FORMALIZED DUE DILIGENCE PROCESS 
Sponsors

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Escrow accounts

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* Unless otherwise disclosed, escrow accounts are not required for some investments that accommodate 1031 investments where the property is already acquired.

Boots on the ground

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Confidentiality Agreement
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Funded
Estimated Hold Period 63 Months
Estimated First Distribution 2/2024
FUNDED 100%
...
View Our Due Diligence Process
Offered By
Cor3 Capital
Investment Strategy Core Plus
Investment Type Equity
Minimum Investment 35000
Overview
Cypress Grove (the "Property") is a 75-unit, single-family built-to-rent ("BTR") community located in Lubbock, TX, a dynamic market bolstered by several demand drivers, including the presence of Texas Tech University, and operated by an experienced Texas-focused BTR owner/operator (~900 units acquired since 2021).
Cash Flow

This recapitalization opportunity offers immediate, in-place, steady cash flow, produced at a rate anticipated to average approximately 8.1% over the investment period. The benefit of immediate cash flow is the direct result of the Sponsor's successful execution of the original business plan after acquiring the Property from its original developer in four separate stages over approximately 12 months.

The staggered acquisition afforded the Sponsor the opportunity to conduct a methodical, multi-year lease-up and stabilize the property while refining certain operational efficiencies that are intrinsic to the single-family BTR product type. The return profile is reflective of the Sponsor absorbing the initial lease-up risk and offering investors an opportunity to enter the cash-flowing investment at stabilization.

Basis

The Sponsor acquired the asset at a total cost basis of $12.1 million. For this recapitalization, the Sponsor is offering the opportunity to investors at a discounted basis, with a Purchase Price of $11.2 million. This opportunity is available at a discount to the original cost basis because the original majority limited partner investor group is not able to enter into an additional multi-year investment in the project. Therefore, this group is willing to accept a discount to ensure the ability to recapitalize its position by offering returns that are acceptable to investors in the current market.

Furthermore, the Project offers robust protection of investor principal since all 75 detached single-family units are situated on individual tax parcels located within a single community. This inherent diversification insulates the Property against the concentrated risk of loss seen with traditional multi-family properties while simultaneously affording exit optionality that drives return maximization. The exit optionality provides the Sponsor the opportunity to either sell the entire project as a single investment property or as individual homes directly to homebuyers.

Asset Quality

Newly built in 2021, each unit offers single-floor living across 3 bedrooms and 2 full bathrooms in approximately 1,200 square feet alongside a one-car attached garage and private, fenced backyards. Built on reinforced concrete slabs with a wood frame structure cladded with fiber cement siding and a brick facade on the exterior and finished with hardwood cabinets and woodgrain LVP flooring on the interior, each unit offers Class-A finishes for maximum tenant appeal combined with long-term durability for minimized capital maintenance expenditure.

Property at a glance
Year Built 2021
# of Buildings 75
Current Occupancy 97.0%
F-12 Cap Rate 7.4%
Exit Cap Rate 5.75%
Purchase Price $11,200,000
Investment Highlights
Experienced Single-Family, Built-to-Rent Sponsor: Cor3 Capital (the “Sponsor”) is a Houston-based sponsor of single-family, built-to-rent ("BTR") investments in key Texas markets with strong fundamental growth and demand characteristics. Founded in 2020, the Sponsor now manages ~$200 million of BTR assets, comprising almost 900 units, and has a significant presence in the Lubbock market.
Recently Constructed Built-To-Rent Community Acquired at an Attractive Basis: Cypress Grove (the “Property”) is a detached single-family, BTR community in the North Lubbock, TX, submarket. The property – which is offered at an attractive 7.4% going-in cap rate, consists of 75 contiguous, free-standing units, each on individual tax parcels. The homes are located on public streets in a neighborhood setting, surrounded by other single-family homes, and there is no homeowner's association. All homes offer a similar 1,200 square foot, 3-bed/2-bath layout, and cottage-style design, offering private backyards, driveways, and garages.
Attractive Target Return and Waterfall Profile: At an 80/20 split over an 8% IRR hurdle, the investment offers attractive risk-adjusted target returns of 20% IRR, an average cash-on-cash of 8.1%, and a 2.33x equity multiple over an anticipated 63-month holding period.
Core-Plus Risk Profile is Protective: Unlike a value-add acquisition that has greater volatility, the Property’s cash flow is stable from the outset with the potential for organic growth during the investment period. The business plan is not reliant on a lease-up process or value-add program since that has already been completed by the Sponsor over a nearly two-year acquisition and stabilization process from 2021-2022, and the rent growth assumed in the model is driven entirely by the asset’s performance relative to the market. With a current stabilized occupancy of 97% and an in-place, 10-year, fixed-rate loan on the asset, the Property can expect additional value creation through two active management strategies: (1) maintaining occupancy at an optimal level (95%) that leaves room for rent growth and (2) implementing expense control to ensure the Property meets stringent NOI margins of 60-65%.
Lubbock Is One of Texas’ Largest Cities, With Several Key Drivers Supporting the BTR Market: As the 11th largest city in Texas and the largest city in West Texas, Lubbock is the economic hub of a 26-county region in West Texas that is home to more than 500,000 residents. In contrast with many other mid-sized metros in Texas, the local economy of Lubbock is relatively diversified, driven in part by the education, trade, and healthcare sectors. Texas Tech, the state’s sixth-largest university, is based in Lubbock and serves as a major economic driver for the region. Accordingly, the multi-family market is generally very stable and growing in Lubbock: Since 2021, the city’s vacancy rate has held steady at ~8.7%, and rent growth has been sold at 3.4-3.5% per annum on average.
The Property Sits in a Dynamic Submarket: The Property is nestled in the rapidly expanding North Lubbock submarket, minutes from notable amenities like the Lubbock Country Club, Hillcrest Golf & Country Club, and the Berl Huffman Athletic Complex, as well as the Lubbock Preston Smith International Airport. Downtown Lubbock and Texas Tech are conveniently a 10-minute drive away. With immediate access to significant highways, the Property is surrounded by single-family homes, giving it a community feel.
Affordability Appeal: With the Property commanding market rents of $1,400 per month for a 1,200 square foot, 3-bed/2-bath home with a two-car garage and private, fenced back yard, the Property offers a single-family rental lifestyle at an affordable price, appealing to a wide array of tenants ranging from those who want those amenities absent in a multi-family living situation (garage, back yard, driveway, detached home) to stereotypical renters-by-necessity who can afford the mortgage on a single-family home but lack the up-front capital necessary for a downpayment.
Flexible Deal Structure Offers Investors Both Economies of Scale and Downside Protection: The Property offers robust protection of investor principal since all 75 detached single-family units are situated on individual tax parcels located within a single community. This enables the Sponsor to exploit economies of scale and operational efficiencies that are typical of a multi-family community. For example, the standardization of individual homes makes it easier to defend against real estate tax and insurance increases that are currently plaguing the multi-family market. Additionally, the embedded diversification insulates the Property against the concentrated risk of loss seen with traditional multi-family properties. The Sponsor can either choose to sell the entire project as a single investment property or as individual homes direct to homebuyers.
Ethical Finance Structure: Cor3 has several core values by which it operates, two of which center on the concepts of shared risk and fair compensation to all parties. This investment incorporates a finance lease structure into the legal documents that is integral to ensuring the Sponsor shares the risk of all other investors while also further connecting the Sponsor's compensation to the work it, and its team, undertake to maintain and drive value for all investors simultaneously. Please see the offering documents for additional information.
Management
Cumulative Distributions

Cor3 Capital

Cor3 Capital is a Houston-based sponsor of single-family, built-to-rent ("BTR") investments in key Texas markets with strong fundamental growth and demand characteristics. Founded in 2020, Cor3 has grown slowly and steadily since inception to now manage nearly $200 million of single-family BTR assets with nearly 900 units. Cor3 prioritizes steady, organic growth by focusing on the key fundamental differences that position single-family BTR properties to outperform other residential rental investments. With a seasoned leadership team that has a deep background in all aspects of real estate and a strong track record in Texas single-family and built-to-rent investments in particular, Cor3 works to remain a step ahead of the curve.

https://www.cor3.com/
  • Ian Russ
    Managing Principal
  • Ali Hasan
    Managing Principal
Ian Russ
Managing Principal

Ian Russ is responsible for Cor3's overall corporate operations and strategy while also managing certain aspects of the capital markets, acquisition, and asset management of individual investments. Ian has nearly 20 years of real estate investment and debt and equity capital markets experience as a principal and as an institutional investment manager. Prior to Cor3, Ian was the Chief Investment Officer of a sovereign wealth entity where he was responsible for a portfolio of real estate assets located in the USA, UK, Africa, and the Middle East with an enterprise value of over $5 billion.

Ali Hasan
Managing Principal

Ali Hasan is responsible for Cor3's acquisition pipeline, disposition process, and its full analytical function, in addition to certain aspects of the asset management of individual investments. Prior to Cor3, Ali co-founded and operated a highly successful investment platform that acquired, renovated, and sold approximately 2,000 single-family properties with a market value in excess of $250 million across all major Texas markets. Before shifting into real estate, Ali spent nearly 10 years as an oil and gas engineer with GE.

Track Record

Property Name City, State Asset Type Status Acq Date Units Purchase Price Sales Price or Estimated Value IRR EMx
Sydney's Park Houston, Texas Single-Family, Built-to-Rent Owned 12-02-2021 41 $13,300,000 $14,750,000 NA NA
Salt Creek I Lubbock, Texas Single-Family, Built-to-Rent Sold 05-10-2021 80 $12,000,000 $14,700,000 26.4% 1.41x
Palm Trace Houston, Texas Single-Family, Built-to-Rent Owned 05-28-2021 94 $18,500,000 $21,575,000 NA NA
Crest at Cooper Lubbock, Texas Multi-Family Owned 07-08-2021 128 $19,300,000 $20,700,000 NA NA
Oak Forest Houston, Texas Single-Family, Built-to-Rent Owned 07-14-2021 65 $19,314,000 $25,700,000 NA NA
Tech Village Lubbock, Texas Single-Family, Built-to-Rent Owned 03-01-2021 25 $4,500,000 $5,600,000 NA NA
Hunters Pond Elkhart, Indiana Multi-Family Sold 02-09-2021 76 $7,120,000 $8,812,870 22.2% 1.37x
Salt Creek II Lubbock, Texas Single-Family, Built-to-Rent Owned 05-11-2021 80 $14,700,000 $16,500,000 NA NA
Woodwind Elkhart, Indiana Multi-Family Sold 02-09-2021 95 $7,180,000 $8,887,130 22.2% 1.37x
Hayden's Park Lubbock, Texas Single-Family, Built-to-Rent Owned 03-10-2022 52 $13,400,000 $14,330,550 NA NA
Louetta Creek Houston, Texas Multi-Family Owned 03-02-2022 44 $12,320,000 $15,900,000 NA NA
Rella Village Houston, Texas Multi-Family Owned 09-15-2022 102 $19,000,000 $27,000,000 NA NA
Totals/Weighted Avg.         882 $160,634,000 $194,455,550    

The above bios and track record were provided by Cor3 Capital and have not been independently verified by RealtyMogul.

Cor3 acquired the property from the original developer in 4 separate stages over the course of approximately 12 months. During that staggered acquisition period, and for approximately 9 months following the final stage of acquisition, the property was leased up by Cor3 and its property management partners and is now approximately 97.0% leased with an expectation of an average occupancy during the hold period of 95.0%. 

Based on the property's stabilized operations, in September 2023, Cor3 placed a 10-year, fixed-rate loan on the property with a repeat lender relationship, ensuring that the in-place, stable cash flow derived from the stabilized operations of the property is supported by a property loan that mirrors the reality of the property's operations. With the staggered acquisition and lease-up complete, along with long-term, stable financing in place, the forward-looking business plan involves balancing two key return drivers: maintaining occupancy at an optimal level while simultaneously maximizing rent growth while maintaining maximum occupancy. Expense control will be a key, ongoing initiative to ensure the property maintains the higher average Net Operating Income margins of 60% to 65% expected of a single-family, built-to-rent property such as Cypress Grove, an initiative that will be accomplished through the on-site property and asset management team that oversees all 5 properties and nearly 400 units that Cor3 owns and operates in Lubbock, Texas.

Property Information

Cypress Grove in Lubbock, TX, is a detached single-family, built-to-rent community located in the North Lubbock submarket. The property consists of 75 contiguous, free-standing units, each on individual tax parcels. The homes are located on public streets in a neighborhood setting, surrounded by other single-family homes, and there is no homeowner's association. All homes offer a similar 1,200 square foot, 3-bed/2-bath layout and cottage-style design, offering private backyards, driveways, and garages.

In order to comply with the Sponsor’s ethical investment guidelines, the transaction is structured using a finance lease arrangement where a leasehold interest (as opposed to a fee simple interest) will be held in the Property pursuant to various finance lease agreements with a Sponsor affiliate. Such Sponsor affiliate will lease and convey all rights of ownership of the Property (except for the fee simple interest) to a subsidiary of the investment entity as well as a unilateral right to acquire the fee simple interest in the Property at a nominal value upon a third-party sale or certain other triggering events.  Please see the offering documents for additional information. 

Unit Mix

Unit Type Avg SF/Unit

Avg Rent

Rent PSF

Plan A 1,200 $1,400 $1.17
Plan B 1,200 $1,400 $1.17
Plan C 1,200 $1,400 $1.17
Totals / Averages 1,200 $1,400 $1.17
Comparables

Lease Comparables

  Courtyards on the Park Ashton Pointe Apartments Hayden's Park The Pointe Apartments 19West Averages Cypress Grove
Distance from Subject Property 6.7 Miles 7.6 Miles 9.6 Miles 4.6 Miles 7.6 Miles 7.2 Miles NA
Year Built 1963 2017 2021 1973 2019 1999 2021
Number of Units 103 80 52 90 224 110 75
               
Rental Rate (Per SF) $1.21 $1.39 $1.22 $1.12 $1.37 $1.26 $1.17
Tenant Lease Size (SF) 962 SF 952 SF 1,350 SF 850 SF 756 SF 974 SF 1,200 SF
Lease Type 12-month 12-month 12-month 12-month 12-month 12-month 12-month

Sales Comparables

  Salt Creek Ranch Townhomes Ariza Corpus Christi Thayer Point Century Palm Bluff Hayden's Park Averages Cypress Grove
Sale Date 05-01-2021 11-01-2021 12-01-2021 09-01-2021 02-09-2022 10-9-021 NA
Sales Price $14,700,000 $50,984,934 $42,732,900 $43,569,000 $13,400,000 $33,077,367 $16,738,875
Year Built 2017 2020 2020 2017 2021 2019 2021
# of Units 80 286 266 250 52 187 75
Average Unit Size 951 SF 830 SF 795 SF 952 SF 1,645 SF 1,035 SF 1,200 SF
Sales Price / Unit $183,750 $178,269 $160,650 $174,276 $257,692 $190,927 $223,185
Sales Price / SF $193 $215 $202 $183 $157 $190 $186
Occupancy at Sale 98.0% 97.0% 80.0% 96.0% 94.0% 93.0% 95.0%
Distance from Subject Property 12.3 Miles 554 Miles 332 miles 533 Miles 9.6 Miles 277.2 mi NA
Location Information

Market Overview

As the 11th largest city in Texas and the largest city in West Texas (US Census Bureau), Lubbock is the heart of West Texas and the economic center of a 26-county region that is home to more than 500,000 residents (BBG Real Estate Services). In contrast with many other mid-sized metros in Texas, the local economy of Lubbock is relatively diversified, driven in part by the education, trade, and healthcare sectors. Fortunately, most of these industries have proven to be fairly stable during uncertain economic times. Education in this city revolves around the ubiquitous presence of Texas Tech University: the state's sixth-largest university. Texas Tech is a key employer for many renters, especially those employed in academic research, the life sciences, administrative positions, and sports and athletics. This diverse array of jobs provides the backbone for the local economy, stimulating a sizeable amount of the apartment demand in this city. (CoStar)

Lubbock’s recovery post-pandemic was strong enough to put the metro area in the top quartile of performers nationally, according to data from Economy.com. Leisure/hospitality was a particular bright spot thanks to the ever-growing draw of Texas Tech University. Further evidence of Lubbock's economic performance is the jobless rate which sits closer to its pre-pandemic rate than the Texas average. House price growth has been the strongest seen in the last two decades, even if it has not quite kept pace with the overall high levels of growth seen in Texas as a whole (BBG Real Estate Services).

Overall, Lubbock benefits from the large university presence of Texas Tech University with over 40,000 students, its below-average business costs, a diverse economy relative to metro areas that are similar in size, and its below-average employment volatility. It is expected that Lubbock’s economy will remain stable and grow steadily, even if not at as fast a pace as fast-growing Texas overall. According to Economy.com, Lubbock is expected to have an average annual employment growth rate of 1.7% over the next five years (2022-2026), a decrease in unemployment from 4.95% in 2022 to 2.35% in 2026, and an average annual growth rate on personal income of 4.3% over the next five years (2022-2026).

As a multi-family investment market, Lubbock is perenially stable. According to Costar, since 2021, Lubbock has had a stable vacancy rate across the entire market of approximately 8.7%. From 2022 to 2026, Costar anticipates asking rent growth and effective rent growth to be 3.5% and 3.4% per annum, respectively, with concession loss averaging 0.7% per annum.

Submarket Overview

Cypress Grove is located in the fast-growing North Lubbock submarket. Major amenities like Lubbock Country Club, Hillcrest Golf & Country Club, Meadowbrook Canyon Creek Golf Club, and Berl Huffman Athletic Complex), industrial districts, including the Lubbock Preston Smith International Airport, are all within minutes of the property. In addition, downtown Lubbock and Texas Tech are a 10-minute drive to the south.

Access to major cross-town highways is within immediate proximity to the property. The property is surrounded by single-family homes, which creates a desirable residential community feel. An industrial/commercial area just to the south and Lubbock’s international airport just 10 minutes to the north are job centers within the immediate vicinity.

The area around Cypress Grove is a fast-growing neighborhood that is predominantly owner-occupied single-family homes which keeps demand high for rental product within the immediate area, especially at Cypress Grove, where renters get a full house with a backyard and garage at an affordable rental rate.

The market area is considered to be in a stable stage of its life cycle. The market area has an average reputation in respect to most types of real estate, and residential improvements are generally in fair to good condition. With good regional linkage to major employment centers and the presence of the Lubbock Country Club and the nearby Hillcrest Golf & Country Club, as well as abundant land that is cheaper than southwest Lubbock, prospects appear favorable for transitioning into a growth stage in the near future.

Cap Stack
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $ / Unit
Senior Loan $8,714,025 $116,187
LP Equity $3,295,000 $43,933
GP Equity(1) $366,081 $4,881
Total Sources of Funds $12,375,106 $165,001
     
Uses of Funds $ Amount $/Unit
Purchase Price $11,200,000 $156,933
Transaction Costs $67,046 $894
Closing, Legal & Other Transaction Costs $298,161 $3,975
Cor3 Acquisition Fee $112,000 $1,569
Cor3 Debt Placement Fee $87,140 $1,162
Financing Fees/Costs $202,952 $2,706
Working Capital (Cash Reserves) $407,807 $2,214
Total Uses of Funds $12,375,106 $165,001

(1) The Sponsor’s equity contribution may consist of friends and family equity and equity from funds controlled by the Sponsor.

 

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: Lending One
  • Loan Type: Permanent Loan
  • Loan-to-Value (LTV): 74.0%
  • Loan-to-Cost (LTC): 68.6%
  • Estimated Proceeds: $8,714,025
  • Interest Type: Fixed
  • Annual Interest Rate: 6.57%
  • Interest-Only Period: Full Term
  • Amortization: N/A - Balloon Payment due at Maturity
  • Prepayment Terms: Yield Maintenance through April 1, 2033
  • Extension Requirements: N/A
  • Recourse Description: Non-Recourse

(1) 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. 
(2) The Property has been financed with a long-term, 10-year, fixed-rate loan. This loan includes a provision for a prepayment premium if the loan is repaid prior to the maturity date of the loan. If the loan is repaid prior to maturity and the interest rate available in the market for the lender to redeploy the funds from the repaid loan is the same as or higher than the interest rate on the Property's loan, then there is no prepayment premium due to the lender; if the interest rate available in the market for the lender to redeploy the funds from the repaid loan is lower than the interest rate on the Property's loan then there will be a calculation of a prepayment premium due to the lender. As the loan matures, the total potential prepayment premium is steadily reduced through maturity.

Distributions

Cor3 Capital intends to make distributions as follows:

  1. Pari-passu all cash flow available for distribution to the Equity Investors until the Equity Investors receive a Preferred Return of 8.0% (IRR);
  2. Pari-passu all cash flow available for distribution to the Equity Investors until the Equity Investors have received aggregate distributions equal to the aggregate unreturned equity Contributions;
  3. 72% / 28% ( 80% to Equity Investors / 20% to Promoted/Carried Interest ) of all cash flow available for distribution thereafter.

Cor3 Capital 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 February 2024 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Cor3 Capital, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Cor3 Capital will receive a promoted/carried interest as indicated above.

Cash Flow Summary
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Effective Gross Revenue   $1,293,518 $1,322,714 $1,366,986 $1,410,889 $1,455,229 $1,500,381
Total Operating Expenses   ($463,560) ($477,178) ($491,631) ($506,467) ($521,722) ($537,418)
Net Operating Income   $829,958 $845,536 $875,355 $904,422 $933,507 $962,962
               
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Net Cash Flow ($3,661,081) $274,021 $286,783 $298,829 $309,349 $318,212 $7,913,109
               
Investor-Level Cash Flows(2)
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Net Cash Flow ($3,298,634) $246,893 $258,392 $269,245 $278,723 $286,709 $6,361,709
               
Investor-Level Cash Flows - Hypothetical $50,000 Investment(2)
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6
Net Cash Flow ($50,000) $3,742 $3,917 $4,081 $4,225 $4,346 $96,429

(1) Equity Investors include all members part of the Limited Partnership and General Partnership, including Cor3 Capital.

(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 below for additional information concerning Sponsor’s use or projected returns and fees paid to Sponsor and RM Technologies, LLC.

 

 

Fees

Certain fees and compensation will be paid over the life of the transaction; please refer to Cor3 Capital'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 1.0% of Purchase Price Cor3 Capital, LLC Capitalized Equity Contribution
Financing Fee 1.0% of Loan Amount Cor3 Capital, LLC 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 1.0% of Equity Contribution Cor3 Capital, LLC Cash Flow
Property Management Fee Greater of 2.0% of Gross Monthly Collection or $3,000/month Asset Plus USA, LLC Cash Flow
Administration Solution Licensing Fee(2) Flat quarterly licensing fee of $125 per investor serviced by Sponsor through the license and use of  RM Technologies’ Administration Solution RM Technologies, LLC Cash Flow

(1) Fees may be deferred to reduce impact to investor distributions.

(2) Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC.

The following offering documents have been prepared and are being delivered by the Sponsor of this investment opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are not otherwise responsible for, the Sponsors offering documents posted below or any content therein.
RM Securities, LLC and its Affiliates Compensation

RM Securities, LLC, its registered representatives, affiliates, associated persons, and personnel of its affiliates who may also be associated with it, including our associated persons and personnel of our affiliates who are also be associated with RM Securities, LLC (it (“RM Securities,” “we,” “our,” or “us”) will receive fees, expense reimbursements, and other compensation (“Fees”) from the issuer of this investment offering, its sponsor, or an affiliate thereof (“Sponsor”), or otherwise in connection with Sponsor’s offering. The Fees paid to us are in addition to other fees you will pay to Sponsor or in connection with Sponsor’s investment offering. You will pay Fees to Sponsor, either directly or indirectly as an investor in the Sponsor’s offering. Sponsor will use the Fees you pay, as well as funds you invest in the relevant offering, to compensate us. The Fees paid to us will directly or indirectly be borne by you as the investor (typically, but not always, in the form of an expense of the Sponsor’s offering in which you invest) because such Fees will reduce the proceeds available for distribution to you and reduce the amount you earn over time.

For more information on the Fees paid to us, or any other Fees you will pay in connection with Sponsor’s offering, please carefully review the Sponsor’s Investment Documents. Please also carefully review RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

No Approval, Opinion or Representation, or Warranty by RM Securities, LLC

Sponsor has provided, approved, and is solely responsible in all aspects for the information on this webpage (“Page”), including Sponsor’s offering documentation, which may include without limitation the Private Placement Memorandum, Operating or Limited Partnership Agreement, Subscription Agreement, the Project Summary and all exhibits and other documents attached thereto or referenced therein (collectively, the “Investment Documents”). The Investment Documents linked on this page have been prepared and posted by Sponsor, and not by RM Securities. We did not assist in preparing, do not adopt or endorse, and we are not otherwise responsible for, the Sponsor’s Investment Documents. We make no representations or warranties as to the accuracy of information on this Page or in the Sponsor’s Investment Documents and we accept no liability therefor. No part of the information on this Page or in the Sponsor’s Investment Documents is intended to be binding on us.

Sponsor’s Information Qualified by Investment Documents

The information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.

Risk of Investment

This investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.

No Reliance on Forward-Looking Statements; Sponsor Assumptions

Sponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Neither RM Securities nor Sponsor are obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.

Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.

No Reliance on Past Performance

Any description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.

Sponsor’s Use of Debt

A substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.

Sponsor’s Offering is Not Registered

Sponsor’s securities offering will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement”). In addition, the offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership interests) are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.

No Investment Advice

Nothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments. For additional information on RM Securities’ involvement in this offering, please carefully review the Sponsor’s Investment Documents, and RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

1031 Exchange Risk

Internal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts and certain tax consequences may vary depending on the individual circumstances of each investor. RM Securities and its affiliates make no representation or warranty of any kind with respect to the tax consequences of your investment or that the IRS will not challenge any such treatment. You should consult with and rely on your own tax advisor about the tax aspects with respect to your particular circumstances.

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