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Residential
Valley Villas
Los Angeles, CA
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Valley Villas
Los Angeles, CA
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Overview
Valley Villas
Williams Homes Valley Villas will include the installation of horizontal land improvement and construction and sale of 58 market-rate attached, single-family homes at 9433 Sepulveda Blvd., Los Angeles, CA 91343
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Details
For more information, view the Sponsor's Investment Memorandum.
Estimated First Distribution 8/2024
Minimum Investment 35000
Estimated Hold Period 20 Months*
Investment Strategy Development
Investment Type Equity
# of Units 58
Number of Buildings 11
First Units Delivered July 2023
Parking 2 garage spaces per unit & guest
Land Acquisition Price $7,250,000
Total Development Budget $31,296,711
Sponsor Documents
The offering documents above have been prepared and are being delivered by the Sponsor of this investment opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are not otherwise responsible for, the Sponsors offering documents posted below or any content therein.
Deal Highlights
Investment Highlights
The project Sponsor has a very strong 26-year track record, building and selling over 2,500 homes with a total sales value of nearly $1.4 billion and returning an average 22% annualized return to its investors.
The project was designed by the Sponsor with product designs from prior communities.
The project is "grandfathered" from certain development fees, union labor requirements, and affordable housing obligations.
The project location is staved for new housing. There is little to no competitive new housing available.
The market has high barriers to entry preventing new competition.
Relatively short project duration of roughly two years.
Project debt financing is secured and development activity has begun.
The project Sponsor has a very strong 26-year track record, building and selling over 2,500 homes with a total sales value of nearly $1.4 billion and returning an average 22% annualized return to its investors.
The project was designed by the Sponsor with product designs from prior communities.
The project is "grandfathered" from certain development fees, union labor requirements, and affordable housing obligations.
The project location is staved for new housing. There is little to no competitive new housing available.
The market has high barriers to entry preventing new competition.
Relatively short project duration of roughly two years.
Project debt financing is secured and development activity has begun.
Contact Us
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Management
For more information, view the Sponsor's Investment Memorandum.
Williams Homes

Co-Founded in 1996 by Lance and Sadie Williams. Williams Communities and Williams Homes (collectively “Williams”) primary focus is the development and sale of single-family attached and detached homes in communities targeted to entry-level, move-up, and luxury homebuyers in California, Idaho, Texas, and Montana. Williams consistently lands in the top ten most active for-sale homebuilders in its established markets. Over the past quarter century, Lance Williams has come to be recognized as a leader in the housing industry in the West. Lance K. Williams is the Chief Executive Officer of Williams Communities, LLC.  Mr. Williams, in addition to the individuals listed in the management profile herein, will be responsible for managing the day-to-day business of the Company. In 2021 Williams delivered 398 homes for nearly $300 million in revenue with an average sales price of $760,000.  Over its twenty-five-year history, Williams has delivered over 2,500 homes in 60 communities worth in excess of $1.3 billion and currently has in process or under construction over 3,300 homes with a completed value of approximately $2.2 billion.  Williams has a perfect record of project completion. Williams has historically capitalized its projects with traditional commercial bank financing, institutional equity, and high net worth individual equity.  

To date, Williams’ equity partners have invested over $400 million in Williams projects with completed projects having averaged a 23% annualized internal rate of return and a 1.4 multiple. 

Sponsor Track Record

Track Record - Completed Deals

Property City, State Asset Type Initial Funding Date Final Distribution Date Investor Equity Investor Returns Equity Multiple IRR
Righetti Arroyos 53 San Luis Obispo, CA MU 1/1/2020 6/1/2022 $9,800,000 $4,167,064 1.43 22%
Righetti SLO43 San Luis Obispo, CA MU 12/1/2019 4/1/2022 $6,000,000 $2,264,890 1.38 13%
Willson 16 Bozeman, MT LUX 6/1/2018 4/1/2022 $2,700,000 $421,875 1.16 4%
Righetti SLO86 San Luis Obispo, CA MU 6/1/2018 9/1/2021 $10,084,000 $6,836,925 1.68 26%
Hermitage Los Angeles, CA MU 8/1/2019 12/1/2021 $5,000,000 $2,673,000 1.53 28%
Arroyos @ Righetti San Luis Obispo, CA MU 8/1/2018 12/1/2021 $12,200,000 $4,109,000 1.34 38%
Paseos @ Righetti San Luis Obispo, CA MU 3/1/2018 9/1/2021 $13,000,000 $5,191,000 1.40 24%
24 on Centre Los Angeles, CA MU 1/1/2017 1/1/2021 $3,600,000 - 1.00 0%
Cobalt 12 Los Angeles, CA EL 8/1/2019 11/1/2021 $1,800,000 $835,678 1.46 28%
Tovara West Los Angeles, CA EL 12/1/2016 10/1/2020 $10,250,000 $4,923,624 1.48 12%
Rosewood Santa Paula, CA EL 9/1/2018 9/1/2020 $5,000,000 $1,990,000 1.40 28%
Forsythia Boise, ID MU 2/1/2019 5/1/2020 $3,100,000 $712,741 1.23 18%
Falcon Heights Encore Lompoc, CA MU 8/1/2018 3/1/2020 $3,500,000 $985,814 1.28 15%
The Farm Ventura, CA EL & MU 1/1/2014 10/1/2019 $20,500,000 $8,226,000 1.40 16%
Palmilla Los Angeles, CA MU 5/1/2017 9/1/2019 $2,000,000 $423,000 1.14 6%
Pacific Villas Baldwin Park, CA MU 1/1/2017 9/1/2019 $7,730,000 $3,112,000 1.40 19%
Echo 24 Los Angeles, CA MU 11/1/2014 9/1/2019 $2,950,000 $966,200 1.33 19%
Bridewell Los Angeles, CA MU 4/1/2016 7/1/2019 $1,850,000 - 1.00 0%
Senna Azusa, CA EL 4/1/2016 5/1/2019 $9,250,000 $4,052,020 1.44 18%
Cielo Los Angeles, CA EL 10/1/2016 3/1/2019 $2,660,000 $1,236,000 1.46 19%
Indigo Baldwin Park, CA MU 6/1/2015 3/1/2019 $7,290,000 $3,520,000 1.48 16%
Tovara East Los Angeles, CA EL 8/1/2014 9/1/2018 $6,525,000 $2,898,000 1.44 15%
Reseda Ranch Los Angeles, CA MU 12/1/2014 3/1/2019 $1,200,000 $532,000 1.44 9%
Woodridge Atascadero, CA EL 10/1/2014 5/1/2018 $3,000,000 $1,210,000 1.40 10%
Phantom Trail Santa Clarita, CA MU 4/1/2014 9/1/2017 $3,359,000 $2,755,000 1.82 29%
Arbor Ridge Paso Robles EL 12/1/2014 10/1/2017 $1,800,000 $322,000 1.18 7%
La Barranca Ventura, CA LUX 1/1/2013 9/1/2017 $3,600,000 ($453,000) 0.87 -12%
Country Ridge Calabasas, CA LUX 6/1/2013 9/1/2017 $11,259,000 ($220,000) 0.98 -2%
Trestles Santa Clarita, CA EL 5/1/2013 10/1/2017 $9,770,000 $8,474,000 1.87 21%
Agave Los Angeles, CA MU 3/1/2013 7/1/2017 $10,000,000 $6,031,000 1.60 28%
Savannah Simi Valley, CA EL 4/1/2013 12/1/2016 $4,100,000 $3,750,000 1.91 23%
Falcon Heights Lompoc, CA MU 12/1/2013 6/1/2016 $4,000,000 $813,000 1.20 11%
Oakridge Santa Clarita, CA LUX 12/1/2013 3/1/2016 $5,820,000 $3,013,000 1.52 26%
Parkland Cottages Santa Maria, CA EL 11/1/2013 3/1/2016 $1,500,000 $586,000 1.39 18%
Edgewood Fillmore, CA MU 8/1/2013 12/1/2015 $4,000,000 $2,255,000 1.56 23%
Terraces Agoura Hills, CA MU 3/1/2013 11/1/2015 $8,393,000 $1,816,000 1.22 13%
Valle Di Oro Santa Clarita, CA EL 7/1/2012 2/1/2015 $5,000,000 $4,707,738 1.94 41%
Park 9 Los Angeles, CA MU 6/1/2012 7/1/2014 $1,700,000 $826,792 1.49 21%
Ridgeview Santa Paula, CA MU 9/1/2011 7/1/2014 $3,650,000 $3,049,562 1.84 29%
Oak Haven Fillmore, CA EL 7/1/2011 5/1/2014 $1,550,000 $849,397 1.55 18%
Ivy Monrovia, CA MU 12/1/2012 5/1/2014 $3,240,000 $2,625,000 1.81 81%
Lone Hill San Dimas, CA MU 7/1/2011 4/1/2014 $7,160,000 $1,619,000 1.23 14%
Olive Glen Los Angeles, CA EL 5/1/2011 10/1/2013 $8,631,000 $3,725,000 1.43 36%
Fairways Glendora, CA EL 1/1/2011 1/1/2014 $1,600,000 $666,955 1.42 13%
Falcon Ridge Barstow, CA EL 5/1/2010 9/1/2014 $800,000 $832,511 2.04 21%
Chapel Lane Ventura, CA EL 1/1/2010 5/1/2012 $1,500,000 $395,880 1.26 11%
Rosa De Castilla & Hidden Creek MU 7/1/2009 10/1/2011 $1,800,000 $1,545,000 1.86 37%
Solstice Santa Clarita, CA EL 11/1/2006 6/1/2011 $1,100,000 ($912,500) 0.17 -83%
Stratara Santa Clarita, CA EL 8/1/2005 10/1/2008 $2,250,000 $100,000 1.04 2%
Bella Vida Santa Clarita, CA MU 5/1/2005 6/1/2007 $1,900,000 $723,629 1.38 22%
Sonrisa Santa Clarita, CA EL 5/1/2004 7/1/2006 $1,650,000 $1,126,804 1.68 47%
Big Sky Ranch Santa Clarita, CA MU 8/1/2002 8/1/2003 $800,000 $435,491 1.54 69%
Apple Street Santa Clarita, CA EL 8/1/2002 12/1/2003 $500,000 $755,324 2.51 123%
Walnut Street Santa Clarita, CA EL 9/1/2001 12/1/2002 $200,000 $215,264 2.08 80%
Elliott Lane Santa Clarita, CA MU 6/1/1999 2/1/2001 $400,000 $68,099 1.17 10%
Town & Country Santa Clarita, CA MU 2/1/1997 12/1/1998 $850,000 $323,302 1.38 19%
Lola Lane Santa Clarita, CA MU 3/1/1996 7/1/1997 $460,000 $451,269 1.98 63%
Total         $265,331,000 $114,558,348 1.45 22%

Track Record - Ongoing Deals

Active Project Location Project Completion Homes Revenue
Northwest Crossing Bozeman, MT 2026 155 $112,400,000
Valley Villas  Los Angeles, CA 2025 58 $37,100,000
Floating Feather Eagle, ID 2025 139 $129,000,000
Sandpoint Sandpoint, ID 2024 49 $40,600,000
Highland Meadows II East Helena, MT 2024 59 $28,400,000
Southpark Boise, ID 2024 26 $20,100,000
Copper Ridge 54 Billings, MT 2023 54 $27,200,000
Plaza Del Amo Torrance, CA 2023 39 $31,500,000
Lancaster Towns Lancaster 2025 162 $79,500,000
Camarillo Village Camarillo 2026 285 $178,000,000
Park Place Santa Clarita, CA 2026 492 $338,000,000
Copper Ridge Billings, MT 2025 217 $86,300,000
Star 203 Star, ID 2025 203 $101,800,000
San Luis Ranch Lofts San Luis Obispo, CA 2024 120 $49,600,000
Piru Piru, Ca 2024 169 $93,850,000
Palo Verde La Quinta, CA 2024 37 $35,600,000
Campanile Cathedral City, CA 2024 141 $84,600,000
Williams Ranch Santa Clarita, CA 2024 497 $440,400,000
Portisol Natomas, CA 2023 95 $41,000,000
Point Happy  La Quinta, CA 2023 29 $25,500,000
San Luis Ranch Heirloom San Luis Obispo, CA 2023 83 $56,200,000
San Luis Ranch Fig San Luis Obispo, CA 2023 80 $50,300,000
Bridger Heights Belgrade, MT 2023 72 $26,300,000
Bridger Vale Bozeman, MT 2023 20 $27,600,000
Enclave Georgetown, TX 2023 64 $20,100,000
Magnolia Village Lincoln, CA 2023 32 $15,000,000
Creekside Filmore 2023 131 $52,200,000
High Sierra Billings, MT 2022 60 $16,000,000
Highland Meadows East Helena, MT 2022 34 $12,600,000
West Winds Bozeman, MT 2022 42 $21,400,000
Oxnard Shores Oxnard,CA 2021 50 $42,670,000
Total     3,694 $2,320,820,000

The above biography and track record were provided by the Sponsor and have not been independently verified by RM Technologies, LLC or its affiliates. Past performance is not indicative of future results. Please carefully review the Disclaimers section below.

Website
Management Team
Management
Lance K Williams
CEO

Lance Williams has been in the construction industry for more than 35 years. Founding the company that bears his name alongside housing legend Ray Watt in 1996, Mr. Williams' experience encompasses all disciplines of residential real estate. Mr. Williams is widely recognized as a housing industry leader in the West. As Chairman and CEO, Mr. Williams has directly overseen the acquisition, entitlement, financing, construction, sales, and delivery of over 2,500 homes in 55 communities, worth in excess of $1.3 billion, and currently has in development or under construction an additional 30 projects for 3,500 plus homes with a completed value of approximately $2.2 billion. Prior to founding Williams Homes, Inc., Mr.Williams was employed by Watt Housing Corporation and Beazer Homes, Inc. where he served in multiple management roles. Mr.Williams received his bachelor's degree in Finance, Real Estate, and Law from California Polytechnic University, Pomona in 1990. Mr. Williams is a licensed real estate broker, general contractor, and jet pilot. Mr. Williams is an active member of the California Building Industry Association, where he has acted in a variety of functions including serving as chair of the government affairs committee as well as on the board of directors of the Los Angeles/Ventura chapter of the BIA. Through the years, he has shared his expertise by serving on multiple industry boards, chairing committees, and guest speaking, in addition to lending his time and efforts to many worthy community endeavors. Mr. Williams has also been recognized by his alma mater as distinguished alumni for outstanding early career success and outstanding entrepreneurship.

Management
Sadie Williams
Owner, Product Development Director

Raised in a real estate development family, (Sadie’s grandfather was legendary real estate developer Ray Watt) Sadie went to work for Watt Companies where she developed robust marketing and public relations experience. Sadie left the corporate world to lovingly raise her children. It was Sadie’s passion for creativity that drove her back into homebuilding. Sadie created Williams Homes’ first in-house design team, which spearheads home design, product development, and model merchandising. Over the past ten years, Sadie has overseen 60+ sales office and model home installations. Furthermore, Sadie brings her decades of industry knowledge and insight to the Board of Directors for Watt Ventures and Williams Homes. Sadie Williams is the Product Development Director, but more than that she exudes grace, grit, and the heart of Williams Homes.

Management
Matt Klein
Chief Financial Officer

Mr. Klein originally joined Williams in 2004 as the SVP of Finance and Operations. In 2009, Mr. Klein relocated to the east coast where he spent over ten years in both consulting and private equity, including the completion of several real estate and real estate service company transactions. In 2019, Mr. Klein moved to Austin, Texas and began consulting for Williams on land acquisition efforts, and rejoined Williams in 2020 as the Texas Division President. During his original tenure with Williams, Mr. Klein oversaw acquisition, development, construction, and financing alongside Mr. Williams and he will perform the same functions for the Texas Division while building a physical base of operations for Williams in Texas. In 2021, Mr. Klein took on the role of Chief Financial Officer in addition to his Texas Division President position. Mr. Klein received his bachelor’s degree in Finance, Real Estate and Law from California State Polytechnic University, Pomona in 1993 and his master’s degree in Business Administration from the University of Texas at Austin in 1999.

Management
Dan Faina
Chief Marketing Officer

As both the Chief Marketing Officer and Southern California Division President of Williams Homes, Daniel Faina provides strategic leadership and plays an integral role in all aspects of operations within Williams Homes' growing portfolio of communities including acquisitions, design, and development. During his tenure at Williams, Dan has played an active part in the development of numerous communities in Southern and Central Coast California, Idaho, Montana, and now in Northern California and Texas. Along with Williams Homes’ executive management team, Dan is continually expanding and redefining the company’s business plan to satisfy everchanging homebuyer demands and market opportunities. He bases the foundation of each new community on the company’s mission statement, which is a commitment to building communities and creating homes with a family approach. In his current role as well as throughout his history at the company, Dan has taken part in developing the right people, processes, and technology to deliver the highest level of quality, reliability, and attainability for Williams’ homeowners. Dan joined Williams Homes in 2007 and has served as Southern California Division President since 2019 after serving as Vice President of Sales and Marketing. He is passionate about sharing his industry insights and expertise through his involvement with the Building Industry Association of Southern California, the Greater Sales and Marketing Council, local chambers of commerce, advisory councils, and numerous other industry and community affiliations. Thanks to his strong leadership role at Williams Homes and the industry at large, Dan was recognized in 2018 by Professional Builder magazine in its annual list of 40 Under 40 Superstars in the homebuilding industry. Dan and his family reside in Santa Clarita, California.

Property
For more information, view the Sponsor's Investment Memorandum.

This is a rare opportunity to build and sell 58 market-rate, single-family attached homes with no entitlement risk in the City of Los Angeles, California. The Project has all required entitlements. The plan approvals are in-process, and development is expected to begin in the third quarter of 2022.  The Property is owned by Williams Homes, and financing has been arranged and recorded with Farmers and Merchants bank to fund the remaining development and construction costs.

Unit Type     # of Units Avg SF/Unit $ / Unit $ / SF $ / Unit $ / SF % of Total
Plan 1 Townhome   18 1350 $520,979 $385.91 $619,778 $459.09 84%
Plan 1A Townhome   3 1056 $407,521 $385.91 $557,000 $527.46 73%
Plan 1B Townhome   3 1329 $512,874 $385.91 $620,000 $466.52 83%
Plan 2 Townhome   12 1425 $549,922 $385.91 $638,000 $447.72 86%
Plan 3 Townhome   14 1465 $565,358 $385.91 $657,286 $448.66 86%
Plan 4 Townhome   6 1675 $646,399 $385.91 $712,000 $425.07 91%
Plan 4A Townhome   2 993 $383,209 $385.91 $562,000 $565.96 68%
Total/Averages   58 1398 $539,615 385.91 $636,914 $455.49 85%
Comparables
For more information, view the Sponsor's Investment Memorandum.

Sales Comparables

Address 9516 Corterra Ln, Panorama City, CA 91402 9037 Noble Ave
North Hills, CA 91343
19535 Cardin Pl, Northridge, CA 91324 9850 N Lassen Ct, North Hills, CA 91343 19509 Astor Pl, Northridge, CA 91324 Average 9433 Sepulveda Blvd, North Hills, CA 91343 (Subject)
Date Sold 5/27/2022 8/8/2022 7/8/2022 4/26/2022 7/8/2022   New
Year Built 2022 2022 2018 2018 2018 2020 2023
# of Units 1 1 1 1 1 1 58
Average Unit Size 1805 SF 1750 SF 1188 SF 1811 SF 1645 SF 1,640 SF 1398 SF
Sale Price $850,000 $820,000 $715,000 $715,000 $850,000 $790,000 $636,914
$/Unit $850,000 $820,000 $715,000 $715,000 $850,000 $790,000 $636,914
$/SF $470.91 $468.57 $601.85 $394.81 $516.72 $490.57 $458.31
Building Size 1,805 SF 1,750 SF 1,188 SF 1,811 SF 1,645 SF 1,640 SF 1,398 SF
Distance from subject 0.9 mi 1 mile 6.1 mi 0.7 mi 6.1 mi 3.5 mi  
Financials
For more information, view the Sponsor's Investment Memorandum.
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Debt $16,653,495 $287,129
GP Investor Equity(1) $5,500,000 $94,828
LP Investor Equity $3,000,000 $51,724
Sales Proceeds $6,143,216 $105,918
Total Sources of Funds $31,296,711 $539,598
     
Uses of Funds $ Amount $/Unit
Land Acquisition Price $7,250,000 $125,000
Development Fee $1,239,696 $21,374
Loan Fee $210,000 $3,621
Closing Costs $15,000 $259
Hard Costs $14,175,991 $244,414
Hard Cost Contingency $474,918 $8,188
Soft Costs $3,272,012 $56,414
Soft Cost Contingency $535,098 $9,226
G & A Costs $1,472,340 $25,385
Financing Costs Interest $676,478 $11,663
Warranty $368,085 $6,346
Other Costs - Marketing & Sales $1,607,093 $27,709
Total Uses of Funds $31,296,711 $539,598

(1) The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: Farmers & Merchants Bank
  • Term: 3 Years
  • Loan-to-Cost(2)55.0%
  • Estimated Proceeds: $16,653,495
  • Interest Type: Fixed
  • Annual Interest Rate: 4.50%
  • Interest-Only Period: 3 Years
  • Amortization: None
  • Prepayment Terms: Repaid at par from each home closing.
  • Extension Requirements: One-year extension available. Must have no defaults and pay fee.

(1) 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. 

(2) The loan-to-cost ratio in debt assumptions reflects a requirement of the lender. It is pertaining to funding the construction costs, which is different from the debt percentage in the capital stack on both the online Offering Page and the Project Summary.  

Distributions

Williams Homes intends to make distributions as follows:

  1. First, to the Members, pro rata, based on their respective unreturned Capital Contributions until fully paid and returned;
  2. Second, to the Members, pro rata, based on their respective Capital Contributions, the Preferred Return thereon until said Preferred Return is fully paid;
  3. Third, the remaining Distributable Cash shall be distributed as follows:
    1. Fifty percent (50%) to the Members, pro rata, based on their respective Percentage Interests; and
    2. Fifty percent (50%) to the Manager.

"Preferred Return" shall mean and refer to a return of ten percent (10%) per annum, cumulative but not compounded, on unreturned Capital Contributions from the date on which the Capital Contributions are funded.

Williams Homes intends to make distributions to investors after the payment of the company's liabilities (loan payments, operating expenses, and other fees as more specifically set forth in the LLC agreements, in addition to any member loans or returns due on member loan).

Distributions are expected to start in August 2023 and are projected to continue on a monthly basis thereafter. Distributions are at the discretion of Williams Homes, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Williams Homes will receive a promoted/carried interest as indicated above.

Project-Level Cash Flows
  Year 0 Year 1 Year 2
Net Cash Flow ($8,500,000) $2,337,976 $11,673,814
           
RM Platform Investor-Level Cash Flows¹
  Year 0 Year 1 Year 2
Net Cash Flow ($3,000,000) $788,978 $3,276,835
           
RM Platform Investor-Level Cash Flows - Hypothetical $50,000 Investment¹
  Year 0 Year 1 Year 2
Net Cash Flow ($50,000) $13,150 $54,614

(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.

 

Fees

Certain fees and compensation will be paid over the life of the transaction; please refer to Williams Homes' 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
G&A Fee 4.0% of Gross Revenue Williams Homes Upfront Capitalization
Sales Commission Fee 1.5% of Gross Revenue Williams Homes Closing Proceeds
Warranty Fee 1.0% of Gross Revenue Williams Homes Closing Proceeds
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
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.

.

Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Debt $16,653,495 $287,129
GP Investor Equity(1) $5,500,000 $94,828
LP Investor Equity $3,000,000 $51,724
Sales Proceeds $6,143,216 $105,918
Total Sources of Funds $31,296,711 $539,598
     
Uses of Funds $ Amount $/Unit
Land Acquisition Price $7,250,000 $125,000
Development Fee $1,239,696 $21,374
Loan Fee $210,000 $3,621
Closing Costs $15,000 $259
Hard Costs $14,175,991 $244,414
Hard Cost Contingency $474,918 $8,188
Soft Costs $3,272,012 $56,414
Soft Cost Contingency $535,098 $9,226
G & A Costs $1,472,340 $25,385
Financing Costs Interest $676,478 $11,663
Warranty $368,085 $6,346
Other Costs - Marketing & Sales $1,607,093 $27,709
Total Uses of Funds $31,296,711 $539,598

(1) The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: Farmers & Merchants Bank
  • Term: 3 Years
  • Loan-to-Cost(2)55.0%
  • Estimated Proceeds: $16,653,495
  • Interest Type: Fixed
  • Annual Interest Rate: 4.50%
  • Interest-Only Period: 3 Years
  • Amortization: None
  • Prepayment Terms: Repaid at par from each home closing.
  • Extension Requirements: One-year extension available. Must have no defaults and pay fee.

(1) 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. 

(2) The loan-to-cost ratio in debt assumptions reflects a requirement of the lender. It is pertaining to funding the construction costs, which is different from the debt percentage in the capital stack on both the online Offering Page and the Project Summary.  

Distributions

Williams Homes intends to make distributions as follows:

  1. First, to the Members, pro rata, based on their respective unreturned Capital Contributions until fully paid and returned;
  2. Second, to the Members, pro rata, based on their respective Capital Contributions, the Preferred Return thereon until said Preferred Return is fully paid;
  3. Third, the remaining Distributable Cash shall be distributed as follows:
    1. Fifty percent (50%) to the Members, pro rata, based on their respective Percentage Interests; and
    2. Fifty percent (50%) to the Manager.

"Preferred Return" shall mean and refer to a return of ten percent (10%) per annum, cumulative but not compounded, on unreturned Capital Contributions from the date on which the Capital Contributions are funded.

Williams Homes intends to make distributions to investors after the payment of the company's liabilities (loan payments, operating expenses, and other fees as more specifically set forth in the LLC agreements, in addition to any member loans or returns due on member loan).

Distributions are expected to start in August 2023 and are projected to continue on a monthly basis thereafter. Distributions are at the discretion of Williams Homes, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Williams Homes will receive a promoted/carried interest as indicated above.

Project-Level Cash Flows
  Year 0 Year 1 Year 2
Net Cash Flow ($8,500,000) $2,337,976 $11,673,814
           
RM Platform Investor-Level Cash Flows¹
  Year 0 Year 1 Year 2
Net Cash Flow ($3,000,000) $788,978 $3,276,835
           
RM Platform Investor-Level Cash Flows - Hypothetical $50,000 Investment¹
  Year 0 Year 1 Year 2
Net Cash Flow ($50,000) $13,150 $54,614

(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.

 

Fees

Certain fees and compensation will be paid over the life of the transaction; please refer to Williams Homes' 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
G&A Fee 4.0% of Gross Revenue Williams Homes Upfront Capitalization
Sales Commission Fee 1.5% of Gross Revenue Williams Homes Closing Proceeds
Warranty Fee 1.0% of Gross Revenue Williams Homes Closing Proceeds
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
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.

.

Disclosures
RM Securities, LLC and its Affiliates Compensation

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, LLC

Sponsor 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 Documents

The 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 Investment

This 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 Assumptions

Sponsor 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 Performance

Any 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 Debt

A 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 Registered

Sponsor’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 Advice

Nothing 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 Risk

Internal 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.

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