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.
The Sponsor's extensive experience in operating multifamily properties is evidenced by their successful acquisition and operation of three similar-sized and aged assets in the Phoenix area, as well as their execution of the same business plan across over 20 properties worth a total of $685MM.
Recent market volatility is enabling the Sponsor to acquire the asset at a highly favorable 5.41% cap rate ($230,682/door) basis, representing a 25% discount compared to the average comp set. This purchase price is even more attractive due to the significant potential for immediate value creation. The current owner operates the asset remotely from Canada, resulting in rents that are approximately 25% below market rates. By simply bringing the rents in line with the market, the Sponsor can capture immediate upside and dramatically increase the asset's NOI, thereby increasing its value right from the start.
The Sponsor's value-add business plan for The Lennox involves an extensive renovation of all aspects of the asset to maximize its marketability and bring its units in line with the comp set. The Property, which is already family-friendly, features a high concentration of 2BR and 3BR units and is conveniently located in a prime retail corridor within walking distance of Sprouts, Walmart Supercenter, and the local high school. By implementing their "Platinum Renovation Package," the Sponsor anticipates meeting strong demand for renovated Class B units and achieving rent premiums of as much as $500/month.
RSN Property Group
Founded in April 2014, RSN Property Group is a multi real estate investment firm owned by Australian investors living in the U.S. They specialize in acquiring and operating properties with significant value-add components within strong MSAs throughout the U.S. The key principal, Reed Goossens, has been the lead operator on over 20 multifamily value-add syndications acquiring over $685MM in assets.
https://rsnpropertygroup.com/-
Reed GoosensFounder and CEO -
Ben GrayPartner and COO
Reed Goossens is a real estate entrepreneur and founder of RSN Property Group, and formerly the co-founder of Wildhorn Capital. As a native Australian, Reed moved to the U.S. to pursue his career in early 2012. Reed is a qualified chartered structural engineer and project manager. Before founding RSN Capital and Wildhorn Capital, Reed was involved with large-scale commercial construction and real estate development projects with a combined worth of over $500 million, with such projects located in Australia, the United Kingdom, and the U.S., including the London 2012 Olympic Games. Since founding both companies he has gone on to acquire over $685 million worth of multifamily assets, going full cycle on multiple deals and typically exceeding the projected investor returns.
Reed is also the host of a top-rated real estate investing podcast, "Investing in the US", wherein he interviews other distinguished real estate entrepreneurs about their success.
Ben grew up in Australia in a family of real estate investors and developers talking real estate around the dinner table every night. He followed his own path into technology, working with financial services companies in the UK and Canada before transitioning into management at large Silicon Valley tech firms where he focused on big data. Over that time, he was responsible for the successful execution of hundreds of millions of dollars in enterprise-scale projects. In parallel, Ben has owned and operated multiple successful real estate businesses and built a sizable real estate portfolio. Reed and Ben have been personal friends and business associates for over a decade and Ben would succeed Reed as the controlling person of the Manager should anything happen to Reed.
| Property Name | City, State | Asset Type | Acq. Date | Units | Purchase Price | Sales Price / Estimated Value | LP IRR | LP Emx |
| The Henry B | San Antonio, TX | Multifamily | 10-01-2018 | 198 | $18,575,000 | $22,000,000 | 15.21% | 1.42X |
| The Blair at Bitters | San Antonio, TX | Multifamily | 10-01-2018 | 190 | $15,625,000 | $23,000,000 | 15.21% | 1.42X |
| The Joseph at Huebner | San Antonio, TX | Multifamily | 11-30-2017 | 192 | $16,100,000 | $28,200,000 | 18.29% | 1.92X |
| The Reserve at Walnut Creek | Austin, TX | Multifamily | 12-30-2018 | 284 | $36,300,000 | $62,250,000 | 24.92% | 1.99X |
| The Baxter | Austin, TX | Multifamily | 11-30-2019 | 350 | $46,000,000 | $65,275,000 | 32.98% | 1.98X |
| The Lila | San Antonio, TX | Multifamily | 04-30-2017 | 253 | $20,600,000 | $29,000,000 | ||
| Providence Townhomes | San Antonio, TX | Multifamily | 09-25-2019 | 106 | $16,250,000 | $18,750,000 | ||
| Patten East | Austin, TX | Multifamily | 03-15-2022 | 248 | $43,500,000 | $47,000,000 | ||
| Barstow Apartments | Austin, TX | Multifamily | 12-15-2020 | 560 | $94,575,000 | $99,303,750 | ||
| St. Mary Apartments | Austin, TX | Multifamily | 01-26-2021 | 240 | $60,000,000 | $65,000,000 | ||
| Palmera | San Antonio, TX | Multifamily | 06-18-2021 | 288 | $46,800,000 | $49,140,000 | ||
| SoNA | Austin, TX | Multifamily | 08-19-2021 | 164 | $26,000,000 | $27,820,000 | ||
| Henry Heights | Austin, TX | Multifamily | 10-28-2021 | 184 | $32,000,000 | $33,600,000 | ||
| Lowell | Austin, TX | Multifamily | 11-25-2021 | 286 | $50,700,000 | $52,221,000 | ||
| Shiloh | Austin, TX | Multifamily | 01-15-2022 | 286 | $103,050,000 | $105,626,250 | ||
| North Edge | Phoenix, AZ | Multifamily | 06-12-2021 | 71 | $11,750,000 | $12,925,000 | ||
| Carolina Commons | Greenville, SC | Multifamily | 05-15-2021 | 43 | $3,500,000 | $3,850,000 | ||
| Townhomes at Summit | Greenville, SC | Multifamily | 03-15-2021 | 30 | $4,500,000 | $5,040,000 | ||
| Pines of Lanier | Atlanta, GA | Multifamily | 02-28-2022 | 157 | $17,800,000 | $18,868,000 | ||
| Bronte East | Phoenix, AZ | Multifamily | 07-04-2022 | 87 | $19,375,000 | $19,375,000 | ||
| Bronte West | Phoenix, AZ | Multifamily | 07-04-2022 | 48 | $13,250,000 | $13,250,000 | ||
| Pelham Place North & South | Greenville, SC | Multifamily | 09-24-2022 | 281 | $35,500,000 | $35,500,000 | ||
| Totals/Weighted Average | 4,546 | $731,750,000 | $836,994,000 | 24.4% | 1.85X |
The above bios and track record were provided by RSN Property Group and have not been independently verified by RealtyMogul.
- Immediately rebranding the asset and completely updating the entire marketing program currently in place.
- Extensively renovating the exterior of the Property, repainting, landscaping, and generally enhancing the curb appeal.
- Renovating and improving the common areas, including the pool, adding a new children’s playground, a new dog park, upgrading the gym, and more.
- And finally, renovating 90%+ of the units to their platinum renovation package, including granite countertops and stainless steel appliances.
Furthermore, the Sponsor is once again offering three different investment tiers, but the offering on the RealtyMogul platform contemplates Class C.
- Class A: This class is for those investors who want consistent 9% pure cash flow paid out quarterly. This class is limited to 25% of the total equity. Investors are paid out first before Class B/C, however, they do not get to participate in the profits once the Sponsor sells. (min. $50k) – 9% Pref.
- Class B: This class is the Sponsor's basic investment class mixing long-term equity growth, with some cash flow throughout the hold. Min. $50k – 7% preferred return and a 70/30 profit split once the Sponsor sells.
- Class C: This class is for those investors who invest larger amounts of equity (min. $500k). For doing so, these investors get an 8% preferred return and an 80/20 split on the back end. Both Class B and C investors sit equally in the capital stack.
| Interior Renovations (88 units being renovated) | Total Amount | Per Unit |
| Electrical Fixtures | $30,800 | $350 |
| Flooring | $88,000 | $1,000 |
| Kitchen Appliances | $132,000 | $1,500 |
| Interior Upgrade Materials | $30,800 | $350 |
| Countertops | $105,600 | $1,200 |
| Tubs / Enclosures | $35,200 | $400 |
| Paint / Drywall / Cabinets | $88,000 | $1,000 |
| Plumbing | $22,000 | $250 |
| Door Hardware | $22,000 | $250 |
| Demolition | $22,000 | $250 |
| Bathroom Vanity / Fixtures | $17,600 | $200 |
| Glass Tile Backsplash | $17,600 | $200 |
| Labor | $224,400 | $2,550 |
| Total Interior Renovation Costs | $836,000 | $9,500 |
| Exterior Renovations | Total Amount | Per Unit |
| Paint / Siding / Roof | $50,000 | $568 |
| HVAC / Chiller | $70,000 | $795 |
| Hot Water / Boiler | $50,000 | $568 |
| Landscaping | $50,000 | $568 |
| Signage | $20,000 | $227 |
| Dog Park | $10,000 | $114 |
| Gym | $8,000 | $91 |
| Plumbing | $100,000 | $1,136 |
| W/D | $87,500 | $994 |
| FFE | $35,000 | $398 |
| BBQ / Amenities / Package | $40,000 | $455 |
| Low Flow Toilets | $45,000 | $511 |
| Roof | $150,000 | $1,705 |
| Total Exterior Renovation Costs | $715,500 | $8,131 |
| Other Costs | Total Amount | Per Unit |
| Contingency | $71,550 | $813 |
| Construction Management Fee | $81,153 | $922 |
| Total Other Costs | $152,703 | $1,735 |
| Grand Total | $1,704,203 | $19,366 |
The Property is a boutique rental community tailored to families, offering a total of 88 two-bedroom and three-bedroom apartment homes in a two-story garden-style layout. It's conveniently located in a prime Tempe, AZ location near the intersection of E Southern Ave and S McClintock Dr, directly across the street from Sprouts farmers market, premium retail outlets, restaurants, cafes, and more. Residents in the surrounding 1-mile area have an average yearly income of just over $100,000, and this affluence is reflected in the beautiful homes, neighborhoods, and communities.
Unit Mix
| Renovated | # of Units | Avg SF/Unit | Avg Rent | Rent per SF |
| 2Bx2B | 4 | 877 | $1,775 | $2.02 |
| 3Bx2B | 11 | 1,098 | $1,950 | $1.78 |
| Non-Renovated | ||||
| 2Bx2B | 30 | 877 | $1,331 | $1.52 |
| 3Bx2B | 43 | 1,098 | $1,506 | $1.37 |
| Total/Averages | 88 | 1,010 | $1,517 | $1.50 |
Lease Comparables
| Talavera | The Enclave | Eastridge | The Rev | Villatree | Galleria Palms | Omnia McClintock | Omnia On 8th | Nines at Lakeside | Averages | Subject Property (The Lennox at Tempe) | ||
| Year Built | 1984 | 1994 | 1981 | 1972 | 1980 | 1997 | 1962 | 1985 | 1974 | 1981 | 1972 | |
| Class | A- | B+ | B- | B | B+ | A- | B- | B | B | B | ||
| # of Units | 144 | 204 | 334 | 172 | 150 | 424 | 181 | 188 | 244 | 227 | 88 | |
| Average Unit Size | 911 SF | 1,100 SF | 845 SF | 959 SF | 1,000 SF | 976 SF | 810 SF | 755 SF | 1,130 SF | 943 SF | 1,013 SF | |
| Distance from Subject Property | 0.3 Miles | 0.5 Miles | 0.4 Miles | 0.7 Miles | 2.3 Miles | 3.0 Miles | 1.8 Miles | 2.0 Miles | 2.0 Miles | 1.4 Miles | ||
| Market Rent (Post-Reno) | ||||||||||||
| $ / Unit (2 BR) | $2,119 | $1,866 | $1,795 | $1,630 | $1,623 | $1,740 | $1,802 | $1,750 | N/A | $1,791 | $1,775 | |
| SF (2 BR) | 911 SF | 1,000 SF | 845 SF | 959 SF | 1,000 SF | 816 SF | 810 SF | 755 SF | N/A | 887 SF | 877 SF | |
| $ / SF (2 BR) | $2.33 / SF | $1.87 / SF | $2.12 / SF | $1.70 / SF | $1.62 / SF | $2.13 / SF | $2.22 / SF | $2.32 / SF | N/A | $2.02 / SF | $2.02 / SF | |
| $ / Unit (3 BR) | N/A | $1,953 | N/A | N/A | N/A | $2,448 | N/A | N/A | $1,875 | $2,092 | $1,950 | |
| SF (3 BR) | N/A | 1,200 SF | N/A | N/A | N/A | 1,133 SF | N/A | N/A | 1,130 SF | 1,154 SF | 1,098 SF | |
| $ / SF (3 BR) | N/A | $1.63 / SF | N/A | N/A | N/A | $2.16 / SF | N/A | N/A | $1.66 / SF | $1.81 / SF | $1.78 / SF | |
Sales Comparables
| Sofia | Villatree | Omnia McClintock | Omnia on 8th | Mercury on Mill | Tides at Parkview | The Rev | Thrive Tempe | The Mark | Averages | Subject Property (The Lennox at Tempe) | |
| Year Built | 1979 | 1980 | 1962 | 1985 | 1971 | 1983 | 1972 | 1968 | 1970 | 1974 | 1972 |
| Class | B | B+ | B1 | B | B+ | B+ | B | B- | B | B | |
| # of Units | 173 | 150 | 181 | 188 | 167 | 196 | 172 | 110 | 125 | 162 | 88 |
| Sale Date | 08-2022 | 07-2022 | 05-2022 | 05-2022 | 05-2022 | 05-2022 | 03-2022 | 02-2022 | 12-2021 | 04-2022 | 04-2023 |
| Sales Price | $55,000,000 | $43,100,000 | $51,250,000 | $60,500,000 | $56,500,000 | $66,500,000 | $53,000,000 | $31,080,000 | $36,100,000 | $50,336,667 | $20,300,000 |
| Sales Price / Unit | $317,919 | $287,333 | $283,149 | $321,809 | $338,323 | $339,286 | $308,140 | $282,545 | $288,800 | $307,478 | $230,682 |
| Distance from Subject Property | 2.3 Miles | 2.3 Miles | 1.8 Miles | 2.0 Miles | 2.5 Miles | 3.5 Miles | 0.7 Miles | 2.7 Miles | 2.5 Miles | 2.3 Miles |
Market Overview
The Phoenix real estate market has experienced short-term volatility, presenting incredibly attractive investment opportunities while the long-term fundamentals underpinning the market remain intact:
- Population Growth: The fifth-biggest city in the country continues its phenomenal growth. No major city in the US grew faster than Phoenix over the 2010-2020 census period (Source: census.gov), and that trend is slated to continue.
- Economic Growth: The Phoenix economy is a whopping $261.7B, and it’s growing at twice the US average (Source: Phoenix.gov).
- Job Market: With a huge boom in tech and other high-income jobs, Phoenix continues to outperform other US cities. Phoenix has a 3.2% unemployment rate that is trending down and sitting near 30-year lows (Source: stlouisfed.org)
Submarket Overview
The asset is located in the highly sought-after submarket of Tempe, where the average household income within a 1-mile radius of the Property is over $100k. Furthermore, Tempe is bolstered by Arizona State University, in addition to being one of the largest universities in the country it was named the No. 1 Most Innovative School in America two years in a row by U.S. News & World Report. The southeast valley has fast become a hotbed for technology with Amazon, Microsoft, SAP, and others establishing local offices, with a plethora of non-tech companies staking claims too, including American Airlines, Coca-Cola, Humana, Wells Fargo, Honeywell, and more.
Total Capitalization
| Sources of Funds | $ Amount | $/Unit | ||||
| Debt | $12,586,000 | $143,023 | ||||
| GP Investor Equity(1) | $1,000,000 | $11,364 | ||||
| LP Investor Equity | $9,778,923 | $111,124 | ||||
| Total Sources of Funds | $23,364,923 | $265,510 | ||||
| Uses of Funds | $ Amount | $/Unit | ||||
| Purchase Price | $20,300,000 | $230,682 | ||||
| Capital Improvements | $1,704,203 | $19,366 | ||||
| Interest Rate Cap | $500,000 | $5,682 | ||||
| Closing Costs(2) | $203,000 | $2,307 | ||||
| Acquisition Fee | $406,000 | $4,614 | ||||
| Loan Fees | $251,720 | $2,860 | ||||
| Total Uses of Funds | $23,364,923 | $265,510 | ||||
(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.
The expected terms of the debt financing are as follows:
- Lender: Fannie Mae
- Loan Type: Permanent Loan
- Term: 60 Months (no extensions)
- Loan-to-Value: 62.0%
- Loan-to-Cost: 53.9%
- Estimated Proceeds: $12,586,000
- Interest Type: Fixed
- Annual Interest Rate: 4.9%
- Interest-Only Period: 60 Months
- Amortization: 30 Years
- Prepayment Terms: Yield Maintenance (57 Months)
(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.
RSN Property Group intends to make distributions from RSNPG Lennox Apts Partners RM, LLC on a pro-rata basis out of funds received as holder of a Class C Unit of RSNPG Lennox Apts Partners, LLC.
RSN Property Group intends to make distributions to the Class C Unitholders, after the payment of the preferred return to the Class A members, as follows:
- To the Class C Investors, pari passu, all operating cash flows to an 8.0% IRR;
- 80% / 20% (80% to Investors / 20% to Promote/Carried Interest) of excess cash flow thereafter.
RSN Property Group 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 September 2023 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of RSN Property Group, who may decide to delay distributions for any reason, including maintenance or capital reserves.
RSN Property Group will receive a promoted/carried interest as indicated above.
| Cash Flow Summary | ||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
| Effective Gross Revenue | $1,734,708 | $2,118,001 | $2,244,278 | $2,350,814 | $2,440,666 | |
| Total Operating Expenses | $649,250 | $684,571 | $705,235 | $725,978 | $746,931 | |
| Net Operating Income | $1,085,459 | $1,433,430 | $1,539,043 | $1,624,836 | $1,693,736 | |
| Project-Level Cash Flows | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Net Cash Flow | ($10,778,923) | $434,050 | $774,356 | $877,443 | $961,106 | $18,142,931 |
| Investor-Level Cash Flows(1) | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Net Cash Flow | ($2,000,000) | $29,626 | $113,808 | $139,303 | $159,992 | $3,440,965 |
| Investor-Level Cash Flows - Hypothetical $50,000 Investment(1) | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Net Cash Flow | ($50,000) | $741 | $2,845 | $3,483 | $4,000 | $86,024 |
(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.
Certain fees and compensation will be paid over the life of the transaction; please refer to RSN Property Group's 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 | 2.00% of Purchase Price | RSN Property Group | 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 |
| Asset Management Fee | 2.00% of Gross Revenues | RSN Property Group | Cash Flow |
| Property Management Fee | 3.00% of Gross Revenues | 3rd Party Property Manager | Cash Flow |
| Construction Management Fee | 5.00% of applicable construction budget | RSN Property Group | Construction Expenditure Budget |
| 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.
.
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.