Raleigh is one of the fastest growing metros in the U.S. and is projected to be the second fastest-growing large city in the U.S. between 2015 and 2030, according to the United Nations Population Division. The property is exceptionally located inside the I-440 Beltline in the highly rated Mordecai Historic District, situated minutes from Downtown Raleigh in a neighborhood where single-family homes are listed as high as $1.6 Million. Research Triangle Park includes 300+ employers and $2.7B in combined annual employee salaries. Lauded as the center of scientific innovation, Research Triangle Park is the largest high technology research and science park in North America.
Within a two-mile radius of the property, the average household income is just under $100,000, providing an extremely affordable housing option in the market. Post-renovation target rents of $1,426 offer a 17.1% rent to income ratio. This is also an affordable price point in relation to the rest of the Raleigh MSA, as the average market rent in Raleigh is $1,561. The property is extremely well positioned to harness the tremendous rent and income growth in the Raleigh MSA while providing an economic alternative to much more expensive Class A product in the neighboring Downtown Raleigh submarket.
Brookside is uniquely positioned for immediate upside through the implementation of interior upgrades and refreshing the exterior envelope. The business plan is to spend approximately $13,500 per classic unit to upgrade appliances, flooring, countertops, and cabinetry. All units feature laundry connections and will receive new W&D appliances in each unit. In addition to the favorable acquisition cost basis, the business plan also includes an exterior refresh with conversion of the existing laundry facility to a fitness center to improve overall desirability and tenant experience.
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.
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Todd HansonManaging Director -
Yacov RonenAcquisitions Associate
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 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.
In today’s environment, RM Communities is focusing on investing in growing markets anchored by national employers and prestigious education institutions with proven upside. Brookside Apartments represents such an opportunity. The property’s location is poised to benefit from the growing economic drivers of Downtown Raleigh, as it becomes an increasingly affluent location to call home. Coupled with an ideal location, being in mostly classic condition, the value-add business plan should position the asset to be a highly desirable community for those enjoying, working, and living in the Raleigh MSA.
To date, the seller renovated 37 units to a partial renovation scope, with all units renting far below the comparable set. As such, the business plan is to beautify the asset exterior to bolster curb appeal while renovating the remaining 31 classic units. The renovation plan should allow the asset to achieve competitive rents for the submarket.
The acquisition of the property is being financed with a seven-year, fixed-rate loan at 73.9% loan-to-value. Terms include two years of interest-only payments and a 5.83% interest rate. The business plan is to exit in four years at a projected 6.00% cap rate, well above today’s market cap rates.
Capital Improvement Budget
| Summary | Total | Per Unit | |
| Interior Upgrades | $474,000 | $6,971 | |
| Exterior And Common Area | $745,722 | $10,966 | |
| Construction Mgmt. Fee (5%) | $60,986 | $897 | |
| Contingency (10%) | $121,972 | $1,794 | |
| Total | $1,402,680 | $20,628 | |
| Interior Upgrades | Total | Per Unit | No. Units |
| Stainless Appliances | $77,500 | $2,500 | 31 |
| Formica Counters | $37,200 | $1,200 | 31 |
| Backsplashes | $18,600 | $600 | 31 |
| Repaint Cabinets | $23,250 | $750 | 31 |
| Bathroom Countertop + Cabinets | $40,300 | $1,300 | 31 |
| Plumbing Fixtures (Faucets, Showerhead) | $18,600 | $600 | 31 |
| Lighting | $37,200 | $1,200 | 31 |
| Flooring | $71,300 | $2,300 | 31 |
| Paint | $37,200 | $1,200 | 31 |
| Blinds / Shutters | $10,850 | $350 | 31 |
| Washers / Dryers | $102,000 | $1,500 | 68 |
| Total | $474,000 | $13,500 | |
| Exterior And Common Area Upgrades And Repairs | Total | Per Unit | |
| Fitness Center | $45,000 | $662 | |
| Paint | $91,990 | $1,353 | |
| Siding Repair | $59,726 | $878 | |
| Parking Lot Repairs | $14,379 | $211 | |
| Plumbing Pvc Replacement | $306,000 | $4,500 | |
| Leasing Office Roof Repair | $8,627 | $127 | |
| Deferred | $120,000 | $1,765 | |
| Future Capex | $78,000 | $1,147 | |
| Total | $745,722 | $10,966 |
Brookside Apartments is a 1986 built, 68-unit multifamily value-add opportunity in a highly desirable submarket within the Raleigh MSA.
Unit Mix
| Type | Units | Unit SF | Total SF | In-Place Rent | Stabilized Rent | Rent / SF |
| Studio Classic | 9 | 624 | 5,616 | $1,063 | $1,325 | $2.12 |
| Studio Partial | 7 | 624 | 4,368 | $1,057 | $1,225 | $1.96 |
| 1/1 Classic | 11 | 760 | 8,360 | $1,091 | $1,450 | $1.91 |
| 1/1 Partial | 13 | 760 | 9,880 | $1,117 | $1,325 | $1.74 |
| 1/1 Loft Classic | 8 | 940 | 7,520 | $1,228 | $1,600 | $1.70 |
| 1/1 Loft Partial | 4 | 940 | 3,760 | $1,225 | $1,400 | $1.49 |
| 2/2 Classic | 3 | 1,023 | 3,069 | $1,275 | $1,700 | $1.66 |
| 2/2 Partial | 13 | 1,023 | 13,299 | $1,317 | $1,525 | $1.49 |
| Total | 68 | 822 | 55,872 | $1,164 | $1,426 | $1.74 |
Lease Comparables
| Studio | SF | Stabilized Rent | Per SF | YOC |
| Brookside Apartments | 624 | $1,281 | $2.05 | 1986 |
| Anderson Hills | 621 | $1,385 | $2.23 | 1989 |
| Capital Flats | 500 | $1,200 | $2.40 | 1982 |
| Pines of Ashton | 550 | $1,250 | $2.27 | 1972 |
| Comp Average | 557 | $1,278 | $2.30 | |
| 1 Bed / 1 Bath | SF | Stabilized Rent | Per SF | YOC |
| Brookside Apartments | 760 | $1,382 | $1.82 | 1986 |
| Anderson Hills | 751 | $1,495 | $1.99 | 1989 |
| Oberlin Court | 720 | $1,543 | $2.14 | 2005 |
| Capital Flats | 540 | $1,225 | $2.27 | 1982 |
| Pines of Ashton | 800 | $1,285 | $1.61 | 1972 |
| Comp Average | 703 | $1,387 | $1.97 | |
| 1 Bed / 1 Bath Loft | SF | Stabilized Rent | Per SF | YOC |
| Brookside Apartments | 940 | $1,533 | $1.63 | 1986 |
| Anderson Hills | 909 | $1,610 | $1.77 | 1989 |
| Oberlin Court | 1,010 | $1,743 | $1.73 | 2005 |
| Pines of Ashton | 850 | $1,290 | $1.52 | 1972 |
| Comp Average | 923 | $1,548 | $1.68 | |
| 2 Bed / 2 Bath | SF | Stabilized Rent | Per SF | YOC |
| Brookside Apartments | 1,023 | $1,558 | $1.52 | 1986 |
| Anderson Hills | 1,151 | $1,830 | $1.59 | 1989 |
| Mordecai on Clover (2x1.5) | 1,000 | $1,800 | $1.80 | 1968 |
| Oberlin Court | 1,100 | $1,747 | $1.59 | 2005 |
| Trails Corner Apartments (2x1) | 1,000 | $1,400 | $1.40 | 1988 |
| Pines of Ashton (2x1) | 924 | $1,395 | $1.51 | 1972 |
| Comp Average | 1,035 | $1,634 | $1.58 |
Sales Comparables
| Property Name | Submarket Name | Property Address | City | Sale Date | Sale Price | Number Of Units | Gross Building SF | Price Per Unit | Price Per SF | Year Built | Building Class |
| Brookside Apartments | East Raleigh | 1406 Brookside Dr | Raleigh, NC 27604 | 6/2023 | $9,400,000 | 68 | 55,872 | $138,235 | $168 | 1986 | B |
| Trails Corner Apartments | South Central | 804-817 Mcmakin St | Raleigh | 1/11/2023 | $9,975,000 | 67 | 53,560 | $148,881 | $186 | 1988 | C |
| Pullen Station Lofts | Pullen Park | 211 Ashe Ave | Raleigh | 5/19/2022 | $13,350,000 | 99 | 22,500 | $134,848 | $593 | 1984 | C |
| Brentmoor Apartments | Greater East Raleigh | 2080 Brentmoor Dr | Raleigh | 12/1/2021 | $52,250,000 | 228 | 200,640 | $229,167 | $260 | 2003 | B |
| Boylan Apartments | Pullen Park | 817 Hillsborough St | Raleigh | 12/1/2021 | $14,000,000 | 56 | 50,099 | $250,000 | $279 | 1935/2007 | C |
Raleigh, North Carolina
Anchored by thriving technology and life sciences industries, Raleigh consistently ranks as one of the fastest-growing and most affluent markets in the Southeast. Raleigh's population continues to grow by 2% annually, making it the second-fastest-growing large metropolitan area in the U.S., behind only Austin. Raleigh's new residents fuel the area's multifamily market. Raleigh’s high-skilled labor pool and lower-than-average cost of living bolstered the region’s reputation as a market on the rise. Recent announcements from Apple, Spotit, INEOS Automotive, and Amgen provide a glimpse into Raleigh’s thriving future.(1)
One of the main reasons Raleigh continues to attract corporate investment is the talent base and highly educated labor pool. The area’s universities, including North Carolina State University in Raleigh, Durham's Duke University, and UNC Chapel Hill, provide a steady stream of workers from which local employers recruit.(1) The last US Census reported 52.4% of Raleigh’s residents hold a bachelor's degree or higher, which is nearly 20% higher than the national average.(2)
Raleigh’s concentration of technology and life science companies has greatly impacted the market’s recovery rate post-pandemic. These high-growth sectors have helped attract companies to the Raleigh-Durham-Chapel Hill Triangle, even during the height of the pandemic.
Video game creator, Epic Games, employs more than 2,000 workers in the area and has plans for additional growth. Bandwidth, a software communications company, is currently building a new headquarters campus in West Raleigh and announced it will bring almost 1,200 new jobs to the metro. The company purchased Cary Towne Center, had the former mall demolished, and is planning to turn that property into a mixed-use development, which will include its global headquarters, commercial space, and a hotel, by 2025. FUJIFILM Diosynth Biotechnologies selected Holly Springs as the location to build a new $2B cell culture production facility, the largest life science investment announcement in North Carolina’s history. The company already has an office in Morrisville and plans to hire around 725 new workers at the new plant by 2028. In November 2022, a subsidiary company, FUJIFILM Irvine Scientific, announced that it is planning to invest an additional $188 million in a separate new cell culture media manufacturing facility in Research Triangle Park that will create more than 100 jobs.(1)
Submarket: East Raleigh
East Raleigh is part of the Downtown Raleigh submarket cluster. As a major employment hub and cultural center that offers a wide variety of restaurants and amenities, the Downtown Raleigh area is one of the region’s most vibrant areas. Downtown Raleigh has a diverse economy concentrated in finance, technology, healthcare, and government. The growth of the technology industry has transformed downtown Raleigh as companies like Red Hat and Pendo have a major presence.(1)
Annual rent growth in Downtown Raleigh averaged 5.6% year-over-year in the last five years and 4.2% year-over-year in the last decade. The submarket's average rent of $1,570 is in line with the overall Raleigh rental rate.(1)
Downtown Raleigh offers a wide variety of restaurants, bars, breweries, music venues, and museums. In addition, several prestigious higher education institutions are in or near downtown, including North Carolina State University, Shaw University, Saint Augustine’s, William Peace University, and Campbell Law School, which makes the area appealing to recent graduates and young employees. Downtown Raleigh is also one of the few walkable metropolitans in the region, which is appealing to residents who are looking to rely less on automobiles.(1)
(1) Source: CoStar
(2) Source: US Census Bureau
Total Capitalization
| Sources | Amount | $/Unit | % |
| Senior Loan | $6,947,000 | $102,162 | 60.5% |
| Investor Equity | $4,542,946 | $66,808 | 39.5% |
| Total | $11,489,946 | $168,970 | 100.0% |
| Uses | Amount | $/Unit | % |
| Purchase Price | $9,400,000 | $138,235 | 81.8% |
| Loan Fee | $80,127 | $1,178 | 0.7% |
| Closing Costs | $300,000 | $4,412 | 2.6% |
| CapEx Budget | $1,402,680 | $20,628 | 12.2% |
| Acquisition Fee | $188,000 | $2,765 | 1.6% |
| Taxes and Insurance | $69,139 | $1,017 | 0.6% |
| Working Capital | $50,000 | $735 | 0.4% |
| Total | $11,489,946 | $168,970 | 100.0% |
RealtyMogul Apartment Growth REIT, Inc. (the “REIT”), an affiliate of RM Communities LLC, will acquire a substantial portion of the Owner’s equity and have certain major decision rights. Please refer to the Investment Documents for additional information.
The expected terms of the debt financing are as follows:
- Lender/Servicer: Freddie Mac / Newpoint Real Estate Capital
- Loan Type: Fixed
- Total Loan Amount: $6,947,000
- Amortization: 30 Years
- Interest Rate: 5.83%
- Interest-Only: 2 Years
- Initial Loan-to-Value: 73.9%
- Loan-to-Cost: 64.3%(1)
- Extension Options: N/A
(1) Loan-to-cost is calculated as the loan amount divided by total cost (purchase price + capex budget).
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.
RM Communities intends to make distributions as follows:
Operating Cash Flow:
- To the Investors, pari passu, all operating cash flows to an 8.0% preferred return;
- 70% / 30% (70% to Investors / 30% to Promote) of excess cash flow to a 16% IRR;
- 50% / 50% (50% to Investors / 50% to Promote) of excess cash flow thereafter.
Capital Event:
- To the Investors, pari passu, all operating cash flows to an 8.0% preferred return;
- Return of Capital to Members
- 70% / 30% (70% to Investors / 30% to Promote) of excess cash flow to a 16% IRR;
- 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 | Year 4(1) | Reversion(2) | ||
| Effective Gross Income | $1,003,425 | $1,150,103 | $1,206,128 | $1,270,206 | $1,308,312 | |
| Expenses | $331,130 | $359,035 | $370,726 | $383,053 | $414,729 | |
| Net Operating Income | $672,295 | $791,068 | $835,402 | $887,153 | $893,583 | |
| Total Property Cash Flow | $278,719 | $368,806 | $326,576 | $7,976,234 | ||
| Projected Investor Cash Flow | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | ||
| Investor-Level Cash Flows - Hypothetical $50,000 Investment(3) | ($50,000) | $3,018 | $4,010 | $3,545 | $76,446 | |
(1) Year 4 cash flows include the projected sale of the Property.
(2) Reversion Expenses and Net Operating Income are tax-adjusted based on the projected purchase price at sale.
(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):
| One-Time Fees | ||
| Type of Fee | Amount of Fee | Received By |
| Acquisition Fee | 2.0% of Purchase Price | RM Communities |
| Financing Fee(1) | 1.0% of Refinanced Loan Amount | RM Communities |
| Capital Improvements and Contract Management Fee | 5.0% of Capital Improvement Expenditures in excess of $25,000 | Trademark, Third Party Property Manager |
| 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 | Monthly, the greater of $4,000 and 6.5% of cash rent and other income collection | Trademark, 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) Fees may be deferred to reduce impact to investor distributions.
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.