Risk and Quality Controls
Steps we take to mitigate risk on the Platform
Sponsors

We run extensive background checks, criminal checks, bad actor checks, and reference checks on sponsors. In addition to never allowing a sponsor with a criminal history / any securities related issue to use the platform, we may also turn down sponsors due to poor reference checks even if background and criminal checks come back clear.

Escrow accounts

We require unaffiliated sponsors to use an unaffiliated third-party escrow agent. When an investor makes an investment with unaffiliated 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 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.

Boots on the ground

Our controls include visiting every property (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.

Detailed Checklists

We have robust quality controls with detailed checklists and a review of third-party reports.

Prepare
Target IRR *
20%
Target Equity Multiple* 1.8X
Estimated Hold Period* 3-4 Years
...
View our Risk and Quality Controls.
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
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Ardent Housing Fund II, LP
Offered By
The Ardent Companies, LLC
Investment Strategy Diversified Fund
Investment Type Equity
Estimated First Distribution 11/2024
Minimum Investment 35000
Overview
Ardent Housing Fund II (AHF II) is a private real estate fund focused on generating above-average risk-adjusted returns through developing and operating rental housing in growing, undersupplied housing markets. AHFII has a fully identified pipeline of six assets.
Location

The Fund’s primary focus is on development within the Southern United States, a region that is increasing in population up to 70% faster than the national average with consistently sub-4% unemployment rates. The strategic focus is on growing, undersupplied housing markets that have been capital-constrained even though their underlying population and job growth statistics are often similar to many primary markets. The General Partner has capitalized on this unsatisfied demand by pursuing projects in these markets and engaging experienced development partners through Ardent’s established relationships. 

Asset Quality

Investors benefit from a Fund with fully identified assets and a shorter deployment period. The six assets that have been identified represent 1,449 units in aggregate, and as the Fund has already achieved its first resolution - investors capture the upside of increased buying power through the realized proceeds.

Management

Ardent and its co-General Partners combined have fully developed nearly 8,000 apartment units across the Southeastern United States and brings over 80 years of expertise in the development of apartment properties. The fund has four apartment properties under development currently, totaling 984 units. Additionally, the Fund has an established pipeline of 568 more units slated for development in growing submarkets in Florida and Georgia. While independent of Ardent Housing Fund II, Ardent’s seasoned and trusted multi-family development team has realized an average of 31.8% IRR and 2.19x on its exits within Ardent Housing Fund I.

Investment Highlights
Leverage Ardent's best-in-class asset management, experienced development teams, longstanding industry relationships, and in-depth data analysis to help effectuate asset-specific business plans for maximum value creation.
Focus on development opportunities in undersupplied markets where investments generate strong investor returns and an above-market yield on cost.
The Fund will pursue financing through HUD’s 221(d)(4) program, which provides non-recourse financing at up to 80% loan to cost.
Target primarily suburban, secondary, and tertiary markets with demonstrated or projected economic growth, with a focus on household creation, job creation, and wage growth.
The team is experienced in sourcing, entitlements, rezoning & horizontal development. Well-positioned to act on multifamily, single-family, and mixed-use opportunities. Active in multiple target markets across the Southeast.
Ardent's reputation for being a dynamic investor capable of expeditious due diligence and creativity focuses on reaching the closing table.
The Fund’s investments are hard real estate assets that will produce income at stabilization. Historically, real estate has exhibited a positive correlation to inflation and offered a natural hedge. The GP has the ability to reset rents, fluctuating based on market conditions. This ability is made further apparent due to the limited supply in the high-growth markets we have strategically identified.
Management
Cumulative Distributions

The Ardent Companies, LLC

Ardent is a privately held real estate firm focused on opportunistic and diversified investment strategies. With significant industry experience and a demonstrated track record, Ardent leverages its established relationships and capital flexibility to attain a diverse set of risk adjusted investments. The firm pursues opportunities with an innovative and disciplined approach, making material investments together with its limited partners for maximum alignment. As the firm continues to build upon its infrastructure, portfolio, and footprint, Ardent is committed to creating a positive impact on its employees, investors, and communities. Founded in 2012, Ardent has invested over $4.0 billion with $1.5 billion in assets currently under management. Ardent’s investment strategies extend across state lines and country borders, with a current presence in thirty states and two countries. As Ardent expands upon its geographic footprint, the firm continues to grow its employee base with team members based in Atlanta, Charlotte, New York City, and London.

https://theardentcompanies.com/
  • Matthew Shulman
    CEO/Managing Partner
  • Dror Bezalel
    CFO/Partner
Matthew Shulman
CEO/Managing Partner

Mr. Shulman is the CEO and Managing Partner of TAC and the CEO of each of the General Partner and the Advisor. Prior to forming TAC, Mr. Shulman was a Managing Director with Rialto Capital where he managed an origination platform for equity investments across Rialto’s strategies. In that role, Mr. Shulman oversaw deployment of capital into deals varying from performing and non-performing loans, equity investments directly in real estate and recapitalization of existing sponsors. In 2010, prior to the investment and acquisition focus, Mr. Shulman built and managed a team on the asset management side of Rialto. Prior to Rialto, Mr. Shulman was a founding partner at Fairway Capital Partners, a real estate distressed debt firm started in 2007. Fairway acquired direct real estate or loans secured by commercial and residential development real estate. Mr. Shulman received a B.A. in Political Science from the University of Arizona and an M.A. in Real Estate Finance from New York University. Mr. Shulman was also an adjunct professor of real estate finance at New York University.

Dror Bezalel
CFO/Partner

Mr. Bezalel is a Partner and CFO of Ardent and the CFO of each of the General Partner and the Advisor. Prior to forming Ardent, Mr. Bezalel was a principal and CFO/COO of Anthem Capital Partners, a Georgia based distressed debt real estate investor. Prior to Anthem, Mr. Bezalel worked as the COO for Fairway Capital Partners, a New York Based distressed debt real estate firm. Prior to Fairway Capital Partners, Mr. Bezalel was a senior CMBS loan underwriter at Morgan Stanley. Mr. Bezalel has been working in commercial real estate for more than 25 years and his experience includes commercial appraisal, commercial leasing, asset management and disposition. He received a BA in Business Management in Israel and an MS in Real Estate Development and Finance from New York University.


Please refer to the Documents section for Ardent's track record.

The bios and track record were provided by The Ardent Companies and have not been independently verified by RealtyMogul.

Business Plan

Fund at a Glance

Fund Size $100 Million
Target Yield on Cost 6.4%
Target # of Properties 6 Properties; Fully Identified
Estimated Hold Period 5 years from Initial Closing, with up to 2 two-year extensions at the discretion of the General Partner, and thereafter with approval of Advisory Board
Investment Period 2 years from Final Closing, with a six month extension option with approval of General Partner

Business Plan

The Fund’s focus is on the development and operation of rental housing in growing, undersupplied housing markets that have been capital constrained even though their underlying population and job growth statistics often mirror many primary markets. The focus on markets with existing unmet demand reduces risk. The Fund has successfully executed on its investment objective of using a data-driven investment strategy to establish a diversified portfolio of rental communities through the sourcing, acquisition, and development of rental housing opportunities to generate above-average risk-adjusted returns to investors. Since its launch in 4Q21, the Fund has a fully identified pipeline, securing six development sites - five of which are active as one asset has been sold. Construction has commenced on three of the five assets with locked in costs and low debt spreads in place. The other two assets benefit from a firm commitment from HUD thus locking in fixed rate debt for the long term.

Investors benefit from depreciation and interest deductions, making for tax efficient income. The Fund plans to refinance assets upon project stabilization with long-term fixed-rate debt. Market dynamics will dictate whether assets are held long-term, with investors benefitting from long-term capital gains tax treatment when assets are sold.

New investors come into the Fund at basis, and will benefit from a Fund with fully identified assets and a shorter deployment period. As the Fund has already had its first resolution, investors reap the rewards of increased buying power through the sales proceeds.  The capital distribution from the sale of Cape Coral reduces the catch-up interest (admission interest) component for all investors that participated in closings following the sale. Catch-up interest is charged at an annual rate of 8% on outstanding capital. Catch-up interest is paid in by later closing investors pro rata based on their total ownership of the fund and is then applied pro rata to existing investors capital accounts based on their total ownership of the fund. As such, any catch-up interest paid in is not applied to the investor’s capital account. 

Ardent and it's co-General Partners combined have fully developed nearly 8,000 apartment units across the Southeastern United States and brings over 80 years of expertise in the development of apartment properties. The fund has four apartment properties under development currently, totaling 984 units. Additionally, the Fund has an established pipeline of 568 more units slated for development in growing submarkets in Florida and Georgia.

Deal Status % Complete Units UW Rent/SF Costs Costs / Unit Equity Yield on Cost UW IRR
Punta Gorda

Under Construction

83% 297 $1.64 $61,797,192 $208,071 $23,173,947 6.60% 22%
Ocala Under Construction 78% 329 $1.73 $77,187,647 $234,613 $30,937,647 5.80% 20%
Braselton 2.0 Under Construction 18% 253 $1.64 $72,878,246 $288,056 $29,443,246 6.40% 20%
Port Wentworth Land Owned - 235 - - - $4,517,710 - -
Boca Grande Land Owned - 333 - - - $3,309,344 - -
Total     1,447 $1.67 $211,863,085 $241,027 $91,381,894 6.23% 21%
Property

Parkside at Punta Gorda, Punta Gorda, FL

The Fund’s first investment, Parkside at Punta Gorda, began construction in November 2021. The project is approximately 83% complete and is currently on budget but 60-days behind schedule due to Hurricane Ian and material delivery delays. Citizens Bank is providing conventional financing at 62.5% loan-to-cost. The loan is non-recourse with an interest rate of LIBOR + 2.40%, converting to Overnight SOFR (capped at 5%) + 2.40% in Q2 2023. The first units were delivered in June 2023 and preleasing started in February 2023. Demand in the market has been robust with 63 leases (21% of units) executed at a $200 premium to underwritten rent. Leases signed during this period offer one month of free rent which is credited in the first full month after move-in to compensate for ongoing construction and lack of access to amenities. Initial quotes for permanent insurance came back at $1,800/unit for the site; original underwriting assumed $475/unit based on previous experience in Florida. Insurance costs are elevated, especially in Florida, and the GP will continue to monitor the market as we approach project completion. The Fund plans to evaluate options for a sale or refinance at the end of the year after the property is substantially leased.

The Grove at Ocala, Ocala, FL

The Fund acquired approximately 35 acres located 30 minutes northwest of Fund I’s successful Parkside at East Village development and construction began in February 2022. The project is approximately 78% complete; it is on budget and within 90 days of scheduled delivery. Citizens Bank is providing conventional financing at 62.5% loan-to-cost. The loan is non-recourse with an interest rate of BSBY (capped at 5%) + 2.4%. The clubhouse and first units were delivered in August 2023 and preleasing began in May 2023. Due to construction delays in the market caused by COVID and issues with the municipality, we expect the initial lease-up to compete with more units than anticipated. As such, the property is offering additional construction concessions in order to stimulate leasing activity for the first buildings delivered and will be reducing the concessions as the lease-up continues. Preleasing activity started with 29 leases (9% of units) signed. The average market rent for the project is $45/unit per month (3%) higher than underwriting projected, however the average signed lease rate is $95/unit per month (-6%) lower than underwriting due to these concessions. The Fund plans to evaluate options for sale or refinance in 2024 after the property is substantially leased.

Claret Village at Braselton, Braselton, GA

The Fund acquired 57 acres of land in April 2022 and began construction immediately thereafter. The site is approximately five minutes from Fund I’s successful Noble Vines at Braselton development. The property will include 111 single family homes for rent, 24 townhomes, and 118 apartments which will be operated as one cohesive rental community. Cadence Bank is providing conventional financing at 60% loan-to-cost. The loan is non-recourse with an interest rate of LIBOR + 2.2%. Construction is approximately 18% complete and is on budget, but is 12-16 weeks delayed due to weather delays, erosion control issues with the City of Braselton, and other site-related issues. Construction costs are expected to be in line with underwriting and the project is holding ~$440,000 of remaining contingency. Vertical construction commenced in July 2023. The Harrison at Braselton, previously Noble Vines at Braselton which was developed and sold in Ardent D4 Housing Fund I, is the closest comparable property to the site and underwritten rents for Claret Village remain in line with the offered rents at The Harrison. Vacancy in the submarket has remained low and The Harrison reports 95% occupancy with only limited availability.

Parkside at Port Wentworth, Port Wentworth, GA

The Fund acquired 20 acres located just north of Savannah, GA in November 2021. The Fund has received a revised firm commitment from HUD for financing at approximately 67% loan-to-cost at a fixed rate of 5.97% including MIP. The Fund’s basis in the land is approximately $4.6 million and we have accepted an offer to sell the land for $6,000,000 with closing scheduled for 1Q24. The sale is projected to result in an unlevered IRR of 17% to investors and an equity multiple of 1.19x.

Parkside at Boca Grande, Port Charlotte, FL

The Fund acquired 28 acres in the Englewood East neighborhood of Port Charlotte for $18,657/unit ($6,250,000). The Fund closed with a $3.6 million land loan from Georgia Banking Corporation at 55% loan-to-cost with an interest rate of SOFR + 4.00%; the loan currently matures in December 2023. The land is zoned for 297 multifamily units and includes 18 duplex lots surrounding the apartment site. The Fund would construct these 36-units simultaneously with the apartments. As a secondary market, Port Charlotte has not seen the elevated levels of development that was realized in Tampa, Orlando, Miami, and Jacksonville. Although the site is well located in a strong submarket, the projected yields are underwritten to be lower than the first three deals in the Fund due to market changes and rising interest rates. The Fund continues to pursue a HUD loan and is considering selling the land or partnering with an institutional equity partner with a lower cost of capital and the Fund could contribute the land for investors’ benefit.

Resolved Asset - Noble Vines at Cape Coral, Cape Coral, FL

The Fund sold the 28 acres of land pre-development in early June for $14,650,000 ($32,995/unit) after having acquired it in February 2022 for $4,950,000 ($11,149/unit) – for a profit of approximately $8 million. As of September 2022, the Fund has distributed $2,958,414 of proceeds from the sale to investors in accordance with their ownership share.

 

 

The Market

The strength of the multifamily market in mid-to-late 2021 through mid-2022 was remarkable, with most of the markets experiencing low vacancy and more rent growth than the five years leading up to 2020. However, the market reached an inflection point near the end of 2022 as rapidly rising interest rates and volatility in the capital markets have led to a slowdown in multifamily investment activity. In Q4 2022, rent growth appeared flat and vacancy rates increased. Multifamily fundamentals are expected to rebound by the second half of 2023 with rent growth and vacancy rates projected to return to historical averages by the end of the year.  Assumptions driving the multifamily recovery are driven by strong labor markets which have slowed but are continuing to grow at a healthy pace and above pre-pandemic averages. Unemployment has stayed consistently below 4.0% since early 2022 and was 3.5% as of December 2022, according to the Bureau of Labor Statistics.

The recession caused by the COVID-19 pandemic impacted high-density urban submarkets much more than suburban ones in 2020.  As a result, suburban markets led multifamily growth in 2021.  According to CBRE, five major COVID-related factors diminished the appeal of urban submarkets in 2020: (1) remote working requirements, (2) the closing of a portion of urban amenities, (3) the reluctance to use public transit, (4) a desire for more living space, and (5) a desire for greater access to the outdoors.  Non-COVID-related factors exacerbated the situation, including the high cost of urban apartments and shifting demographics.  Millennials are reaching life stages where urban living is often traded in for larger housing options in less-dense submarkets. 

Overall demographic growth is expected to generate demand for another 3.7 million new rental properties through 2035 driven by lower homeownership rates and increased population growth. High-cost urban multifamily markets have continued to show a lagging recovery and economic forecasts expect that secondary cities will continue to drive growth. Freddie Mac projects that the best performing multifamily markets will be concentrated in smaller southwestern and Florida markets. Regionally, new demand through 2035 is focused in three states: Texas, Florida, and California which will require more than 1.5 million new housing units or 40% of net new demand. Multifamily fundamentals are expected to decelerate through the first few months of 2023 but demand for housing is expected to return later in the year, as long as the labor market doesn’t fall into recessionary territory. The Freddie Mac baseline forecast shows an increase in vacancy rates up to 5.1% by year-end 2023 and rents to grow by a modest 3.9%. The average vacancy rate going back to 1980 is 5.5%. 

Rising mortgage rates seem to have dampened home buying in the near term as the minimum household income to buy a median-priced home has increased by 20% since the end of 2021. At today’s prices, a 3.5% down payment that a first-time buyer would have to make on a median-priced home amounts to $11,700. This requirement alone would rule out most renters whose median savings are just $1,500. In addition, the monthly mortgage payment on the median-priced home has raised the minimum income needed to afford these payments from $79,600 in April 2021 to $107,600 in April 2022—effectively pricing out some 4 million renter households with incomes in this range. In 2021, the cost-to-own grew 19.2% over the prior year, while rent grew 12%. However, this trend was exacerbated in the first three quarters of 2022 as the cost-to-own increased an additional 40.3% while rents increased 7.2%. These trends are expected to prolong the need for additional rental housing.

Source: “America’s Rental Housing 2022”, Joint Center for Housing Studies of Harvard University, https://www.jchs.harvard.edu/americas-rental-housing-2022

Source: “The State of the Nation’s Housing 2022”, Joint Center for Housing Studies of Harvard University, https://www.jchs.harvard.edu/state-nations-housing-2022

Source: “2023 Multifamily Outlook”, Freddie Mac Multifamily, https://mf.freddiemac.com/docs/2023_multifamily_outlook.pdf

Source: “U.S. Apartment Demand Through 2035”, Hoyt Advisory Services, Eigen10 Advisors, LLC, https://www.nmhc.org/research-insight/research-report/us-apartment-demand-through-2035/

Source: “US Real Estate Market Outlook 2021” CBRE Inc., CBRE Research, https://www.cbre.us/research-and-reports/US-Real-Estate-Market-Outlook-2021

Financials

Note that Sponsor co-invest in the fund is ~$10MM.

As of July 2023

Sources

$ Total

% Total

Uses

$ Total

% Total

Debt

$62,841,796

43%

Punta Gorda

$51,256,917

35%

Equity

$82,463,035

57%

Ocala

$62,058,224

43%

 

   

Braselton

$20,524,387

14%

 

   

Boca Grande

$6,947,594

5%

 

   

Port Wentworth

$4,517,710

3%

Total

$145,304,831

100%

Total

$145,304,831

100%

           

Projected Total

Sources

$ Total

% Total

Uses

$ Total

% Total

Debt

$131,946,495

59%

Punta Gorda

$61,797,192

28%

Equity

$91,298,159

41%

Ocala

$77,187,647

35%

 

   

Braselton

$72,794,511

33%

 

   

Boca Grande

$6,947,594

3%

 

   

Port Wentworth

$4,517,710

2%

Total

$223,244,654

100%

Total

$223,244,654

100%

Ardent Companies intends to make distributions as follows:

Distributable Cash from Operations:

(i) 100% to investors until an 8% IRR to the investors (taking into account prior distributions to the investors);

(ii) 100% to the General Partner until the General Partner has received the difference between (A) the amount necessary to provide a ten percent (10.0%) IRR to investors on their aggregate capital contributions and (B) the amount distributed under clause (i);

(iii) 80% to investors and 20% to the General Partner.

Distributable Cash from Capital Events:

(i) 100% to investors until an 8% IRR to the investors (taking into account prior distributions to the investors);

(ii) 100% to the General Partner until the General Partner has received the difference between (A) the amount necessary to provide a ten percent (10.0%) IRR to investors on their aggregate capital contributions and (B) the amount distributed under clause (i);

(iii) 80% to investors and 20% to the General Partner until a sixteen percent (16.0%) IRR to investors (taking into account prior distributions to the investors); and

(iv) 60% to investors and 40% to the General Partner.

Ardent Companies 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 November 2024 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Ardent, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Certain fees and compensation will be paid over the life of the transaction; please refer to Ardent Companies' materials for details. The following fees and compensation will be paid(1)(2):

One-Time Fees:
Type of Fee Amount of Fee Received By Notes
Development Fee Less than or equal to 5% of Project Costs AHF II GP, LP per project basis
Acquisition Fee 3.0% of Land Costs AHF II GP, LP the greater of 3% of $100,000
Investment Management Fee The Fund will pay investment management fees quarterly, beginning with the initial Closing, in advance ("Management Fees") equal to 1.50% per annum of the aggregate amount of Invested Capital allocable to assets that are owned by the Fund AHF II GP, LP  
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 1.0% of Collected Revenue AHF II GP, LP Annual rate, pulled quarterly
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 Pulled quarterly

(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.

.

Disclaimers

Sponsor’s Projects and Targets

*Assumptions and projections included in the information on this Page, including pro forma projections (collectively “Projections”) were provided by the Sponsor or an affiliate thereof and are not reflective of the position or opinions of, nor are they endorsed by, RM Technologies, LLC or its affiliates, or any other person or entity other than the Sponsor or its affiliates.  RM Technologies, LLC and its affiliates do not provide any assurance of returns or the accuracy or reasonableness of the Projections provided by the Sponsor or its affiliates.   There can be no assurance that the Sponsor’s methodology used for calculating any Projections, including Target IRR, Target Annualized Cash-on-Cash Return, and Target Equity Multiple (“Targets”), are appropriate or adequate.  The Sponsor’s Projections and Targets are hypothetical, are not based on actual investment results, and are presented solely for the purpose of providing insight into the Sponsor’s investment objectives, detailing its anticipated risk and reward characteristics and for establishing a benchmark for future evaluation of the Sponsor’s performance. The Sponsor’s Projections and Targets are not a predictor, projection or guarantee of future performance.  There can be no assurance that the Sponsor’s Projections or Targets will be met or that the Sponsor will be successful in meeting these Projections and Targets.  Projections and Target returns should not be used as a primary basis for an investor’s decision to invest.

No Approval, Opinion or Representation, or Warranty by RM Technologies, LLC or it Affiliates

The information on this Page, including the 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”) was provided by the Sponsor or an affiliate thereof.  RM Technologies, LLC makes no representations or warranties as to the accuracy of such information and accepts no liability therefor.  No part of the information on this Page is intended to be binding on RM Technologies, LLC or its affiliates, or to supersede any of the Sponsor’s Investment Documents.  The opinions expressed on this page are solely the opinions of the Sponsor and its affiliates and none of the opinions expressed on this Page are the opinions of, nor are they endorsed by, RM Technologies, LLC or its affiliates.

Sponsor’s Information Qualified by Investment Documents

The Information on this Page, including of the principal terms of the Sponsor’s offering, 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 each prospective investor should carefully read all of the Investment Documents and any supplements thereto, copies of which are available by clicking the links above or upon request, before deciding whether to make an investment.  The information on this page should not be used as a primary basis for an investor’s decision to invest.  In the event of an inconsistency between the information on this Page and the Investment Documents, investors should rely on the information contained in the Investment Documents.  The information on this Page and the information in the Investment Documents are subject to last minute changes up to the closing date at the sole discretion of the Sponsor and its affiliates.

Risk of Investment

This real estate investment is speculative and involves substantial risk.  There can be no assurances that all or any of the assumptions will be true or that actual performance will bear any relation to the hypothetical illustrations herein, and no guarantee or representation is made that investment objectives of the Sponsor will be achieved.  In the event that actual performance is below the Sponsor’s Targets, your investment could be materially and adversely affected, and there can be no assurance that investors will not suffer significant losses.  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.  Please see the Sponsor’s Investment Documents for additional information, including the Sponsor’s discussion concerning risk factors.

Risk of Forward-Looking Statements

Forward-looking statements are found here and in the applicable Investment Documents and may include words like “expects,” “intends,” “anticipates,” “estimates” and other similar words. These statements are intended to convey the Project Sponsor’s projections or expectations as of the date made. These statements are inherently subject to a variety of risks and uncertainties. Please see the applicable Investment Documents for disclosure relating to forward-looking statements.  All forward-looking statements attributable to the Sponsor or its affiliates apply only as of the date of the offering and are expressly qualified in their entirety by the cautionary statements included elsewhere in the Investment Documents.  Any financial projections are preliminary and subject to change; the Sponsor undertakes no obligation to update or revise these forward-looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.  Inevitably, some assumptions will not materialize, and unanticipated events and circumstances may affect the ultimate financial results. Projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic and competitive risks, and the assumptions underlying the projections may be inaccurate in any material respect. Therefore, the actual results achieved may vary significantly from the forecasts, and the variations may be material.

Sponsor’s use of Debt

A substantial portion of the total acquisition for the Property will be paid with borrowed funds, i.e., debt.  There can be no assurance that the Sponsor will secure debt on the rates and terms noted above, or at all.  All of the Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, including but not limited to the annual interest rate and possible increases in capital reserve requirements for funds to be held in a lender-controlled capital reserve account. The use of borrowed money to acquire real estate is referred to as leveraging.  Leveraging increases the risk of loss.  If the Sponsor were unable to pay the payments on the borrowed funds (called a "default"), the lender might foreclose, and the Sponsor could lose its investment in its property.

In addition, unless the debt provides for a fixed rate of interest during the term of the loan and/or any subsequent extensions, the total amount of interest paid over the term of the debt will increase by the same amount as the related index. For example, if the index rate increases by 0.50% (50 basis points) the interest rate on the loan will increase by the same amount. The amount of such interest rate increases may be capped either by its terms or as the result of the Sponsor entering into an arrangement that caps the interest rate with respect to the debt at a particular rate.

Sponsor’s Offering is Not Registered

The interests offered by the Sponsor 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 interests will not be registered under any state securities laws in reliance on exemptions from registration.  Such 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 RealtyMogul Platform are intended solely for “Accredited Investors,” as that term is defined Rule 501(a) of the Securities Act.  Prospective investors must certify that they are Accredited Investors and provide either certain supporting documents or third party verification, and must acknowledge that they have received and read all investment materials.

RM Technologies, LLC Fees and Conflicts

RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform.  RM Technologies, LLC charges a fixed, non-percentage-based licensing fee for real estate companies and their sponsors to license and use the RM Technologies LLC’s proprietary Platform, including one-time flat licensing fees for its Technology Solution and an ongoing quarterly flat licensing fees for its Administration Solution.  An estimate of the Technology Solution licensing fee is included in the Closing Costs above and is intended to be capitalized into the transaction at the discretion of the Sponsor.  The licensing fees received by RM Technologies, LLC are disclosed in the relevant operating agreement(s). Additionally, from time to time, employees of RM Technologies, LL C and its affiliates invest in Sponsor’s offering.  RM Technologies LLC’s receipt of licensing fees and its employee’s investments in Sponsor’s offering creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.

No Investment Advice

None of RM Technologies nor any affiliate are registered as a broker, dealer, investment adviser, or funding portal (except with respect to RM Adviser, LLC, which has no involvement in the transactions to be consummated hereby or contemplated herein and solely for the purposes hereof, shall not be deemed an affiliate or RM Technologies). They do not provide investment advice or recommend the purchase of any securities that are the subject of this agreement or the Sponsor’s offering with respect to the Project. Project Sponsor’s use of the Platform, including Project Sponsor’s license to utilize the Platform and any related technology, software and supporting services, Project Sponsor’s posting of offering documents and all related information on the Platform does not constitute the approval of or endorsement by RM Technologies or any of its affiliates of Project Sponsor’s securities offering with respect to the Project or signify the suitability thereof in any manner.

For additional information on risks and disclosures visit https://www.realtymogul.com/investment-disclosure.

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