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.
Lucky Property Management Group
Lucky Property Management Group ("Lucky") is a privately held real estate investment company that was established in 1981. The firm is focused on acquiring, owning and operating industrial real estate across South Florida. Lucky’s portfolio includes over 1.3 million square feet of industrial class B and C product in South Florida with over 300 tenants under management. Additionally, the Lucky owns and manages real estate in Tennessee and South Carolina totaling over 1.1 million additional square feet of similar product. The principals, Brian Holland and Wayne Chaplin, have been in the real estate industry for over 30 years.
Lucky has been able to acquire undervalued industrial real estate and add value by identifying and correcting existing problems and adding capital improvements. Lucky acquires properties, and provides all of the adjunct services, skills and systems necessary to maintain each property to high standards of quality. The goal is to achieve the greatest operating efficiencies and realize the highest potential profit performance. Their in house management team allows them to keep expenses down while providing excellent value to all of their tenants. In addition to the partners, Lucky employs third party consultants and four back-office employees.
Other Members in the Sponsor Entity
In addition to Lucky there are two other partners in the Sponsor entity, both of whom are expected to have voting rights therein. All the partners of this project provide significant capital contributions.
One partner is Daniel Stuzin of SF Partners. Daniel is a founder and managing principal of SF Partners and is responsible for setting the investment strategy of that firm.
The other active partner is Michael Kramer of the Kramer family office Kramerica Equity, LLC.
Lucky Track Record Only
Address | Location | Asset Type | Date Acquired |
Square Feet |
Purchase Price | |||
---|---|---|---|---|---|---|---|---|
3550 NW 58 Street | Miami, FL | Industrial/Flex | May 1991 | 37,951 | $355,000 | |||
5400 NW 79th Avenue | Medley, FL | Industrial/Flex | April 1992 | 48,817 | $780,000 | |||
8800 NW 77th Court | Medley, FL | Industrial/Flex | Sep 1993 | 214,821 | $2,877,500 | |||
3550 NW 33 Street | Miami, FL | Industrial/Flex | October 1993 | 30,000 | $352,800 | |||
8545 NW 79th Avenue | Medley, FL | Industrial/Flex | June 1994 | 67,500 | $3,600,000 | |||
16301 NW 15th Avenue | Miami Gardens, FL | Industrial/Flex | April 1998 | 41,445 | $907,500 | |||
4595 NW 37th Avenue | Miami, FL | Industrial/Flex | March 1999 | 98,000 | $1,400,000 | |||
625 W 18th Street | Miami, FL | Industrial/Flex | November 1999 | 102,000 | $4,250,000 | |||
16501 NW 16th Court | Miami Gardens, FL | Industrial/Flex | November 2000 | 45,000 | $1,925,000 | |||
3890 NW 42nd Avenue | Opa-Locka, FL | Industrial/Flex | February 2001 | 289,200 | $8,900,000 | |||
13000 NW 45th Avenue | Opa-Locka, FL | Industrial/Flex | November 2001 | 25,000 | $525,000 | |||
5520 NW 35th Avenue | Miami, FL | Land | August 2006 | 3 Acres | $1,000,000 | |||
5400 NW 37th Avenue | Miami, FL | Industrial/Flex | February 2007 | 25,000 | $2,250,000 | |||
13005 NE 14th Avenue | North Miami, FL | Industrial/Flex | January 2008 | 12,000 | $675,000 | |||
7700 NW 36th Avenue | Miami, FL | Industrial/Flex | November 2009 | 37,228 | $1,200,000 | |||
3500 NW 114th Street | Miami, FL | Industrial/Flex | October 2011 | 30,151 | $775,000 | |||
4700 NW 128th Street | Miami, FL | Industrial/Flex | Sep 2012 | 28,000 | $708,750 | |||
12801 NW 32nd Avenue | Opa-Locka, FL | Land | November 2012 | 5 Acres | $1,531,783 | |||
4730 NW 128th Street | Opa-Locka, FL | Industrial/Flex | April 2013 | 40,000 | $780,000 | |||
1050 East 9th Street | Hialeah, FL | Industrial/Flex | January 2014 | 63,000 | $950,000 | |||
3501 NW 67th Street | Miami, FL | Industrial/Flex | June 2014 | 44,000 | $875,000 | |||
3970 NW 132nd Street | Opa-Locka, FL | Industrial/Flex | July 2015 | 44,541 | $2,200,000 | |||
10700 NW 89th Avenue | Hialeah, FL | Industrial/Flex | January 2016 | 24,000 | $1,700,000 | |||
Totals / Avg | 1,347,674 | $40,518,333 |
Note: In addition to the Florida industrial assets shown above, Brian Holland, the Founder of Lucky, owns and operates more than 1.1 million square feet of additional real estate in South Carolina and Tennessee.
In this transaction, RealtyMogul.com investors will invest in Realty Mogul 71, LLC. Realty Mogul 71, LLC is expected to subsequently invest in Orlando Industrial 3 RE, LLC, the entity that will hold title to the Portfolio.
The Hanging Moss and Goldenrod properties have a combined occupancy of approximately 96% as of September 2016 and are well-located in East Orlando. The business plan for these two assets is simply to maintain current occupancy through lease renewals and the lease-up of the one vacant industrial bay at Goldenrod.
The Monroe South property, the third asset in the portfolio, has in-place occupancy of approximately 55% as of September 2016. A considerable amount of the vacancy at the Monroe property was tied to a residential real estate-related tenant who went bankrupt near the end of The Great Recession and the existing owner has been unable to execute a lease to back-fill this space. The Sponsor and the leasing agent for the Portfolio believe that this inability is largely due to the existing owner's unwillingness to invest into a speculative space build-out. For this reason, PRIME Finance, the lender for the current acquisition of the Portfolio, is reserving $375,000, of which $200,000 is for leasing cost reserves ($125,000 for new leases and $75,000 for lease rollover) and $175,000 for speculative leasing capital to lease-up the Monroe property. The leasing plan for Monroe intends to focus on the 4140 Flex Court buildings (16,875 square feet of in-place vacancy, or 14.5% of rentable square footage) and the vacant office/retail space with Monroe Road frontage (14,640 square feet of in-place vacancy, or 12.6% of rentable square footage). Please refer to the Portfolio Leasing Floorplan Aerials attached to the Financials tab of this offering in order to examine the layout of the properties in the Portfolio. If the Sponsor manages to successfully lease this space while maintaining current tenants, the occupancy of the property is targeted to exceed 80%, a sufficient level to sell the property. The Sponsor expects to be able to execute this leasing strategy within the first two years of acquiring the Portfolio.
NAI Realvest is to oversee both the day-to-day property management and leasing of the Portfolio.
A schedule of all initial leasing reserves held-back by the lender to execute the leasing strategy across the Portfolio, as well as what portion of these funds have already been allocated, is as follows.
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RealtyMogul.com, along with Lucky Property Management Group ("Lucky" or the "Sponsor"), is providing the opportunity to invest in the acquisition and ownership of the Orlando Flex Portfolio (the "Portfolio"), a three property, 13-building, 289,346 rentable square foot industrial / office / retail flex portfolio in Northeast Orlando, FL and Sanford, FL (approximately 17 miles away from the Orlando properties).
The primary objective for the Portfolio is focused on 1) maintaining current occupancy at the Goldenrod and Hanging Moss properties located in Orlando, FL, 2) leasing-up, and subsequently selling, the Monroe South property located in Sanford, FL in the first two (2) years of the hold period. The Goldenrod and Hanging Moss properties are anticipated to be held for five (5) years before being sold.
Due to existing occupancy at the Goldenrod and Hanging Moss properties, the Sponsor sees this investment as an opportunity to acquire a Portfolio with in-place cash flow and potential appreciation through the lease-up of current vacancy of the Monroe property.
Built from 2003-2006, the Portfolio is currently 81% leased. Construction style of the Portfolio is consistent throughout, with each building having a six-foot concrete base with metal walls and a metal roof throughout. The office/retail space generally has 16 foot clear heights and industrial space has 20 foot clear heights. The buildings have slide-up metal doors throughout the Portfolio which extend down to the ground. The Portfolio has 1.8 parking spaces per 1,000 rentable square feet, which is considerably above the 1.0 space per 1,000 square feet guidelines per CBRE's property condition assessment reports for the Portfolio. Several of the industrial use buildings include free gated storage areas for tenants to use. Private use of the outdoor spaces is provided to tenants in their leases.
Hanging Moss | Goldenrod | 100 Technology Parkway | 6438 University Blvd | 7101 Presidents Plaza | Averages | |
---|---|---|---|---|---|---|
Date | Oct-16 | Oct-16 | June-16 | Jan-15 | Aug-16 | Jan-15 |
Square Feet | 94,200 | 78,646 | 297,582 | 84,251 | 108,432 | 163,423 |
Year Built | 2004-2005 | 2006 | 1985 | 1990 | 1980 | 1985 |
Purchase Price | $4,441,558 | $4,441,558 | $21,300,000 | $5,021,700 | $9,950,000 | $12,090,567 |
$/SF | $38 | $38 | $72 | $60 | $92 | $74 |
Distance from Hanging Moss | N/A | 1.6 miles | 12.9 miles | 2.5 miles | 14.5 miles | 10.0 miles |
Distance from Goldenrod | 1.6 miles | N/A | 10.1 miles | 2.9 miles | 14.7 miles | 9.2 miles |
Note: Sales comparable information for the Hanging Moss and Goldenrod properties is from the DRAFT CBRE appraisals for those properties attached hereto.
Hanging Moss | Goldenrod | 351 Central Park Drive | 2800 W Airport Drive | 4510 Orange Blvd. | Averages | |
---|---|---|---|---|---|---|
Space Type | Flex Retail | Flex Retail | Industrial Class B | Flex Class C | Flex Class C | N/A |
Lease/Available SF | 2,000 | 6,536 | 4,500 | 2,000 | 2,480 | 2,993 |
Year Built | 2004-2005 | 2006 | 2000 | 1985 | 1986 | 1990 |
Building SF | 94,200 | 78,646 | 40,000 | 33,236 | 25,841 | 33,026 |
$ / SF / Year | $8.10 NNN | $7.43 NNN | $6.50 NNN | $11.00 NNN | $6.32 NNN | $7.94 NNN |
Distance from Hanging Moss | N/A | 1.6 miles | 1.8 miles | 4.4 miles | 1.0 mile | 2.4 miles |
Distance from Goldenrod | 1.6 miles | N/A | 3.0 miles | 3.8 miles | 2.4 miles | 3.1 miles |
Note: Lease comparable information for the Hanging Moss and Goldenrod propeties is from CoStar.
Subject | 110 Tech Drive | 120 Maritime Drive | 4625 Church Street | Averages | |
---|---|---|---|---|---|
Date | Oct-2016 | May-15 | April-14 | June-16 | May-15 |
Square Feet | 116,500 | 40,000 | 19,980 | 17,120 | 25,700 |
Year Built | 2003 | 1995 | 1998 | 2005 | 1999 |
Purchase Price | $4,441,558 | $2,000,000 | $1,100,000 | $1,198,000 | $1,700,200 |
$/SF | $38 | $50 | $55 | $70 | $58 |
Distance from Subject | N/A | 1.6 miles | 2.2 miles | 0.2 miles | 1.3 miles |
Note: Sales comparable information for the Monroe property is from CoStar.
Subject | 351 Central Park Drive | 2800 W Airport Drive | 4510 Orange Blvd. | Averages | |
---|---|---|---|---|---|
Space Type | Flex Retail | Flex Class B | Industrial Class C | Industrial Class C | N/A |
Lease/Available SF | 51,890 | 12,000 | 9,500 | 3,150 | 8,217 |
Year Built | 2003 | 1994 | 1982 | 1954 | 1977 |
Building SF | 116,500 | 12,000 | 27,935 | 3,150 | 14,362 |
$ / SF / Year | $5.40 NNN | $6.50 NNN | $6.06 NNN | $5.62 NNN | $6.06 NNN |
Distance from Subject | N/A | 1.3 miles | 2.6 miles | 1.0 mile | 1.6 miles |
Note: Lease comparable information for the Monroe property is from CoStar.
The Hanging Moss and Goldenrod properties are located approximately 2.5 miles apart from one another in NE Orlando, FL, in Orlando's NE Orange County light industrial submarket. Both properties have street frontage for office and retail space. Hanging Moss has frontage for two of its four buildings and is located directly next to a golf course, a public school, a Walmart and a Food Factory. Goldenrod has retail frontage for one of its three buildings and is located in a residential, single-family home neighborhood, a block from a local high school. Both locations have direct access to State Highway 50 and 417.
The Monroe South property is located directly up I-4, approximately 23 miles from the Orlando central business district and approximately 17 miles from the Hanging Moss and Goldenrod properties in the town of Sanford, FL, which is in the Seminole County light industrial submarket. The property is directly adjacent to Lake Monroe and is a couple blocks from two on-ramps for I-4. The property is located in a primarily residential apartment neighborhood and is next to the Central Florida Zoo & Botanical Gardens.
Submarket Overview - Goldenrod and Hanging Moss
Per Costar, the Northeast Orange County light industrial submarket has effectively no current vacancy (0.9%), with year-over-year rent growth of 8.8% and flat trailing-12-month absorption, implying the market has maintained full occupancy over the past year. No products have been delivered in the market since 2007, and no new product is planned, suggesting the properties should not be facing any additional competition in the near future.
Submarket Overview - Monroe
Per Costar, the Seminole County light industrial submarket has current vacancy of 4.9%, with year-over-year rent growth of 6.4% and trailing 12-month net absorption of 361,000 square feet. Vacancy among 20,000+ square foot product newer than 1990, which the Monroe property would qualify as, is currently at 2.5%. However, Seminole County covers a significant area and most of the vacancy in the submarket is focused in Sanford, where the Monroe property is located, and a flex industrial corridor to the south in Altamonte Springs. The leasing agent suggested that vacancy among similar product in Sanford was closer to 10%, which seems consistent with CoStar’s reports. As was noted in the strengths above, only one competitive building has been constructed in Sanford since 2014 (a 20,000 square foot building delivered in 2016), and no new construction is underway or planned.
Demographic Information - Goldenrod & Hanging Moss
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 and represents the Goldenrod property. Goldenrod and Hanging Moss are only a couple miles apart and therefore their demographic information is similar.
Demographic Information - Monroe
Distance from Property | 1 Mile | 3 Miles | 5 Miles |
Population | 3,899 | 34,917 | 100,512 |
Population Growth (2010-2016) | 9.31% | 11.28% | 10.53% |
Projected Growth (2016-2021) | 5.85% | 6.14% | 5.90% |
Average HH Income | $65,927 | $76,059 | $71,627 |
Median HH Income | $50,533 | $55,267 | $50,770 |
Median Home Value | $159,956 | $194,329 | $165,590 |
Owner Occupied Households | 519 | 7,444 | 24,225 |
Renter Occupied Households | 1,003 | 6,255 | 14,804 |
Demographic information above was obtained from CoStar.
Sources of Funds | Cost |
---|---|
Debt | $14,650,000 |
Equity | $3,800,000 |
Total Sources of Funds | $18,450,000 |
Uses of Funds | Cost |
Purchase Price | $17,500,000 |
Leasing Cost Reserves | $375,000 |
Loan Fee (1.0%) | $146,500 |
Doc Stamps | $81,950 |
Interest Rate Cap Reserve | $80,000 |
Buyer's Broker Fee | $70,000 |
Broker Dealer Fee (4.0%) | $56,000 |
Legal* | $50,000 |
Working Capital | $45,550 |
Sponsor Acquisition Fee | $25,000 |
Third Parties and Lender Costs | $20,000 |
Total Uses of Funds | $18,450,000 |
*Note: A portion of the legal fees will be paid to a third party attorney as reimbursement for legal pursuit costs.
The projected terms of the debt financing are as follows:
- Lender: PRIME Finance
- Proceeds: $14,650,000
- Term: Two (2) years
- Extension Options: Three (3) one year options
- Extension Costs: 0.00%, 0.25% and 0.50% for extensions one, two and three, respectively
- Prepayment: Yield maintenance through Month 24, then none
- Property Release: Yield maintenance through Month 18, then none
- Loan Paydown Upon Property Release: 125% of allocated loan value
- Rate: 30-Day LIBOR + 5.25% (5.77% as of 9/12/16)
- Rate Cap: Two (2) year cap = 1.00% + 30-Day LIBOR at closing date
- Amortization: $18,000 per month beginning in the second extension period (Month 37)
- Interest Only: Initial term and first extension period (36 months)
- Loan to Cost: 79.3%
- Exit Fee: 1.0%
- Recourse: Environmental and Bad-Boys only
- Lender Reserves:
- CapEx and Spec Space Reserve: $175,000
- Leasing Reserve for Rollover: $75,000 initially, and $4,000 monthly in swept cash
- Leasing Reserve for Currently Vacant Space: $125,000
- Ongoing Capital Expense Reserve: $0.10 per square foot / year
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.
Orlando Industrial 3 RE, LLC intends to make distributions of operating cash flows to Realty Mogul 71, LLC as follows:
- To the Members, pari passu, all excess operating cash flows to a 10.0% Preferred Return to the Members,
- 60.0% / 40.0% (60.0% to Members / 40.0% to the Sponsor) of excess operating cash flows thereafter.
Orlando Industrial 3 RE, LLC intends to make distributions of cash flows due to the sale or refinance of any or all properties in the Portfolio to Realty Mogul 71, LLC as follows:
- To the Members, pari passu, all excess cash flows and appreciation to a 10.0% Preferred Return to the Members,
- To the Members, pari passu, all excess cash flows and appreciation until all Members have received a full return of capital,
- 60.0% / 40.0% (60.0% to Members / 40.0% to the Sponsor) of excess cash flows 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 71, LLC is to distribute 100% of its share of excess cash flow (after expenses) to the members of Realty Mogul 71, LLC (the RealtyMogul.com investors). The manager of Realty Mogul 71, LLC is to receive a portion (up to 10%) of the Sponsor's promote interest.
Distributions are expected to start in March 2017 and are projected 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 | Year 4** | Year 5 | |
---|---|---|---|---|---|
Effective Gross Revenue | $1,984,552 | $2,113,135 | $1,559,236 | $1,602,784 | $1,667,022 |
Total Operating Expenses | $594,299 | $618,125 | $443,370 | $456,542 | $470,884 |
Net Operating Income | $1,390,253 | $1,494,983 | $1,115,866 | $1,146,242 | $1,196,138 |
Distributions to Realty Mogul 71, LLC Investors | $132,850 | $450,743 | $115,648 | $72,872 | $2,00,468 |
*Note: The Monroe property is projected to be sold at the end of Year 2.
**Note: The amortization of the existing loan commences in Year 4, which lowers projected net cash flow to investors.
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 | $25,000 | Sponsor | Capitalized Equity Contribution | 0.1% of the Portfolio purchase price. |
Broker-Dealer Fee | $56,000 |
North Capital (1) | Sponsor's Acquisition Fee | 4.0% of equity invested by Realty Mogul 71, LLC |
Recurring Fees: | ||||
Property Management Fee | 4.0% of effective gross revenues | Third Party & Sponsor | Operating Cash Flow | 3.0% due to third party and 1.0% due to Sponsor |
Management and Administrative Fee | 1.0% of equity invested in Realty Mogul 71, LLC | RM Manager, LLC | Distributable Cash | RM Manager, LLC is the Manager of Realty Mogul 71, 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 71, 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.