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.
PSG Credit Opportunities II is an actively managed, absolute return-focused Fund that originates and services senior-secured real estate mortgages to qualified sponsors across the United States. The Fund distributes income on a quarterly basis to all capital partners. In light of recent market turbulence, the Fund continues to believe that being in the 1st mortgage loan position is the most attractive place in the real estate risk spectrum. The Fund has historically provided stable and regular distributions to its capital partners averaging ~9.2% annually since inception and distributed quarterly.
Investors will be coming into a diversified portfolio of approximately 28 already originated loans. As such, investors are able to get immediate yield (distributions starting the following quarter) and immediate diversification in a loan portfolio that is currently at ~59% LTV and ~72% LTC. The Fund's underlying loans are all short duration (less than 2-year initial terms), and as such, the Sponsor is able to turn over 50% of our existing loan book every year, which lets us re-price new loans and adjust to market movement quickly.
The Poverni Sheikh Group ("PSG") team has extensive experience in analyzing and managing credit investments, having spent the last ten years working together and closing in excess of 200 transactions in the real estate credit and development space. The management team has extensive real estate-related experience being a lender, developer, and construction manager, which translates into superior asset recovery, underwriting standards, and higher chances of success in special situations. This is one of PSG's competitive advantages since its inception.
Poverni Sheikh Group, LLC
PSG Credit leverages its affiliation with Poverni Sheikh Group ("PSG"), a fully integrated and regionally recognized real estate developer, builder, and operator with great relationships and experience. Over the past decade, PSG has developed 24 commercial properties across the northeast United States with a market value in excess of $400 million. PSG's extensive development experience results in superior asset recovery, underwriting standards, and higher chances of success in special situations.
PSG Credit has originated and serviced loans for the master fund since January 2016. PSG has lent a total of $250 million, with no loss of principal in any of the 179 loans. Each loan passes through a rigorous approval process and is closely managed during its life in the portfolio. PSG holds each loan on its balance sheet and provides an in-house, full-service loan administration that covers payment processing, escrow and reserves budgeting, and general property and construction progress inspections. In addition, PSG provides dedicated staff to handle collections, loan workouts, restructures, and extensions.
The Fund is primarily comprised of first-lien, senior-secured commercial real estate (CRE) collateral with an emphasis on underlying asset value and hard asset recovery, with substantial exposure to the housing and industrial real estate sectors. The Fund provides short-term, interim financing used for properties that are not fully stabilized to “bridge” the Project between acquisition and construction financing or construction and permanent financing. PSG Credit mostly lends on asset classes they have experience in developing and/or operating including single-family, multi-family, retail, mixed-use, self-storage, land, as well as industrial real estate.
Currently, the Fund has $144 million AUM across 28 different loans with an average LTV/LTC of 59%/72% respectively. The Fund targets 9.4% annual cash-on-cash returns and a 9% IRR, with quarterly distributions.
https://povernisheikh.com/-
Eugene PoverniCEO -
Greg KostrikinCOO -
Eduardo KarpatPrincipal -
Ibrahim SheikhPresident, Development -
Cameron LawsonCOO, Credit
Mr. Poverni’s expertise encompasses structuring and managing of the development life cycle, from project feasibility studies to site control, financing, syndication, construction management, asset stabilization, and disposition. Mr. Poverni founded the firm in 2011 and continues to be the driving force behind its growth, and is thankful for the talented people that work at PSG to help make its’ projects and business lines a success day-in and day-out. Mr. Poverni has overseen the firm's growth from a three-person to a thirty-person organization and its execution of more than $700M of transactions. Mr. Poverni holds a J.D. from George Washington University and an M.B.A. from the University of Maryland.
Mr. Kostrikin is an experienced corporate executive with expertise in enterprise risk management, operations, and real estate development. Mr. Kostrikin has been instrumental in building and heading the firm’s asset and property management divisions, managing a growing portfolio of mid-size multifamily and mixed-use properties. In addition, Mr. Kostrikin has developed the corporate finance, compliance, operations back end, and information technology infrastructure for the firm. Mr. Kostrikin holds a B.S. in Financial Economics from the University of Maryland, Baltimore County.
Mr. Karpat joined PSG shortly after being a Managing Director at Marketfield Asset Management, a large New York investment advisor, where he spent 10 years overseeing pricing and global investor relations. Prior to Marketfield, Eduardo held several positions at ABN AMRO and Merrill Lynch, focused mainly on investments, derivatives, and pricing. Eduardo currently sits on the board of Agrosmart, a Latam aggrotech company, and is a Principal and credit committee member at PSG Lending. Eduardo holds a Masters in Finance from London Business School and holds an Electrical Engineering degree from the Polytechnic School of the University of San Paulo.
Mr. Sheikh is a seasoned construction executive and real estate developer with extensive ground-up industrial construction and adaptive reuse project experience. Mr. Sheikh has been instrumental in building and heading the firm’s general contracting division. He has delivered over 500,000 square feet in complex historic retrofits involving tax credit program compliance, as well as over 1,000,000 square feet in industrial buildings over his 18-year career. Mr. Sheikh holds a B.S. in Economics from the University of Maryland.
Cameron Lawson serves as COO of Credit at PSG Lending. Cameron helps chiefly manage, maintain, and service the existing loan portfolio, while also contributing to the processing and underwriting of prospective loans. He is additionally responsible for helping to oversee company-wide infrastructure and protocol implementation. Previous to joining PSG Lending, he worked for 7 years for Hopkins Federal Savings Bank, which had locations in Baltimore City and Pikesville, where he held the titles of Loan Processor and Settlement Coordinator. After Hopkins Federal Savings Bank, he worked as the Single Family Homes Operations Manager for ERC Capital, Inc., a real estate investment company also based out of Pikesville. Cameron graduated from the University of Maryland Baltimore County.
| Property Name | City | State | Asset Type | Origination Date | Loan Amount | LTV | LTC | Realized Annualized Yield | Actual Profit/Loss | Status |
| 101 W Lexington | Baltimore | MD | Mixed-Use | 4/20/2016 | $390,000 | 65% | 86% | 12.9% | $58,722 | Paid Off Loan |
| 4753 Chatford | Baltimore | MD | Single-Family | 6/21/2016 | $57,500 | 61% | 31.8% | $6,038 | Paid Off Loan | |
| 3746 Ravenwood | Baltimore | MD | Single-Family | 7/21/2016 | $76,600 | 68% | 93% | 18.5% | $6,894 | Paid Off Loan |
| 1541 Upshire | Baltimore | MD | Single-Family | 7/26/2016 | $111,000 | 72% | 93% | 14.9% | $11,563 | Paid Off Loan |
| 5006 Sipple | Baltimore | MD | Single-Family | 8/4/2016 | $102,000 | 60% | 89% | 16.2% | $14,475 | Paid Off Loan |
| 2501 N Charles | Baltimore | MD | Single-Family | 8/11/2016 | $230,000 | 68% | 68% | 62.4% | $50,250 | Paid Off Loan |
| 63 Franklin | Annapolis | MD | Single-Family | 8/30/2016 | $758,000 | 60% | 75% | 11.5% | $185,852 | Paid Off Loan |
| 1119 Sherwood | Baltimore | MD | Single-Family | 9/2/2016 | $118,500 | 72% | 93% | 15.6% | $11,702 | Paid Off Loan |
| 2-4 E Preston | Baltimore | MD | Mixed-Use | 9/8/2016 | $462,500 | 74% | 54% | 14.0% | $67,720 | Paid Off Loan |
| 741 McHenry | Baltimore | MD | Single-Family | 9/8/2016 | $120,000 | 56% | 92% | 15.7% | $21,280 | Paid Off Loan |
| 1191 Cedar | Shady Side | MD | Single-Family | 9/29/2016 | $105,000 | 50% | 84% | 20.1% | $34,193 | Paid Off Loan |
| 3801 Gough | Baltimore | MD | Single-Family | 11/2/2016 | $205,000 | 73% | 82% | 13.3% | $27,945 | Paid Off Loan |
| 3828 Ednor | Baltimore | MD | Single-Family | 11/3/2016 | $116,000 | 73% | 86% | 17.6% | $13,404 | Paid Off Loan |
| 8515 Stevenswood | Baltimore | MD | Single-Family | 11/4/2016 | $160,000 | 67% | 91% | 13.3% | $31,798 | Paid Off Loan |
| 5810 Plumer | Baltimore | MD | Single-Family | 11/15/2016 | $94,000 | 67% | 79% | 15.3% | $12,384 | Paid Off Loan |
| 4403 Liberty | Baltimore | MD | Single-Family | 11/23/2016 | $153,067 | 73% | 84% | 16.3% | $30,152 | Paid Off Loan |
| 4025 Kathland | Baltimore | MD | Single-Family | 12/9/2016 | $165,000 | 63% | 88% | 15.1% | $28,459 | Paid Off Loan |
| 3531 Chesterfield | Baltimore | MD | Single-Family | 12/20/2016 | $85,000 | 70% | 89% | 15.8% | $8,689 | Paid Off Loan |
| 2910 Loudon | Baltimore | MD | Single-Family | 12/30/2016 | $158,000 | 66% | 89% | 15.5% | $44,130 | Paid Off Loan |
| 3523 Wabash | Baltimore | MD | Single-Family | 1/20/2017 | $110,000 | 67% | 87% | 15.9% | $14,181 | Paid Off Loan |
| 4004 Fleetwood | Baltimore | MD | Single-Family | 2/23/2017 | $124,000 | 66% | 74% | 17.2% | $31,144 | Paid Off Loan |
| 2219 Orleans | Baltimore | MD | Single-Family | 3/3/2017 | $112,000 | 64% | 88% | 14.8% | $17,211 | Paid Off Loan |
| 704 N Pryor | Alexandria | VA | Single-Family | 3/9/2017 | $409,000 | 68% | 83% | 23.8% | $28,130 | Paid Off Loan |
| 4127 Kathland | Baltimore | MD | Single-Family | 4/12/2017 | $163,000 | 65% | 83% | 18.9% | $39,183 | Paid Off Loan |
| 1429 Olive | Baltimore | MD | Single-Family | 5/5/2017 | $171,000 | 50% | 86% | 11.4% | $19,579 | Paid Off Loan |
| 929 12th NE | Washington | DC | Single-Family | 5/5/2017 | $617,500 | 73% | 81% | 11.4% | $73,946 | Paid Off Loan |
| 729 Roxboro Pl NW | Washington | DC | Single-Family | 5/26/2017 | $400,000 | 72% | 82% | 16.7% | $86,053 | Paid Off Loan |
| 2025 Portugal | Baltimore | MD | Single-Family | 5/26/2017 | $136,000 | 68% | 80% | 12.5% | $28,934 | Paid Off Loan |
| 9219 Allenswood | Randallstown | MD | Single-Family | 7/7/2017 | $189,000 | 73% | 78% | 15.1% | $32,686 | Paid Off Loan |
| 180 Winters | Catonsville | MD | Retail | 7/14/2017 | $225,000 | 50% | 50% | 13.2% | $36,369 | Paid Off Loan |
| 8458 Church Lane | Ellicott City | MD | Single-Family | 7/14/2017 | $285,000 | 69% | 80% | 9.7% | $38,261 | Paid Off Loan |
| 1011 Mastline | Annapolis | MD | Single-Family | 7/18/2017 | $338,000 | 61% | 72% | 43.9% | $40,030 | Paid Off Loan |
| 107 Urell | Washington | DC | Single-Family | 7/31/2017 | $386,000 | 76% | 82% | 17.1% | $73,233 | Paid Off Loan |
| 835 Park Ave | Baltimore | MD | Single-Family | 9/20/2017 | $115,000 | 68% | 81% | 45.6% | $10,350 | Paid Off Loan |
| 555 Sudbrook | Baltimore | MD | Single-Family | 9/20/2017 | $207,500 | 68% | 81% | 13.5% | $15,850 | Paid Off Loan |
| Bretton | Baltimore | MD | Multi-Family | 9/26/2017 | $1,500,000 | 70% | 70% | 11.9% | $227,916 | Paid Off Loan |
| 2505 Ritchie Marlboro | Upper Marlboro | MD | Land | 10/3/2017 | $146,500 | 13% | 12% | 20.8% | $33,321 | Paid Off Loan |
| 4218 Penhurst | Baltimore | MD | Single-Family | 10/12/2017 | $166,000 | 66% | 82% | 15.8% | $19,920 | Paid Off Loan |
| 3065 Mayfield | Baltimore | MD | Single-Family | 11/5/2017 | $77,000 | 73% | 91% | 23.8% | $12,320 | Paid Off Loan |
| 5009 Kanely | Perry Hall | MD | Single-Family | 11/9/2017 | $280,000 | 53% | 58% | 13.4% | $38,780 | Paid Off Loan |
| 317 E 24th | Baltimore | MD | Single-Family | 12/15/2017 | $120,000 | 46% | 78% | 13.1% | $15,267 | Paid Off Loan |
| 4553 Marble Hall | Baltimore | MD | Single-Family | 3/28/2018 | $110,000 | 63% | 83% | 16.4% | $9,171 | Paid Off Loan |
| 22821 Sycamore | Lewes | DE | Single-Family | 4/3/2018 | $229,000 | 68% | 76% | 14.8% | $24,490 | Paid Off Loan |
| Harford RP Holdings | Bel Air | MD | Land | 12/29/2017 | $1,075,000 | 37% | 60% | 11.8% | $137,331 | Paid Off Loan |
| 2901 S Dakota | Washington | DC | Single-Family | 2/7/2018 | $532,000 | 37% | 60% | 15.8% | $85,433 | Paid Off Loan |
| 802 Union | Baltimore | MD | Single-Family | 2/28/2018 | $227,500 | 60% | 85% | 13.4% | $30,912 | Paid Off Loan |
| 226 Sycamore | Elkton | MD | Single-Family | 5/31/2018 | $60,000 | 39% | 48% | 16.9% | $7,533 | Paid Off Loan |
| 311 E North Ave | Baltimore | MD | Multi-Family | 6/15/2017 | $3,800,000 | 69% | 78% | 8.4% | $561,419 | Paid Off Loan |
| 5315 8th St NW | Washington | DC | Single-Family | 5/3/2018 | $536,000 | 70% | 84% | 13.3% | $62,042 | Paid Off Loan |
| 4103 Penhurst | Baltimore | MD | Single-Family | 2/6/2018 | $204,000 | 62% | 87% | 14.3% | $33,253 | Paid Off Loan |
| 322-328 N Charles | Baltimore | MD | Mixed-Use | 3/30/2018 | $1,100,000 | 59% | 57% | 14.7% | $162,800 | Paid Off Loan |
| 13029 Scarlet Oak | Gaithersburg | MD | Single-Family | 6/22/2018 | $532,500 | 68% | 85% | 13.0% | $57,091 | Paid Off Loan |
| 3036 Mayfield | Baltimore | MD | Single-Family | 7/13/2018 | $77,000 | 49% | 46% | 17.3% | $12,705 | Paid Off Loan |
| 820 S Potomac | Baltimore | MD | Single-Family | 8/8/2018 | $803,000 | 47% | 66% | 10.9% | $78,425 | Paid Off Loan |
| 1189 Grove | Shady Side | MD | Single-Family | 12/15/2017 | $173,000 | 64% | 83% | 15.9% | $43,590 | Paid Off Loan |
| 876 Mildred | Dundalk | MD | Single-Family | 8/29/2018 | $145,300 | 61% | 61% | 13.3% | $17,321 | Paid Off Loan |
| 5147 Golf | Baltimore | MD | Retail | 4/26/2019 | $595,000 | 65% | 86% | 19.1% | $32,517 | Paid Off Loan |
| 425 Hoffman St | Philadelphia | PA | Single-Family | 12/5/2018 | $153,000 | 58% | 80% | 11.9% | $13,855 | Paid Off Loan |
| 45 W. Main Street | Denville | NJ | Retail | 6/15/2018 | $1,120,000 | 62% | 76% | 11.3% | $170,030 | Paid Off Loan |
| 1030 Jack Primus | Charleston | SC | Multi-Family | 7/31/2019 | $4,110,000 | 59% | 65% | 14.8% | $187,765 | Paid Off Loan |
| 14 Charlcote | Baltimore | MD | Single-Family | 8/22/2018 | $525,000 | 67% | 84% | 11.4% | $80,850 | Paid Off Loan |
| 2114 Coralthorn | Baltimore | MD | Single-Family | 3/29/2019 | $108,000 | 64% | 77% | 13.3% | $11,100 | Paid Off Loan |
| 2319 13th Pl NE | Washington | DC | Single-Family | 5/17/2019 | $408,000 | 70% | 67% | 14.3% | $37,411 | Paid Off Loan |
| 613 N Paca | Baltimore | MD | Single-Family | 8/14/2019 | $148,000 | 58% | 78% | 14.4% | $9,213 | Paid Off Loan |
| 2200 Westridge | Lutherville | MD | Single-Family | 9/20/2018 | $350,000 | 70% | 80% | 8.6% | $41,050 | Paid Off Loan |
| 622 Westwood | West Palm Beach | FL | Single-Family | 3/5/2018 | $750,000 | 45% | 60% | 21.7% | $117,083 | Paid Off Loan |
| 603 N Paca | Baltimore | MD | Single-Family | 1/28/2019 | $127,000 | 52% | 78% | 12.3% | $16,510 | Paid Off Loan |
| 805 W Joppa | Baltimore | MD | Single-Family | 5/10/2018 | $275,000 | 66% | 85% | 11.1% | $81,182 | Paid Off Loan |
| 1340 Bayshore | Dunedin | FL | Land | 2/25/2019 | $300,000 | 39% | 46% | 12.0% | $37,868 | Paid Off Loan |
| 3959 Prospect | Street | MD | Single-Family | 12/8/2017 | $254,000 | 71% | 79% | 11.2% | $64,690 | Paid Off Loan |
| 4508 Luerssen Ave | Baltimore | MD | Single-Family | 3/28/2018 | $192,000 | 64% | 78% | 13.7% | $53,256 | Paid Off Loan |
| 5841 Westwood Ave | Baltimore | MD | Single-Family | 5/1/2018 | $157,000 | 60% | 85% | 13.3% | $42,312 | Paid Off Loan |
| 807 Malcolm X Ave SE | Washington | DC | Single-Family | 1/19/2019 | $253,000 | 56% | 63% | 15.6% | $51,169 | Paid Off Loan |
| 733 Pratt | Baltimore | MD | Mixed-Use (Retail/Residential) | 10/13/2017 | $225,354 | 47% | 56% | 17.4% | $102,176 | Paid Off Loan |
| 3300 Dorchester | Baltimore | MD | Single-Family | 7/26/2019 | $170,000 | 62% | 76% | 11.3% | $15,363 | Paid Off Loan |
| 200 Limekiln Pike | Glenside | PA | Mixed-Use | 8/20/2018 | $187,650 | 59% | 45% | 17.8% | $56,103 | Paid Off Loan |
| 4870 Cherokee Ave | Alexandria | VA | Land | 6/28/2019 | $675,000 | 59% | 42% | 12.2% | $60,209 | Paid Off Loan |
| 3106 Echodale Ave | Baltimore | MD | Single-Family | 8/16/2019 | $148,000 | 61% | 84% | 14.1% | $18,505 | Paid Off Loan |
| 3225 Glendale | Baltimore | MD | Single-Family | 9/11/2019 | $142,000 | 59% | 64% | 14.9% | $18,105 | Paid Off Loan |
| 2800 W Diamond | Philadelphia | PA | Land (Multifamily) | 4/5/2019 | $880,000 | 51% | 88% | 12.8% | $148,830 | Paid Off Loan |
| 5414 Radecke | Baltimore | MD | Single-Family | 9/27/2019 | $150,000 | 57% | 77% | 16.0% | $20,208 | Paid Off Loan |
| 1627 N 7th St | Philadelphia | PA | Single-Family | 2/6/2019 | $312,000 | 46% | 77% | 11.6% | $56,593 | Paid Off Loan |
| 4313 W Gray St* | Tampa | FL | Townhomes | 9/19/2018 | $2,120,000 | 54% | 74% | 12.0% | $412,639 | Paid Off Loan |
| 6000 Belair | Baltimore | MD | Land (Retail) | 9/4/2019 | $170,000 | 24% | 21% | 12.6% | $22,886 | Paid Off Loan |
| 1402-1404 Towson | Baltimore | MD | Single-Family | 5/31/2019 | $530,000 | 70% | 83% | 11.9% | $85,256 | Paid Off Loan |
| 107 Sandsbury Avenue | Glen Burnie | MD | Single-Family | 11/27/2019 | $195,000 | 63% | 80% | 13.5% | $22,393 | Paid Off Loan |
| 324 S East | Baltimore | MD | Single-Family | 4/10/2020 | $311,000 | 59% | 66% | 13.6% | $13,146 | Paid Off Loan |
| 2566 Forest Knoll | Annapolis | MD | Single-Family | 6/15/2020 | $352,400 | 65% | 81% | 16.6% | $18,809 | Paid Off Loan |
| 8116 Conduit Road | Baltimore | MD | Single-Family | 12/30/2019 | $163,000 | 63% | 73% | 12.7% | $17,070 | Paid Off Loan |
| 407 Highway A1A #444 | Satellite Beach | FL | Single-Family | 2/14/2020 | $310,000 | 57% | 13.8% | $32,050 | Paid Off Loan | |
| 1333 Maple View Place SE | Washington | DC | Single-Family | 2/12/2020 | $424,000 | 61% | 88% | 11.7% | $40,401 | Paid Off Loan |
| 11436 Cronhill | Owings Mills | MD | Office | 11/1/2017 | $480,000 | 44% | 42% | 14.2% | $212,475 | Paid Off Loan |
| 1 York Court | Baltimore | MD | Single-Family | 8/12/2019 | $190,000 | 65% | 85% | 12.0% | $30,394 | Paid Off Loan |
| 8 S Mountain Rd | Millburn | NJ | Single-Family | 2/7/2020 | $600,000 | 69% | 83% | 11.4% | $57,699 | Paid Off Loan |
| 12420 Garrison Forest Road | Owings Mills | MD | Single-Family | 2/14/2020 | $365,000 | 66% | 82% | 12.8% | $38,979 | Paid Off Loan |
| 9907 Merwood Lane | Silver Spring | MD | Single-Family | 12/30/2019 | $510,000 | 57% | 79% | 12.1% | $60,208 | Paid Off Loan |
| 4709 Tecumseh Street | Baltimore | MD | Single-Family | 10/25/2019 | $280,000 | 44% | 54% | 13.7% | $44,882 | Paid Off Loan |
| 3630 Churchville | Aberdeen | MD | Single-Family | 9/13/2019 | $215,000 | 64% | 88% | 12.9% | $35,686 | Paid Off Loan |
| 2925-2929 W Ox Rd, Herndon | Herndon | VA | Land (Single Family) | 6/25/2020 | $1,330,000 | 52% | 42% | 20.1% | $133,443 | Paid Off Loan |
| 3405, 3409, 3411, 3415 Brewers Green Way | Baltimore | MD | Townhomes | 11/6/2019 | $1,200,000 | 40% | 53% | 13.0% | $125,833 | Paid Off Loan |
| 1228 Dellwood Avenue | Baltimore | MD | Single-Family | 10/11/2019 | $230,000 | 69% | 83% | 11.9% | $36,097 | Paid Off Loan |
| 71 & 71.5 Terrace Ave | Jersey City | NJ | Multi-Family | 5/28/2020 | $1,025,000 | 58% | 77% | 13.2% | $91,894 | Paid Off Loan |
| 5 Fisher Street | Franklin | MA | Industrial | 1/21/2020 | $4,250,000 | 49% | 76% | 12.4% | $492,969 | Paid Off Loan |
| 22802 Merrick Blvd | Jamaica | NY | Mixed-Use | 2/21/2018 | $2,400,000 | 34% | 55% | 15.4% | $646,389 | Paid Off Loan |
| 3426 16th St | Washington | DC | Single-Family | 1/3/2019 | $365,000 | 61% | 38% | 23.5% | $185,209 | Paid Off Loan |
| 410 S Collington Ave. | Baltimore | MD | Single-Family | 4/8/2020 | $175,000 | 42% | 53% | 12.0% | $18,854 | Paid Off Loan |
| 630 Westwood | West Palm Beach | FL | Single-Family | 12/26/2018 | $705,000 | 51% | 72% | 13.4% | $133,670 | Paid Off Loan |
| 3531 Hickory Avenue | Baltimore | MD | Single-Family | 10/18/2019 | $237,000 | 71% | 73% | 11.4% | $38,775 | Paid Off Loan |
| 379 E 27th St (Paterson) | Paterson | NJ | Multi-Family | 5/28/2020 | $1,680,000 | 70% | 64% | 11.9% | $166,600 | Paid Off Loan |
| 410 W Stone Dr (Wendy's) | Kingsport | TN | Retail | 9/2/2020 | $1,842,000 | 63% | 80% | 9.6% | $104,111 | Paid Off Loan |
| 81-83 Grand St, Units 1 & 2 | Jersey City | NJ | Single-Family | 4/6/2020 | $1,075,000 | 55% | 64% | 15.5% | $171,942 | Paid Off Loan |
| 2100 W Franklin | Baltimore | MD | Mixed-Use | 4/3/2019 | $300,000 | 42% | 48% | 16.2% | $100,722 | Paid Off Loan |
| 1211 17th St NE | Washington | DC | Single-Family | 7/11/2019 | $660,000 | 56% | 73% | 12.7% | $109,247 | Paid Off Loan |
| 12170 Lime Kiln | Maple Lawn | MD | Land (Single Family) | 9/3/2019 | $2,300,000 | 66% | 61% | 12.1% | $470,861 | Paid Off Loan |
| 106 Trenton Lakewood Road | Millstone | NJ | Land (Industrial) | 10/30/2018 | $2,600,000 | 50% | 50% | 13.8% | $917,030 | Paid Off Loan |
| 1502 Spring Pl NW | Washington | DC | Single-Family | 8/25/2020 | $680,000 | 67% | 80% | 12.6% | $67,433 | Paid Off Loan |
| 2, 34, and 35 Cutters Dock Rd | Woodbridge | NJ | Land (Industrial) | 6/5/2019 | $6,250,000 | 39% | 35% | 14.2% | $1,820,833 | Paid Off Loan |
| 905 Decatur Street NW | Washington | DC | Single-Family | 2/5/2020 | $395,000 | 63% | 12.5% | $68,467 | Paid Off Loan | |
| 801 Newbern | Raleigh | NC | Townhomes | 7/15/2020 | $4,800,000 | 65% | 76% | 9.0% | $408,000 | Paid Off Loan |
| 1119 Providence Rd | Towson | MD | Single-Family | 3/26/2020 | $130,000 | 65% | 72% | 11.1% | $33,078 | Paid Off Loan |
| 2413 21st Place | Washington | DC | Multi-Family | 6/28/2019 | $421,000 | 58% | 12.6% | $109,896 | Paid Off Loan | |
| 150 Inlet Way | West Palm Beach | FL | Multi-Family | 5/3/2021 | $1,866,667 | 76% | 55% | 17.6% | $80,267 | Paid Off Loan |
| 200 Inlet Way | West Palm Beach | FL | Multi-Family | 5/3/2021 | $1,866,667 | 76% | 55% | 17.6% | $80,268 | Paid Off Loan |
| 206 Inlet Way | West Palm Beach | FL | Multi-Family | 5/3/2021 | $1,866,667 | 76% | 55% | 17.6% | $80,269 | Paid Off Loan |
| 3545 Keswick | Baltimore | MD | Single-Family | 7/26/2019 | $228,000 | 66% | 73% | 12.2% | $57,001 | Paid Off Loan |
| 1600 and 1608 Portugal | Baltimore | MD | Single-Family | 7/31/2020 | $357,500 | 60% | 63% | 12.6% | $46,737 | Paid Off Loan |
| 1701 Marshall St | Baltimore | MD | Single-Family | 12/21/2018 | $241,000 | 53% | 68% | 10.7% | $72,618 | Paid Off Loan |
| 308 Percival Rd | Columbia | SC | Multi-Family | 9/1/2020 | $3,450,000 | 65% | 72% | 12.3% | $483,383 | Paid Off Loan |
| 5101 River Rd Unit 616 | Bethesda | MD | Single-Family | 11/6/2020 | $200,000 | 59% | 80% | 14.0% | $29,133 | Paid Off Loan |
| 123 Creek Rd | Mnt Laurel Township | NJ | Multi-Family | 11/18/2020 | $4,600,000 | 60% | 62% | 10.0% | $463,067 | Paid Off Loan |
| 1106 Hampton Garth | Towson | MD | Single-Family | 8/26/2021 | $485,000 | 72% | 83% | 14.4% | $20,511 | Paid Off Loan |
| 111-117 Park Avenue | Baltimore | MD | Multi-Family | 7/31/2017 | $390,000 | 56% | 49% | 14.9% | $189,583 | Paid Off Loan |
| 5717-5723 Harford Road | Baltimore | MD | Land (Multifamily) | 12/22/2017 | $250,000 | 50% | 53% | 13.8% | $114,822 | Paid Off Loan |
| 1706-1722 N. Sydenham Street | Philadelphia | PA | Multi-Family | 12/7/2020 | $3,300,000 | 64% | 63% | 13.5% | $420,667 | Paid Off Loan |
| 18 Lachmund Court | Old Tappan | NJ | Single-Family | 12/29/2020 | $975,000 | 65% | 40% | 16.2% | $125,350 | Paid Off Loan |
| 400 W. Franklin Street | Baltimore | MD | Office | 10/22/2021 | $625,000 | 56% | 51% | 14.7% | $34,767 | Paid Off Loan |
| 716 S. Bethel Street | Baltimore | MD | Single-Family | 2/21/2020 | $146,000 | 62% | 85% | 15.0% | $42,174 | Paid Off Loan |
| 73 Irving Street | Jersey City | NJ | For Sale Housing | 6/6/2019 | $1,550,000 | 64% | 76% | 17.6% | $473,471 | Paid Off Loan |
| 206 Witherspoon Road | Baltimore | MD | Single-Family | 1/18/2022 | $490,000 | 52% | 79% | 16.5% | $21,928 | Paid Off Loan |
| 175 Huron Street | Brooklyn | NY | For Sale Housing | 3/4/2021 | $2,700,000 | 69% | 68% | 20.1% | $292,006 | Paid Off Loan |
| 170 Fulling Mill Road | Middletown | PA | Industrial | 9/30/2021 | $1,850,000 | 70% | 76% | 11.4% | $160,778 | Paid Off Loan |
| 114/116 S. Broadway | Baltimore | MD | Multi-Family | 4/1/2021 | $900,000 | 67% | 76% | 13.8% | $168,646 | Paid Off Loan |
| 8911 Bethlehem Blvd. | Sparrows Point | MD | Industrial | 12/23/2021 | $5,800,000 | 64% | 71% | 12.6% | $535,937 | Paid Off Loan |
| 2717 Tennyson Street | Washington | DC | Single-Family | 12/15/2021 | $2,550,000 | 68% | 71% | 12.9% | $196,647 | Paid Off Loan |
| 1501 Jefferson Street | Hyattsville | MD | Single-Family | 5/14/2021 | $300,000 | 65% | 85% | 14.4% | $56,533 | Paid Off Loan |
| 300 N. Sherman Street | York | PA | Industrial | 6/29/2021 | $1,425,000 | 55% | 62% | 11.4% | $219,966 | Paid Off Loan |
| 217 Prospect Avenue | Brooklyn | NY | Multi-Family | 10/5/2021 | $1,583,000 | 66% | 60% | 10.5% | $160,080 | Paid Off Loan |
| 19721 Eagle Mill Road | Parkton | MD | Single-Family | 2/1/2022 | $375,000 | 63% | 79% | 14.6% | $40,359 | Paid Off Loan |
| 17-19 S. Main Street | Manville | NJ | Medical Office | 10/15/2021 | $2,000,000 | 59% | 63% | 12.4% | $312,529 | Paid Off Loan |
| 901 S. Ellwood Avenue | Baltimore | MD | For Sale Housing | 12/9/2021 | $4,250,000 | 72% | 75% | 27.3% | $378,012 | Paid Off Loan |
| 2103 S, Harcourt Avenue | Los Angeles | CA | Multi-Family | 11/19/2019 | $1,050,000 | 46% | 60% | 10.0% | $287,278 | Paid Off Loan |
| Paid Off Loan Total / Weighted Averages | $122,199,871 | 60% | 66% | 14.0% | $17,706,893 | |||||
| 1157 NW 1st Street | Miami | Florida | Multi-Family | 03/31/2022 | $1,885,000 | 71% | 77% | N/A | N/A | Current Loan |
| 1108 Montello Avenue NE | Washington | District of Columbia | For Sale Housing | 02/09/2022 | $3,850,000 | 68% | 79% | N/A | N/A | Real Estate Owned |
| 715 H Street NW | Washington | District of Columbia | Mixed-Use | 04/07/2022 | $1,475,000 | 72% | 64% | N/A | N/A | Current Loan |
| 9100 Lackey Road NE | Leland | North Carolina | Industrial | 04/14/2022 | $7,100,000 | 69% | 69% | N/A | N/A | Current Loan |
| 1408 South Street | Durham | North Carolina | Single-Family | 04/25/2022 | $375,000 | 62% | 79% | N/A | N/A | Current Loan |
| 322-328 N. Charles Street | Baltimore | Maryland | Mixed-Use | 11/18/2021 | $2,730,000 | 68% | 61% | N/A | N/A | Current Loan |
| 3200 Long Beach Road | Oceanside | New York | Retail | 05/08/2020 | $3,000,000 | 65% | 72% | N/A | N/A | Current Loan |
| 525 Saint Marks Avenue | Brooklyn | New York | Mixed-Use | 06/24/2022 | $5,850,000 | 46% | 46% | N/A | N/A | Current Loan |
| 709 W. Oakdale Road | Grand Prairie | Texas | Industrial | 03/25/2021 | $2,275,000 | 63% | 58% | N/A | N/A | Current Loan |
| 617 S. Eaton Street | Baltimore | Maryland | Single-Family | 04/01/2022 | $300,000 | 66% | 77% | N/A | N/A | Current Loan |
| 18818 Outer Highway 18 N | Apple Valley | California | Medical Office | 05/07/2021 | $7,500,000 | 69% | 78% | N/A | N/A | Current Loan |
| 1450 Memorial Drive SE | Atlanta | Georgia | For Sale Housing | 07/29/2020 | $4,129,000 | 69% | 90% | N/A | N/A | Current Loan |
| 2316 Monroe Street NE | Washington | District of Columbia | Single-Family | 07/30/2021 | $727,000 | 65% | 92% | N/A | N/A | Current Loan |
| 1843 Rhode Island Avenue | Mc Lean | Virginia | Land | 08/12/2022 | $1,000,000 | 38% | 80% | N/A | N/A | Current Loan |
| 237 Rutland Road | Brooklyn | New York | For Sale Housing | 02/18/2021 | $5,700,000 | 64% | 79% | N/A | N/A | Current Loan |
| 96-100 Tuers Avenue | Jersey City | New Jersey | Multi-Family | 12/29/2020 | $9,655,000 | 64% | 70% | N/A | N/A | Current Loan |
| 1147 Bedford Avenue | Brooklyn | New York | Mixed-Use | 03/25/2022 | $2,960,000 | 67% | 78% | N/A | N/A | Current Loan |
| 727 S. Curley Street | Baltimore | Maryland | Single-Family | 09/30/2022 | $300,000 | 67% | 78% | N/A | N/A | Current Loan |
| 2000 Labonte Drive | Hunker | Pennsylvania | Industrial | 04/07/2022 | $6,600,000 | 62% | 78% | N/A | N/A | Current Loan |
| 616 Hite Road | Harwick | Pennsylvania | Industrial | 04/28/2022 | $2,950,000 | 57% | 73% | N/A | N/A | Current Loan |
| 419 W River Road | Louisburg | North Carolina | Industrial | 11/14/2022 | $5,000,000 | 33% | 51% | N/A | N/A | Current Loan |
| 621-625 Rogers Avenue | Brooklyn | New York | For Sale Housing | 12/29/2021 | $14,975,000 | 65% | 82% | N/A | N/A | Current Loan |
| 2108 Buell Drive | Fallston | Maryland | Single-Family | 03/10/2023 | $300,000 | 59% | 66% | N/A | N/A | Current Loan |
| 303 West 113th Street | New York | New York | For Sale Housing | 09/16/2022 | $8,250,000 | 64% | 75% | N/A | N/A | Current Loan |
| 1786 Forest Parkway | Lake City | Georgia | Industrial | 09/23/2022 | $2,550,000 | 45% | 82% | N/A | N/A | Current Loan |
| 215 W Kelly Street | Metuchen | New Jersey | Multi-Family | 11/10/2022 | $12,800,000 | 62% | 72% | N/A | N/A | Current Loan |
| 311 Rotonda Circle | Rotonda West | Florida | Mobile Housing | 12/22/2022 | $13,000,000 | 36% | 69% | N/A | N/A | Current Loan |
| 1627 W. Montgomery Avenue | Philadelphia | Pennsylvania | Multi-Family | 3/31/2023 | $1,200,000 | 56% | 55% | N/A | N/A | Current Loan |
| Current Loan Total / Weighted Averages | $128,436,000 | 59.4% | 72.4% | |||||||
| Grand Total / Weighted Averages | $250,635,871 | 60% | 69% | |||||||
The above bios and track record were provided by Poverni Sheikh Group, LLC and have not been independently verified by RealtyMogul.
PSG Credit Opportunities II, LLLP is a short-duration, commercial real estate fund, lending to real estate developers who need short-term financing (bridge, acquisition & construction loans) generally not provided by regulated financial institutions. The Fund originates and services all of its loans and generally holds them until maturity, generating superior income via interest and fees (origination/exit). The Fund focuses on a market void in sub-$20M projects in major metropolitan areas, with substantial equity buffers and experienced development teams. Independent appraisals and rigorous due diligence are part of every loan underwriting, regardless of size, with a particular emphasis on the viability of the underlying business plan and paths to repayment. The Fund utilizes a 17-person full-time real estate credit team to help underwrite opportunities and navigate special situations.
Underwriting Standards. The Fund's team comes from a deep background in real estate development and execution, and leverages this experience to underwrite potential loan opportunities and make appropriate risk-based decisions. A substantial amount of the Fund's loans are full recourse (including personal guarantees from flesh and blood people) to the sponsorship and key principals. The Fund obtains all appropriate third-party reports for review on each loan, including appraisals, environmental reports, title reports, and where appropriate, cost analysis and cost-overrun insurance on potential projects with substantial construction. Loans are monitored on an ongoing basis by the Fund's three operations professionals, including title bring-downs and site visits by qualified inspectors and fund personnel where appropriate. Broadly speaking, the Fund's borrowers tend to be experienced, having completed at least 2 to 3 similar projects in the past, and are required to have substantial post-closing net worth and liquidity to assure that borrowers can deal with surprises and changing market conditions should they arise.
Concentration Limits. While the Fund looks for opportunities nationally, it is subject to certain concentration limits as listed below to assure proper diversification of risk for investors, both geographically and by the borrower. As such, Fund assets may not be lent to the extent they violate the below concentration limits:
(i) no more than twenty percent (20%) shall be loaned to any one person (or its Affiliates);
(ii) no more than thirty-three percent (33%) shall be loaned in any one zip code;
(iii) no single loan of the Fund may exceed the greater of (i) ten percent (10%) of the Fund's assets or (ii) ten million dollars ($10,000,000);
(iv) no more than twenty percent (20%) shall be deployed outside of the core senior-secured real estate strategy.
Withdrawals. The Fund is an open-ended evergreen vehicle where all limited partners share in the underlying loan portfolio and yield pro-rata. Limited partners may request a withdrawal at any time after their one-year anniversary, after which they shall receive a return of their capital as the underlying loans existing at the time of such withdrawal request repay. Given the Fund's average target loan duration of approximately 18 months, the Sponsor anticipates substantially all withdrawal requests to be processed within approximately six (6) quarters.
Target Geographies
The Sponsor lends nationwide with a concentration in the Northeast. See below for the current loan book broken down by state:
- New York: 32%
- New Jersey: 17%
- Florida: 12%
- North Carolina: 10%
- Pennsylvania: 8%
- California: 6%
- Georgia: 5%
- District of Columbia: 5%
- Maryland: 3%
- Texas: 2%
- Virginia: <1%
Target Asset Classes
From an asset class standpoint, the Fund to date has predominantly focused on multifamily, industrial, self-storage, residential land development, and for-sale housing. The Sponsor anticipates the Partnership continuing to focus on these asset types and generally avoiding hospitality, retail, and malls. See below for the Fund's current asset-type diversification as of March 31, 2023:
- For Sale Housing: 29%
- Industrial: 21%
- Multifamily: 20%
- Mixed Use: 10%
- Mobile Housing: 10%
- Medical Office: 6%
- Retail: 2%
- Single Family: 2%
Poverni Sheikh Group, LLC intends to make distributions from PSG RM Access SPV, LLLP on a pro-rata basis out of funds received as holder of an LP interest in PSG Credit Opportunities II, LLLP.
PSG Credit Opportunities II, LLLP intends to make distributions to LPs as follows:
- 100% to the Limited Partners until they have received total distributions equal to an 8% compounded annual rate of return on unreturned capital contributions(1);
- 100% to the PSG Carried Interest Partners as carried interest until the PSG Carried Interest Partners have received total distributions equal to 20% of all distributions of Distributable Cash made by such Partnership(2);
- 80% to the Limited Partners and 20% to the PSG Carried Interest Partners as carried interest.
Poverni Sheikh Group, LLC 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 loans).
Distributions are expected to start in November 2023 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Poverni Sheikh Group, LLC, who may decide to delay distributions for any reason, including maintenance or capital reserves.
Poverni Sheikh Group, LLC will receive a promoted/carried interest as indicated above.
(1) The entire capital contribution of PSG RM Access SPV, LLLP will be considered fully funded, unreturned capital contributions. And no additional mandatory payments or capital contributions will be required of PSG RM Access SPV, LLLP or its LPs.
(2) Distributions to Poverni Sheikh Group, LLC & its affiliates are subject to a 15-month clawback period.
(3) 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 Poverni Sheikh 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 |
| 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% of Fund Capitalization (total equity commitments and maximum debt availability up to 50% LTV) | PSG Credit | Fund |
| 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.