Risk and Quality Controls
Steps we take to mitigate risk on the Platform
Sponsors

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.

Escrow accounts

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.

Boots on the ground

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.

Detailed Checklists

We have robust quality controls with detailed checklists and a review of third-party reports.

Open for investment
Target IRR  14.3%-16.3% *
15.3%
Target Avg. Cash on Cash* 5.7%
Target Equity Multiple* 1.92X
Estimated Hold Period* 60 Months
...
View our Risk and Quality Controls.
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
Offered By
RSN Property Group
Investment Strategy Value-Add
Investment Type Equity
Estimated First Distribution 2/2024
Minimum Investment 35000
Overview
The Tallows @ Peoria (the “Property) is a boutique rental community offering 100 apartment homes in a two-story garden-style layout in the fast-growing Peoria submarket of the Phoenix MSA. The Sponsor exclusively executes the same value-add business plan for all assets acquired. This is their second deal offered to investors via the RealtyMogul platform.
Management

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.

Capital Appreciation

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.

Value-Add

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. 

Property at a glance
# Units 100
Current Occupancy 94.6%
Year Built 1975
Total CapEx Budget $1,555,838
Exit Cap Rate 6.00%
Acquisition Price $18,500,000
Investment Highlights
Experienced Multifamily Sponsor Acquiring at a Steep Discount From a Forced Seller: RSN Property Group (the ”Sponsor”) is acquiring a 100-unit Class B multifamily property in Peoria, AZ, a fast-growing Phoenix submarket. The Tallows (the “Property”), is being purchased at a 20% discount to recent sales. The current seller has only owned this asset for two years, and after investing over $2 million in maintenance and improvements, is being forced to sell at a breakeven price due to partnership dissolution.
This Will Be The Sponsor’s 4th Phoenix Acquisition, and 25th Overall: 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 comprising more than $883 million in value.
The Property Sits In A Dynamic Location: The Property is conveniently located in the heart of downtown Peoria, just a 25-minute drive from downtown Phoenix. The highly desirable area boasts a long list of restaurants, shopping centers, major highways, and parks within walking distance of the Property. Additionally, it is adjacent to highly sought-after, top-rated public schools in the State with an A- rating on Niche (Peoria Unified School District).
The Sponsor’s Value-Add Plan Will Primarily Focus on Interior Improvements and Driving Rent Premiums: The Sponsor's value-add business plan involves extensive renovation of unit interiors to maximize their marketability and bring units in line with the competitive set. The Sponsor has seen very strong demand for renovated Class B units within a 3-mile radius, and the Property is located directly adjacent to three other improved comps, which have stabilized occupancy and receive $200-300+/month rent premiums.
The Investment Will Utilize Bonus Depreciation and Cost Segregation: The Sponsor will utilize bonus depreciation and a cost segregation study to provide tax-deductible passive "paper losses." The Sponsor estimates "paper losses" of +40% on investors' initial investment in year 1, with further tax-deductible "paper losses" in subsequent years.
The Investment Will Feature Conservative Leverage: Moderately leveraged (~65% LTPP), fixed-rate, partial term interest-only, agency debt mitigates future interest rate movement in the market, protects investor downside, and maintains positive leverage throughout the hold.
Investors via the RealtyMogul Platform are Eligible for the Most Favorable Common Equity Investment Tier: Investment in the Property through the RealtyMogul platform offers an 8% preferred return and an 80/20 split on the back end. This is the Sponsor’s most favorable common equity tier.
Management
Cumulative Distributions

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 Goosens
    Founder and CEO
  • Ben Gray
    Partner and COO
Reed Goosens
Founder and CEO

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 Gray
Partner and COO

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.

Business Plan
The RSN Property Group (the “Sponsor”) is pleased to present an opportunity to provide investment equity for the renovation of a boutique 100-unit residential community currently named “The Obsidian on 85th”, which will be immediately rebranded “The Tallows @ Peoria”. 
 
This Project will follow the same business plan that the key principal, Reed Goossens, has executed on over 24 properties, worth $883MM, over the last 9 years. By targeting similar properties and executing the same business plan, RSN has developed immense experience and operational know-how, allowing the Sponsor to reduce the likelihood and impact of project issues, keep their fees low, and successfully execute their business plan.
 
The value-add business plan will involve:
  • 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. 
 
By focusing on providing quality unit renovations, and professional property management, the Sponsor plans to increase in-place rents, improve the tenant profile, and greatly increase the Property's value over the next 5 years.
 
Furthermore, the Sponsor is once again offering three different investment tiers. Investors via the RealtyMogul platform will be indirectly investing in Class C.
  • 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. 
 
For the avoidance of confusion, both Class B and Class C investors (together, "Common Equity Investors") sit equally in the capital stack. The Sponsor participates in each class of shares. Upon the realization of distributable profits, the Class B and Class C investors will receive the distributed cash flow, the allocation for which is based on each class's share of the total Common Equity. Class B investors will first receive a 7% preferred return on their investment, on a pari-passu basis with the Sponsor. Following the satisfaction of the preferred return, the remaining profits will be distributed in a 70/30 split between Class B investors and the Sponsor. Class B investors will receive 70% of the remaining profits, while the Sponsor will receive the remaining 30% as promote. Similarly, Class C investors will first receive an 8% preferred return on their investment, on a pari-passu basis with the Sponsor. Following the satisfaction of the preferred return, the remaining profits will be distributed in an 80/20 split between Class C investors and the Sponsor. Class C investors will receive 80% of the remaining profits, while the Sponsor will receive the remaining 20% as promote. This structure is known as a Complex Promote Split.
 
Please note: Class C returns are typically only offered to those investors who invest over $500k; however, the Sponsor is granting this return profile to investors via the RealtyMogul platform ($35,000 minimum investment amount).
 
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

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
Financials

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:

  1. To the Class A Investors, until they receive a 10% annualized preferred equity return;
  2. Pari-passu all cash flow available for distribution to the Class C Investors(1) until the Class C Investors receive an 8.0% IRR;
  3. 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.

.

Disclaimers

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.

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