FORMALIZED DUE DILIGENCE PROCESS 
Sponsors

The team at our affiliated broker-dealer, RM Securities, conducts diligence on of the issuer, including detailed background checks, criminal checks, bad actor checks, and reference checks on sponsors. In addition to screening for any criminal background, we may also turn down sponsors due to poor reference checks, even if the background and criminal checks are satisfactory.

Escrow accounts

We require unaffiliated sponsors to use an unaffiliated third-party escrow agent.* When an investor makes an investment with such sponsors using the RealtyMogul platform, the investor’s money is transferred directly into a third-party escrow account. All closing conditions in connection with a sponsor’s contingency offering need to be met before the third-party escrow agent will approve releasing investor funds to the issuer or general partner. For example, if an issuer or general partner plans to use funds for a real estate acquisition that does not ultimately transact, the third-party escrow agent will not transfer investor funds to the issuer or general partner, and funds will be returned to investors.

* Unless otherwise disclosed, escrow accounts are not required for some investments that accommodate 1031 investments where the property is already acquired.

Boots on the ground

Our processes typically includes visiting certain properties (or a subset of properties if it's a fund) to confirm the real estate is what and where the real estate is supposed to be. For certain properties that accommodate 1031 exchange investments, the team will review third-party prepared due diligence reports in lieu of a site visit.

Detailed Checklists

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

Confidentiality Agreement
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Canceled
Estimated Hold Period 25 Months
Estimated First Distribution 1/2024
...
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Offered By
DMJ Capital Partners
Investment Strategy Value-Add
Investment Type Equity
Minimum Investment 35000
Overview
A repeat Sponsor on the Realty Mogul platform, who has consistently outperformed returns on previous deals, is currently in escrow on a proven value-add multi-family acquisition for 44 units located in San Diego, CA.
Potential Efficiencies

The Sponsor is Acquiring the Asset from an Unsophisticated Seller: The Seller is a local one-man operator who is leaving money on the table and has not optimally managed the asset. DMJ is purchasing the Property at a 5.6% cap rate, a steep discount to the 4.1% average market cap rates for comparable assets. Additionally, whereas DMJ is vertically integrated with a deep, experienced team, the Seller has only remodeled 19 of the 44 units. 

Value-Add

Rehabbed Units are Already Outperforming: The Property’s 25 unrenovated units are significantly underperforming their market potential. Renovation premiums for the 19 remodeled units have led to rent increases as high as 60%. While DMJ will renovate units as quickly as is feasible, they have underwritten a rehab schedule of just one unit per month over the next two years. Investors should note that DMJ has underwritten zero rent growth for the first 12 months of the targeting holding period. 

Low Leverage

Attractive Debt Financing Will Mitigate Interest Rate Risk: The Sponsor is utilizing a leverage of 54.3% LTC and 64.4% LTV. The interest rate is fixed at 5.75%, which eliminates the risk of floating rate debt in a rising rate environment. Additionally, they are working with a relationship lender (a Credit Union) which provides for no-prepayment penalty and ensures maximum flexibility as they add value to the asset over time. 

Property at a glance
# of Units 44
Year Built 1971
NRSF 37,025 SF
Current Occupancy 93.0%
Exit Cap Rate 4.75%
Acquisition Price $11,650,000
Investment Highlights
The Sponsor is purchasing the Property at $11,650,000, which represents an acquisition cap rate of 5.6% on as-is year 1 NOI. Cap rate data from Costar Q4 2022 reveals the average cap rate for a similar quality asset over the past 12 months in east county San Diego was 4.1%.
Proven Value Add: 19 of the 44 units have already been fully remodeled to include in-unit washer and dryers. The plan is to increase the remaining rents by significantly enhancing the overall quality of the Property and continuing interior renovations of the unrenovated units.
Significant Upside: The remaining 25 units are each unrenovated and have drastically under-market rents. Thus far, renovation premiums have led to an increase in rent by as much as 60% which is proven by previous renovations completed by the Seller.
Renovating only 3 units per quarter over the next 2 years following a more natural attrition and turnover of units. Low leverage of approx. 55% loan-to-cost while modeling the existing rents without making any increases to the current rent roll for the first 12 months.
Superior Rental Location in the Path of Progress: The site is located just 11 miles East of downtown San Diego in a readily accessible and ideal location with quick access to Highway 94. The Property sits directly adjacent to the Campo Road Corridor Revitalization Specific Plan, and just received unanimous approval from the San Diego County Board of Supervisors which allows for renovation, revitalization, and redevelopment of the corridor.
Improved Operations and Property Management: The Seller is a local one-man operator. Local, non-institutional owners are often less sophisticated and do not optimally manage their properties. DMJ is a vertically integrated real estate operator with a professional and experienced operations team that will improve overall construction management, leasing velocity, cash flow performance, and enhance tenants’ experience.
Fixed Debt with No Prepay: DMJ will be signing on recourse debt for the acquisition. The fixed-rate loan will be with a Credit Union for a 10-year term and consist of lower leverage at approximately 55% LTC with no pre-payment penalty.
Management
Cumulative Distributions

DMJ Capital Partners

DMJ Capital Partners (the "Sponsor") is a commercial real estate investment company founded in 2018 and is focused on acquiring value-add assets throughout Southern California. They seek to acquire unique investments that will maximize returns to investors and partners. The leadership team has over 50 years of combined experience and is focused on acquiring value-add multi-family and office opportunities through select investing in submarkets with high barriers to entry, DMJ is dedicated to guiding its partners and investors to long-term prosperity by means of local expertise in the marketplace. 

https://www.dmjcapitalptrs.com/
  • Matt Midura
    Co-Founder
  • Doug Ceresia
    Co-Founder
  • Josh Buchholz
    Co-Founder
Matt Midura
Co-Founder

Matt is Co-Founder and Principal of DMJ Capital Partners and is focused on the company’s acquisitions, investor relations, and execution of growth strategies. He believes that real estate is the best asset class for long-term wealth protection and growth. Growing up as the son of an FBI Agent and an X-Ray Technician, Matt understands the day-to-day commitments that face honest, hard-working American families. Matt received an appointment to attend college at the U.S. Naval Academy in Annapolis, MD. While at USNA, Matt received a B.S. in Economics and lettered in Lacrosse, playing in the NCAA Division I National Championship where he learned the values of team building and goal setting.  After graduating from the Naval Academy, Matt was commissioned as an Officer in the U.S. Navy and ultimately served as a Division Officer in the Combat Direction Center on board USS Carl Vinson Aircraft Carrier supporting operations throughout the Middle East, Mediterranean, and Pacific before entering the private sector. Matt transitioned from the Navy and for 12 years worked as a commercial real estate broker for a leading global commercial real estate brokerage company underwriting over $2.5 billion of unpaid principal balance and managing the leasing and sale process of properties in 37 states. Today at DMJ, Matt is an integral part of directing the strategic direction of the Company as well as sourcing deals, leading investor relations, and overseeing the investment performance of the assets.

Doug Ceresia
Co-Founder

Doug is Co-Founder and Principal at DMJ Capital Partners and he oversees the company’s business units, focuses on acquisitions and supporting the firm’s principal activities.  After graduating from the University of Missouri, Doug began his career in commercial real estate with Bank of America in 1996 originating CMBS loans for commercial assets. Doug has served as President of both SIOR (“the Society of Industrial and Office Realtors) and CCIM (Certified Commercial Investment Managers) for the San Diego chapters and is heavily involved in the local real estate circles as recognized by the San Diego Metropolitan Magazine as one of San Diego’s “40 under 40” in 2007. In his role as Principal, he directs the firm’s investment and development activities, focusing on multi-family and office value add investment opportunities. Doug plays an integral part in directing the strategic direction of the Company as well as focusing on the operations and execution of the assets business plan.  Doug, his wife, two sons and their Golden Retriever (Yadi) live in the Scripps Ranch area of San Diego where he coached baseball with the Scripps Ranch Little League and enjoys numerous outdoor activities with his family including, fishing, hiking and playing sports.

Josh Buchholz
Co-Founder

Josh is Co-Founder and Principal at DMJ Capital Partners and he oversees the company’s business units and is active in supporting the firm’s service and principal activities. After receiving his Bachelor of Arts degree in International Business from San Diego State University, Josh began his career in Commercial Real Estate focusing on Class A management with the Abbey Company out of Long Beach California before transitioning to a career in Brokerage in 2005. Prior to DMJ, Josh had a prolific Brokerage career, and three times was named the firm's Top Producer of the Year in San Diego. He is actively involved in the Rotary Club 33 of San Diego, as well as a member of the board of trustees for the San Diego History Center. In his role as Principal, he directs the firm’s management and development activities, focusing on multi-family and office value-add investment opportunities. Josh plays an integral part in directing the strategic direction of the Company as well as focusing on the operations of the business units and execution of the asset business plans. Josh enjoys coaching girls' soccer for the Pacific Youth Soccer League, and when he is away from the office loves surfing, backpacking, rock climbing, camping, mountain biking, or any other type of outdoor activity with his wife, two children, and their black lab Bronco.

Track Record

DMJ Capital Partners Track Record

  City, State Asset Type Acq Date Units or SF Purchase Price Current Value/Sale Price Realized IRR
3929-3933 Gresham St. San Diego, CA Multi-Family 10/2018 12 units $5,500,000 SOLD $7,795,000 37.43%
2308 Albatross St. San Diego, CA Multi-Family 7/2019 9 units $4,000,000 SOLD $6,875,000 21.30%
6265 Greenwich Dr. San Diego, CA Office 11/2021 32,483 SF $7,500,000 $17,000,000  
               
Notable Sales Brokered by DMJ Principals
9303 & 9323 Chesapeake Dr San Diego, CA Office 2/2018 37,754 SF $6,450,000    
8787 Complex Dr. San Diego, CA Office 10/2017 55,500 SF $12,100,000    
Valley Corporate Center San Diego, CA Office 1/2017 175,826 SF $42,125,000    
2251 San Diego Ave. San Diego, CA Office 1/2017 64,000 SF $13,825,000    
232 West Ash San Diego, CA Office 9/2016 20,000 SF $8,258,160    
1400 Front San Diego, CA Office 9/2016 12,454 SF $6,941,840    
2051 Columbia St. San Diego, CA Office 12/2016 N/A $11,800,000    
330 A Street San Diego, CA Office 12/2016 9,000 SF $6,250,000    
1620 5th Avenue San Diego, CA Office 12/2015 80,660 SF $18,500,000    
The Campus at Fashion Valley San Diego, CA Office 12/2015 69,895 SF $17,000,000    
600 B Street San Diego, CA Office 8/2012 374,000 SF $49,000,000    
668 Sixth Ave San Diego, CA Office 1/2012 32,124 SF $8,000,000    

 

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.

The Sponsor plans to execute a value-add opportunity to increase remaining rents by significantly enhancing the overall quality of the Property and continuing renovations to the interior and exterior of the buildings. 19 of the 44 units have already been fully remodeled to include in-unit washer and dryers. The Seller completed extensive capital expenditures and upgrades to the common areas to include new roofs, new dual pane windows, a new leasing office, and new landscaping, thus providing a strong foundation from which to continue the value-add program. The business plan includes renovating 3 units per quarter over the next 25 months to follow a more natural attrition and turnover of units. 

The proposed improvement plan includes a full cosmetic renovation to the interior of the remaining 25 units including new cabinets, countertops, stainless steel appliances, LVT-type wood plank flooring, bathroom upgrades, new fixtures, doors, and paint throughout. In addition, the Sponsor will complete upgrades to the aesthetic design of the exterior meant to modernize the look and feel. The concept is to create a modern and best-in-class experience.

These improvements should assist with resident acquisition and retention while further differentiating the Property from area comps. Thus far, renovation premiums have led to an increase in rent by as much as 60% which is proven by previous renovations completed by the Seller. Neighboring rents on the street in unrenovated 1 BD/1BA units are going for $1,900 while renovated units less than 2 miles away are achieving pricing as high as $2,195. The Sponsor is modeling $1,995 in rent for 1 BD/1BA and will provide brand-new upgraded finishes at a similar price point as unrenovated units nearby.

CapEx Budget:

Hard Costs $ Amount Per Unit
Exterior Renovations(1) $310,000 $7,045
Interior Unit Renovations(2) $990,000 $22,500
Total Hard Costs $1,300,000 $29,545
     
Soft Costs    
Design Fees $6,000 $136
Total Soft Costs $6,000 $136
     
Contingency (10%) $130,600 $2,968
Grand Total $1,436,600 $32,650

(1) Exterior paint and facade, gate/fencing, parking lot resurfacing, common area by pool, and landscaping.

(2) $40k per unrenovated unit to include flooring, paint, cabinets, countertops, fixtures, and appliances.

Property Information

The Property offers investors the opportunity to acquire a value-add opportunity with a business plan to carry out a “proven” strategy by increasing the remaining rents through continued renovations and repositioning of the units. This workforce housing community is located 11 miles east of downtown San Diego in a readily accessible and ideal location with quick access to Highway 94. It also is located in the path of progress, sitting directly adjacent to the Campo Road Revitalization Specific plan which just received unanimous approval from the County of San Diego Board of Supervisors.

Unit Mix

Unit Type # of Units Avg SF/Unit Avg Rent (In-Place) Avg Rent (Post-Reno) Avg Rent Per SF (In-Place) Avg Rent Per SF (Post-Reno)
1x1 17 725 $1,561 $1,995 $2.15 $2.75
2x1 11 900 $2,047 $2,395 $2.27 $2.66
2x2 16 925 $2,009 $2,495 $2.17 $2.70
Total/Averages 44 841 SF $1,845 $2,277 $2.20/SF $2.70/SF
             
Comparables

Lease Comparables

  3903 Conrad Dr 4201 Spring Garden Rd 4302 Palm Ave 9209-9215 Kenwood Dr. Averages Subject (Post-Reno Rents)
Year Built 1970 1972 1972 1975 1972 1971
# of Units 102 104 75 57 85 44
Average Unit Size 996 SF 780 SF 889 SF 843 SF 877 SF 841 SF
Levels 2 2 2 2 2  
Occupancy 100% 100% 96% 100% 99% 93%
Distance from Subject Next Door 1.9 miles 2.0 miles 0.8 miles 1.2 miles  
             
$/Unit (1x1) $1,895 $1,945 $2,275 N/A $2,038 $1,995
SF (1x1) 800 SF 650 SF 817 SF N/A 756 SF 725 SF
$/SF (1x1) $2.37/SF $2.99/SF $2.78/SF N/A $2.72/SF $2.75/SF
             
$/Unit (2x1) N/A $2,395 $2,850 $2,250 $2,498 $2,395
SF (2x1) N/A 838 SF 886 SF 850 SF 858 SF 900 SF
$/SF (2x1) N/A $2.86/SF $3.22/SF $2.65/SF $2.91/SF $2.66/SF
             
$/Unit (2x2) $2,295 N/A $2,950 $2,400 $2,548 $2,495
SF (2x2) 1,000 SF N/A 936 SF 960 SF 965 SF 925 SF
$/SF (2x2) $2.30/SF N/A $3.15/SF $2.50/SF $2.65/SF $2.70/SF

 

Sales Comparables

  2000 East Main 247 North 1st St. 7637-7647 Normal Ave 4302 Palm Ave 4590 Date Ave Averages Subject (Going-in)
Date Sold 6/30/2022 6/22/2022 9/16/2022 6/22/2021 8/17/2022    
Year Built 1988 1972 1970 1972 1970 1974 1971
# of Units 61 31 21 75 12 40 44
Average Unit Size 1,110 SF 810 SF 938 SF 909 SF 799 SF 913 SF 841 SF
Sale Price $26,650,000 $9,750,000 $6,100,000 $22,250,000 $4,050,000 $13,760,000 $11,650,000
$/Unit $436,885 $314,516 $290,476 $296,667 $337,500 $335,209 $264,773
$/SF $394/SF $389/SF $310/SF $326/SF $309/SF $345/SF $315/SF
Cap Rate 4.30% 3.80% 4.34% 3.70% 3.55% 3.94%  
Building Size 67,722 SF 25,096 SF 19,700 SF 68,164 SF 13,126 SF 38,762 SF 37,025 SF
Location Information

Market Overview

The final jobs report for San Diego in 2022 released by California's Employment Development Department saw the region add 16,100 nonfarm jobs in November. The San Diego unemployment rate currently sits at 3.3%. The local unemployment rate bested both the State of California's 4% and the nation's 3.4%. 

San Diego is also home to more than 140,000 active duty and civilian military employees. The defense industry accounts for more than 350,000 jobs in the region according to the San Diego Military Advisory Council. That is close to 25% of the economy. The Navy's renewed focus on the Pacific theater of operation will result in a 60/40 split between the Pacific and Atlantic fleets, further solidifying San Diego's status as a major Navy hub. It is also why San Diego has one of the largest concentrations of millennials in the country, accounting for 25% of the population.  

While rents are up with 5.1% growth over the past year, that is coming off a peak of 14.0% on an annualized basis in early 2022. With moderation setting in, rents declined on a month-over-month basis during the last quarter of 2022 before stabilizing in January 2023. Rents rose 0.5% in January. 

Submarket Overview

More affordable submarkets with workforce housing in the east, south, and north/east county of San Diego have been among the top performers in the past 12 months. Apartment landlords have little to worry about from homeownership pulling demand from apartment renters. Interest rates are rising which has made the purchase of a home more expensive. San Diego home prices have risen by 9.5% in the past 12 months through September, according to the Case-Shiller Home Price Index, which is keeping people locked into the rental market.  

East County San Diego contains the largest concentration of apartment inventory in San Diego and is one of the most populated areas in the metro, helping sustain structurally low vacancy. In fact, the vacancy rate has averaged 3.0% over the past five years, and the present rate is 3.2%. East San Diego is one of San Diego's healthiest investment markets, and institutional-grade properties often sell. Value-add opportunities and higher cap rates relative to the metro continue to attract interest in the area's assets, even amid an environment with elevated interest rates. 

Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Debt $7,500,000 $170,455
GP Investor Equity(1) $441,250 $10,028
LP Investor Equity $5,874,826 $133,519
Total Sources of Funds $13,816,076 $314,002
     
Uses of Funds $ Amount $/Unit
Purchase Price $11,650,000 $264,773
Acquisition Fee $291,250 $6,619
Loan Fee $75,000 $1,705
Closing Costs(2) $210,191 $4,777
CapEx $1,436,600 $32,650
Tenant Incentives $81,205 $1,846
Construction Mgmt Fee $71,830 $1,633
Total Uses of Funds $13,816,076 $314,002

(1) The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.

(2) RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform.  RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the Platform and for Platform-related services.  Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC. 

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: CBC Credit Union
  • Term: 10 year
  • LTC: 54.3%
  • LTV: 64.4%
  • Estimated Proceeds: $7,500,000
  • Interest Type: Fixed
  • Annual Interest Rate: 5.75%
  • Interest-Only Period: 0 months
  • Amortization: 30 years

(1) 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. 

Distributions

DMJ Capital Partners intends to make distributions from 3827 Investors, LLC as follows:

  1. 100% to all Investors in proportion to their investment, until the Investors have received an 8.0% IRR;
  2. 70% to the Investors, 24% to the Sponsor (or Sponsor Affiliate), and 6% to RM Admin, until the Investors have received an 18.0% IRR;
  3. 50% to the Investors, 40% to the Sponsor (or Sponsor Affiliate), and 10% to RM Admin, thereafter.

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

DMJ Capital Partners will receive a promoted/carried interest as indicated above.

Cash Flow Summary
    Year 1 Year 2 Year 3
Effective Gross Revenue   $932,878 $1,104,267 $1,261,384
Total Operating Expenses   $306,793 $331,472 $408,756
Net Operating Income   $626,085 $772,795 $852,628
         
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3
Net Cash Flow ($6,316,076) $91,541 $236,536 $10,180,676
         
Cash Flows to Investors via RM Platform(1)
  Year 0 Year 1 Year 2 Year 3
Net Cash Flow ($3,000,000) $13,480 $82,349 $4,293,214
         
Cash Flows to Investors via RM Platform - Hypothetical $50,000 Investment(1)
  Year 0 Year 1 Year 2 Year 3
Net Cash Flow ($50,000) $225 $1,372 $71,554

(1) 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.

 

Fees

Certain fees and compensation will be paid over the life of the transaction; please refer to DMJ Capital Partners' 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
Acquisition Fee 2.5% of Purchase Price DMJ Capital Partners Capitalized Equity Contribution
Construction Management Fee 5.0% of Construction Costs DMJ Capital Partners Capitalized Equity Contribution
Technology Solution Licensing Fee(2) Flat one-time licensing fees of $15,000 plus $1,500 per each prospective investor onboarded by Sponsor through its license and use of RM Technologies’ Technology Solution RM Technologies, LLC

Capitalization (at Sponsor’s discretion)

       
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From
Property Management Fee 3.0% of Gross Income DMJ Capital Partners Cash Flow
Asset Management Fee 1.0% of Gross Income DMJ Capital Partners Cash Flow
Administration Solution Licensing Fee(2) Flat quarterly licensing fee of $125 per investor serviced by Sponsor through the license and use of  RM Technologies’ Administration Solution RM Technologies, LLC Cash Flow

(1) Fees may be deferred to reduce impact to investor distributions.

(2) Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC.

.

The following offering documents have been prepared and are being delivered by the Sponsor of this investment opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are not otherwise responsible for, the Sponsors offering documents posted below or any content therein.
RM Securities, LLC and its Affiliates Compensation

RM Securities, LLC, its registered representatives, affiliates, associated persons, and personnel of its affiliates who may also be associated with it, including our associated persons and personnel of our affiliates who are also be associated with RM Securities, LLC (it (“RM Securities,” “we,” “our,” or “us”) will receive fees, expense reimbursements, and other compensation (“Fees”) from the issuer of this investment offering, its sponsor, or an affiliate thereof (“Sponsor”), or otherwise in connection with Sponsor’s offering. The Fees paid to us are in addition to other fees you will pay to Sponsor or in connection with Sponsor’s investment offering. You will pay Fees to Sponsor, either directly or indirectly as an investor in the Sponsor’s offering. Sponsor will use the Fees you pay, as well as funds you invest in the relevant offering, to compensate us. The Fees paid to us will directly or indirectly be borne by you as the investor (typically, but not always, in the form of an expense of the Sponsor’s offering in which you invest) because such Fees will reduce the proceeds available for distribution to you and reduce the amount you earn over time.

For more information on the Fees paid to us, or any other Fees you will pay in connection with Sponsor’s offering, please carefully review the Sponsor’s Investment Documents. Please also carefully review RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

No Approval, Opinion or Representation, or Warranty by RM Securities, LLC

Sponsor has provided, approved, and is solely responsible in all aspects for the information on this webpage (“Page”), including Sponsor’s offering documentation, which may include without limitation the Private Placement Memorandum, Operating or Limited Partnership Agreement, Subscription Agreement, the Project Summary and all exhibits and other documents attached thereto or referenced therein (collectively, the “Investment Documents”). The Investment Documents linked on this page have been prepared and posted by Sponsor, and not by RM Securities. We did not assist in preparing, do not adopt or endorse, and we are not otherwise responsible for, the Sponsor’s Investment Documents. We make no representations or warranties as to the accuracy of information on this Page or in the Sponsor’s Investment Documents and we accept no liability therefor. No part of the information on this Page or in the Sponsor’s Investment Documents is intended to be binding on us.

Sponsor’s Information Qualified by Investment Documents

The information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.

Risk of Investment

This investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.

No Reliance on Forward-Looking Statements; Sponsor Assumptions

Sponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Neither RM Securities nor Sponsor are obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.

Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.

No Reliance on Past Performance

Any description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.

Sponsor’s Use of Debt

A substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.

Sponsor’s Offering is Not Registered

Sponsor’s securities offering will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement”). In addition, the offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership interests) are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.

No Investment Advice

Nothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments. For additional information on RM Securities’ involvement in this offering, please carefully review the Sponsor’s Investment Documents, and RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

1031 Exchange Risk

Internal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts and certain tax consequences may vary depending on the individual circumstances of each investor. RM Securities and its affiliates make no representation or warranty of any kind with respect to the tax consequences of your investment or that the IRS will not challenge any such treatment. You should consult with and rely on your own tax advisor about the tax aspects with respect to your particular circumstances.

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