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.
Sourced through a limited marketing process due to a strong broker relationship, the basis of $229K/unit for the Property is well below replacement cost and represents an in-place cap rate above 5% (vs. market cap rates of low-mid 4%). In addition to a compelling yield, the acquisition basis is at a significant discount to recent trades in the area. This combination of factors is incredibly rare in the Phoenix market.
Only 20% of the units at the Property have been renovated to date, leaving 80% to be upgraded with expected rental premiums to average over $170. Prior ownership also spent nearly $1 million to upgrade the common areas, providing a strong foundation from which to continue the value-add program.
Located in Phoenix's rapidly expanding West Valley, Cordova sits just off the Interstate-10 freeway allowing residents easy access to nearby employment corridors as well as convenient retail centers. Thanks to strong population and employment growth coupled with robust infrastructure investment, the submarket has been one of the top-performing areas for rent growth and occupancy in the Phoenix metro.
SB Real Estate Partners
Founded in 2017, SB Real Estate Partners (“SBREP”) is a multifamily investment firm committed to acquiring and asset managing value add investments throughout the Western United States. With an extensive track record in the institutional multifamily space, SBREP consistently sources compelling investment opportunities with the goal of maximizing value and risk adjusted returns for their partners.
https://www.sbrep.com/-
Srijin BandyopadhyayManaging Principal
Srijin Bandyopadhyay is the Managing Principal for SB Real Estate Partners. Prior to founding SBREP, Srijin was responsible for sourcing, diligencing and closing over $1.2 billion of multifamily acquisitions throughout the west coast for Greystar Real Estate Partners. Srijin holds an MBA from the UCLA Anderson School of Management and a Bachelor’s Degree from Washington University in St. Louis. Srijin resides in Orange County, Southern California, with his wife and two children.
| Property | City, State | Asset Type | Acq Date | Units | Purchase Price | Sale Price/Est. Value |
| 95 Burnett | Renton, WA | Multifamily | Oct-18 | 106 | $26,850,000 | $40,000,000 |
| Cordova | Phoenix, AZ | Multifamily | Jun-19 | 320 | $32,250,000 | $51,100,000 |
| Bridge Creek | Vancouver, WA | Multifamily | Oct-19 | 270 | $55,900,000 | $75,000,000 |
| Val Vista | Mesa, AZ | Multifamily | Jan-20 | 98 | $15,400,000 | |
| Portola | Phoenix, AZ | Multifamily | Aug-20 | 141 | $20,000,000 | $36,600,000 |
| Seventeen805 | Phoenix, AZ | Multifamily | Nov-20 | 138 | $29,750,000 | |
| Portola West (formerly Casa Anita) | Phoenix, AZ | Multifamily | Dec-20 | 224 | $35,300,000 | $59,800,000 |
| ReNew 3030 | Mesa, AZ | Multifamily | Aug-21 | 126 | $24,300,000 | |
| East 3434 | Phoenix, AZ | Multifamily | Sep-21 | 128 | $27,500,000 | |
| ReNew Redlands | Redlands, CA | Multifamily | Oct-21 | 124 | $46,200,000 | |
| The Russell | Las Vegas, NV | Multifamily | Oct-21 | 241 | $67,000,000 | |
| St. Croix | Las Vegas, NV | Multifamily | Dec-21 | 256 | $73,100,000 | |
| Bloom 24 | Phoenix, AZ | Multifamily | Jan-22 | 114 | $34,200,000 | |
| Bridge Creek (recap) | Vancouver, WA | Multifamily | Jan-22 | 270 | $75,000,000 | |
| Cantamar | Phoenix, AZ | Multifamily | Mar-22 | 180 | $58,100,000 | |
| Azura | Phoenix, AZ | Multifamily | Jun-22 | 387 | $91,000,000 | |
| The Montana | Phoenix, AZ | Multifamily | Jul-22 | 134 | $50,500,000 | |
| Obsidian on Ocotillo | Glendale, AZ | Multifamily | Aug-22 | 232 | $56,400,000 | |
| Total | 3,489 units | $818,750,000 |
The above bios and track record were provided by SB Real Estate Partners and have not been independently verified by RealtyMogul.
SBREP's CapEx budget totals approximately $3.6M or just over $11K/door to address interior and common area renovations, along with various deferred maintenance and asset preservation items. The interior scope totals $1.6M across 131 of the unrenovated units ($12.5K/door) and includes: vinyl plank flooring, stainless steel appliance package, new cabinet doors with painted boxes, resurfaced countertops, a modern light-gray two-tone paint scheme, and an enhanced lighting/hardware/plumbing package.
Common area improvements total approximately $380K or ~$1.2K/door and include a modern exterior paint scheme to significantly improve the drive-by/curb appeal of the property, new FF&E for the pool areas, as well as new signage at the property.
Finally, the deferred maintenance and asset preservation budget of approximately $1.44M or $4.5K/door includes reserves for HVAC repair and maintenance, parking lot asphalt and seal coating, pool surface and repairs, roof repairs, and general asset preservation reserves over the hold.
CapEx Breakdown
| $ Amount | # of Units | Per Unit | |
| Interior Renovations | |||
| Roll vinyl flooring and/or carpet | $327,500 | 131 | $2,500 |
| Faux stainless steel or black appliances | $393,000 | 131 | $3,000 |
| Shaker Cabinet Doors (paint boxes) | $196,500 | 131 | $1,500 |
| Resurfaced Counters | $65,500 | 131 | $500 |
| Undermount sinks | $65,500 | 131 | $500 |
| Backsplash | $52,400 | 131 | $400 |
| Two-Tone Paint | $65,500 | 131 | $500 |
| New blinds | $65,500 | 131 | $500 |
| Lighting Fixtures | $65,500 | 131 | $500 |
| Hardware - General | $65,500 | 131 | $500 |
| New Baseboards | $65,500 | 131 | $500 |
| Labor / Contingency | $209,600 | 131 | $1,600 |
| Total Interior Renovation Costs | $1,637,500 | 131 | $12,500 |
| Common Area Renovations | |||
| Exterior Paint | $250,000 | 320 | $781 |
| Pool FF&E | $50,000 | 320 | $156 |
| Miscellaneous | $50,000 | 320 | $156 |
| Signage | $30,000 | 320 | $94 |
| Total Common Area Renovations | $380,000 | 320 | $1,188 |
| Total Deferred Maint. & Asset Preservation Costs | $1,440,000 | 320 | $4,500 |
| Contingency (5%) | $172,875 | 320 | $540 |
| Grand Total | $3,630,375 | 320 | $11,345 |
SB Real Estate Partners (“SBREP”) is currently under contract to purchase Cordova for $73.3M and is underwriting to investor-level returns of 17.1% IRR / 1.82 equity multiple over a 4-year hold. Built in 1985, Cordova offers a diverse mix of 1-bedroom, and 2-bedroom floorplans averaging 709 square feet with washers and dryers in all units. The Property is well amenitized, featuring two recently renovated swimming pools with sundecks, an outdoor grill and patio area, a fitness center, business center, upgraded dog park, and racquetball courts. Only 20% of the units at the property have been renovated and, as a result, there is an opportunity to substantially renovate, re-brand, and reposition the property in order to bring rents closer to surrounding, comparable properties that are currently well above Cordova.
| Unit Type | # of Units | Avg SF/Unit | Avg Rent (In-Place) | Avg Rent (Post-Reno) | Avg Rent Per SF (In-Place) | Avg Rent Per SF (Post-Reno) |
| Renovated | ||||||
| 1x1 | 9 | 625 | $1,274 | $1,380 | $2.04 | $2.21 |
| 2x1A | 21 | 670 | $1,440 | $1,485 | $2.15 | $2.22 |
| 2x1B | 16 | 740 | $1,458 | $1,530 | $1.97 | $2.07 |
| 2x2 | 16 | 880 | $1,563 | $1,635 | $1.78 | $1.86 |
| Non-Renovated | ||||||
| 1x1 | 63 | 625 | $1,085 | $1,255 | $1.74 | $2.01 |
| 2x1A | 99 | 670 | $1,185 | $1,485 | $1.77 | $2.22 |
| 2x1B | 64 | 740 | $1,256 | $1,380 | $1.70 | $1.86 |
| 2x2 | 32 | 880 | $1,321 | $1,635 | $1.50 | $1.86 |
| Total/Averages | 320 | 709 SF | $1,245 | $1,441 | $1.76/SF | $2.03/SF |
Lease Comparables
| Rise Skyview | Sunpointe Apartments | Rise Desert West | Rise Estrella Park | Averages | Subject (Post-Reno) | |
| Year Built | 1985 | 1984 | 1984 | 1986 | 1985 | 1985 |
| Class | B | B | B | B | B | |
| # of Units | 244 | 152 | 204 | 224 | 206 | 320 |
| Average Unit Size | 845 SF | 806 SF | 672 SF | 892 SF | 804 SF | 709 SF |
| Levels | 2 | 2 | 2 | 2 | 2 | 2 |
| Occupancy | 86.1% | 98.0% | 93.6% | 90.2% | 92.0% | 95.6% |
| Distance from subject | 0.7 mi | 1.0 mi | 1.6 mi | 2.7 mi | 1.5 mi | |
| $/Unit (1x1) | $1,500 | $1,352 | $1,188 | $1,500 | $1,385 | $1,271 |
| SF (1x1) | 720 SF | 649 SF | 569 SF | 709 SF | 662 SF | 625 SF |
| $/SF (1x1) | $2.08/SF | $2.08/SF | $2.09/SF | $2.12/SF | $2.09/SF | $2.03/SF |
| $/Unit (2x1) | $1,650 | N/A | $1,425 | N/A | $1,538 | $1,455 |
| SF (2x1) | 840 SF | N/A | 756 SF | N/A | 798 SF | 698 SF |
| $/SF (2x1) | $1.96/SF | N/A | $1.88/SF | N/A | $1.92/SF | $2.08/SF |
| $/Unit (2x2) | $1,750 | $1,645 | $1,525 | $1,650 | $1,643 | $1,635 |
| SF (2x2) | 1,000 SF | 917 SF | 858 SF | 978 SF | 938 SF | 880 SF |
| $/SF (2x2) | $1.75/SF | $1.79/SF | $1.78/SF | $1.69/SF | $1.75/SF | $1.86/SF |
Sales Comparables
| Rise Encore | Aspire Thunderbird | Tamarron Apartments | Crystal Creek | Aspire Desert West | Averages | Subject (Going-in) | |
| Date Sold | Jul-22 | May-22 | Apr-22 | Apr-22 | Apr-22 | ||
| Year Built | 1986 | 1984 | 2006 | 1984 | 1983 | 1989 | 1985 |
| # of Units | 376 | 152 | 328 | 273 | 104 | 247 | 320 |
| Average Unit Size | 752 SF | 716 SF | 1,118 SF | 708 SF | 807 SF | 820 SF | 709 SF |
| Sale Price | $125,000,000 | $45,000,000 | $128,000,000 | $77,500,000 | $30,800,000 | $81,260,000 | $73,300,000 |
| $/Unit | $332,447 | $296,053 | $390,244 | $283,883 | $296,154 | $319,756 | $229,063 |
| $/SF | $442/SF | $413/SF | $349/SF | $401/SF | $367/SF | $395/SF | $323/SF |
| Cap Rate | 3.50% | N/A | 2.53% | 3.50% | 3.80% | 3.33% | 5.04% |
| Building Size | 282,752 SF | 108,832 SF | 366,704 SF | 193,284 SF | 83,928 SF | 207,100 SF | 226,840 SF |
Market Overview
Apartment demand has climbed to unprecedented levels in the Phoenix multifamily market. Before the pandemic, fundamentals were solid and supported by some of the country's strongest employment and household growth that fueled demand and low levels of single-family inventory. Net absorption reached a record high in 2021 and outpaced new supply by a wide margin. Rents continue to climb, and Phoenix remains one of the top markets in the country for rent growth. Rent gains have consistently outperformed the U.S. average over the past five years, but Phoenix maintains its place as an affordable market in the Western region.
The competitive advantage and growth drivers that have historically stimulated growth in the Valley of the Sun may be stronger than ever. Affordability and job prospects are attracting people living in dense and expensive cities to Phoenix. Businesses are selecting Phoenix to expand because of the extensive labor pool and relative affordability. While the metro was heavily reliant on housing and construction before the GFC, the economy has evolved into a bustling technology and financial hub. This diversification of industry has helped Phoenix perform best among its peers (Source: CoStar).
Submarket Overview
Fundamentals in the West Valley have strengthened thanks to strong demand for relatively lower-cost units. Healthy absorption has compressed vacancies to a record low, and rent growth has accelerated. The submarket's annual rent growth rate of 25.7% was above the market average of 18.8%. The submarket ranked 3rd of the 23 submarkets in the Phoenix metro for quarterly effective rent growth and 1st for annual effective rent growth for 2Q22. Even with this staggering rent growth, the submarket's occupancy rate has remained strong at 95.7% in 2Q22, thanks to a very minimal development pipeline.
The West Valley has established itself as Phoenix's industrial hub with over 12.2M sq. ft. of industrial and logistics space completed in 2021, an additional ±4.6M sq. ft. delivered in Q1 2022, and ±17.7M sq. ft. currently under construction. This rampant development has helped bring growing companies and immense employment opportunities to the area with companies such as Amazon, Marshalls, Chewy, and Macy's leading the way. Spurred on by rapid employment and population growth the West Valley has seen significant investment in infrastructure such as the recently completed Loop-202 expansion, Arizona’s largest highway project to date, allowing commuters access to the west valley via Chandler. The freeway is projected to carry 190,000 vehicles per day by 2035 and bring increased traffic to the West Valley (Sources: Axiometrics & CoStar).
Total Capitalization
| Sources of Funds | $ Amount | $/Unit |
| Debt | $46,199,160 | $144,372 |
| GP Investor Equity(1) | $1,166,250 | $3,644 |
| LP Investor Equity | $31,771,400 | $99,285 |
| Total Sources of Funds | $79,136,810 | $247,303 |
| Uses of Funds | $ Amount | $/Unit |
| Purchase Price | $73,300,000 | $229,063 |
| Acquisition Fee | $916,250 | $2,863 |
| Loan Fees | $420,295 | $1,313 |
| Closing Costs | $469,890 | $1,468 |
| CapEx | $3,630,375 | $11,345 |
| Working Capital | $400,000 | $1,250 |
| Total Uses of Funds | $79,136,810 | $247,303 |
(1) The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.
The expected terms of the debt financing are as follows:
- Lender: Fannie Mae
- Term: 10 Years
- Loan-to-Value: 63.0%
- Loan-to-Cost: 58.4%
- Estimated Proceeds: $46,199,160
- Interest Type: Fixed
- Annual Interest Rate: 4.76%
- Interest-Only Period: 10 Years
- Amortization: 30 Years
- Prepayment Terms: Yield Maintenance
(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.
SBREP intends to make distributions as follows:
- To the Investors, pari passu, all operating cash flows to an 8.0% Preferred Return;
- 70% / 30% (70% to Investors / 30% to Promoted/Carried Interest) of excess cash flow thereafter.
SBREP intends to make distributions to investors after the payment of the company's liabilities (loan payments, operating expenses, and other fees as more specifically set forth in the LLC agreements, in addition to any member loans or returns due on member loan).
Distributions are expected to start in February 2023 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of SBREP, who may decide to delay distributions for any reason, including maintenance or capital reserves.
SBREP will receive a promoted/carried interest as indicated above.
| Cash Flow Summary | |||||||
| Year 1 | Year 2 | Year 3 | Year 4 | ||||
| Effective Gross Revenue | $5,054,391 | $5,752,428 | $6,411,114 | $6,830,673 | |||
| Total Operating Expenses | $1,518,692 | $1,592,889 | $1,668,425 | $1,719,519 | |||
| Net Operating Income | $3,535,699 | $4,159,539 | $4,742,689 | $5,111,155 | |||
| Project-Level Cash Flows | |||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |||
| Net Cash Flow | ($32,937,650) | $1,163,711 | $1,758,855 | $2,344,776 | $63,563,748 | ||
| Investor-Level Cash Flows(1) | |||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |||
| Net Cash Flow | ($5,000,000) | $126,654 | $216,998 | $305,942 | $8,455,061 | ||
| Investor-Level Cash Flows - Hypothetical $50,000 Investment(1) | |||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |||
| Net Cash Flow | ($50,000) | $1,267 | $2,170 | $3,059 | $84,551 | ||
(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 SBREP'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 |
| Acquisition Fee | 1.25% of Purchase Price | SBREP | Capitalized Equity Contriibution |
| 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 |
| Asset Management Fee | 1.5% of Effective Gross Income | SBREP | Cash Flow |
| Construction Management Fee | 5.0% of Hard Costs | SBREP | Cash Flow |
| 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.
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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.