Open for investment
Target IRR  16.5%-18.5% *
17.5%
Target Avg. Cash on Cash* 7.7%
Target Equity Multiple* 1.56X
Estimated Hold Period* 3 Years
FUNDED 93%
...
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
Offered By
RM Communities
Investment Strategy Core Plus
Investment Type Equity
Estimated First Distribution 11/2023
Minimum Investment 35000
Overview
Ridgeline View Townhomes is a new development comprised of luxury four-bedroom townhomes featuring high-end interior finishings, and private backyards and decks in select units located in the Vancouver, WA, submarket of the Portland MSA.

 

Please note – The property was successfully acquired on May 19th, 2023. If you are investing post-May 19th, 2023, please ensure you review the “Post-Closing Notice” provided on the website prior to making an investment. The Post-Closing Notice supersedes any other information provided on the website or relevant offering documents, including updated figures for the Capital Stack, Sources & Uses, Debt Assumptions & Return metrics. 

Basis

Ridgeline View Townhomes is an opportunistic investment offering, which RM Communities secured off-market through their relationship with the seller-developer. The seller’s original asking price was 20% higher than the ultimately negotiated purchase price of $18.1 million. RM Communities leveraged the seller’s desire for certainty of execution and a volatile construction environment in order to achieve this opportunistic pricing. The reduced purchase price represents a 14% discount to recent comparable sales and a highly favorable 6.6% going-in cap rate. RM Communities’ scale and operational efficiencies with two owned properties in close proximity enhances the exceptional cash flow potential.

Market

The Portland MSA offers residents affordable living options with proximity to outstanding employment centers, outdoor recreation, urban downtown areas, and historical attractions. The Vancouver submarket has recorded cumulative rent growth of 56% over the last ten years, compared to 52% nationally. With limited inventory growth in the MSA projected to average less than 2.4% annually through 2028, this trend is forecast to continue. Additionally, since 2010, vacancy in the Vancouver submarket has averaged 4.7% and has consistently been below the national average of 6.4%.

Desirable Product Type

Ridgeline View Townhomes offers a desirable unit mix comprised of 100% four-bedroom townhomes. Built in 2022, all units have two-story floorplans, stainless steel appliance packages, luxury vinyl plank flooring, and in-unit washers and dryers, and select units have private fenced-in yards and decks. With an average unit size of 1,426 SF, renters at Ridgeline View Townhomes have roughly 60% more living space on average when compared to the average of market rate multifamily properties with 10+ units located in Vancouver, WA.

Property at a glance
# of Units 50
Year Built 2022
Current Occupancy 94%
Market Portland MSA
Class A
Acquisition Price $18,100,000
Investment Highlights
The Property benefits from a full tax abatement due to Vancouver’s Multi-Family Tax Exemption program that runs through 2032.
RM Communities owns two other similar properties, which were both developed by the seller, within a 2.5-mile radius of the Property that have consistently exceeded pro forma rent projections since acquisition.
The acquisition financing is a lower-leverage 65.0% loan-to-value ratio, which RM Communities believes reduces the investment risk relative to higher leverage projects.
Vancouver, WA is a highly desirable location within the Portland MSA, with close proximity to the Columbia River and downtown Portland.
There is no personal income tax in the State of Washington, a competitive advantage for the Vancouver submarket compared to the Oregon side of the Portland MSA.
Management
Cumulative Distributions

RM Communities

RM Communities is a sister-company to RealtyMogul, one of the leading real estate technology platforms. RM Communities is an owner/operator of multifamily assets with a proprietary playbook to deliver strong risk-adjusted returns. RM Communities has grown its real estate portfolio to include nearly 2,000 multifamily units and over $325 million in real estate with a fully dedicated team of acquisitions, underwriting and asset management professionals.(1)

The RM Communities Multifamily 2023 First Quarter Review & Market Update

In this webinar, Todd Hanson, Managing Director of RM Communities, and his team discuss the real estate portfolio performance, observations from the first quarter, and their outlook for the remainder of 2023. This webinar also includes Todd’s thoughts on multifamily risks and opportunities and how best to navigate the current investment environment. Watch the Webinar

(1) References made to the RM Communities portfolio includes four properties that were acquired prior to the formation of RM Communities. Consequently, these assets are managed by an affiliate and are included as part of the RM Communities portfolio as a result of being acquired and managed by the same executive leadership and according to the same investment strategy employed by RM Communities. 

  • Todd Hanson
    Managing Director
  • Yacov Ronen
    Acquisitions Associate
Todd Hanson
Managing Director

Todd Hanson is the Managing Director for RM Communities across the US and has responsibility for planning and execution of overall strategy and directing the investment and financing activities of the company. He is actively involved in maintaining existing client relationships and developing new capital and partnership opportunities for the company.  Mr. Hanson was previously EVP and Head of Investments at The ConAm Group, a private equity multifamily investment firm.  

Yacov Ronen
Acquisitions Associate

Yacov Ronen is an Acquisitions Associate for RM Communities supporting the direct acquisitions of multifamily opportunities in the Mountain West region of the United States and Texas. Prior to joining RM Communities, Mr. Ronen worked as an Associate at RealtyMogul where he was directly involved in $400M in acquisitions across various asset classes. He holds B.A. in Economics from University of California, Santa Barbara.


Property Name Location Multifamily Class No. of Units Year Built Purchase Price CapEx Budget Status
Terrace Hill El Paso, TX B 310 1983 $18,700,000 $4,095,000 Full Cycle, Net IRR of 18.5% (23.1% deal-level)
La Privada El Paso, TX B 240 1982 $11,700,000 $1,867,000 Closed
The Hamptons Virginia Beach, VA B 212 1973 $19,051,000 $3,792,000 Closed
Pohlig Box Factory & Superior Warehouse Richmond, VA A- 93 & 7,700 Retail SF 2004 $15,900,000 $1,348,000 Closed
Lubbock Medical Office Building Lubbock, TX B 20,880 SF 1966 $8,350,000 $0 Closed
Turtle Creek Fenton, MO A- 128 2018 $24,875,000 $596,000 Closed
The Orion Orion Township, MI B+ 200 1995 $27,375,000 $2,308,000 Closed
Kings Landing Creve Coeur, MO A- 152 & 9,229 Retail SF 2005 $40,100,000 $3,885,850 Closed
Minnehaha Meadows Vancouver, WA A 49 2021 $16,450,000 $83,950 Closed
Roosevelt Commons Vancouver, WA A 36 2020 $12,550,000 $78,200 Closed
Bentley Apartments Grove City, OH A- 138 2020 $30,200,000 $650,000 Closed
Sherwood Oaks Riverview, FL B 199 1984 $35,000,000 $1,266,725 Closed
Haverford Place Georgetown, KY A- 160 2001 $31,050,000 $2,836,734 Closed
Edison Apartments Gresham, OR A 64 2020 $19,500,000 $203,390 Closed
Ridgeline View Townhomes Vancouver, WA A 50 2022 $18,100,000 $37,500 Closed
Brookside Apartments Raleigh, NC B 68 1986 $9,400,000 $1,402,680 Pending
Total     2,099   $338,301,000 $24,451,029  

The acquisitions of the Terrace Hill Apartments, La Privada, The Hamptons, and Pohlig Box Factory & Superior Warehouse properties preceded the formation of the RM Communities, LLC.  Consequently, these real estate assets are managed by an affiliate of RM Communities, LLC.  They are included as part of the RM Communities, LLC portfolio because these real estate assets were acquired and are managed under the same executive leadership in Jilliene Helman and according to the same investment strategy employed by RM Communities, LLC.

Note: Totals include Terrace Hill (sold).

*Past performance is not indicative of future performance.

Business Plan

In today’s environment, RM Communities is focusing on investing in strong locations, newer product, and larger units. Ridgeline View Townhomes represents such an opportunity. The Property is a stabilized, cash flowing asset and RM Communities will maximize operational efficiencies given its scale within the submarket, where RM Communities currently owns and operates two other similar townhome properties within a 2.5-mile radius of the Property. In addition, RM Communities identified an opportunity to spend approximately $37,500 to install interior technology packages to increase other income at the Property.

Ten of the units have been reserved for residents earning 80% of the area median income. This qualifies the property to receive a ten-year tax abatement from Vancouver’s Multi-Family Tax Exemption program that runs through 2032. Though the units are rent restricted, they are still achieving over $2,200/month rents due high incomes in the area. When the MFTE restrictions burn off, the affordable units convert to market rate units offering a large mark-to-market (value-add) opportunity in the future. Further, by not having taxes on the improvements to the land, the Property averages a real estate tax expense savings of over $175,000 per year.

RM Communities will finance the acquisition of the Property with a five-year, fixed-rate loan at 65% loan-to-value. Terms include three years of interest-only payments and a 5.63% interest rate. The business plan is to exit in three years at a projected 5.25% cap rate.

Property

Ridgeline View Townhomes offers a desirable unit mix comprised of 100% 4-bedroom townhomes. Built in 2022, all units feature modern interiors including stainless steel appliance packages, luxury vinyl plank flooring, in-unit washers and dryers, and select units have private fenced-in yards and decks. With an average unit size of 1,426 SF, renters at Ridgeline View Townhomes have over 55.9% more living space on average when compared to market rate multifamily properties with 10+ units located in Vancouver, WA.

Type # of Units Unit SF Total SF Stabilized Rent Rent / SF
4/3 Market 40 1,426 57,040 $2,586 $1.81
4/3 Affordable 10 1,426 14,260 $2,204 $1.55
Total/Average 50 1,426 71,300 $2,509 $1.76

1) The Multi-Family Housing Tax Exemption (MFTE) Program, which is authorized under state law (RCW 84.14) and codified in Chapter 3.22 of the Vancouver Municipal Code, allows for a real estate tax exemption on the approved value of newly constructed or rehabbed residential units. The current ordinance allows for a 10-year exemption for projects with 20% of units restricted to households earning up to 80% AMI. The Property’s tax exemption runs through the end of 2032 when the MFTE restrictions burn off, allowing the affordable units to convert to market rate units.


Lease Comparables

4/3 Townhomes - Market Rate SF Bedroom/Bath Stabilized Rent Per SF YOC
Ridgeline View Townhomes 1,426 4/3 $2,586 $1.81 2022
Larkspur Place 1,507 3/2 $2,240 $1.49 1995
Roosevelt Commons(1) 1,393 4/3 $2,299 $1.65 2019
Cherry Park Townhomes 1,628 4/3 $2,645 $1.62 2021
Coen & Columbia 1,166 2/2 $3,078 $2.64 2020
Grove at 162nd 1,482 3/2.5 $2,595 $1.75 2022
Comp Average 1,435   $2,571 $1.79  

Sales Comparables

Property Name Submarket Name Property Address City, State Sale Date Sale Price Number of Units Rentable SF Price Per Unit Price Per SF Year Build Building Class
Ridgeline View Townhomes Vancouver 7401 NE 18th St Vancouver, WA May 2023 $18,100,000 50 71,300 $362,000 $254 2022 A
Meadow Brook Place Vancouver 2231 NE Bridgecreek Ave Vancouver, WA 12/13/2022 $38,500,000 154 147,532 $250,000 $261 1996 B
134th Street Lofts Vancouver 13414 NE 23rd Ave Vancouver, WA 7/15/2022 $38,750,000 124 114,080 $312,500 $340 2021 A
Passage Apartments Vancouver 12800 SE 7th St Vancouver, WA 5/13/2022 $32,850,000 104 107,848 $315,865 $305 1991 B
Union Park Apartments Vancouver 11803 NE 124the Ave Vancouver, WA 11/18/2021 $34,500,000 120 109,800 $287,500 $314 2017 A
138th Ave Townhomes Vancouver 1818 NE 138th Ave Vancouver, WA 5/19/2022 $3,750,000 10 11,430 $375,000 $328 2020 A
Minnehaha Meadows(1) Vancouver 6000 NE 64th St Vancouver, WA 9/21/2021 $16,450,000 49 63,112 $335,714 $261 2020 A
Roosevelt Commons(1) Vancouver 2812 Falk Rd Vancouver, WA 9/21/2021 $12,550,000 36 50,148 $348,611 $250 2020 A

 

(1) Minnehaha Meadows and Roosevelt Commons were purchased by affiliates of RM Communities.

Market Overview: Portland-Vancouver-Hillsboro MSA

Per Oxford Economics, there are over 2.5 million people and over 1 million households in the Portland-Vancouver-Hillsboro MSA (the “MSA”). Over the past ten years, the MSA’s population has increased 1% annually, compared to 0.5% nationally. This trend is expected to continue over the next five years as the MSA’s population is expected to increase by 0.9% annually, compared to 0.5% nationally. The MSA’s median household income is approximately $90k, which is over 17.5% more than the national median.

Unemployment in the MSA is currently 3.7%, equal to the national average of 3.7%. However, the MSA’s labor force is expected to grow by 0.7% through 2028, outpacing the national average of 0.4%.

Portland’s reputation for a high quality of life and affordability is driving in-migration figures. Of the 11 markets* on the West Coast with at least one million residents, only Fresno, California, has lower average apartment rents than Portland (CoStar). With a lower cost of living and lower median home value, in-migration is expected to continue and maintain housing demand.

*The 11 markets include the Los Angeles, Inland Empire, Seattle, San Diego, Orange County, East Bay, Portland, Sacramento, San Jose, San Francisco, and Fresno multifamily markets. 

Submarket Overview: Vancouver, Washington

As the largest suburb in the Portland metro, Vancouver is known for strong employment, great schools, no income taxes, and an abundance of retail, recreation, and transportation options. Vancouver has seen significant investment in much of the City’s business and infrastructure, attracting a host of premier technology, healthcare, and financial services firms.

The Property is centrally located between I-205 and I-5, two major transportation highways providing convenient connectivity to employment centers throughout Vancouver and the Portland MSA. Nearby attractions include the Vancouver Plaza, Vancouver Mall, Orchards Market Center, Royal Oaks County Club, PeaceHealth Medical Center, and the Columbia Tech Center. Overall, the Property is in close proximity to over 5.2 million square feet of retail.

The City of Vancouver and its economic development partners are building the foundation to grow jobs, businesses, tourism, recreation and transportation. Columbia Waterfront, LLC a private investors group led by Gramor Development, worked closely with the City, the Port of Vancouver, and local residents to create a master plan for downtown waterfront development. The four-phase, 32-acre project will create 3,300 residential units, approximately one million square feet of office space and 250,000 square feet of retail and restaurant space. Additionally, the 7.3-acre community park incorporates public open spaces along the Columbia River edge, and the Columbia River Renaissance Trail will connect Vancouver Waterfront Park to Wintler Park, over five miles away. In total, the development is forecast to create more than 10,000 jobs.

Phase I and most of Phase II of the development have been completed, including over 62,000 of office space, 71,000 square feet of retail and restaurant space, and approximately 520 residential units. Per Columbia Waterfront, LLC, the remainder of Phase 2, comprised of two hotels, 440 residential units, and additional restaurant, retail and office space, is on track to open in 2023. Construction on Phase III will begin in Spring 2023.

The Vancouver submarket (the “Submarket”) is the Portland metro’s largest submarket by asset value, with over 34,000 units valued at $10.3 billion. The Submarket’s weighted average rent is $1,660/unit per month, which is above the Portland metro’s weighted average rent of $1,612/unit per month.

The Submarket’s average vacancy is currently 5.9%, compared to 6.6% nationally, and has consistently been below the national average vacancy rate since 2000. This trend is expected to continue through 2028, averaging 1.5% lower than the national average.

The Submarket has seen steady absorption and annual rent growth remains positive. Demand is forecast to keep pace with future supply as residents will continue to benefit from Washington’s lack of state income tax, the development of Vancouver’s downtown and waterfront, and convenient access to Portland.

Major employers within Vancouver, are concentrated in the health, education, and tech industries. The Innovation Partnership Zone (IPZ) is an initiative designed by the City of Vancouver to grow and support tech companies located in Downtown Vancouver. This has attracted new companies and existing firms to expand their presence in Vancouver. Notably, Zoominfo announced they will move their corporate headquarters in 2025 to the Vancouver Waterfront, having signed a 366,000 SF lease to occupy the entire Terminal 1 project. Zoominfo’s move is expected to increase the number of employees to 3,000. 

 

Financials

Total Capitalization

Sources Amount $/Unit %
Senior Loan $11,765,000 $235,300 61.8%
Investor Equity $7,239,316 $144,786 38.1%
Total $19,004,316 $380,086 100.0%
       
Uses Amount $/Unit %
Purchase Price $18,100,000 $362,000 95.1%
Loan Fee $147,063 $2,941 0.8%
Closing Costs $280,000 $5,600 1.5%
CapEx Budget $37,500 $750 0.2%
Acquisition Fee $362,000 $7,240 1.9%
Taxes and Insurance $17,754 $355 0.1%
Working Capital $60,000 $1,200 0.3%
Total $19,004,316 $380,086 100.0%

Please note – The property was successfully acquired on May 19th, 2023. If you are investing post-May 19th, 2023, please ensure you review the “Post-Closing Notice” provided on the website prior to making an investment, as the final Sources & Uses have changed. 

 

The expected terms of the debt financing are as follows:

  • Lender: TIAA
  • Loan Type: Fixed
  • Total Loan Amount: $11,765,000
  • Interest Rate: 5.63%
  • Loan Term: 5 Years
  • Interest-Only Period: 3 Years
  • Initial Loan-to-Value: 65.0%
  • Loan-to-Cost: 64.9%

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 possible increases in capital reserve requirements for funds to be held in a lender-controlled capital reserve account.

A substantial portion of the total acquisition of the property will be paid with borrowed funds. 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.

Please note – The property was successfully acquired on May 19th, 2023. If you are investing post-May 19th, 2023, please ensure you review the “Post-Closing Notice” provided on the website prior to making an investment, as the final Debt Assumptions have changed. 

RM Communities intends to make distributions as follows:

Operating Cash Flow:

  1. To the Investors, pro rata, all operating cash flows to an 8.0% preferred return;
  2. 70% / 30% (70% to Investors / 30% to Promote) of excess cash flow to a 17% IRR; 
  3. 50% / 50% (50% to Investors / 50% to Promote) of excess cash flow thereafter. 

Capital Event:

  1. To the Investors, pro rata, all operating cash flows to an 8.0% preferred return;
  2. Return of Capital to Members
  3. 70% / 30% (70% to Investors / 30% to Promote) of excess cash flow to a 17% IRR; 
  4. 50% / 50% (50% to Investors / 50% to Promote) of excess cash flow thereafter. 

RM Communities 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 November 2023 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of RM Communities, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Cash Flow Summary
    Year 1 Year 2 Year 3(1) Reversion(2)
Effective Gross Income    $1,517,884 $1,577,302 $1,643,178 $1,716,889
Expenses    $318,330 $326,329 $338,016 $521,519
Net Operating Income    $1,199,553 $1,250,973 $1,305,162 $1,195,370
Total Property Cash Flow    $514,416 $564,944 $11,360,206  
 
Projected Investor Cash Flow
  Year 0 Year 1 Year 2 Year 3  
Investor-Level Cash Flows - Hypothetical $50,000 Investment(3)  ($50,000) $3,522 $3,871 $70,763  

(1) Year 3 cash flows include the projected sale of the Property and the present value of the remaining real estate tax abatement.

(2) Reversion Expenses and Net Operating Income are tax-adjusted based on the projected purchase price at sale and exclude savings related to the tax abatement.

(3) Projected returns are net of all fees. 

RM Technologies, LLC and its affiliates do not provide any assurance of returns.  The content on this page, including Sponsor’s pro forma projections, was provided by the Sponsor or an affiliate thereof.  Although RM Technologies, LLC believes the Sponsor reliably produced this content, RM Technologies, LLC makes no representations or warranties as to the accuracy of such information and accepts no liability therefor.  The assumptions and projections included in the content on this Page, including the Sponsor’s pro forma projections, are not reflective of the position of RM Technologies, LLC or any other person or entity other than the Sponsor or its affiliates.  There can be no assurances that all or any of the Sponsor’s assumptions will be true, that actual performance will bear any relation to these hypothetical illustrations, or that the Sponsor’s investment objectives will be achieved.  For additional information concerning the Sponsor’s assumptions and projections, and the significant risks involved in investing in real estate, please see the Disclaimers section below. 

Certain fees and compensation will be paid over the life of the transaction; please refer to RM Communities' materials for details. The following fees and compensation will be paid(1)(2)(3):

One-Time Fees
Type of Fee Amount of Fee Received By
Acquisition Fee 2.0% of Purchase Price RM Communities
Construction Management Fee 5.0% of Capital Improvement Expenditures Cushman & Wakefield, Third Party Property Manager
Financing Fee(1) 1.0% of Refinanced Loan Amount RM Communities
Guaranty Fee(2) 0.5% of Loan Amount RealtyMogul Apartment Growth REIT, Inc.
 
Recurring Fees
Type of Fee Amount of Fee Received By
Asset Management Fee 1.5% of Effective Gross Income (EGI) RM Communities
Property Management Fee

The greater of $3,000 per month or 4% of the total monthly Gross Receipts

Cushman & Wakefield, Third Party Property Manager

(1) A Financing Fee will only be charged in the event of a refinancing event. The current business plan and returns presented herein do not assume a refinancing event during the investment hold period outlined. 

(2) The loan will be guaranteed by RealtyMogul Apartment Growth REIT, Inc., an affiliated entity, in an amount limited to 25% of the Loan Amount. The 25% guaranty will be eligible to be dissolved subsequent to fiscal year end 2024 subject to the satisfaction of the following conditions: (i) no defaults;  (ii) the Property must produce a debt service coverage ratio (DSCR) of not less than 1.40X. 

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

 

Disclaimers

Sponsor’s Projections 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 (“Sponsor”) and are not reflective of the position or opinions of, nor are they endorsed by, RM Technologies, LLC, 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

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 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.

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, prospective 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 Sponsor’s projections or expectations as of the date made. These statements are inherently subject to a variety of risks and uncertainties. Please review 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 is Affiliated with Sponsor

RM Technologies, LLC is affiliated with Sponsor. Sponsor will license and utilize the online platform (located at www.realtymogul.com) operated by RM Technologies, LLC, as well as receive technological, software and platform services provided by RM Technologies, LLC. No fee will be paid to RM Technologies by the Sponsor or its affiliates for such use and services.

No Investment Advice

 

RealtyMogul and RM Technologies, LLC are not a registered broker-dealer, investment adviser or crowdfunding portal.  Nothing on this Page should not be regarded as investment advice, either on behalf of 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, and we recommend that you consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any real estate investment.

 

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