Bozeman, Montana is one of the most robust growth markets in the country, with a housing market that has maintained its underlying strength despite the recent slowdown in the national economy. The single-family market rose 10% year-over-year from December 2021 to December 2022, reflecting a lack of seller inventory and the desirability of the product type.
Bozeman is one of the fastest-growing markets in the United States with a large university presence, world-class outdoor activities, national corporations, and technology start-ups. The City’s rapid growth is fueled by three key drivers: (1) a burgeoning tech hub that accounts for $3 billion in annual revenue, (2) an affluent economic base with average salaries that are ~60% higher than average earnings in the state, and (3) the largest university in the state, with 16,700 students. Additionally, Bozeman is a magnet for international tourism, sitting within an hour’s drive of Yellowstone National Park and Big Sky Skiing Resort.
Williams Homes is currently the largest homebuilder by unit volume in Montana, and the local development team has over 100 years of collective experience in the market. Williams plans to re-use product designs from prior successful communities and is contributing 20% of the equity as a sign of its belief and commitment to the project. Further, Williams has a 26-year track record of building and selling homes in the Western United States, with more than 2,500 deliveries, a sales value of nearly $1.4 billion, and an average 23% annualized return to its investors.
Williams Homes
Co-Founded in 1996 by Lance and Sadie Williams. Williams Communities and Williams Homes (collectively “Williams”) primary focus is the development and sale of single-family attached and detached homes in communities targeted to entry-level, move-up, and luxury homebuyers in California, Idaho, Texas, and Montana. Williams consistently lands in the top ten most active for-sale homebuilders in its established markets. Over the past quarter century, Lance Williams has come to be recognized as a leader in the housing industry in the West. Lance K. Williams is the Chief Executive Officer of Williams Communities, LLC. Mr. Williams, in addition to the individuals listed in the management profile herein, will be responsible for managing the day-to-day business of the Company. In 2021 Williams delivered 398 homes for nearly $300 million in revenue with an average sales price of $760,000. Over its twenty-five-year history, Williams has delivered over 2,500 homes in 60 communities worth in excess of $1.3 billion and currently has in process or under construction over 3,300 homes with a completed value of approximately $2.2 billion. Williams has a perfect record of project completion. Williams has historically capitalized its projects with traditional commercial bank financing, institutional equity, and high net worth individual equity.
To date, Williams’ equity partners have invested over $400 million in Williams projects with completed projects having averaged a 23% annualized internal rate of return and a 1.4 multiple.
https://www.williamshomes.com/-
Lance K WilliamsCEO -
Sadie WilliamsOwner, Product Development Director -
Matt KleinChief Financial Officer -
Dan FainaChief Marketing Officer
Lance Williams has been in the construction industry for more than 35 years. Founding the company that bears his name alongside housing legend Ray Watt in 1996, Mr. Williams' experience encompasses all disciplines of residential real estate. Mr. Williams is widely recognized as a housing industry leader in the West. As Chairman and CEO, Mr. Williams has directly overseen the acquisition, entitlement, financing, construction, sales, and delivery of over 2,500 homes in 55 communities, worth in excess of $1.3 billion, and currently has in development or under construction an additional 30 projects for 3,500 plus homes with a completed value of approximately $2.2 billion. Prior to founding Williams Homes, Inc., Mr.Williams was employed by Watt Housing Corporation and Beazer Homes, Inc. where he served in multiple management roles. Mr.Williams received his bachelor's degree in Finance, Real Estate, and Law from California Polytechnic University, Pomona in 1990. Mr. Williams is a licensed real estate broker, general contractor, and jet pilot. Mr. Williams is an active member of the California Building Industry Association, where he has acted in a variety of functions including serving as chair of the government affairs committee as well as on the board of directors of the Los Angeles/Ventura chapter of the BIA. Through the years, he has shared his expertise by serving on multiple industry boards, chairing committees, and guest speaking, in addition to lending his time and efforts to many worthy community endeavors. Mr. Williams has also been recognized by his alma mater as distinguished alumni for outstanding early career success and outstanding entrepreneurship.
Raised in a real estate development family, (Sadie’s grandfather was legendary real estate developer Ray Watt) Sadie went to work for Watt Companies where she developed robust marketing and public relations experience. Sadie left the corporate world to lovingly raise her children. It was Sadie’s passion for creativity that drove her back into homebuilding. Sadie created Williams Homes’ first in-house design team, which spearheads home design, product development, and model merchandising. Over the past ten years, Sadie has overseen 60+ sales office and model home installations. Furthermore, Sadie brings her decades of industry knowledge and insight to the Board of Directors for Watt Ventures and Williams Homes. Sadie Williams is the Product Development Director, but more than that she exudes grace, grit, and the heart of Williams Homes.
Mr. Klein originally joined Williams in 2004 as the SVP of Finance and Operations. In 2009, Mr. Klein relocated to the east coast where he spent over ten years in both consulting and private equity, including the completion of several real estate and real estate service company transactions. In 2019, Mr. Klein moved to Austin, Texas and began consulting for Williams on land acquisition efforts, and rejoined Williams in 2020 as the Texas Division President. During his original tenure with Williams, Mr. Klein oversaw acquisition, development, construction, and financing alongside Mr. Williams and he will perform the same functions for the Texas Division while building a physical base of operations for Williams in Texas. In 2021, Mr. Klein took on the role of Chief Financial Officer in addition to his Texas Division President position. Mr. Klein received his bachelor’s degree in Finance, Real Estate and Law from California State Polytechnic University, Pomona in 1993 and his master’s degree in Business Administration from the University of Texas at Austin in 1999.
As both the Chief Marketing Officer and Southern California Division President of Williams Homes, Daniel Faina provides strategic leadership and plays an integral role in all aspects of operations within Williams Homes' growing portfolio of communities including acquisitions, design, and development. During his tenure at Williams, Dan has played an active part in the development of numerous communities in Southern and Central Coast California, Idaho, Montana, and now in Northern California and Texas. Along with Williams Homes’ executive management team, Dan is continually expanding and redefining the company’s business plan to satisfy everchanging homebuyer demands and market opportunities. He bases the foundation of each new community on the company’s mission statement, which is a commitment to building communities and creating homes with a family approach. In his current role as well as throughout his history at the company, Dan has taken part in developing the right people, processes, and technology to deliver the highest level of quality, reliability, and attainability for Williams’ homeowners. Dan joined Williams Homes in 2007 and has served as Southern California Division President since 2019 after serving as Vice President of Sales and Marketing. He is passionate about sharing his industry insights and expertise through his involvement with the Building Industry Association of Southern California, the Greater Sales and Marketing Council, local chambers of commerce, advisory councils, and numerous other industry and community affiliations. Thanks to his strong leadership role at Williams Homes and the industry at large, Dan was recognized in 2018 by Professional Builder magazine in its annual list of 40 Under 40 Superstars in the homebuilding industry. Dan and his family reside in Santa Clarita, California.
Track Record - Completed Deals
| Property | City, State | Asset Type | Initial Funding Date | Final Distribution Date | Investor Equity | Investor Returns | Equity Multiple | IRR |
| Righetti Arroyos 53 | San Luis Obispo, CA | MU | 1/1/2020 | 6/1/2022 | $9,800,000 | $4,167,064 | 1.43 | 22% |
| Righetti SLO43 | San Luis Obispo, CA | MU | 12/1/2019 | 4/1/2022 | $6,000,000 | $2,264,890 | 1.38 | 13% |
| Willson 16 | Bozeman, MT | LUX | 6/1/2018 | 4/1/2022 | $2,700,000 | $421,875 | 1.16 | 4% |
| Righetti SLO86 | San Luis Obispo, CA | MU | 6/1/2018 | 9/1/2021 | $10,084,000 | $6,836,925 | 1.68 | 26% |
| Hermitage | Los Angeles, CA | MU | 8/1/2019 | 12/1/2021 | $5,000,000 | $2,673,000 | 1.53 | 28% |
| Arroyos @ Righetti | San Luis Obispo, CA | MU | 8/1/2018 | 12/1/2021 | $12,200,000 | $4,109,000 | 1.34 | 38% |
| Paseos @ Righetti | San Luis Obispo, CA | MU | 3/1/2018 | 9/1/2021 | $13,000,000 | $5,191,000 | 1.40 | 24% |
| 24 on Centre | Los Angeles, CA | MU | 1/1/2017 | 1/1/2021 | $3,600,000 | - | 1.00 | 0% |
| Cobalt 12 | Los Angeles, CA | EL | 8/1/2019 | 11/1/2021 | $1,800,000 | $835,678 | 1.46 | 28% |
| Tovara West | Los Angeles, CA | EL | 12/1/2016 | 10/1/2020 | $10,250,000 | $4,923,624 | 1.48 | 12% |
| Rosewood | Santa Paula, CA | EL | 9/1/2018 | 9/1/2020 | $5,000,000 | $1,990,000 | 1.40 | 28% |
| Forsythia | Boise, ID | MU | 2/1/2019 | 5/1/2020 | $3,100,000 | $712,741 | 1.23 | 18% |
| Falcon Heights Encore | Lompoc, CA | MU | 8/1/2018 | 3/1/2020 | $3,500,000 | $985,814 | 1.28 | 15% |
| The Farm | Ventura, CA | EL & MU | 1/1/2014 | 10/1/2019 | $20,500,000 | $8,226,000 | 1.40 | 16% |
| Palmilla | Los Angeles, CA | MU | 5/1/2017 | 9/1/2019 | $2,000,000 | $423,000 | 1.14 | 6% |
| Pacific Villas | Baldwin Park, CA | MU | 1/1/2017 | 9/1/2019 | $7,730,000 | $3,112,000 | 1.40 | 19% |
| Echo 24 | Los Angeles, CA | MU | 11/1/2014 | 9/1/2019 | $2,950,000 | $966,200 | 1.33 | 19% |
| Bridewell | Los Angeles, CA | MU | 4/1/2016 | 7/1/2019 | $1,850,000 | - | 1.00 | 0% |
| Senna | Azusa, CA | EL | 4/1/2016 | 5/1/2019 | $9,250,000 | $4,052,020 | 1.44 | 18% |
| Cielo | Los Angeles, CA | EL | 10/1/2016 | 3/1/2019 | $2,660,000 | $1,236,000 | 1.46 | 19% |
| Indigo | Baldwin Park, CA | MU | 6/1/2015 | 3/1/2019 | $7,290,000 | $3,520,000 | 1.48 | 16% |
| Tovara East | Los Angeles, CA | EL | 8/1/2014 | 9/1/2018 | $6,525,000 | $2,898,000 | 1.44 | 15% |
| Reseda Ranch | Los Angeles, CA | MU | 12/1/2014 | 3/1/2019 | $1,200,000 | $532,000 | 1.44 | 9% |
| Woodridge | Atascadero, CA | EL | 10/1/2014 | 5/1/2018 | $3,000,000 | $1,210,000 | 1.40 | 10% |
| Phantom Trail | Santa Clarita, CA | MU | 4/1/2014 | 9/1/2017 | $3,359,000 | $2,755,000 | 1.82 | 29% |
| Arbor Ridge | Paso Robles | EL | 12/1/2014 | 10/1/2017 | $1,800,000 | $322,000 | 1.18 | 7% |
| La Barranca | Ventura, CA | LUX | 1/1/2013 | 9/1/2017 | $3,600,000 | ($453,000) | 0.87 | -12% |
| Country Ridge | Calabasas, CA | LUX | 6/1/2013 | 9/1/2017 | $11,259,000 | ($220,000) | 0.98 | -2% |
| Trestles | Santa Clarita, CA | EL | 5/1/2013 | 10/1/2017 | $9,770,000 | $8,474,000 | 1.87 | 21% |
| Agave | Los Angeles, CA | MU | 3/1/2013 | 7/1/2017 | $10,000,000 | $6,031,000 | 1.60 | 28% |
| Savannah | Simi Valley, CA | EL | 4/1/2013 | 12/1/2016 | $4,100,000 | $3,750,000 | 1.91 | 23% |
| Falcon Heights | Lompoc, CA | MU | 12/1/2013 | 6/1/2016 | $4,000,000 | $813,000 | 1.20 | 11% |
| Oakridge | Santa Clarita, CA | LUX | 12/1/2013 | 3/1/2016 | $5,820,000 | $3,013,000 | 1.52 | 26% |
| Parkland Cottages | Santa Maria, CA | EL | 11/1/2013 | 3/1/2016 | $1,500,000 | $586,000 | 1.39 | 18% |
| Edgewood | Fillmore, CA | MU | 8/1/2013 | 12/1/2015 | $4,000,000 | $2,255,000 | 1.56 | 23% |
| Terraces | Agoura Hills, CA | MU | 3/1/2013 | 11/1/2015 | $8,393,000 | $1,816,000 | 1.22 | 13% |
| Valle Di Oro | Santa Clarita, CA | EL | 7/1/2012 | 2/1/2015 | $5,000,000 | $4,707,738 | 1.94 | 41% |
| Park 9 | Los Angeles, CA | MU | 6/1/2012 | 7/1/2014 | $1,700,000 | $826,792 | 1.49 | 21% |
| Ridgeview | Santa Paula, CA | MU | 9/1/2011 | 7/1/2014 | $3,650,000 | $3,049,562 | 1.84 | 29% |
| Oak Haven | Fillmore, CA | EL | 7/1/2011 | 5/1/2014 | $1,550,000 | $849,397 | 1.55 | 18% |
| Ivy | Monrovia, CA | MU | 12/1/2012 | 5/1/2014 | $3,240,000 | $2,625,000 | 1.81 | 81% |
| Lone Hill | San Dimas, CA | MU | 7/1/2011 | 4/1/2014 | $7,160,000 | $1,619,000 | 1.23 | 14% |
| Olive Glen | Los Angeles, CA | EL | 5/1/2011 | 10/1/2013 | $8,631,000 | $3,725,000 | 1.43 | 36% |
| Fairways | Glendora, CA | EL | 1/1/2011 | 1/1/2014 | $1,600,000 | $666,955 | 1.42 | 13% |
| Falcon Ridge | Barstow, CA | EL | 5/1/2010 | 9/1/2014 | $800,000 | $832,511 | 2.04 | 21% |
| Chapel Lane | Ventura, CA | EL | 1/1/2010 | 5/1/2012 | $1,500,000 | $395,880 | 1.26 | 11% |
| Rosa De Castilla & Hidden Creek | MU | 7/1/2009 | 10/1/2011 | $1,800,000 | $1,545,000 | 1.86 | 37% | |
| Solstice | Santa Clarita, CA | EL | 11/1/2006 | 6/1/2011 | $1,100,000 | ($912,500) | 0.17 | -83% |
| Stratara | Santa Clarita, CA | EL | 8/1/2005 | 10/1/2008 | $2,250,000 | $100,000 | 1.04 | 2% |
| Bella Vida | Santa Clarita, CA | MU | 5/1/2005 | 6/1/2007 | $1,900,000 | $723,629 | 1.38 | 22% |
| Sonrisa | Santa Clarita, CA | EL | 5/1/2004 | 7/1/2006 | $1,650,000 | $1,126,804 | 1.68 | 47% |
| Big Sky Ranch | Santa Clarita, CA | MU | 8/1/2002 | 8/1/2003 | $800,000 | $435,491 | 1.54 | 69% |
| Apple Street | Santa Clarita, CA | EL | 8/1/2002 | 12/1/2003 | $500,000 | $755,324 | 2.51 | 123% |
| Walnut Street | Santa Clarita, CA | EL | 9/1/2001 | 12/1/2002 | $200,000 | $215,264 | 2.08 | 80% |
| Elliott Lane | Santa Clarita, CA | MU | 6/1/1999 | 2/1/2001 | $400,000 | $68,099 | 1.17 | 10% |
| Town & Country | Santa Clarita, CA | MU | 2/1/1997 | 12/1/1998 | $850,000 | $323,302 | 1.38 | 19% |
| Lola Lane | Santa Clarita, CA | MU | 3/1/1996 | 7/1/1997 | $460,000 | $451,269 | 1.98 | 63% |
| Total | $265,331,000 | $114,558,348 | 1.45 | 23% | ||||
Track Record - Ongoing Deals
| Active Project | Location | Project Completion | Homes | Revenue |
| Valley Villas | Los Angeles, CA | 2025 | 58 | $37,100,000 |
| Floating Feather | Eagle, ID | 2025 | 139 | $129,000,000 |
| Sandpoint | Sandpoint, ID | 2024 | 49 | $40,600,000 |
| Highland Meadows II | East Helena, MT | 2024 | 59 | $28,400,000 |
| Southpark | Boise, ID | 2024 | 10 | $20,100,000 |
| Copper Ridge 54 | Billings, MT | 2023 | 54 | $27,200,000 |
| Plaza Del Amo | Torrance, CA | 2023 | 39 | $31,500,000 |
| Lancaster Towns | Lancaster | 2025 | 162 | $79,500,000 |
| Camarillo Village | Camarillo | 2026 | 285 | $178,000,000 |
| Park Place | Santa Clarita, CA | 2026 | 492 | $338,000,000 |
| Copper Ridge | Billings, MT | 2025 | 217 | $86,300,000 |
| Star 203 | Star, ID | 2025 | 203 | $101,800,000 |
| San Luis Ranch Lofts | San Luis Obispo, CA | 2024 | 120 | $49,600,000 |
| Piru | Piru, Ca | 2024 | 169 | $93,850,000 |
| Palo Verde | La Quinta, CA | 2024 | 37 | $35,600,000 |
| Campanile | Cathedral City, CA | 2024 | 141 | $84,600,000 |
| Williams Ranch | Santa Clarita, CA | 2024 | 497 | $440,400,000 |
| Portisol | Natomas, CA | 2023 | 95 | $41,000,000 |
| Point Happy | La Quinta, CA | 2023 | 29 | $25,500,000 |
| San Luis Ranch Heirloom | San Luis Obispo, CA | 2023 | 83 | $56,200,000 |
| San Luis Ranch Fig | San Luis Obispo, CA | 2023 | 80 | $50,300,000 |
| Bridger Heights | Belgrade, MT | 2023 | 72 | $26,300,000 |
| Bridger Vale | Bozeman, MT | 2023 | 20 | $27,600,000 |
| Enclave | Georgetown, TX | 2023 | 64 | $20,100,000 |
| Magnolia Village | Lincoln, CA | 2023 | 32 | $15,000,000 |
| Creekside | Filmore | 2023 | 131 | $52,200,000 |
| High Sierra | Billings, MT | 2022 | 60 | $16,000,000 |
| Highland Meadows | East Helena, MT | 2022 | 34 | $12,600,000 |
| West Winds | Bozeman, MT | 2022 | 42 | $21,400,000 |
| Oxnard Shores | Oxnard,CA | 2021 | 50 | $42,670,000 |
| Total | 3,523 | $2,208,420,000 |
The above biography and track record were provided by the Sponsor and have not been independently verified by RM Technologies, LLC or its affiliates. Past performance is not indicative of future results. Please carefully review the Disclaimers section below.
- A new, single-entity LLC was created to purchase the land and secure the construction financing.
- Williams will utilize its $30 million existing construction revolver with Stockman Bank to complete the project. The project is anticipated to be built in three phases allowing the proceeds to pay down the loan to fund future phases.
- The additional, excess land will be sold to an affiliated party in approximately one year once the preliminary plats are recorded and the backbone infrastructure is complete. There is an executed purchase and sale agreement for the remaining parcels, with the proceeds expected to both pay down the construction facility and return capital to investors.
- LP Investors (including investors via the RealtyMogul platform) will receive 35% of the profits, in addition to a 12% preferred return.
- Northwest Crossing is expected to be completed and fully delivered in the spring of 2026 (~36 months).
Development Costs
| Total | $/Per Home | Percent (Total) | Per Sq. Ft. | ||
| REVENUE | |||||
| Base Revenue | $101,277,000 | $653,400 | 89.64% | $310.43 | |
| Option Revenue | $1,615,720 | $10,424 | 1.43% | $4.95 | |
| Lot Premiums | $702,615 | $4,533 | 0.62% | $2.15 | |
| Model Recovery | $255,625 | $1,649 | 0.23% | $0.78 | |
| Lot Sales(1) | $9,135,000 | - | 8.09% | - | |
| Gross Revenue | $112,985,960 | $670,006 | 100.00% | $318.32 | |
| Allowance / Incentive / Concession | ($519,255) | ($3,350) | -0.46% | ($1.59) | |
| TOTAL REVENUE | $112,466,705 | $666,656 | 99.5% | $316.73 | |
| Cost of Goods Sold | |||||
| Land & Development | |||||
| Land Acquisition | $9,878,379 | $29,316 | 8.74% | $13.93 | |
| Professional Fees (Engineering/Consultants) | $1,273,998 | $8,219 | 1.13% | $3.91 | |
| Permits & Impact Fees (Land Dev.) | $2,735,421 | $11,765 | 2.42% | $5.59 | |
| Site Improvements | $19,581,448 | $112,197 | 17.33% | $53.31 | |
| Finished Lot Cost | $33,469,245 | $161,498 | 29.62% | $76.73 | |
| Supervision/Indirects-Land Development | $1,116,457 | $7,203 | 0.99% | $3.42 | |
| DD/Title/Closing Costs | $50,000 | $323 | 0.04% | $0.15 | |
| Other Pro. Fees (Legal, DRE, HOA) | $470,187 | $3,033 | 0.42% | $1.44 | |
| Other Land Costs (Insurance & Prop. Tax) | $523,182 | $1,553 | 0.46% | $0.74 | |
| 3rd Part Interest/Fin Costs (A&D Loan) | $996,203 | $5,302 | 0.88% | $2.52 | |
| Total Land & Dev Costs | $36,625,274 | $178,912 | 32.42% | $85.00 | |
| Vertical Construction | |||||
| Direct Construction Costs | $42,997,246 | $277,402 | 38.06% | $131.79 | |
| Option Cost | $1,131,004 | $7,297 | 1.00% | $3.47 | |
| Building Permits | $407,806 | $2,631 | 0.36% | $1.25 | |
| Architecture and Engineering | $848,115 | $4,104 | 0.75% | $1.95 | |
| Other Costs (Insurance & Prop. Tax) | $784,774 | $5,063 | 0.69% | $2.41 | |
| General Contingency | $1,038,510 | $6,700 | 0.92% | $3.18 | |
| Supervision/Indirects-Vertical Const | $1,674,685 | $10,804 | 1.48% | $5.13 | |
| 3rd Part Interest/Fin Costs (A&D Loan) | $2,022,595 | $13,049 | 1.79% | $6.20 | |
| Total Vertical Construction Costs | $50,904,734 | $327,050 | 45.05% | $155.38 | |
| GROSS PROFIT | $24,936,696 | $160,694 | 22.07% | $77.94 | |
| SG&A/OTHER | |||||
| Commissions | $3,115,529 | $20,100 | 2.76% | $9.55 | |
| Closing Costs | $51,925 | $335 | 0.05% | $0.16 | |
| Model Park | $526,250 | $3,395 | 0.47% | $1.61 | |
| Sales Office Maintenance/Salary | $571,314 | $3,686 | 0.51% | $1.75 | |
| Advertising | $390,900 | $2,522 | 0.35% | $1.20 | |
| General and Administrative | $4,154,038 | $26,800 | 3.68% | $12.73 | |
| Warranty | $778,882 | $5,025 | 0.69% | $2.39 | |
| Commitment Fee/RM Fee | $283,256 | $1,827 | 0.25% | $0.87 | |
| Total SG&A/Other | $9,872,094 | $63,691 | 8.74% | $30.26 | |
| TOTAL PROJECT COSTS | $97,402,103 | $569,653 | 86.21% | $270.64 | |
| NET OPERATING PROFIT | $15,064,602 | $97,004 | 13.33% | $46.09 | |
| Preferred Return | $2,084,020 | $13,445 | 1.84% | $6.39 | |
| NET OPERATING PROFIT AFTER PREF | $12,980,582 | $83,558 | 11.49% | $39.70 | |
(1) Bulk sale of lots/land within the Project.
This is an increasingly rare opportunity to build and sell 155 market-rate, single-family attached and detached homes in a master-planned setting with no entitlement risk in the City of Bozeman, Montana. The project has all the required entitlements. The architectural plan approvals are in-process, and development is expected to begin in early 2023. The property is owned by the Company, and revolver loan financing was arranged and recorded with Stockman Bank to fund the remaining development and construction costs.
Unit Mix
| Cost | Sale | ||||||
| Unit Type | # of Units | Avg SF/Unit | $ / Unit | $ / SF | $ / Unit | $ / SF | |
| Plan 1 | Small Lot Detached | 41 | 2,062 | $558,067 | $270.64 | $667,000 | $323.47 |
| Plan 2 | Small Lot Detached | 41 | 2,359 | $638,449 | $270.64 | $709,000 | $300.55 |
| Plan 3 | Alley Loaded SFD | 17 | 1,882 | $509,351 | $270.64 | $618,000 | $328.37 |
| Plan 4 | Alley Loaded SFD | 7 | 2,008 | $543,453 | $270.64 | $643,000 | $320.22 |
| Plan 5 | Alley Loaded SFD w/ADU | 8 | 2,455 | $664,430 | $270.64 | $692,000 | $281.87 |
| Plan 6 | Alley Loaded SFD | 13 | 2,312 | $625,728 | $270.64 | $672,000 | $290.66 |
| Plan 7 | Duplex | 14 | 1,690 | $457,388 | $270.64 | $547,000 | $323.67 |
| Plan 8 | Duplex | 14 | 1,827 | $494,466 | $270.64 | $566,000 | $309.80 |
| Total/Averages | 155 | 2,105 | $569,653 | $270.64 | $653,400 | $311.68 | |
Sales Comparables
| DUPLEX Units | 2307 Blue Silos Way | 2316 Gallatin Green #17 | 2310 Gallatin Green #15 | 202 Albrey Trail #A | 2930 W. Babcock #B | 2934 W. Babcock #A | Average | Subject | ||
| Status | Active | Active | Under Contract | Active | Under Contract | Under Contract | Future | |||
| Year Built | 2023 | 2021 | 2022 | 2022 | 2023 | 2022 | 2022 | 2024 | ||
| # of Units | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | ||
| Average Unit Size | 1,507 SF | 1,530 SF | 1,540 SF | 1,703 SF | 1,753 SF | 1,753 SF | 1,631 SF | 1,759 SF | ||
| Sale Price | $724,900 | $505,000 | $519,000 | $699,900 | $529,000 | $534,900 | $585,450 | $556,500 | ||
| $/Unit | $724,900 | $505,000 | $519,000 | $699,900 | $529,000 | $534,900 | $585,450 | $556,500 | ||
| $/SF | $481 | $330 | $337 | $411 | $302 | $305 | $361 | $316 | ||
| Cap Rate | NA | NA | NA | NA | NA | NA | NA | NA | ||
| Building Size | 1,507 SF | 1,530 SF | 1,540 SF | 1,703 SF | 1,753 SF | 1,753 SF | 1,631 SF | 1,759 SF | ||
| Distance from subject (miles) | 1 NE | 1 NW | 1 NW | 2 SE | 1 NW | 1 NW | 1.2 mi | |||
| ALLEY HOMES | 5434 May Fly | 123 Stallion Dr | 321 Stone Fly | 4267 Benepe | 119 Laurel Parkway | 3914 Kimberwicke St | Average | Subject | ||
| Status | Sold | Active | Active | Active | Under Contract | Sold | Future | |||
| Year Built | 2018 | 2023 | 2014 | 2006 | 2017 | 2009 | 2015 | 2024 | ||
| # of Units | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 4 | ||
| Average Unit Size | 1,649 SF | 1,774 SF | 1,527 SF | 1,594 SF | 1,850 SF | 1,784 SF | 1,696 SF | 2,164 SF | ||
| Sale Price | $595,000 | $675,000 | $559,000 | $624,900 | $675,000 | $589,950 | $619,808 | $656,250 | ||
| $/Unit | $595,000 | $675,000 | $559,000 | $624,900 | $675,000 | $589,950 | $619,808 | $656,250 | ||
| $/SF | $361 | $380 | $366 | $392 | $365 | $331 | $366 | $303 | ||
| Cap Rate | NA | NA | NA | NA | NA | NA | NA | NA | ||
| Building Size | 1,649 SF | 1,774 SF | 1,527 SF | 1,594 SF | 1,850 SF | 1,784 SF | 1,696 SF | 2,164 SF | ||
| Distance from subject (miles) | 1 NW | 2 NW | 1 NW | 1 NW | 1 NW | 1 NW | 1.2 mi | |||
| SINGLE-FAMILY HOMES | 1505 Ryun Sun Way | 91 Hyalite Peak Dr | 540 Westgate | 347 Herstall Way | 11 Marten Peark Ct | 160 Stone Fly | Average | Subject | ||
| Status | Active | Sold | Active | Sold | Sold | Sold | Future | |||
| Year Built | 2018 | 2022 | 2017 | 2020 | 2020 | 2012 | 2018 | 2024 | ||
| # of Units | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | ||
| Average Unit Size | 2,282 SF | 2,178 SF | 2,228 SF | 2,153 SF | 2,427 SF | 2,148 SF | 2,236 SF | 2,211 SF | ||
| Sale Price | $950,000 | $870,000 | $799,000 | $799,000 | $745,000 | $760,000 | $820,500 | $688,000 | ||
| $/Unit | $950,000 | $870,000 | $799,000 | $799,000 | $745,000 | $760,000 | $820,500 | $688,000 | ||
| $/SF | $416 | $399 | $359 | $371 | $307 | $354 | $368 | $311 | ||
| Cap Rate | NA | NA | NA | NA | NA | NA | NA | NA | ||
| Building Size | 2,282 SF | 2,178 SF | 2,228 SF | 2,153 SF | 2,427 SF | 2,148 SF | 2,236 SF | 2,211 SF | ||
| Distance from subject (miles) | 1 NW | 2 SW | 1 NW | 1 NW | 2 SW | 1 NW | 1.3 mi | |||
General Market Conditions
From Bridger Appraisals Inc.: In general, the outlook for Bozeman and the surrounding communities is good. Bozeman’s economy is diverse and anchored by Montana State University. With regards to the labor market, Bozeman has a young and very well-educated work force. The quality of life and outdoor activity will continue to be one of the driving factors for population growth in the Gallatin Valley. Gallatin County has a wide variety of excellent outdoor recreational opportunities. There are cultural and additional recreational resources in Bozeman due to the presence of MSU, and the tourism industry in southwestern Montana is poised for continued growth. Current population trends continue in an upward direction and growth has been sustained over the past decade. There are no local employers or industries that are in imminent danger of changing unemployment levels. As well, there are no prospective employers moving into the area that are going to create a demand for employees. We expect to see continued steady population growth in the future for the greater Bozeman area. Residential and commercial activity has increased. Residential apartment occupancy is nearly at 100%. Commercial lease rates and property values have been increasing as well.
Bozeman, Montana is located in Gallatin County, in an area more commonly referred to as the Gallatin Valley. Gallatin County covers 2,632 square miles of mountainous lands varying in topography and climate which are located in the southwestern part of the state, more specifically between Park and Madison counties, north of the Montana-Wyoming border and Yellowstone National Park. Gallatin County is known for downhill skiing opportunities at Big Sky Resort, Moonlight Basin, and Bridger Bowl. In addition to world-class skiing, Gallatin County plays host to a multitude of other outdoor activities, as half of the land in the county is under public ownership by the Gallatin National Forest, State of Montana, Bureau of Land Management, or the National Park Service. For the past decade, Gallatin County had grown faster than any other county in the state of Montana, with the largest population increase in the state between the 2010 Census and the 2020 Census (32.9%). However, in 2021, Gallatin County was surpassed by Flathead County which was the fastest growing Montana county that year. Gallatin County’s population surpassed that of Missoula County in 2020 to become the second largest in the state with an estimated population of 122,713 in 2021. Bozeman, the county seat for Gallatin County, is located approximately 140 miles to the west of Billings, Montana and 65 miles to the north of Yellowstone National Park. With an estimated population of 53,293 in the 2020 Census, Bozeman has been the fourth largest city in Montana since 2004.
Total Capitalization
| Sources of Funds | $ Amount | $/Unit |
| Debt | $80,672,511 | $520,468 |
| GP Investor Equity(1) | $2,500,000 | $16,129 |
| LP Investor Equity | $10,000,000 | $64,516 |
| Re-Cycled Sales Proceeds(2) | $4,229,592 | $27,288 |
| Total Sources of Funds | $97,402,103 | $628,401 |
| Uses of Funds | $ Amount | $/Unit |
| Land Acquisition Price(3) | $9,878,379 | $63,731 |
| Development Fee | $2,791,142 | $18,007 |
| Loan & Technology Services Fees(4) | $532,256 | $3,434 |
| Closing Costs | $51,925 | $335 |
| Hard Costs | $62,975,657 | $406,295 |
| Hard Cost Contingency | $1,260,291 | $8,131 |
| Soft Costs | $7,093,483 | $45,764 |
| Soft Cost Contingency | $1,038,510 | $6,700 |
| G & A Costs | $4,154,038 | $26,800 |
| Financing Costs Interest | $2,769,798 | $17,870 |
| Warranty | $778,882 | $5,025 |
| Other Costs - Marketing & Sales | $4,077,742 | $26,308 |
| Total Uses of Funds | $97,402,103 | $628,401 |
(1) The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.
(2) During the initial unit deliveries, proceeds from closings are recycled to fund project costs and keep the loan in conformance.
(3) There were shared, offsite infrastructure costs included in the purchase price and paid at closing.
(4) Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC.
The terms of the debt financing are as follows:
- Lender: Stockman Bank
- Term: Two years, three one-year extensions
- Loan-to-Cost: 50% Land, 65% Land Development, 75% Vertical Construction
- Commitment (Revolver): $30,000,000
- Estimated Proceeds(1): $80,672,511
- Interest Type: Floating
- Spread above Prime: 0.50%
- Interest-Only Period: 2 years
- Amortization: None, Revolving Credit Facility
- Prepayment Terms: Repaid from each home closing at 115% of par for lot advances, plus the par amount of vertical construction advances.
- Extension Requirements: Project is performing and no material adverse change with respect to collateral and guarantor.
(1) The difference between the proceeds and commitment is due to the loan being a revolving credit facility and proceeds being borrowed and repaid throughout the construction cycle.
(2) A substantial portion of the total acquisition for the Property will be paid with borrowed funds, i.e., debt. Please carefully review the Disclaimers section below for additional information concerning the Sponsors use of debt.
Williams Homes intends to make distributions from WH Bozeman NWX 358 LLC as follows:
- First, to the Members, pro rata, based on their respective unreturned Capital Contributions until fully paid and returned;
- Second, to the Members, pro rata, based on their respective Capital Contributions, the Preferred Return thereon until said Preferred Return is fully paid;
- Third, the remaining Distributable Cash shall be distributed as follows: (1) thirty-five percent (35%) to the Members, pro rata, based on their respective Percentage Interests; and (2) sixty-five percent (65%) to the Manager.
"Preferred Return" shall mean and refer to a return of twelve percent (12%) per annum, compounding, on unreturned Capital Contributions from the date on which the Capital Contributions are funded.
Williams Homes 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 May 2024 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Williams Homes, who may decide to delay distributions for any reason, including maintenance or capital reserves.
Williams Homes will receive a promoted/carried interest as indicated above.
| Project-Level Cash Flows | ||||||
| Year 0 | Year 1(1) | Year 2 | Year 3 | |||
| Net Cash Flow | ($12,500,000) | $4,793,316 | $8,571,017 | $14,199,341 | ||
| Investor-Level Cash Flows(2) | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | |||
| Net Cash Flow | ($4,500,000) | $1,675,594 | $3,035,566 | $2,037,024 | ||
| Investor-Level Cash Flows - Hypothetical $50,000 Investment(2) | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | |||
| Net Cash Flow | ($50,000) | $18,618 | $33,729 | $22,634 | ||
(1) Year 1 cash flow includes land sale and shared site cost incurred for 203 paper lots that will be sold to an affiliated party.
(2) RM Technologies, LLC and its affiliates do not provide any assurance of returns. Returns presented are net of all fees. Please carefully review the Fees and Disclaimers sections below for additional information concerning Sponsor’s use or projected returns and fees paid to Sponsor and RM Technologies, LLC.
Certain fees and compensation will be paid over the life of the transaction; please refer to Williams Homes' materials for details. The following fees and compensation will be paid(1)(2):
| One-Time Fees: | |||
| Type of Fee | Amount of Fee | Received By | Paid From |
| Construction Management Fee | 4.0% of Gross Revenue | Williams Homes | Equity/Loan |
| Sales Commission | 1.5% of Gross Revenue | Williams Homes | Closing Proceeds |
| Warranty | 1.0% of Gross Revenue | Williams Homes | Closing Proceeds |
| Acquisition Fee | $45,000 | Williams Homes | Equity/Loan |
| Technology Solution Licensing Fee(1) | 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 |
| Administration Solution Licensing Fee(1) | Flat quarterly licensing fee of $125 per investor serviced by Sponsor through the license and use of RM Technologies’ Administration Solution | RM Technologies, LLC | Cash Flow |
(1) Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC.
(2) Fees may be deferred to reduce impact to investor distributions.
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.