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.
![Cumulative Distributions](https://app.realtymogul.com/sites/default/files/styles/private_placement_management_logo/public/napa_4_35.png?itok=uvYwNPMm)
NAPA Ventures, LLC
NAPA Ventures, LLC also known as NAPA, is a multifamily and commercial real estate investment company focused on the acquisition, rehabilitation and operation of value-add and core asset investment properties in Texas. NAPA is currently continuing to aggressively and profitably expand their real estate holdings within Texas and other growth markets of the USA.
NAPA currently has ownership in over 3,700 existing units. Realty Mogul investors have previously invested with NAPA on the Woodbridge Townhomes and Ravenwood Apartments transactions.
http://napa-ventures.com/Property Name | Location | Asset Type | Date Acquired |
# of Units |
Purchase Price |
|||
---|---|---|---|---|---|---|---|---|
Encinal | San Antonio, TX | Multifamily | 12/19/2013 | 201 | $4,818,750 | |||
Lakeview Apartments | Killeen, TX | Multifamily | 4/4/2014 | 62 | $1,175,000 | |||
Morgan Manor | San Antonio, TX | Multifamily | 9/26/2014 | 157 | $3,650,000 | |||
Summerlyn | Killeen, TX | Multifamily | 1/6/2015 | 200 | $6,300,000 | |||
Sante Fe | San Antonio, TX | Multifamily | 6/30/2015 | 327 | $7,300,000 | |||
Montecito Creek | Dallas, TX | Multifamily | 9/30/2015 | 650 | $34,000,000 | |||
Oates Creek | Mesquite, TX | Multifamily | 6/30/2016 | 280 | $15,700,000 | |||
Parkside Townhomes | Arlington, TX | Multifamily | 7/14/2016 | 144 | $11,500,000 | |||
Woodbridge Townhomes | Arlington, TX | Multifamily | 8/24/2016 | 91 | $6,225,000 | |||
Westwood Apartments | Dallas, TX | Multifamily | 8/31/2016 | 187 | $7,400,000 | |||
Ravenwood Apartments | Fort Worth, TX | Multifamily | 10/12/2016 | 122 | $4,900,000 | |||
Brandon Mill | Dallas, TX | Multifamily | 9/26/2016 | 300 | $12,160,000 | |||
Eagle Point | Dallas, TX | Multifamily | 11/15/2016 | 156 | $6,961,100 | |||
Pleasant Creek | Lancaster, TX | Multifamily | 12/30/2016 | 159 | $8,580,000 | |||
Oyster Creek | Lake Jackson, TX | Multifamily | 2/28/2017 | 201 | $15,900,000 | |||
Treasure Bay | Lake Jackson, TX | Multifamily | 2/28/2017 | 200 | $15,100,000 | |||
Prescott Woods | Tulsa, OK | Multifamily | 5/12/2017 | 256 | $8,300,000 | |||
Totals | 3,749 | $169,969,850 |
The Sponsor's bio and track record were provided by the Sponsor and have not been verified by RealtyMogul.com or NCPS
In this transaction, RealtyMogul.com investors are to invest in Realty Mogul 72, LLC. Realty Mogul 72, LLC is to subsequently invest in NAPA Ventures Ravenwood, LLC, the entity that will hold title to the Property.
Within the first three to five months of acquiring the Property, the Sponsor intends on implementing a $575,000 exterior capital improvement plan to address deferred maintenance and mechanical issues, make improvements to the common areas, and increase the Property's curb appeal. The exterior capital improvements include painting the building exteriors, rehabilitating the leasing office, upgrading the landscaping, as well as renovating the pool and laundry room. The Sponsor has also budgeted for interior renovations of $427,000, or $7,000 per unit, for 50% of the rentable units, which is expected to include new countertops, new appliances, refreshing of cabinetry, new paint and new carpet. The Sponsor estimates that upon renovation, the renovated units is expected to be able to achieve rental premiums of approximately 13.4% above the average in-place rents.
Per review of the August 2016 rent roll, recent leasing at the property has already achieved the post-renovation rents for three of the four different unit types. Refer below for a comparison of the underwritten post renovation rents to the highest in-place rents at the Property by unit type:
Unit Type | U/W Post-Renovation Rent | Highest In-Place Rent | |
---|---|---|---|
1/1 | $649 | $676 | |
2/1 | $799 | $809 | |
2/2 | $880 | $845 | |
3/2 | $969 | $975 |
It is expected that all interior renovations will be completed in approximately 12 months, with an average of five (5) units being renovated per month. Upon completion of all renovations, the Sponsor intends on selling the Property within three years, although if the renovations are successfully implemented ahead of schedule and market conditions allow for a favorable sale, the hold period could be shorter. However, the hold period is not guaranteed and could also extend beyond the three year expected hold period.
A summary of the capital expenditures planned at the Property is as follows:
CapEx Item | $ Amount | Per Unit |
---|---|---|
Interior Rehab ($7,000 each for 61 units) | $427,000 | $3,500 |
Exterior Painting | $115,000 | $943 |
Leasing Office Rehab | $50,000 | $410 |
Roof Replacement (as needed) | $45,000 | $369 |
Carpentry | $40,000 | $328 |
Landscaping | $35,000 | $287 |
Exterior Lighting | $30,000 | $246 |
Pool Deck | $30,000 | $246 |
Concrete & Striping (parking lot) | $25,000 | $205 |
Stairwell repairs | $25,000 | $205 |
Laundry room renovation | $20,000 | $205 |
Signage | $20,000 | $164 |
Office furniture | $20,000 | $164 |
Mail Kiosk replacement | $17,000 | $139 |
Gutters | $15,000 | $123 |
Pool Furniture | $15,000 | $123 |
Plumbing | $12,145 | $100 |
Condenser Pad Replacement | $10,000 | $82 |
Storage Unit Repairs | $10,000 | $82 |
Contingency 10.0% | $95,615 | $784 |
Subtotal | $1,051,759 | $8,621 |
Construction Management Fee 3.0% | $31,553 | $259 |
Total | $1,0832,312 | $8,880 |
Sponsor Case Study - Montecito Creek Apartments
Per discussions with the Sponsor, the Montecito Creek Apartments complex, which was purchased approximately nine months ago, recently received an unsolicited offer to purchase at approximately the year three underwritten exit value for the property. The Sponsor stated that the business plan for Montecito, which is located in Dallas, TX, was effectively similar to that of the Property, with the Sponsor intending to renovate approximately 50%-60% of the units and then sell the asset with additional value add potential left for the buyer. Instead, the Sponsor has renovated approximately two thirds of the total intended units (about 40% of all units at the property), and has already received an offer to buy Montecito which they expect they will accept. The Sponsor anticipates accepting this purchase offer should yield a net return to investors in excess of their initial underwritten projections.
Before and after pictures of the Montecito property are as follows:
Note: The above case study details were provided by the Sponsor and have not been independently verified by RM, though RM did tour the Montecito property with the Sponsor.
RealtyMogul.com, along with Network Acquisition Partnership Alliance, LLC (“NAPA” or the “Sponsor”), is providing the opportunity to invest in the acquisition and ownership of the Ravenwood Apartments (the "Property"), a 123 unit, garden-style apartment complex in Fort Worth, TX. The Property is comprised of 16 buildings, a leasing office, a pool, and green space.
The primary objective of this investment is to acquire the Property at an attractive price, implement exterior and interior capital improvements, increase rental rates, and sell the Property within three (3) years.
The Property is a 123-unit garden-style apartment complex located at 2333 Escalante Ave, Fort Worth, Texas. The unit mix consists of 16 one (1) bedroom, one (1) bathroom units, 58 two (2) bedroom, one (1) bathroom units, 16 two (2) bedroom, two (2) bathroom units, and 33 three (3) bedroom, two (2) bathroom units. Three bedrooms are fairly unique for the immediate area as most of the comps only offer one and two bedrooms. Average in-place rents average $737 and range from $560 for one bedrooms and $975 for three bedrooms. The unit mix includes one unit that is currently being used as the leasing office.
Amenities at the Property include a swimming pool, one laundry facility, covered parking, and storage units. Interior finishes include dishwashers, wood-burning fireplaces, patios/balconies, and large closets. Approximately half of the units feature upgrades performed by the seller including wood flooring, new carpet, new appliances, and new countertops.
Unit Type | # of Units | Avg SF/Unit | In-Place Rent | Rent/SF | Post-Reno Rent | Rent/SF | % Variance* |
---|---|---|---|---|---|---|---|
1 Bed, 1 Bath | 16 | 554 | $599 | $1.08 | $649 | $1.17 | 8.3% |
2 Bed, 1 Bath | 58 | 781 | $681 | $0.87 | $799 | $1.02 | 17.3% |
2 Bed, 2 Bath | 16 | 835 | $793 | $0.95 | $880 | $1.05 | 11.0% |
3 Bed, 2 Bath | 33 | 1,010 | $875 | $0.87 | $969 | $0.96 | 10.7% |
Total | 123 | 820 | $737 | $0.91 | $836 | $1.02 | 13.4% |
*Note: This figure is representative of the expected achievable rents for post-renovation units as a percentage of in-place rents.
Subject | The Vibe at Landry Way | Lofton Place | La Jolla on Meadowbrook | La Jolla Ridge | Parkside Townhomes | Averages | |
---|---|---|---|---|---|---|---|
Date | Sep-16 | Jun-15 | Nov-15 | Dec-15 | Jul-15 | Jul-16 | |
# of Units | 122 | 224 | 258 | 160 | 208 | 144 | 208 |
Year Built | 1983 | 1978 | 1984 | 1984 | 1985 | 1984 | 1983 |
Average SF (per unit) | 818 | 929 | 773 | 755 | 889 | N/A | 736 |
Purchase Price | $4,900,000 | $8,800,000 | $21,010,000 | $10,000,000 | $11,500,000 | $11,500,000 | $13,017,424 |
$/Unit | $40,164 | $39,386 | $81,434 | $62,500 | $55,288 | $79,861 | $60,348 |
Cap Rate | 5.50% | 6.80% | 6.4% | N/A | N/A | N/A | 6.37% |
Subject (In-Place Rents) | Brentwood | Lofton Place* | Havenwood | Park Place | Total / Averages | |
---|---|---|---|---|---|---|
Total # of Units | 122 | 292 | 258 | 316 | 256 | 287 |
Occupancy | 92% | 94% | 95% | 95% | 97% | 96% |
Year Built | 1983 | 1985 | 1984 | 1987 | 1980 | 1985 |
1 Bedroom 1 Bathroom | ||||||
Average $/Unit | $599 | $695 | $682 | $661 | $648 | $671 |
Average Square Feet | 554 | 715 | 679 | 654 | 714 | 691 |
Average $/SF | $1.08 | $0.97 | $1.00 | $1.01 | $0.91 | $0.97 |
2 Bedroom 1 Bathroom | ||||||
Average $/Unit | $681 | Not offered | $805 | $784 | $820 | $803 |
Average Square Feet | 781 | Not offered | 876 | 895 | 964 | 912 |
Average $/SF | $0.87 | Not offered | $0.92 | $0.88 | $0.85 | $0.88 |
2 Bedroom 2 Bathroom | ||||||
Average $/Unit | $793 | $868 | $930 | $876 | $875 | $887 |
Average Square Feet | 835 | 975 | 1,037 | 1,094 | 1,076 | 1,046 |
Average $/SF | $0.95 | $0.89 | $0.90 | $0.80 | $0.81 | $0.85 |
3 Bedroom 2 Bathroom | ||||||
Average $/Unit | $875 | Not offered | Not offered | Not offered | $1,005 | $1,005 |
Average Square Feet | 1,010 | Not offered | Not offered | Not offered | 1,298 | 1,298 |
Average $/SF | $0.87 | Not offered | Not offered | Not offered | $0.77 | $0.77 |
* - Excludes 2 bedroom townhomes
Post- Renovation Rental Comparables | Subject | Brentwood* | Lofton Place* | Windsong | Valencia | Tuscany Apartments | Total / Averages |
---|---|---|---|---|---|---|---|
Total # of Units | 122 | 292 | 258 | 188 | 263 | 240 | 248 |
Occupancy | 92% | 94% | 95% | 98% | 93% | 96% | 95% |
Year Built | 1983 | 1985 | 1984 | 2003 | 1985 | 1986 | 1989 |
1 Bedroom 1 Bathroom | |||||||
Average $/Unit | $649 | $745 | $758 | $785 | $765 | $682 | $747 |
Average Square Feet | 554 | 715 | 679 | 747 | 674 | 662 | 695 |
Average $/SF | $1.17 | $1.04 | $1.12 | $1.05 | $1.13 | $1.03 | $1.07 |
2 Bedroom 1 Bathroom | |||||||
Average $/Unit | $799 | Not offered | $870 | $880 | $855 | $835 | $860 |
Average Square Feet | 781 | Not offered | 876 | 870 | 855 | 902 | 876 |
Average $/SF | $1.02 | Not offered | $0.99 | $1.01 | $1.00 | $0.93 | $0.98 |
2 Bedroom 2 Bathroom | |||||||
Average $/Unit | $880 | $918 | $975 | $975 | $963 | $910 | $948 |
Average Square Feet | 835 | 975 | 1,037 | 994 | 1,057 | 965 | 1,006 |
Average $/SF | $1.05 | $0.94 | $0.94 | $0.98 | $0.91 | $0.94 | $0.94 |
3 Bedroom 2 Bathroom | |||||||
Average $/Unit | $969 | Not offered | Not offered | $1,220 | Not offered | Not offered | $1,220 |
Average Square Feet | 1,010 | Not offered | Not offered | 1,230 | Not offered | Not offered | 1,230 |
Average $/SF | $0.96 | Not offered | Not offered | $0.99 | Not offered | Not offered | $0.99 |
* - Excludes 2 bedroom townhomes
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Tucked in between two residential neighborhoods, the Property is located at the corner of Meadowbrook Drive and Escalante Ave in Fort Worth. The Property is located within walking distance of Bill J. Elliot Elementary School & Handley Middle School. The immediate surrounding areas consist of underdeveloped wooded land to the north across Meadowbrook Drive; single-family residential to the south; single-family residential to the east; and single-family residential to the west across Escalante Avenue. Retail is limited in the immediate area, however, there are several prominent retailers within two miles of the property including a CVS, Aldi, Papa John’s, and McDonalds.
The Property is centrally located approximately 10 miles east of the Fort Worth Central Business District (CBD) and approximately 23 miles west of the Dallas CBD. The Dallas/Fort Worth International Airport is approximately 11 miles northeast of the subject property. The asset has immediate access to East Loop 820 via the Meadowbrook Drive exit as well as Interstate 30 via the Eastchase Parkway exit. Lake Arlington is less than two miles away from the Property.
Market Overview
Per Axiometrics, Fort Worth-Arlington, TX Metro Division's two largest job sectors are the Trade, Transportation, and Utilities sector (24.5% of employment), followed by the Education & Health Services sector (12.8% of employment). The Trade, Transportation, and Utilities sector gained 6,700 jobs during the 12 months ending July 2016, constituting job growth of 2.8%. The Education & Health Services sector grew 1,400 jobs during the same period; a 1.1% growth rate. According to the July 2016 figures from the Bureau of Labor Statistics, the Dallas-Fort Worth-Arlington, TX MSA has a population of approximately 3.7 million people in the workforce and an unemployment rate of 4.2%. This compares favorably to the national average of 4.9%
According to the most recent Costar Dallas - Fort Worth market report, The Fort Worth market has been experiencing some of the best in-migration and employment growth in the country. Vacancies continue to hover around 4% even as 22,000 units have come online since the beginning of 2015. However, there are another 35,000 units on the way that will continue to test the market's vacancy rates. Employers have been taking note and several large relocations have occurred or are in the works including Toyota, Liberty Mutual, and the JP Morgan regional consolidation.
According to the 2Q 2016 Axiometrics market report, vacancies and annual effective rent growth continue to outperform the national averages. The vacancy rate for the market stands at 4.2% and annualized effective rent growth of 6.8% as of the completion of the second quarter. Average rents for the market are $1,001/unit and the average build of the market is 1995.
Submarket Overview
According to the 2Q 2016 Axiometrics market report, the I-820 submarket has experienced effective annual rent growth (11.7% in 2Q16) and ranks as one of the fastest growing markets in the United States in terms of rent growth and population growth. Ranking fifth of the eleven submarkets, the vacancy rate of 3.7% is below the market average of 4.2% as of the second quarter. Average rents for the submarket are $723/unit and the average build of the submarket is 1985.
Demographic Information
Distance from Property | 1 Mile | 3 Miles | 5 Miles |
Population | 9,672 | 86,700 | 234,572 |
Population Growth (2010-2016) | 9.20% | 11.37% | 10.37% |
Projected Growth (2016-2021) | 7.55% | 7.88% | 7.72% |
Average HH Income | $61,123 | $65,318 | $65,517 |
Median HH Income | $47,096 | $46,357 | $46,693 |
Median Home Value | $125,579 | $141,046 | $138,796 |
Owner Occupied Households | 2,176 | 19,232 | 50,763 |
Renter Occupied Households | 1,596 | 16,147 | 40,113 |
Demographic information above was obtained from CoStar.
![](https://app.realtymogul.com/sites/default/files/styles/private_placement_cap_stack/public/io/capstack/ravenwood_capstack_0.jpg?itok=BMJKBTiC)
Sources of Funds | Cost |
---|---|
Debt | $4,865,000 |
Equity | $1,437,962 |
Total Sources of Funds | $6,302,962 |
Uses of Funds | Cost |
Purchase Price | $4,900,000 |
CapEx Reserve | $1,083,312* |
Closing Costs, Legal Fees, & Other | $157,000 |
Sponsor Acquisition Fee | $49,000 |
Lender Origination Fee | $48,650 |
North Capital Broker Dealer Fee | $40,000 |
Working Capital | $25,000 |
Total Uses of Funds | $6,302,962 |
* - Note that the construction budget for the CapEx Reserve is inclusive of a 10% contigency.
The projected terms of the debt financing are as follows:
- Lender: Arbor Commercial Funding
- Loan Type: Agency (Fannie Mae - DUS)
- Proceeds: $4,865,000
- Term: 12 years
- Rate: 10-Year Treasury Rate plus 294 basis point spread, 4.63% (as of September 12, 2016)
- Amortization: 30 years
- Interest Only Period: 12 months
- Prepayment Fee: 11.5 years yield maintenance
- Assumption Fee: 1.0%
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.
NAPA Ventures Ravenwood, LLC intends to make distributions to investors (Realty Mogul 72, LLC - 86.2%, Sponsor co-invest - 13.8%. collectively, the "Members") as follows:
- To the Members, pari passu, all excess cash flows and appreciation to a 10.0% IRR to the Members,
- 80.0% / 20.0% (80.0% to Members / 20.0% to the Sponsor) of excess cash flows and appreciation to a 15.0% IRR to Members.
- 65.0% / 35.0% of excess cash flow and appreciation to a 20.0% IRR to Members and
- 50.0% / 50.0% of excess cash flow and appreciation thereafter.
Note that these distributions will occur after the payment of the Company's liabilities (loan payments, operating expenses and other fees as set forth in the LLC agreement, in addition to any member loans or returns due on member loans).
Realty Mogul 72, LLC will distribute 100% of its share of excess cash flow (after expenses and fees) to the members of Realty Mogul 72, LLC (the RealtyMogul.com investors).
Distributions are expected to start in March 2017 and are expected to continue on a quarterly basis thereafter. These distributions are at the discretion of the Sponsor, who may decide to delay distributions for any reason, including maintenance or capital reserves.
Year 1 | Year 2 | Year 3 | |
---|---|---|---|
Effective Gross Revenue | $1,063,027 | $1,234,102 | $1,271,125 |
Total Operating Expenses | $749,704 | $776,849 | $799,048 |
Net Operating Income | $313,136 | $457,253 | $472,077 |
Annual Debt Service | $225,201 | $300,294 | $300,294 |
Distributions to Realty Mogul 72, LLC Investors | $50,162 | $108,208 | $1,815,147 |
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 Fee | $49,000 | Sponsor | Capitalized Equity Contribution | 1.0% of the property purchase price |
Disposition Fee | 0.5% of Gross Sales Price | Sponsor | Sales Proceeds | Included in the proforma as a portion of the cost of sale |
Broker-Dealer Fee | $40,000 | North Capital (1) | Capitalized Equity Contribution | Fixed $40,000 fee |
Recurring Fees | ||||
Property Management Fee | 3.5% of Effective Gross Income | Sponsor-Affiliated Party | Distributable Cash | Note that RM has underwritten a conservative 4.0% Property Management Fee in the attached proforma. |
Construction Management Fee | 3.0% of Total Costs | Sponsor | Capital Expenditure Reserve | |
Asset Management Fee | 1.0% of Effective Gross Income | Sponsor | Operating Cash Flow | |
Management and Administrative Fee | 1.0% of amount invested in Realty Mogul 72, LLC | RM Manager, LLC | Distributable Cash | RM Manager, LLC is the Manager of Realty Mogul 72, 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 72, 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.
RM Securities, LLC, its registered representatives, affiliates, associated persons, and personnel of its affiliates who may also be associated with it, including our associated persons and personnel of our affiliates who are also be associated with RM Securities, LLC (it (“RM Securities,” “we,” “our,” or “us”) will receive fees, expense reimbursements, and other compensation (“Fees”) from the issuer of this investment offering, its sponsor, or an affiliate thereof (“Sponsor”), or otherwise in connection with Sponsor’s offering. The Fees paid to us are in addition to other fees you will pay to Sponsor or in connection with Sponsor’s investment offering. You will pay Fees to Sponsor, either directly or indirectly as an investor in the Sponsor’s offering. Sponsor will use the Fees you pay, as well as funds you invest in the relevant offering, to compensate us. The Fees paid to us will directly or indirectly be borne by you as the investor (typically, but not always, in the form of an expense of the Sponsor’s offering in which you invest) because such Fees will reduce the proceeds available for distribution to you and reduce the amount you earn over time.
For more information on the Fees paid to us, or any other Fees you will pay in connection with Sponsor’s offering, please carefully review the Sponsor’s Investment Documents. Please also carefully review RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.
No Approval, Opinion or Representation, or Warranty by RM Securities, LLCSponsor has provided, approved, and is solely responsible in all aspects for the information on this webpage (“Page”), including Sponsor’s offering documentation, which may include without limitation the Private Placement Memorandum, Operating or Limited Partnership Agreement, Subscription Agreement, the Project Summary and all exhibits and other documents attached thereto or referenced therein (collectively, the “Investment Documents”). The Investment Documents linked on this page have been prepared and posted by Sponsor, and not by RM Securities. We did not assist in preparing, do not adopt or endorse, and we are not otherwise responsible for, the Sponsor’s Investment Documents. We make no representations or warranties as to the accuracy of information on this Page or in the Sponsor’s Investment Documents and we accept no liability therefor. No part of the information on this Page or in the Sponsor’s Investment Documents is intended to be binding on us.
Sponsor’s Information Qualified by Investment DocumentsThe information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.
Risk of InvestmentThis investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.
No Reliance on Forward-Looking Statements; Sponsor AssumptionsSponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Neither RM Securities nor Sponsor are obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.
Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.
No Reliance on Past PerformanceAny description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.
Sponsor’s Use of DebtA substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.
Sponsor’s Offering is Not RegisteredSponsor’s securities offering will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement”). In addition, the offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership interests) are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.
No Investment AdviceNothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments. For additional information on RM Securities’ involvement in this offering, please carefully review the Sponsor’s Investment Documents, and RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.
1031 Exchange RiskInternal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts and certain tax consequences may vary depending on the individual circumstances of each investor. RM Securities and its affiliates make no representation or warranty of any kind with respect to the tax consequences of your investment or that the IRS will not challenge any such treatment. You should consult with and rely on your own tax advisor about the tax aspects with respect to your particular circumstances.