We run extensive background checks, criminal checks, bad actor checks, and reference checks on sponsors. In addition to never allowing a sponsor with a criminal history / any securities related issue to use the platform, we may also turn down sponsors due to poor reference checks even if background and criminal checks come back clear.
We require unaffiliated sponsors to use an unaffiliated third-party escrow agent. When an investor makes an investment with unaffiliated 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 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.
Our controls include visiting every property (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.
We have robust quality controls with detailed checklists and a review of third-party reports.
The Sponsor's extensive experience in operating multifamily properties is evidenced by their successful acquisition and operation of three similar-sized and aged assets in the Phoenix area, as well as their execution of the same business plan across 24 properties worth a total of $883MM. For context, one of the similar assets in the Phoenix area is an 88-unit garden-style apartment community, The Lennox at Tempe, for which the Sponsor raised $1.64M from investors via the RealtyMogul platform in March 2023.
Recent market volatility is enabling the Sponsor to acquire the asset at a 5.7% T-12 cap rate basis ($185,000 per door), representing a 20% discount compared to the competitive set. This purchase price is even more attractive due to the significant potential for immediate value creation. In-place rents are approximately 20% below market rates. By simply bringing the rents in line with the market, RSN intends to capture immediate upside and dramatically increase the asset's NOI, thereby increasing its value.
The Sponsor's value-add business plan for The Tallows involves extensive renovation of unit interiors to maximize its marketability and bring its units in line with the competitive set. RSN has seen very strong demand for renovated Class B products within the submarket, and coupled with the lack of supply within a 3-mile radius, they have identified a massive opportunity to quickly grow rents. This Class B asset is located directly adjacent to three other comps, which receive $200-300+/month rent premiums.
RSN Property Group
Founded in April 2014, RSN Property Group is a multi-real estate investment firm owned by Australian investors living in the U.S. They specialize in acquiring and operating properties with significant value-add components within strong MSAs throughout the U.S. The key principal, Reed Goossens, has been the lead operator on over 24 multifamily value-add syndications acquiring assets worth more than $883MM today.
https://rsnpropertygroup.com/-
Reed GoosensFounder and CEO -
Ben GrayPartner and COO
Reed Goossens is a real estate entrepreneur and founder of RSN Property Group, and formerly the co-founder of Wildhorn Capital. As a native Australian, Reed moved to the U.S. to pursue his career in early 2012. Reed is a qualified chartered structural engineer and project manager. Before founding RSN Capital and Wildhorn Capital, Reed was involved with large-scale commercial construction and real estate development projects with a combined worth of over $500 million, with such projects located in Australia, the United Kingdom, and the U.S., including the London 2012 Olympic Games. Since founding both companies he has gone on to acquire over $685 million worth of multifamily assets, going full cycle on multiple deals and typically exceeding the projected investor returns.
Reed is also the host of a top-rated real estate investing podcast, "Investing in the US", wherein he interviews other distinguished real estate entrepreneurs about their success.
Ben grew up in a prominent Australian family of real estate investors and developers. He followed his own path into the tech industry, specializing in working with financial services companies in London and New York. Ben went on to capitalize on the subprime mortgage crisis founding a successful business connecting foreign investors with discounted US real estate. In recent years, Ben has been instrumental in transforming RSN Property Group into a modern tech-forward company able to adapt and scale into new markets and business opportunities.
| Property Name | City, State | Asset Type | Acq. Date | Units | Purchase Price | Sales Price / Estimated Value | LP IRR | LP Emx |
| The Henry B | San Antonio, TX | Multifamily | 10-01-2018 | 198 | $18,575,000 | $22,000,000 | 15.21% | 1.42X |
| The Blair at Bitters | San Antonio, TX | Multifamily | 10-01-2018 | 190 | $15,625,000 | $23,000,000 | 15.21% | 1.42X |
| The Joseph at Huebner | San Antonio, TX | Multifamily | 11-30-2017 | 192 | $16,100,000 | $28,200,000 | 18.29% | 1.92X |
| The Reserve at Walnut Creek | Austin, TX | Multifamily | 12-30-2018 | 284 | $36,300,000 | $62,250,000 | 24.92% | 1.99X |
| The Baxter | Austin, TX | Multifamily | 11-30-2019 | 350 | $46,000,000 | $65,275,000 | 32.98% | 1.98X |
| The Lila | San Antonio, TX | Multifamily | 04-30-2017 | 253 | $20,600,000 | $29,000,000 | ||
| Providence Townhomes | San Antonio, TX | Multifamily | 09-25-2019 | 106 | $16,250,000 | $18,750,000 | ||
| Patten East | Austin, TX | Multifamily | 03-15-2022 | 248 | $43,500,000 | $47,000,000 | ||
| Barstow Apartments | Austin, TX | Multifamily | 12-15-2020 | 560 | $94,575,000 | $99,303,750 | ||
| St. Mary Apartments | Austin, TX | Multifamily | 01-26-2021 | 240 | $60,000,000 | $65,000,000 | ||
| Palmera | San Antonio, TX | Multifamily | 06-18-2021 | 288 | $46,800,000 | $49,140,000 | ||
| SoNA | Austin, TX | Multifamily | 08-19-2021 | 164 | $26,000,000 | $27,820,000 | ||
| Henry Heights | Austin, TX | Multifamily | 10-28-2021 | 184 | $32,000,000 | $33,600,000 | ||
| Lowell | Austin, TX | Multifamily | 11-25-2021 | 286 | $50,700,000 | $52,221,000 | ||
| Shiloh | Austin, TX | Multifamily | 01-15-2022 | 286 | $103,050,000 | $105,626,250 | ||
| North Edge | Phoenix, AZ | Multifamily | 06-12-2021 | 71 | $11,750,000 | $12,925,000 | ||
| Carolina Commons | Greenville, SC | Multifamily | 05-15-2021 | 43 | $3,500,000 | $3,850,000 | ||
| Townhomes at Summit | Greenville, SC | Multifamily | 03-15-2021 | 30 | $4,500,000 | $5,040,000 | ||
| Pines of Lanier | Atlanta, GA | Multifamily | 02-28-2022 | 157 | $17,800,000 | $18,868,000 | ||
| Bronte East | Phoenix, AZ | Multifamily | 07-04-2022 | 87 | $19,375,000 | $19,375,000 | ||
| Bronte West | Phoenix, AZ | Multifamily | 07-04-2022 | 48 | $13,250,000 | $13,250,000 | ||
| Pelham Place North & South | Greenville, SC | Multifamily | 09-24-2022 | 281 | $35,500,000 | $35,500,000 | ||
| The Lennox at Tempe | Phoenix, AZ | Multifamily | 03-25-2023 | 88 | $20,300,000 | $20,300,000 | ||
| Totals/Weighted Average | 4,634 | $752,050,000 | $883,680,000 | 24.4% | 1.85X |
The above bios and track record were provided by RSN Property Group and have not been independently verified by RealtyMogul.
- Immediately rebranding the asset and completely updating the entire marketing program currently in place.
- Renovating and improving the common areas, including the pool, adding a new children’s playground, upgrading the gym, and more.
- And finally, renovating the units to their platinum renovation package including granite countertops, stainless steel appliances, and adding washer/dryers to the units.
- Class A: This class is for those investors who want consistent 10% pure cash flow paid out quarterly. This class is limited to 20% of the total equity. Investors are paid out first before Class B/C, however, they do not get to participate in the profits once RSN sells. (min. $50k) – 10% Pref.
- Class B: This class is the Sponsor's basic investment class mixing long-term equity growth, with some cash flow throughout the hold. Min. $50k – 7% preferred return and a 70/30 profit split once we sell.
- Class C: This class is for those investors who invest larger amounts of equity (min. $500k). For doing so these investors get an 8% preferred return and an 80/20 split on the back end.
| CapEx Breakdown | ||
| Interior Unit Renovations (100 units being renovated) | Total Amount | Per Unit |
| Tier 1 Renovations (3 units) | $36,000 | $12,000 |
| Tier 2 Renovations (17 units) | $93,500 | $5,500 |
| Tier 3 Renovations (7 units) | $105,000 | $15,000 |
| Tier 4 Renovations (73 units) | $474,500 | $6,500 |
| Total Interior Unit Renovations | $709,000 | $7,090 |
| Exterior Renovations | Total Amount | Per Unit |
| Roof | $100,000 | $1,000 |
| BBQ/Amenities Package | $30,000 | $300 |
| Signage | $30,000 | $300 |
| Total Exterior Renovation Costs | $160,000 | $1,600 |
| Other Costs | Total Amount | Per Unit |
| HVAC/Chiller | $162,500 | $1,625 |
| Hot Water/Boiler | $30,000 | $300 |
| Plumbing | $50,000 | $500 |
| W/D | $200,000 | $2,000 |
| FFE | $25,000 | $250 |
| Parcel Pending Locker System | $30,000 | $300 |
| Low Flow Toilets | $45,000 | $450 |
| Contingency | $35,125 | $351 |
| Overhead | $35,125 | $351 |
| Construction Management Fee | $74,088 | $741 |
| Total Other Costs | $686,838 | $6,868 |
| Grand Total | $1,555,838 | $15,558 |
Property Walkthrough
Aerial Footage
The Property is a boutique rental community tailored to families, offering a total of 100 one-bedroom and two-bedroom apartment homes in a two-story garden-style layout. It is conveniently located in the heart of downtown Peoria only a 25-minute drive from downtown Phoenix. The surrounding area boasts a long list of restaurants, shopping centers, and major highways (101 Loop & US-60). Furthermore, the community is adjacent to highly sought-after top-rated public schools in the State with an A- rating on Niche (Peoria Unified School District).
Unit Mix
| Unit Type | # of Units | Avg SF/Unit | Average Rent / Unit (In-Place) | Average Rent PSF (In-Place) | Average Rent / Unit (Post Renovation) | Average Rent PSF (Post Renovation) |
| 1-Bed (Partially Renovated) | 17 | 480 | $1,185 | $2.47 | $1,230 | $2.56 |
| 1-Bed (Non-Renovated) | 3 | 480 | $1,088 | $2.27 | $1,240 | $2.58 |
| 2-Bed (Partially Renovated) | 73 | 780 | $1,340 | $1.72 | $1,479 | $1.90 |
| 2-Bed (Non-Renovated) | 7 | 780 | $1,151 | $1.48 | $1,501 | $1.92 |
| Totals / Averages | 100 | 720 | $1,293 | $1.66 | $1,431 | $2.05 |
Lease Comparables
| Flats at Peoria | Moxi | Artisan Park | Fountain Place | Bingham Blocks | Stone View | Rise at Northridge | Napa Place Apartments | Peoria Grand | Averages | THE TALLOWS @ PEORIA | |
| Distance from Subject Property | 2.8 miles | 0.5 miles | 3.4 miles | 3.4 miles | 3.7 miles | 4.2 miles | 5.5 miles | 1.9 miles | 0.4 miles | 2.9 miles | |
| Year Built | 1984 | 1984 | 1984 | 1984 | 1972 | 1974 | 1979 | 1985 | 1985 | 1981 | 1975 |
| Number of Units | 154 | 216 | 197 | 164 | 207 | 123 | 130 | 100 | 145 | 160 | 100 |
| 1 Bedrooms | Averages | Market Rent (Post-Reno) | |||||||||
| $ / Unit | $1,465 | $1,414 | $1,221 | $1,230 | $1,300 | $1,461 | $1,256 | N/A | N/A | $1,335 | $1,232 |
| Square Feet | 700 SF | 695 SF | 600 SF | 550 SF | 450 SF | 706 SF | 575 SF | N/A | N/A | 611 SF | 480 SF |
| $ / SF | $2.09 / SF | $2.03 / SF | $2.04 / SF | $2.24 / SF | $2.89 / SF | $2.07 / SF | $2.18 / SF | N/A | N/A | $2.22 / SF | $2.57 / SF |
| 2 Bedrooms | |||||||||||
| $ / Unit | $1,919 | $1,544 | $1,346 | $1,450 | $1,500 | $1,600 | $1,450 | $1,350 | $1,445 | $1,517 | $1,481 |
| Square Feet | 900 SF | 977 SF | 842 SF | 812 SF | 1,150 SF | 925 SF | 852 SF | 811 SF | 864 SF | 904 SF | 780 SF |
| $ / SF | $2.13 / SF | $1.58 / SF | $1.60 / SF | $1.79 / SF | $1.30 / SF | $1.73 / SF | $1.70 / SF | $1.66 / SF | $1.67 / SF | $1.69 / SF | $1.90 / SF |
Sales Comparables
| The Parker | Edge @ Westgate | Glenridge Apartments | Rise on Cactus | Rise at the Meadows | Sunrise on Bethany | Tides on 67th | Tides on 59th | Peoria Grand | Country Gables | Averages | THE TALLOWS @ PEORIA | |
| Sale Date | 05-01-2022 | 07-01-2022 | 09-10-2022 | 09-15-2022 | 09-15-2022 | 11-01-2022 | 12-01-2022 | 12-01-2022 | In Escrow | In Escrow | 09-14-2022 | In Escrow |
| Sales Price | $45,000,000 | $18,270,000 | $31,500,000 | $31,000,000 | $29,200,000 | $25,000,000 | $33,362,765 | $32,508,414 | $31,000,000 | $27,800,000 | $31,205,775 | $18,500,000 |
| Year Built | 1984 | 1975 | 1985 | 1984 | 1983 | 1974 | 1985 | 1985 | 1985 | 1984 | 1983 | 1975 |
| Number of Units | 152 | 87 | 135 | 124 | 120 | 120 | 148 | 141 | 144 | 139 | 131 | 100 |
| Average Unit Size | 676 SF | 757 SF | 699 SF | 745 SF | 740 SF | 950 SF | 805 SF | 724 SF | 889 SF | 604 SF | 757 SF | 720 SF |
| Sales Price / Unit | $296,053 | $210,000 | $233,333 | $250,000 | $243,333 | $208,333 | $225,424 | $230,556 | $215,278 | $200,000 | $232,551 | $185,000 |
| Sales Price / SF | $438 | $277 | $334 | $336 | $329 | $219 | $280 | $318 | $242 | $331 | $313 | $257 |
| Cap Rate | 5.00% | N/A | 3.64% | 4.30% | 3.66% | N/A | N/A | N/A | N/A | N/A | 4.15% | 5.70% |
| Occupancy at Sale | 93.00% | 94.00% | 93.50% | 95.00% | 93.50% | 96.00% | 95.50% | 96.00% | 98.00% | 96.00% | 95.10% | 94.60% |
| Distance from Subject Property | 6.2 miles | 4.0 miles | 6.0 miles | 6.4 miles | 8.3 miles | 5.7 miles | 5.1 miles | 4.5 miles | 0.1 miles | 6.0 miles | 5.2 miles |
Market Overview
The Phoenix real estate market has experienced short-term volatility, presenting incredibly attractive investment opportunities while the long-term fundamentals underpinning the market remain intact.
Population Growth: The fifth-biggest city in the country continues its phenomenal growth. No major city in the US grew faster than Phoenix over the 2010-2020 census period (Source: census), and that trend is slated to continue.
Economic Growth: The Phoenix metro economy is one of the largest in the country, registering a GDP of $261.7B in 2021, which ranked 14th nationally that year, the most recent year for which reliable data is available. Additionally, the metro area's economy growing at twice the US average (Sources: Statista.com & City of Phoenix).
Job Market: With a huge boom in tech and other high-income jobs, Phoenix continues to outperform other US cities. Phoenix has a 3.2% unemployment rate that is trending down and sitting near 30-year lows (Source: stlouisfed.org)
Submarket Overview
The city of Peoria is located in the northwest segment of the Phoenix MSA. Peoria has a population of about 175,000 residents, making it the 9th largest city in Arizona and the 143rd largest city in the United States. Established in 1886 as a small agricultural community, Peoria has since transformed into a modern, rapid-growing city.
Major developments within the area include:
- VAI Resort (3 miles from the asset) - will be Arizona's largest hotel, once completed, comprising 1,100 rooms, a 5-acre, temperature-controlled lagoon lined by nearly a mile of sand beaches.
- Arizona Cardinal Stadium & Westgate Entertainment District (3 miles from the asset)
- New Industrial Underway: South of Old Town Peoria, Greystar Real Estate Partners has planned a 400,000 square feet industrial project called Peoria Place
Total Capitalization
| Sources of Funds | $ Amount | $/Unit |
| Preferred Equity (Class A) | $1,831,398 | $18,314 |
| LP Investor Equity (Class B) | $4,705,590 | $47,056 |
| LP Investor Equity (Class C) | $2,000,000 | $20,000 |
| GP Investor Equity(1) | $620,000 | $6,200 |
| Senior Loan (Net Proceeds) | $12,090,000 | $120,900 |
| Total Sources of Funds | $21,246,988 | $212,470 |
| Uses of Funds | $ Amount | $/Unit |
| Acquisition Price | $18,500,000 | $185,000 |
| Acquisition Fee | $370,000 | $3,700 |
| Rate Buy Down | $241,800 | $2,418 |
| Closing Costs(2) | $148,000 | $1,480 |
| Financing | $181,350 | $1,814 |
| Working Capital | $250,000 | $2,500 |
| Capital Expenditures | $1,555,838 | $15,558 |
| Total Uses of Funds | $21,246,988 | $212,470 |
(1) The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.
(2) RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform. RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the Platform and for Platform-related services. Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC.
The expected terms of the debt financing are as follows:
- Lender: Freddie Mac
- Loan Type: Agency
- Term: 60 Months
- Loan-to-Value (LTV): 65.0%
- Loan-to-Cost (LTC): 56.9%
- Estimated Proceeds(1): $12,090,000
- Interest Type: Fixed
- Annual Interest Rate: 5.58%
- Interest -Only Period: 36 Months
- Amortization: 35 Years
- Prepayment Terms: Two (2) year lockout period in which neither prepayment nor defeasance is permitted. Thereafter the Loan cannot be prepaid but can be defeased as defined in the Loan Documents (“Defeasance Period”), with securities substituted as collateral for the Loan in place of the Property. After expiration of the Defeasance Period (i.e., the last three (3) calendar months of the Loan Term) the Loan may be prepaid with no prepayment premium due.
- Extension Requirements: None (agency debt)
- Recourse Description: Non-recourse
(1) Estimated Proceeds are net of a $241,800 buy-down fee, in exchange for a 34-basis-point reduction in rate.
(2) A substantial portion of the total acquisition for the Property will be paid with borrowed funds, i.e., debt. Please carefully review the Disclaimers section below for additional information concerning the Sponsors use of debt.
RSN Property Group intends to make distributions from RSNPG Tallows Apts Partners RM, LLC to investors on a pro rata basis, based on distributions received as the holder of a Class C interest from RSNPG Tallows Apts Partners, LLC. RSNPG Talllows Apts Partners, LLC will make distributions as follows:
- To the Class A Investors, until they receive a 10% annualized preferred equity return;
- Pari-passu all cash flow available for distribution to the Class C Investors(1) until the Class C Investors receive an 8.0% IRR;
- 80% / 20% (80% to Class C Investors / 20% to GP as Promoted/Carried Interest) of excess cash flow thereafter.
RSN Property Group intends to make distributions to investors after the payment of the company's liabilities (loan payments, operating expenses, and other fees as more specifically set forth in the LLC agreements, in addition to any member loans or returns due on member loans. As set forth in the operating agreement, Class C Investors are subordinate to the Class A Investors, who receive a 10% annualized preferred equity return. After payments of amounts to the Class A Investors, Class C Investors will recieve their pro rata share of the amount remaining which will be distributed as provided above.
Distributions are expected to start in February 2024 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of RSN Property Group, who may decide to delay distributions for any reason, including maintenance or capital reserves.
RSN Property Group will receive a promoted/carried interest as indicated above.
| Cash Flow Summary | ||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
| Effective Gross Revenue | $1,607,276 | $1,850,047 | $1,983,481 | $2,056,741 | $2,151,822 | |
| Total Operating Expenses | ($550,071) | ($550,071) | ($569,113) | ($586,911) | ($605,954) | |
| Net Operating Income | $1,078,198 | $1,299,976 | $1,414,368 | $1,469,830 | $1,545,868 | |
| Project-Level Cash Flows | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Net Cash Flow | ($9,156,988) | $446,430 | $638,353 | $750,077 | $691,972 | $15,817,002 |
| Investor-Level Cash Flows(2) | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Net Cash Flow | ($2,030,000) | $74,038 | $116,436 | $136,938 | $121,074 | $3,451,074 |
| Investor-Level Cash Flows - Hypothetical $50,000 Investment(2) | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Net Cash Flow | ($50,000) | $1,824 | $2,868 | $3,373 | $2,982 | $85,002 |
(1) Class C Investors include the Sponsor and investors who invest via the RealtyMogul platform. Please refer to the Business Plan section for the delineation of different share classes.
(2) 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 for additional information concerning Sponsor’s use or projected returns and fees paid to Sponsor and RM Technologies, LLC.
Certain fees and compensation will be paid over the life of the transaction; please refer to RSN Property Group's materials for details. The following fees and compensation will be paid(1)(2):
| One-Time Fees: | |||
| Type of Fee | Amount of Fee | Received By | Paid From |
| Acquisition Fee | 2.00% of Purchase Price | RSN Property Group | Capitalized Equity Contribution |
| Financing Fee | 1.50% of Loan Proceeds | Walker Dunlop Debt | Capitalized Equity Contribution |
| Technology Solution Licensing Fee(2) | Flat one-time licensing fees of $15,000 plus $1,500 per each prospective investor onboarded by Sponsor through its license and use of RM Technologies’ Technology Solution | RM Technologies, LLC |
Capitalization (at Sponsor’s discretion) |
| Recurring Fees: | |||
| Type of Fee | Amount of Fee | Received By | Paid From |
| Asset Management Fee | 2.00% of Effective Gross Income | RSN PG Operations, LLC | Cash Flow |
| Property Management Fee | 3.00% of Effective Gross Income | Chamberlin & Associates | Cash Flow |
| Construction Management Fee | 5.00% of Construction Budget (Paid in 4 Equal Installments during the 12-month period after the Company Effective Date) | RSN PG Operations, LLC | Construction Expenditure Budget |
| Administration Solution Licensing Fee(2) | Flat quarterly licensing fee of $125 per investor serviced by Sponsor through the license and use of RM Technologies’ Administration Solution | RM Technologies, LLC | Cash Flow |
(1) Fees may be deferred to reduce impact to investor distributions.
(2) Please see the Fees and Disclaimers sections for additional information concerning fees paid to RM Technologies, LLC.
.
Sponsor’s Projects 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 and are not reflective of the position or opinions of, nor are they endorsed by, RM Technologies, LLC or its affiliates, 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 or it Affiliates
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 its affiliates, 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 or its affiliates.
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, 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 Project Sponsor’s projections or expectations as of the date made. These statements are inherently subject to a variety of risks and uncertainties. Please see 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 Fees and Conflicts
RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform. RM Technologies, LLC charges a fixed, non-percentage-based licensing fee for real estate companies and their sponsors to license and use the RM Technologies LLC’s proprietary Platform, including one-time flat licensing fees for its Technology Solution and an ongoing quarterly flat licensing fees for its Administration Solution. A portion of the offering proceeds may be allocated as a reserve to ensure timely payment of the ongoing licensing fees for RM Technologies’ Administration Solution. For the avoidance of doubt, the Administration Solution Fee is not due with respect to any quarter until the Administration Solution has been provided by RM Technologies and without regard to any amounts on reserve for the payment of such fees. An estimate of the Technology Solution licensing fee is included in the Closing Costs above and is intended to be capitalized into the transaction at the discretion of the Sponsor. The licensing fees received by RM Technologies, LLC are disclosed in the relevant operating agreement(s). Additionally, from time to time, employees of RM Technologies, LL C and its affiliates invest in Sponsor’s offering. RM Technologies LLC’s receipt of licensing fees and its employee’s investments in Sponsor’s offering creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.
No Investment Advice
None of RM Technologies nor any affiliate are registered as a broker, dealer, investment adviser, or funding portal (except with respect to RM Adviser, LLC, which has no involvement in the transactions to be consummated hereby or contemplated herein and solely for the purposes hereof, shall not be deemed an affiliate or RM Technologies). They do not provide investment advice or recommend the purchase of any securities that are the subject of this agreement or the Sponsor’s offering with respect to the Project. Project Sponsor’s use of the Platform, including Project Sponsor’s license to utilize the Platform and any related technology, software and supporting services, Project Sponsor’s posting of offering documents and all related information on the Platform does not constitute the approval of or endorsement by RM Technologies or any of its affiliates of Project Sponsor’s securities offering with respect to the Project or signify the suitability thereof in any manner.
For additional information on risks and disclosures visit https://www.realtymogul.com/investment-disclosure.