economic returns. Please thoroughly review the Sponsor’s relevant offering documents and operating agreement(s) for additional detail concerning these fees. RM Technologies LLC’s receipt of fees creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.
The expected terms of the debt financing are as follows:
| Construction Loan | Permanent Debt Assumptions |
| Lender: Regions Bank | Refinance Date: 8/31/2027 |
| Term: 4+1 | Lender: TBD |
| LTC: 74.7% | Term: TBD |
| Estimated Proceeds: $50,828,632 | Estimated Proceeds: $66,020,000 |
| Interest Type: Floating | Interest Type: Fixed |
| Spread above SOFR: 2.5%(1) | Annual Interest Rate: 5.5% |
| Interest-Only Period: 42 months | Interest-Only Period: TBD |
| Amortization: 30 years | Amortization: 30 years |
| Prepayment Terms: N/A | |
| Extension Requirements: 1-year option | |
| Term Sheet: Executed |
(1) 0.50% SOFR floor
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.
Ritmo Properties & M4 Development intend to make distributions as follows:
Cash Flow from Operations
- Prior to Stabilization of the Property (defined as 90% occupied for 90 consecutive days) and before Co-Investors are being paid current on their preferred return (8%), the Cash Flow will be distributed 99% to the Equity Co-Investors and 1% to Sponsors pro rata.
- Thereafter, the Cash Flow will be distributed 70% to Equity Co-Investors and 30% to Sponsors (the "Sponsor Promote").
Cash Flow from Capital Transactions
- Prior to return of capital, Capital Transactions will be distributed 99% to the Equity Co-Investors and 1% to Sponsors pro rata.
- Thereafter, the Capital Transactions will be distributed 70% to Equity Co-Investors and 30% to Sponsors (the "Sponsor Promote").
Ritmo Properties & M4 Development intend 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 May 2025 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Ritmo Properties & M4 Development, who may decide to delay distributions for any reason, including maintenance or capital reserves.
Ritmo Properties & M4 Development will receive a promoted/carried interest as indicated above.
| Cash Flow Summary | |||||||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | ||
| Effective Gross Revenue | $0 | $644,314 | $5,903,099 | $7,251,789 | $7,472,359 | $7,699,638 | $7,933,830 | $8,175,145 | $8,423,800 | $8,680,018 | |
| Total Operating Expenses | $0 | ($993,054) | ($1,810,934) | ($2,049,224) | ($2,108,624) | ($2,169,831) | ($2,232,899) | ($2,297,886) | ($2,364,849) | ($2,433,849) | |
| Net Operating Income | $0 | ($348,740) | $4,092,164 | $5,202,565 | $5,363,735 | $5,529,807 | $5,700,931 | $5,877,259 | $6,058,950 | $6,246,168 | |
| Project-Level Cash Flows | |||||||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | |
| Net Cash Flow | ($17,186,242) | $0 | $0 | $4,656,730 | $1,961,882 | $18,363,258 | $956,556 | $1,127,679 | $1,304,007 | $1,485,699 | $55,849,516 |
| Investor-Level Cash Flows(1) | |||||||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | |
| Net Cash Flow | ($3,200,000) | $0 | $0 | $742,746 | $212,145 | $3,081,130 | $88,063 | $109,184 | $130,947 | $153,372 | $6,863,227 |
| Investor-Level Cash Flows - Hypothetical $50,000 Investment(1) | |||||||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 | |
| Net Cash Flow | ($50,000) | $0 | $0 | $11,605 | $3,315 | $48,143 | $1,376 | $1,706 | $2,046 | $2,396 | $107,238 |
(1) 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 Ritmo Properties & M4 Development's materials for details. The following fees and compensation will be paid(1)(2):
| One-Time Fees: | ||||
| Type of Fee | Amount of Fee | Received By | Paid From | Notes |
| Development Fee | $2,408,756 | Ritmo Properties & M4 Development | Upfront Capitalization | 3.5% of the Total Project Cost |
| Technology Solution Licensing Fee(2) | 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 | Notes |
| Asset Management Fee | $75,000/year | Ritmo Properties & M4 Development | Cash Flow | Will be paid monthly after construction completion |
| Administration Solution Licensing Fee(2) | 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 | |
(1) Fees may be deferred to reduce impact to investor distributions.
(2) 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.