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 property benefits from a tax abatement on 90% of improvements through 2034, mitigating post-sale tax assessment risk and bolstering cash flows during the hold, both for RM Communities investors and a future buyer at the end of RM Communities’ business plan. The current underwritten five-year hold ensures the next buyer will have six years remaining on the tax abatement. In addition to the tax abatement, the property presents an opportunity to assume attractive debt at a below-market 4.93% fixed interest rate, reducing any potential interest rate risk leading up to our close and enhancing projected free cash flow during the business plan. The tax abatement and assumable financing, combined with the operational improvements and rental mark-to-market serve to maximize the potential for durable investor cash flows during the hold period.
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 2,200 multifamily units and over $350 million in real estate with a fully dedicated team of acquisitions, underwriting and asset management professionals.(1)
(1) References made to the RM Communities portfolio includes four properties that were acquired prior to the formation of RM Communities. Consequently, these assets are managed by an affiliate and are included as part of the RM Communities portfolio as a result of being acquired and managed by the same executive leadership and according to the same investment strategy employed by RM Communities.
-
Todd 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 | NNN | 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 | Closed |
| 223 E. Town Street | Columbus, OH | A | 84 | 2017 | $19,600,000 | $301,566 | Pending |
| Total | 2,183 | $357,901,000 | $24,752,595 |
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.
RM Communities will assume the in-place $14.1M loan to acquire and operate the property to maximize the combined benefit of attractive assumable debt and the long-term 90% tax abatement on the value of improvements through 2034.
The current business plan includes a light capital investment into unit interiors to add backsplashes and gooseneck faucets to the kitchens and install a smart home package, all of which are found at nearby Class A competing assets. The monthly fee for a technology package in this submarket is $45 and we anticipate an additional $25 rental premium for enhancing the kitchen.
RM Communities also received quotes for a bulk internet program which is commonplace in newer vintage, Class A, Downtown Columbus multifamily assets. The bulk internet program is contemplated to begin in year 2 of the investment and its return on cost is projected to be just under 50% once stabilized.
The ground floor retail tenant, The Woodbury, is an upscale restaurant that features an eclectic menu of bistro classics, all-day breakfast, and craft cocktails that attracts prospective renters to the Property and serves as an amenity to existing residents. As a part of the closing conditions, the tenant is exercising their first lease extension option through 2034 with scheduled rent increases in 2024 and 2029.
The property features significantly more internal garage parking per unit than a typical Downtown Columbus property and, per our extensive comp analysis, is undercharging for parking. As an example, the nearest comp, Xander on State, has a <50% garage parking ratio. Our plan is to implement a reserved parking program of 20 spaces for $200 per month and increase unreserved garage parking to $150 per month. Further underscoring the demand for these spaces, the 223 E Town garage has consistently maintained a waiting list for additional parking spaces.
The property manager has extensive experience in the Columbus market and actively participated in finalizing our business plan and operating budget for this asset. They are locally equipped to manage its daily operations.
Capital Improvement Budget
| Summary | Total | Per Unit |
| Interior Upgrades | $193,200 | $2,300 |
| Deferred Maintenance (Contingency) | $70,000 | $833 |
| Replacement Reserves | $51,096 | $608 |
| Capital Expenditure Contingency (10%) | $26,820 | $319 |
| Total | $340,616 | $4,055 |
| Interior Upgrades (84 Units) | Total | Per Unit |
| Kitchen Backsplash | $50,400 | $600 |
| Gooseneck Faucets | $50,400 | $600 |
| Technology Package | $92,400 | $1,100 |
| Total | $193,200 | $2,300 |
|
Units |
Type |
Unit SF |
Total SF |
In-Place Rent |
Stabilized Rent |
Rent/SF |
|
17 |
1/1 S |
644 |
10,942 |
$1,238 |
$1,350 |
$2.10 |
|
32 |
1/1 M |
725 |
23,200 |
$1,278 |
$1,500 |
$2.07 |
|
15 |
1/1 L |
783 |
11,745 |
$1,373 |
$1,525 |
$1.95 |
|
4 |
2/1 |
982 |
3,928 |
$1,546 |
$1,950 |
$1.99 |
|
4 |
2/2 S |
1,027 |
4,108 |
$1,738 |
$1,975 |
$1.92 |
|
5 |
2/2 M |
1,138 |
5,690 |
$2,134 |
$2,175 |
$1.91 |
|
4 |
2/2 L |
1,214 |
4,856 |
$2,215 |
$2,325 |
$1.92 |
|
3 |
2/2 XL |
1,321 |
3,963 |
$2,396 |
$2,375 |
$1.80 |
Lease Comparables
| Property | The Nicholas | Normandy | Industry Columbus | Xander on State | 250 High | Averages | 223 E Town |
| Distance to Subject | 0.7 Miles | 0.7 Miles | 0.6 Miles | 0.3 Miles | 0.4 Miles | 0.5 Miles | |
| Year Built | 2019 | 2014 | 2020 | 2020 | 2015 | 2018 | 2017 |
| Number of Units | 230 | 268 | 236 | 221 | 121 | 215 | 84 |
| 1/1 S | Studio | Studio | |||||
| $ / Unit | $1,490 | $1,367 | $1,373 | $1,340 | $1,393 | $1,350 | |
| SF | 602 | 582 | 646 | 631 | 615 | 644 | |
| $ / SF | $2.48 | $2.35 | $2.13 | $2.12 | $2.26 | $2.10 | |
| 1/1 M | |||||||
| $ / Unit | $1,627 | $1,529 | $1,449 | $1,535 | $1,500 | ||
| SF | 690 | 715 | 725 | 710 | 725 | ||
| $ / SF | $2.36 | $2.14 | $2.00 | $2.16 | $2.07 | ||
| 1/1 L | |||||||
| $ / Unit | $1,844 | $1,555 | $1,668 | $1,684 | $1,688 | $1,525 | |
| SF | 796 | 815 | 825 | 830 | 817 | 783 | |
| $ / SF | $2.32 | $1.91 | $2.02 | $2.03 | $2.07 | $1.95 | |
| 2/1 | 2/2 | 2/2 | 2/2 | ||||
| $ / Unit | $2,215 | $1,929 | $2,055 | $2,066 | $1,950 | ||
| SF | 1,046 | 1,004 | 938 | 996 | 982 | ||
| $ / SF | $2.12 | $1.92 | $2.19 | $2.07 | $1.99 | ||
| 2/2 S | |||||||
| $ / Unit | $2,215 | $1,929 | $2,020 | $2,055 | $1,975 | ||
| SF | 1,046 | 1,004 | 963 | 1,004 | 1027 | ||
| $ / SF | $2.12 | $1.92 | $2.10 | $2.05 | $1.92 | ||
| 2/2 M | |||||||
| $ / Unit | $2,310 | $2,355 | $2,135 | $2,005 | $2,201 | $2,175 | |
| SF | 1,113 | 1,200 | 1,164 | 1,031 | 1,127 | 1,138 | |
| $ / SF | $2.08 | $1.96 | $1.83 | $1.94 | $1.95 | $1.91 | |
| 2/2 L | |||||||
| $ / Unit | $2,601 | $2,355 | $2,478 | $2,325 | |||
| SF | 1198 | 1200 | 1,199 | 1,214 | |||
| $ / SF | $2.17 | $1.96 | $2.07 | $1.92 | |||
| 2/2 XL | |||||||
| $ / Unit | $2,513 | $2,355 | $2,235 | $2,497 | $2,400 | $2,375 | |
| SF | 1,270 | 1,200 | 1,270 | 1370 | 1,278 | 1,321 | |
| $ / SF | $1.98 | $1.96 | $1.76 | $1.82 | $1.88 | $1.80 |
Sales Comparables
|
Property Name |
Submarket Name |
Property Address |
City |
Sale Date |
Sale Price |
Number of Units |
Net Rentable SF |
Price per Unit |
Price per SF |
Year Built |
Building Class |
|
223 E Town Apartments |
Discovery District |
223 E Town St |
Columbus |
10/2023 |
$19,600,000 |
84 |
68,432 |
$233,333 |
$286 |
2017 |
A |
|
The Jerome |
Victorian Village |
1025 Dennison Ave |
Columbus |
9/13/2022 |
$14,800,000 |
54 |
46,971 |
$274,074 |
$315 |
2017 |
A |
|
The Gemma |
Olde Town East |
1117 Oak St |
Columbus |
2/28/2023 |
$6,100,000 |
24 |
20,075 |
$254,167 |
$304 |
2020 |
A |
|
The Yardley |
Bexley/Whitehall |
122 Parsons Ave |
Columbus |
3/29/2022 |
$18,055,000 |
78 |
81,300 |
$231,474 |
$222 |
2019 |
B |
|
Luxe 23 |
Downtown Columbus |
1079 N High St |
Columbus |
11/16/2021 |
$54,595,000 |
113 |
187,098 |
$483,142 |
$292 |
2020 |
A |
|
Industry Columbus |
Discovery District |
230 E Long St |
Columbus |
12/31/2021 |
$81,000,000 |
236 |
234,000 |
$343,220 |
$346 |
2020 |
A |
Location: Columbus, Ohio
The latest census data places Columbus among the fastest growing in the nation, with population increasing 15% since 2010. (1)
The Ohio State University provides stability to the market in terms of housing demand, from both students and faculty. (1)
Major investments from companies like Intel and Honda are adding new jobs to the region and will further support the need for housing as employees move into the area. (1)
Just outside of Columbus, Intel is planning to invest more than $20B in the construction of two new leading-edge chip factories in Ohio to boost production to meet demand for advanced semiconductors and power a new generation of innovative products.
Columbus is home to many notable employers and has drawn the attention of venture capital firms. Ohio set a record for VC investment in 2021 with over $2B invested in the state and over 66% of the money going to Columbus-based companies.
Costar reports Columbus rents grew 3.8% YoY as of the end of 23Q2. CoStar projects Columbus rents to grow an average 4.2% annually over the next three years and 3.7% annually over the next five years. CoStar projects Columbus’ multifamily absorption to remain in line with deliveries over the next five years.
Submarket Overview: Discovery District
The Discovery District submarket is part of the Downtown Columbus Submarket Cluster. Downtown Columbus boasts the highest rents in the market, reflecting an outsized share of new units in recent years. Asking rents average $1,570/month, or 25% above the market average. (1)
Costar projects Downtown Columbus rents to grow an average 3.9% annually for the next three years and 3.5% annually for the next five years. Additionally, Costar projects submarket absorption to outpace new deliveries by about 200 units over the next five years. (1)
Downtown Columbus is seeing significant investment in its medical industry, with Nationwide Children’s Hospital underway on a $3.3B expansion, its largest expansion in its 129-year history. The project is projected to add 302 beds in a new, state-of-the-art 750,000 square foot tower by 2026.
Similarly, OhioHealth and Grant Medical Center recently announced a $400mm expansion of their Downtown Columbus location. The project is expected to add hundreds of new medical jobs to this micro-location and is set to deliver in 2028.
Surrounded by an educated, young, and affluent population in an area dominated by renters, demand in downtown Columbus is further supported by expensive and limited for-sale inventory and the growing allure of urban living across all cohorts.
Downtown Columbus is home to an abundance of sporting & cultural opportunities – including a new major league soccer stadium, an award-winning baseball stadium, a national hockey team, the Columbus Symphony Orchestra, Opera Columbus, BalletMet Columbus, The Columbus Museum of Modern Art, The Lincoln Theatre, and the Center of Science and Industry.
(1) CoStar
Total Capitalization
|
Sources |
Amount |
Amount per Unit |
Percentage |
|
Senior Loan |
$14,089,000 |
$167,726 |
67.4% |
|
Investor Equity |
$6,805,000 |
$81,012 |
32.6% |
|
Total Sources |
$20,894,000 |
$248,738 |
100.0% |
|
Uses |
Amount |
Amount per Unit |
Percentage |
|
Purchase Price |
$19,600,000 |
$233,333 |
93.8% |
|
Loan Fee |
$140,890 |
$1,677 |
0.7% |
|
Closing Costs |
$246,509 |
$2,935 |
1.2% |
|
CapEx Budget |
$340,616 |
$4,055 |
1.6% |
|
Acquisition Fee |
$392,000 |
$4,667 |
1.9% |
|
Taxes and Insurance |
$93,985 |
$1,119 |
0.4% |
|
Working Capital |
$80,000 |
$952 |
0.4% |
|
Total Uses |
$20,894,000 |
$248,738 |
100.0% |
The expected terms of the debt financing are as follows:
- Loan Type: Assumable/Fixed
- Lender/Servicer: Bank of America/Midland
- Total Loan Amount: $14,089,000
- Loan Term Remaining: 5.4 Years
- Interest Rate: 4.93%
- Interest-Only Remaining: 0.4 Years
- Amortization: 30 Years
- Initial Loan-to-Value: 71.9%
- Loan-to-Cost(1): 70.7%
- Extension Options: N/A
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 for 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.
(1) Loan-to-cost is calculated as the loan amount divided by total cost (purchase price + capex budget)
RM Communities intends to make distributions from 223 E Town Investors, LLC 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 May 2024 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 | Year 5 (1) | Reversion (2) | |
| Effective Gross Income (EGI) | $1,873,380 | $2,120,433 | $2,212,008 | $2,286,060 | $2,351,806 | $2,435,437 |
| Expense | $626,114 | $672,206 | $706,697 | $726,597 | $746,611 | $1,151,063 |
| Net Operating Income | $1,247,267 | $1,448,227 | $1,505,311 | $1,559,464 | $1,605,195 | $1,284,374 |
| Total Property Cash Flow | $410,417 | $515,650 | $571,345 | $624,387 | $13,939,859 | |
| Projected Investor Cash Flow | ||||||
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
| Investor-Level Cash Flows - Hypothetical $50,000 Investment(3) | ($50,000) | $2,982 | $3,756 | $4,165 | $4,540 | $85,798 |
(1) Year 5 cash flows include the projected sale of the Property.
(2) Reversion Expenses and Net Operating Income are tax-adjusted without the tax abatement based on the projected purchase price at sale.
(3) Projected returns are net of all fees.
(4) The Company's pro forma projections are based on assumptions regarding future events, such as the condition of the local residential market and the stabilization of the debt markets. While the Company believes that these assumptions are reasonable and achievable, the likelihood of its occurrence is subject to many factors that are not within the control of the Owner or its Manager and that could impair the ability of the Property to meet the projections. Please carefully review the disclosures and risks in this presentation and in the Company’s Investment Documents.
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 |
| 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 3.0% of Effective Gross Income (EGI) or $35 per unit | AMC, LLC, 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.
The above table is a summary and there may be additional fees and expenses associated with this offering. Please carefully review the Disclaimers on page 2 of the Project Summary. Please carefully review the disclosures and risks in this presentation and in the Company’s Investment Documents.
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.