FORMALIZED DUE DILIGENCE PROCESS 
Sponsors

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.

Escrow accounts

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.

Boots on the ground

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.

Detailed Checklists

We have formalized processes and checklists for every private placement deal listed on the platform.

Confidentiality Agreement
To access the Sponsor’s private offering documents for this investment, you must first acknowledge and agree to the below.
By clicking the ‘I Agree’ button below:
Completed Equity
Estimated Hold Period 7 Years
Estimated First Distribution 3/2017
FUNDED 100%
...
View Our Due Diligence Process
Offered By
Birge & Held Asset Management
Investment Strategy Value-Add
Investment Type Equity
Overview
Multifamily property with upside potential that is being acquired by an experienced local Sponsor who currently owns and manages eight other assets in Indianapolis.
Property at a glance
Year Built 1989
Number of Units 208
Current Occupancy 93%
Number of Parking Spaces 364 spaces (1.75 spaces per unit), including 52 carports
Amenities Fitness center, outdoor pool with sundeck, carports, dog park, package acceptance, 24‐hour emergency maintenance.
Acquisition Price $16,000,000
Investment Highlights
Recent leasing of renovated units is currently generating rental premiums in excess of those projected by the Sponsor
Well located near demand drivers such as Broad Ripple Village and Keystone at the Crossing with easy access to downtown Indianapolis
According to Axiometrics, annual rent growth in the submarket is expected to average 3.30% over the next five years, accompanied by an average 5.49% vacancy rate over the same period
Experienced local Sponsor who currently owns and manages over 3,500 multi-family units
Management
Cumulative Distributions

Birge & Held Asset Management

Birge & Held is a national apartment real estate, private equity and investment firm located in Carmel, Indiana.  In an effort to take advantage of strategic real estate acquisition opportunities in the distressed real estate marketplace, J. Taggart Birge and Andrew J. Held started what is now Birge & Held in 2008.  Birge & Held has acquired and managed over $400,000,000 in multi-family assets across the country and currently employs over 80 professionals, per the Sponsor.  Through private equity and creative debt structures, Birge & Held continues to grow its portfolio of assets.  For capital investors who seek to identify and pursue apartment real estate opportunities, Birge & Held provides an experienced operating partner.

http://www.birgeandheld.com/
  • Tag Birge - CEO
  • Andrew Held - President & COO
Tag Birge - CEO

Mr. Birge has been involved in commercial development and financing since 1997. He graduated cum laude from Indiana University in 1993 (BA – Political Science). In 1997, he received his JD from the University of Virginia and joined Bose McKinney & Evans, LLP, Indianapolis, Indiana, as an associate, becoming a partner in the real estate group in 2004. His legal practice focused on office and industrial development representing Duke Realty Corporation on numerous transactions around the United States. As an attorney, Mr. Birge was ranked by his peers as one the best real estate attorneys in the State of Indiana. 

In 2004, Mr. Birge withdrew from the partnership of Bose McKinney & Evans and joined Lauth Property Group. While at Lauth Property Group, Mr. Birge developed approximately $200 million worth of office and health care buildings around the country. Initially, Mr. Birge ran the Midwest office and health care development for Lauth Property Group and in 2007 assumed responsibility for all of Lauth’s medical development in the United States. During his tenure at Lauth, they were named a top ten developer of medical office buildings as tracked by Modern Healthcare. 

Since 2008, Mr. Birge has overseen the acquisition, financing and management of BH's $230 million in multifamily assets. Mr. Birge currently serves on the Board of Directors of Bowen Engineering, the Sports Corporation Board, Heart of Gold Charity Board, and the Orchard School Board of Trustees.

Andrew Held - President & COO

Mr. Held has been involved in commercial and residential development and financing since 2003. He graduated from Indiana University in 1999 (BA – History) where he was a student-athlete and received academic All-American honors. In 2002, he received his JD from the Indiana University School of Law and practiced with the law firms of Hackman Hullet & Cracraft and Bose McKinney & Evans. His practice areas focused on commercial and residential real estate development, handling acquisitions, leasing, financing and dispositions for many of the largest commercial development and construction companies in the United States.

In 2007, Mr. Held received his MBA with a finance focus from Butler University. Since 2008, Mr. Held has overseen BH’s acquisition, financing and management of the company’s $230 million in multifamily assets. Mr. Held currently serves as the President of the Penrod Society focused on raising millions of dollars to serve the Indiana cultural and arts community. He was recently named to the Indianapolis Business Journal’s 2013 “Forty Under Forty” Class.

Track Record

Currently Owned Assets
Property Name Location Number of Units Date Acquired Total Cost Basis
Aurum Indianapolis, IN 208 2/12/13 $13,940,593
Beacon Hill Apartments Indianapolis, IN 14 4/1/13 $1,000,000
Clinton Estates Indianapolis, IN 184 7/1/13 $13,553,680
College Court Condominiums Frankfort, IN 48 11/25/13 $1,800,000
Cypress Square Apartments Indianapolis, IN 188 3/27/14 $12,350,000
Eagle Creek Apartments Muncie, IN 67 4/25/14 $5,279,925
Echo Ridge Apartments Muncie, IN 36 4/25/14 $2,376,609
Elston Point Apartments Elkhart, IN 76 10/16/14 $3,550,000
English Village Apartments Elkhart, IN 95 10/16/14 $3,300,000
Greenleaf Hunter's Pond Apartments Indianapolis, IN 208 10/22/14 $8,600,000
Kensington/Chesterfield South Bend, IN 60 11/7/14 $6,000,000
Parc Bordeaux Apartments Bloomington, IN 62 11/7/14 $4,000,000
Pheasant Run Apartments Indianapolis, IN 208 12/9/14 $8,700,000
Railway Manor Bloomington, IN 32 8/31/15 $3,575,000
Regency Park Indianapolis, IN 632 9/18/15 $45,000,000
The Arbors Bloomington, IN 24 10/6/15 $2,732,000
The Oaks of Eagle Creek Apartments Indianapolis, IN 304 12/22/15 $15,322,000
Walnut Springs Apartments Lafayette, IN 62 1/19/16 $3,882,000
Woodwind Apartments Lafayette, IN 44 1/28/16 $2,220,000
The Villager Centerville, OH 276 2/19/16 $22,900,000
Chesapeake Landing Centerville, OH 256 4/28/16 $22,110,000
Beechmill Apartments Indianapolis, IN 256 5/6/16 $19,175,000
Trails at Lakeside Apartments Indianapolis, IN 208 9/8/16 $18,100,000
Lakeshore Apartments Indianapolis, IN 740 9/15/16 $84,900,000
Cross Creek Apartments Indianapolis, IN 208 1/9/17 $14,725,000
Total   4,496   $339,091,808
Sold Assets
Property Name Location Number of Units Date Acquired Total Cost Basis Sale Price
Harborview Condominiums San Diego, CA 81 3/1/09  $20,406,491 $22,000,000
Bear Valley Apartments San Diego, CA 24 11/8/10  $4,200,000 $4,900,000
Walnut Manor Apartments Muncie, IN 120 11/30/11  $2,471,700 $4,850,000
Centro Apartments San Diego, CA 60 12/19/11  $11,213,764 $15,800,000
Palm Valley Apartments Goodyear, AZ 264 4/1/12  $22,925,000 $27,200,000
Fox Brook Apartments Muncie, IN 41 4/2/12  $1,275,000 $1,900,000
Total   590   $62,491,955 $76,650,000
Total Currently Owned and Sold   5,086   $401,583,763 $76,650,000

*Performance information provided by the Sponsor

In this transaction, RealtyMogul.com investors will invest in Realty Mogul 34, LLC. Realty Mogul 34, LLC is to subsequently invest in BH Trails at Lakeside, LLC, a limited liability company that is to (through another wholly-owned entity) hold title to the Property.  

Birge & Held Asset Management (the "Sponsor") believes that rents at the Property are currently below market, and plans to implement approximately $2,100,000 ($10.1K per unit) of interior and exterior renovations to achieve rental increases averaging $112/unit, a 14% increase. Renovated units at the property are currently achieving rental premiums of $127 - $171 per unit. To date, only 14 units at the Property have been renovated, while 23 have been mildly updated under the previous ownership. The Sponsor intends to renovate an additional 180 units over a 30 month time frame. $8K/unit has been budgeted for interior renovations which will include new kitchen and bathroom cabinets, counters, sinks, LVT wood flooring in the kitchen, bathrooms and common areas, new kitchen appliances, doors, and fixtures, along with new paint and trim. Exterior renovations of $660K have been budgeted and will include a fitness center expansion, clubhouse remodel, siding replacement, new signage, and grounds landscaping.

The Sponsor also intends to enhance the overall operations of the Property through improved management and marketing efforts, drawing from their ownership experience of 3,900 multifamily units to date (see Management Track Record).  Upon completion of the business plan, the Sponsor intends on selling the Property within seven years.

Summary

RealtyMogul.com, along with Birge & Held Asset Management, LLC (the "Sponsor"), is providing the opportunity to invest in the acquisition and renovation of a 208-unit multifamily property located in Indianapolis, IN (the "Property").

The primary objective of this investment is to acquire the Property, perform interior renovations on 180 of the units along with exterior and common area renovations, bring rents up to market, and sell the Property within approximately seven (7) years. 

The Sponsor sees this investment as an opportunity to capitalize on a well-located asset that has achieved rental premiums in excess of the Sponsor's projected rents on renovated units.

Property Information

Trails at Lakeside is a 208‐unit apartment community located on Indianapolis' affluent north side. The 1989‐built Property consists of one bedroom/one bathroom, two bedroom/one bathroom, two bedroom/two bathroom and three bedroom/ two bathroom garden‐style units. Units range in size from 594 square feet for a one bedroom to 1,246 square feet for a three bedroom. The exterior finish is oriented strand board (a wood product), and the roofs are pitched with asphalt shingles.

Community amenities include a fitness center, outdoor pool and sundeck, carports, dog park, package acceptance, and 24‐hour emergency maintenance. The property features 364 parking spaces (1.75 spaces per unit), including 52 carports, and is currently 93% occupied.​

Unit Mix
Unit Type # of Units % of Total Unit SF Avg. In-Place Rent Avg. In-Place Rent/ SF
1 Bed / 1 Bath (A1) 48 23.1% 594 $626 $1.05
1 Bed / 1 Bath (A2) 56 26.9% 752 $743 $0.99
2 Bed / 1 Bath 16 7.7% 910 $793 $0.87
2 Bed / 2 Bath 72 34.6% 1,056 $907 $0.86
3 Bed / 2 Bath 16 7.7% 1,246 $1,034 $0.83
Total/ Average 208 100% 871 $799 $0.94

 

Comparables

RENT COMPS
  1 Bed / 1 Bath 2 Bed / 1 Bath 2 Bed / 2 Bath 3 Bed / 2 Bath
Property Miles from Subject Built Renovated Occ. Avg. Size Avg. Rent Avg. Size Avg. Rent Avg. Size Avg. Rent Avg. Size Avg. Rent
Brockton 0.5 1964 Partial - 2013 95% 734 $794 844 $811 1,119 $994 1,340 $1,129
Ashford at Keystone 2.7 1967 Partial - 2013 94% 700 $720 900 $795 - - 1,056 $1,145
Monon Place - Phase I 3 1966 2013 96% - - 860 $913 1,088 $1,160 1,320 $1,732
Shadeland Station 4.6 1984 2011 99% 700 $728 - - 1,000 $868 - -
Chateau De Ville 0.1 1965 - 95% 700 $666 991 $768 1,350 $868 1,550 $990
Chateau in the Woods 0.3 1973 - 97% 712 $679 1,182 $799 1,144 $774 1,590 $1,009
Bayview Club 4.4 2003 - 94% 722 $795 - - 1,052 $855 1,242 $1,155
Average 2.2 1975   96% 711 $730 955 $817 1,126 $920 1,350 $1,193
Subject - In-Place   1989 Partial - 2015 93% 679 $676 910 $793 1,056 $907 1,246 $1,034
Discount to Comp Set         $54   $24   $13   $159


*Sources: Axiometrics, Costar, Tikijian Associates

SALES COMPS
Property Name Miles from Subject Date Sold Class Year Built Number of Units Sales Price Price/Unit Cap Rate
Bayview Club 4.4 May-15 B+ 2002 236 $25,300,000 $107,203 n/a
Woods of Castleton 5.6 May-16 B 1982 260 $16,500,000 $63,462 5.9%
Conner Farms 9.7 Dec-15 A- 1995 300 $33,200,000 $110,667 5.4%
Park at Eagle Creek 10.5 Mar-16 A- 1997 240 $24,300,000 $101,250 5.9%
Oaks of Eagle Creek 10.7 Sep-15 B 1987 632 $44,500,000 $70,411 6.2%
Eagle Lake Landing 12.3 Mar-15 B+ 1976 277 $13,200,000 $47,653 7.0%
Eagle Chase 12.5 Nov-15 B+ 1995 156 $15,736,041 $100,872 6.0%
Riverchase 13.4 May-15 B+ 2000 216 $16,150,000 $74,769 6.0%
Eagle Creek 14.3 Mar-14 B- 1972 188 $12,350,000 $65,691 6.7%
Village on Spring Mill 15.5 Oct-15 A- 1997 400 $50,000,000 $125,000 5.3%
Mission Hills 20.6 Oct-15 B+ 1982 267 $17,500,000 $65,543 6.4%
Total/ Average 11.8     1990 288 $24,430,549 $84,775 6.1%
Subject     B 1989 208 $16,000,000 $76,923 6.1%


Sources: Real Capital Analytics, Costar, Tikijian Associates

Location Information

Trails at Lakeside is located in a convenient location on the affluent North side of Indianapolis.  The Property is two miles East of the very popular Broad Ripple Village, one of the city’s six official Cultural Districts. Broad Ripple Village offers a high concentration of unique restaurants, bars, shops and live entertainment clubs and is one of the most popular entertainment districts in Indianapolis for college students and young adults. The Property is just a few miles south of the Keystone at the Crossing / Castleton area which is one of Indianapolis’ most affluent and desirable areas from a commercial and residential perspective. Keystone at the Crossing is home to a variety of high-end retail amenities including The Fashion Mall, an upscale shopping mall owned and operated by Simon Property Group, the largest owner of retail shopping malls in the United States with headquarters in Indianapolis. Downtown Indianapolis is a short 12 to 15‐minute drive South of the Property, offering an employment base of over 130,000 jobs and an abundance of entertainment opportunities.

Market Overview 

Indianapolis ranked as the nation's 14th largest city in 2015, according to estimates from the U.S. Census Bureau. Population of the Indianapolis Metropolitan Statistical Area (MSA), which includes Marion County, as well as Boone, Hamilton, Hancock, Hendricks, Johnson, Madison, Morgan, and Shelby counties, totaled 1,971,274 residents in 2014, making it the 33rd largest MSA in the country according to the Bureau of Economic Analysis (bea.gov).

Several national and multi-national companies have world, national or regional headquarters in Indianapolis. The national headquarters of pharmaceutical giant Eli Lilly, as well as many of the company's manufacturing facilities, are located in the city. Lilly employs approximately 12,000 people in greater Indianapolis. Simon Property Group, the country's largest shopping center developer, is based in Indianapolis and recently completed construction of a 15-story office building across from the Indiana Statehouse.  Adjacent to the Property is Community Hospital South, one of Community Health Network’s hospitals which received a $130 million expansion in 2010, a new world-class cancer center in 2014, and a two-story heart center in 2015.

No less than five traditional colleges and universities are located in Indianapolis. The largest, Indiana University-Purdue University at Indianapolis (IUPUI), is the state's third largest university, with a student body in excess of 30,000 and staff of over 6,800. Ivy Tech, a state-wide community college, has over 12,000 students studying in Indianapolis. Private schools Butler University, Marian University, and the University of Indianapolis have student populations which, taken together, total almost 12,000.

Submarket Overview

According to Axiometrics, the Castleton submarket has the fourth highest occupancy in the market (out of 12 submarkets), with a 2Q2016 average occupancy of 94.8%. Axiometrics predicts a 5.5% average vacancy rate over the next five years for the submarket, along with an effective annual rent growth of 3.3% over the same period.

Axiometrics - Annual Submarket Trend Report
Year 2016 2017 2018 2019 2020 2021
Submarket Vacancy 5.9% 5.7% 5.4% 5.0% 5.4% 6.0%
Average Rent Growth 2.8% 3.4% 3.6% 3.8% 3.0% 2.6%

Demographic Information

Demographics
Distance from Property 1 Mile 3 Miles 5 Miles
Population (2015) 7,843 87,994 224,994
Growth (2010-2015) 2.0% 3.4% 8.1%
Growth (2015-2020) 3.5% 3.8% 4.9%
Median Household Income (2015) $51,176 $46,481 $40,457

Demographic information above was obtained from CoStar and Census.gov

Cap Stack
Sources & Uses
Total Capitalization
Sources of Funds Cost
Debt $13,695,000
Equity $4,109,773
Total Sources of Funds $17,804,773
Uses of Funds Cost
Purchase Price $16,000,000
Bridge Loan Escrows & Other Costs $100,000
Sponsor Acquisition/ Guarantor Fee $240,000
HUD Financing Costs $18,110
Working Capital/ PCNA Contingency $102,500
Bridge Loan Financing Costs $94,163
Due Diligence, Legal & Closing Costs $50,000
Broker-Dealer Placement Fee $60,000
Capital Reserves (Pre-HUD) $1,140,000
Total Uses of Funds $17,804,773
Debt Assumptions

The projected terms of the debt financing are as follows:

Bridge Loan

  • Lender: Merchants Bank of Indiana
  • Total Proceeds: $13,695,000
  • Term: 12 Months
  • Rate: 30 Day LIBOR + 275 bps
  • Amortization: Interest Only
  • Loan to Cost: 76.9%
  • Loan to Purchase Price: 85.6%

Permanent Loan

  • Lender: HUD
  • Principal Balance: $15,420,000
  • Term: 35 Years
  • Rate: 3.50%
  • Amortization: 35 Years
  • Loan to Value: 85% of Purchase Price + Repair Reserves

There can be no assurance that a lender will provide debt on the rates and terms noted above, or at all. All rates and terms of the debt financing are subject to lender approval, including but not limited to possible increases in capital reserve requirements for funds to be held in a lender controlled capital reserve account.

Distributions

Order of Distributions to Realty Mogul 34, LLC (Operating Income)

  • First, to investors for any accumulated unpaid preferred return
  • Second, a cumulative non-compounded 8% annual preferred return
  • Then, any excess balance will be split 70% to members ​pari passu and 30% to Sponsor

Order of Distributions to Realty Mogul 34, LLC (Sales or Refinance Proceeds)

  • First, to investors for any accumulated unpaid preferred return
  • Second, return of Capital Contribution
  • Then, any excess balance will be split 70% to members ​pari passu and 30% to Sponsor

Realty Mogul 34, LLC is expected to distribute 100% of its share of excess cash flow (after expenses) to the members of Realty Mogul 34, LLC (the RealtyMogul.com investors).  The manager of Realty Mogul 34, LLC is to receive a portion (up to 10%) of the Sponsor's promote interest. Depreciation and tax losses will be allocated based on the promote structure, i.e. 70/30 (70% to members, 30% to Sponsor). Solely in connection with the contribution of the Property to a "real estate investment trust" (as defined under IRS Code Section 856), the Sponsor may require that after at least one year of ownership, investors agree to sell any portion of their equity units at a price equal to the greater of fair market value or the amount required to achieve a 20% IRR​ to the investor.

Distributions are projected to start in March 2017 and are projected to continue on a quarterly basis thereafter, until the Sponsor obtains HUD Financing, after which distributions are projected to be made semi-annually. These distributions are at the discretion of the Sponsor, who may decide to delay distributions for any reason, including maintenance or capital reserves.

 
Cash Flow Projections
  Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Effective Gross Revenue $2,038,383 $2,170,432 $2,313,664 $2,405,191 $2,486,923 $2,571,557 $2,657,128
Total Operating Expenses $927,630 $956,891 $1,013,135 $1,068,827 $1,125,688 $1,184,273 $1,218,734
Net Operating Income $1,110,753 $1,213,541 $1,300,528 $1,336,364 $1,361,235 $1,387,284 $1,438,394
Distributions to Realty Mogul 34, LLC Investors $100,900 $119,144 $159,976 $169,508 $176,251 $183,310 $2,633,993
Fees

Certain fees and compensation will be paid over the life of the transaction. The following fees and compensation will be paid:

Type of Fee Amount of Fee Received By Paid From Notes
One-Time Fees:
Acquisition/ Guarantor Fee $240,000 Sponsor Capitalized Equity Contribution 1.50% of the Property purchase price
Broker-Dealer Fee 4.0% North Capital (1) Capitalized Equity Contribution 4.0% based on the amount of equity invested by Realty Mogul 34, LLC
Recurring Fees:
Property Management Fee 4.0% of monthly gross revenue, plus $3.00 per unit per month Sponsor Operating Cash Flow 4.0% of monthly gross revenue, plus an additional $3.00 per unit per month for the use of the Sponsor's centralized office resources
Management and Administrative Fee 1.0% of amount invested in Realty Mogul 34, LLC RM Manager, LLC Distributable Cash  RM Manager, LLC is the Manager of Realty Mogul 34, LLC and a wholly-owned subsidiary of Realty Mogul, Co. (2)

Notes:
(1) Certain employees of Realty Mogul, Co. are registered representatives of, and are paid commissions by, North Capital Private Securities Corp., a Delaware corporation ("North Capital"). In addition, North Capital pays a technology provider services fee to Realty Mogul, Co. for licensing and access to certain technology, reporting, communications, branding, entity formation and administrative services performed from time to time by Realty Mogul, Co., and North Capital and Realty Mogul, Co. are parties to a profit sharing arrangement.

(2) Fees may be deferred to reduce impact to investor distributions

The above presentation is based upon information supplied by the Sponsor or others.  Realty Mogul, Co., RM Manager, LLC, and Realty Mogul 34, LLC, along with their respective affiliates, officers, directors or representatives (the "RM Parties") hereby advise you that none of them has independently confirmed or verified any of the information contained herein.  The RM Parties further make no representations as to the accuracy or completeness of any such information and undertake no obligation now or in the future to update or correct this presentation or any information contained herein.

The following offering documents 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.
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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