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.
Hunters Ridge is a 2004 vintage, 170-unit asset featuring a favorable unit mix of spacious one-, two-, and three-bedroom apartments and townhomes averaging 1,169 SF. 79 units at the Property feature attached garages which are highly desirable in Michigan winters and serve as additional storage space for units. Significant capital has been recently invested in building exteriors and community amenities, including a fully renovated clubhouse, state-of-the-art fitness center, new community dog park, updated outdoor grill stations, gas fire pit with lounge seating, and a children’s playground. The quality of the asset is underscored by the high-quality tenants it attracts. The Property exhibits strong historical occupancy with a desirable, relatively affluent tenant mix that out-earns the submarket average. The seller completed renovations on 38 units which are achieving average premiums of $280 and trending toward $300. Given the value-add program is substantially proven out at the Property, the Sponsor projects proforma stabilized rents to be in-line with recent leases on renovated units.
Hunters Ridge is situated in a relatively affluent pocket within East Lansing. Anchored by the state capital and Michigan State University (MSU), the area boasts average household incomes within a 5-mile radius of $73,000. The Property is located near two pristine and highly-rated golf courses. The prime location of the Property is underscored by the tenant demographic the Property attracts. The tenants at Hunters Ridge earn an average of $85,000 household income, with an outsized share of tenants working in healthcare and education, two highly resilient industries. Given these income levels among current tenants at the Property, proforma stabilized rents are affordable to the tenant base.
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 |
| Hunters Ridge Apartments | East Lansing, MI | B | 170 | 2004 | $34,650,000 | $2,056,660 | Pending |
| Total | 2,353 | $392,551,000 | $26,809,225 |
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.
The Sponsorship Group will assume the attractive Fannie Mae loan of $21.03M, which represents a 60.7% LTV at a below-market interest rate of 3.33%, to acquire Hunters Ridge for $34.65M.
The business plan upon acquisition is to continue the seller’s renovation plan and capture the clearly proven upside potential in the rents. The seller completed the in-place renovations for approximately $8,100 per unit and Sponsorship is budgeting $11,200 per unit for interiors. There are 132 units in classic condition at the Property that will receive an upgrade to counters, cabinets, bathrooms, flooring, and appliances.
Projected stabilized rents are just $17, or 0.9%, above average recent lease rates on renovated units since August 2023. This is a modest increase when considering submarket rents have grown an average 3.8% annually over the last decade.(1) The latest demographics report for this asset shows the in-place tenant base has an average household income of $85,000. This average income implies a 3.9x stabilized income-to-rent ratio.
Recent lease trade-outs at the Property are trending upwards on both classic and renovated units with new leases averaging a 12% increase(2) with a high 98.2% occupancy.
In addition to parking garages for 79 units, the Property has 73 carports. The business plan includes introducing a reserved parking program for a fee for these 73 spaces, which should be absorbed quickly given weather patterns in the state. We have conservatively assumed a stabilized occupancy rate of 75% on carports by the end of year one. Another revenue boost should be realized once valet trash is implemented over the course of year one of the business plan.
Sponsorship is maintaining the in-place property management team, Village Green, to continue managing the Property. Not only does Village Green already manage properties in the RM Communities portfolio, but they manage over 1,000 units in the Lansing market and are uniquely equipped to manage the Property, as they managed it for the seller. Our financial projections were prepared in close collaboration with Village Green.
| Summary | Total | Per Unit |
| Interior Upgrades | $1,478,400 | $8,696(3) |
| Exterior Upgrades and Repairs | $310,000 | $1,824 |
| Contingency (10%) | $178,840 | $1,052 |
| Capital Improvement Supervision Fee (5%) | $89,420 | $526 |
| Total | $2,056,660 | $12,098 |
| Interior Upgrades (132 units) | Total | Per Unit |
| Stainless Steel Appliances | $330,000 | $2,500 |
| Countertops | $158,400 | $1,200 |
| Cabinet Repaint | $158,400 | $1,200 |
| Bathroom Countertop + Cabinets | $158,400 | $1,200 |
| Plumbing Fixtures (Faucets, Showerhead) | $105,600 | $800 |
| Lighting | $158,400 | $1,200 |
| Flooring | $198,000 | $1,500 |
| Paint | $211,200 | $1,600 |
| Total | $1,478,400 | $11,200 |
| Exterior and Common Area Upgrades and Repairs | Total | Per Unit |
| Fitness Center Enhancement | $10,000 | $59 |
| Roof Repair (contingency) | $75,000 | $441 |
| Signage | $50,000 | $294 |
| Deferred | $175,000 | $1,029 |
| Total | $310,000 | $1,824 |
(1) CoStar
(2) As of September 2023
(3) The business plan targets interior renovations for 132 units. Dividing the interior upgrades budget by the number of planned interior renovations results in a per unit interior budget of $11,200.
Unit Mix and Rent Schedule
|
Units |
Type |
Unit SF |
Total SF |
In-Place Rent |
Stabilized Rent |
Stabilized Rent/SF |
|
6 |
1x1 |
922 SF |
5,532 SF |
$1,332 |
$1,450 |
$1.57 |
|
22 |
2x2 S |
1,064 SF |
23,408 SF |
$1,371 |
$1,675 |
$1.57 |
|
10 |
2x2 S Reno |
1,064 SF |
10,640 SF |
$1,657 |
$1,675 |
$1.57 |
|
25 |
2x2 M |
1,080 SF |
27,000 SF |
$1,408 |
$1,685 |
$1.56 |
|
7 |
2x2 M Reno |
1,080 SF |
7,560 SF |
$1,654 |
$1,685 |
$1.56 |
|
8 |
2x2 L |
1,100 SF |
8,800 SF |
$1,456 |
$1,715 |
$1.56 |
|
17 |
2x2 L Garage |
1,100 SF |
18,700 SF |
$1,478 |
$1,815 |
$1.65 |
|
7 |
2x2 L Reno Garage |
1,100 SF |
7,700 SF |
$1,791 |
$1,815 |
$1.65 |
|
8 |
2x2 XL |
1,208 SF |
9,664 SF |
$1,493 |
$1,825 |
$1.51 |
|
25 |
2x2 XL Garage |
1,208 SF |
30,200 SF |
$1,625 |
$1,925 |
$1.59 |
|
2 |
2x2 XL Reno |
1,208 SF |
2,416 SF |
$1,785 |
$1,825 |
$1.51 |
|
5 |
2x2 XL Reno Garage |
1,208 SF |
6,040 SF |
$1,908 |
$1,925 |
$1.59 |
|
1 |
2/2.5 TH |
1,435 SF |
1,435 SF |
$1,850 |
$2,100 |
$1.46 |
|
14 |
2/2.5 TH Garage |
1,435 SF |
20,090 SF |
$1,841 |
$2,200 |
$1.53 |
|
5 |
2/2.5 TH Reno Garage |
1,435 SF |
7,175 SF |
$2,101 |
$2,200 |
$1.53 |
|
2 |
3x2 |
1,555 SF |
3,110 SF |
$1,910 |
$2,200 |
$1.41 |
|
4 |
3x2 Garage |
1,555 SF |
6,220 SF |
$1,945 |
$2,300 |
$1.48 |
|
2 |
3x2 Reno Garage |
1,555 SF |
3,110 SF |
$2,240 |
$2,300 |
$1.48 |
Lease Comparables
| Property | Beaumont Apartments | Coolidge Place Apartments | Gateway Lofts | Reserve at Falcon Point | Averages | Hunters Ridge |
| Distance to Subject | 1.7 Miles | 3.5 Miles | 4.7 Miles | 0.7 Miles | 2.7 Miles | |
| Year Built | 2006 | 1972 | 2022 | 2016 | 2004 | 2004 |
| Number of Units | 89 | 186 | 181 | 116 | 143 | 170 |
| 1/1 | ||||||
| $ / Unit | $1,243 | $1,325 | $1,721 | $1,430 | $1,450 | |
| SF | 862 | 600 | 605 | 689 | 922 | |
| $ / SF | $1.44 | $2.21 | $2.84 | $2.07 | $1.57 | |
| 2/2 S | 2/1.5 | |||||
| $ / Unit | $1,598 | $1,610 | $1,936 | $1,715 | $1,675 | |
| SF | 1,131 | 950 | 1,057 | 1,046 | 1,064 | |
| $ / SF | $1.41 | $1.69 | $1.83 | $1.64 | $1.57 | |
| 2/2 M | 2/1.5 | |||||
| $ / Unit | $1,598 | $1,610 | $1,936 | $1,715 | $1,685 | |
| SF | 1,131 | 950 | 1,057 | 1,046 | 1,080 | |
| $ / SF | $1.41 | $1.69 | $1.83 | $1.64 | $1.56 | |
| 2/2 L | 2/1.5 | |||||
| $ / Unit | $1,598 | $1,610 | $2,191 | $1,800 | $1,715 | |
| SF | 1,131 | 950 | 1,194 | 1,092 | 1,100 | |
| $ / SF | $1.41 | $1.69 | $1.84 | $1.65 | $1.56 | |
| 2/2 XL | ||||||
| $ / Unit | $1,682 | $2,191 | $1,830 | $1,901 | $1,825 | |
| SF | 1,176 | 1,194 | 1,300 | 1,223 | 1,208 | |
| $ / SF | $1.43 | $1.84 | $1.41 | $1.55 | $1.51 | |
| 2/2.5 TH | ||||||
| $ / Unit | $2,288 | $2,191 | $2,240 | $2,100 | ||
| SF | 1,480 | 1,194 | 1,337 | 1,435 | ||
| $ / SF | $1.55 | $1.84 | $1.68 | $1.46 | ||
| 3/2 | 2/2 | 2/2 | ||||
| $ / Unit | $2,288 | $2,191 | $2,240 | $2,200 | ||
| SF | 1,480 | 1,194 | 1,337 | 1,555 | ||
| $ / SF | $1.55 | $1.84 | $1.68 | $1.41 |
Sales Comparables
|
Property Name |
Submarket Name |
Property Address |
City |
Sale Date |
Sale Price |
Number of Units |
Gross Building SF |
Price per Unit |
Price per SF |
Year Built |
Cap Rate |
Building Class |
|
Hunters Ridge |
Outer Clinton County |
4060 Springer Way |
East Lansing |
Q4 2023 |
$34,650,000 |
170 |
221,371 |
$203,824 |
$157 |
2004 |
5.24% |
B |
|
Volaris Lansing |
Forest View |
4540 Collins Rd |
Lansing |
12/2021 |
$74,000,000 |
289 |
261,256 |
$256,055 |
$283 |
2023 |
4.21% |
A |
|
Club Meridian |
Meridian Township/Okemos |
4425 Heritage Ave |
Okemos |
6/2022 |
$70,500,000 |
406 |
355,565 |
$173,645 |
$198 |
2004 |
4.91% |
B |
|
Esker Square |
Outer Ingham County |
2030-2054 N Cedar St |
Holt |
4/2022 |
$20,000,000 |
90 |
90,000 |
$222,222 |
$222 |
2023 |
N/A |
A |
|
Newman Lofts |
Grand River |
200 Albert Ave |
East Lansing |
4/2022 |
$22,250,000 |
91 |
91,000 |
$244,505 |
$245 |
2019 |
N/A |
A |
Location: East Lansing
East Lansing boasts a median household income of $75,200 with a multifamily vacancy rate of 4.7% and no multifamily units under construction. Rents in East Lansing have grown an average of 3.3% annually over the last five years, which speaks to the city’s resilience and consistent growth.
This durability in rent growth can be attributed to two key factors. First, East Lansing's multifamily unit supply has remained relatively flat in the last decade, with CoStar showing a net of 100 units added within East Lansing’s borders over the last ten years.1 The second factor is the presence of recession-resistant industries such as education, healthcare, and government that underpin the greater Lansing’s economy. These three industries appear in Indeed.com’s top ten recession-resistant industries.2 Over half of Lansing’s top employers fall into one of these three industries.
Niche.com calls East Lansing the #3 Best Place to Live in the Lansing Area and awards it an overall “A” ranking with an “A” score in the public schools, family friendliness, and nightlife categories. Niche also ranks East Lansing with an “A+” for commuters and an “A-” for outdoor activities.3
East Lansing has a population of 47,427 and is ranked among the “Best Suburbs to Live in Michigan.” Living in East Lansing offers residents an urban-suburban mix and 61% of its residents are renters. East Lansing features a variety of restaurants, coffee shops, and parks to enjoy with highly rated public schools.3
East Lansing benefits from access to a durable job market, excellent public schools, a majority renter demographic, and multifamily supply constraints, all of which should continue to contribute to Hunters Ridge’s success as an investment.
Submarket Overview: Outer Clinton County
The Property is located in the Outer Clinton County Multifamily submarket, which is part of the Clinton County Submarket Cluster. Per CoStar, multifamily vacancy in the Clinton County submarket is 3.7% and has decreased by 0.5% over the past 12 months. During this period, there has been a modest amount of positive absorption, and nothing has been delivered.
Submarket rents have grown 8.3% over the last 12 months and 23.3% over the last 3 years. CoStar projects rents to grow 4.6% over the next year and an average of 4.2% annually for the next three years. Additionally, there are no conventional multifamily construction projects in the submarket pipeline.1
The submarket has an affluent tenant base, with a median income at $72,500. The submarket is highly educated as well, with 53% of residents within two miles of Hunters Ridge holding a bachelor’s degree or higher – 19.3% greater than the national average.1
The submarket is university anchored by MSU with direct access to resilient employment in education, healthcare, and government while offering seamless connectivity to major markets in the state. Lansing is centrally located in the state and sits along i-96, about 90 minutes from Detroit to the east and 75 minutes from Grand Rapids to the west.
The submarket is poised to benefit from significant employment growth as General Motors, in conjunction with LG, is constructing a $2.6B battery manufacturing plant just outside of Lansing.
Total Capitalization
| Sources | Amount | Amount per Unit | Percentage |
| Senior Loan | $21,026,000 | $123,682 | 54.60% |
| Investor Equity | $17,215,000 | $101,265 | 44.70% |
| Seller Credit | $240,000 | $1,412 | 0.60% |
| Total | $38,481,000 | $226,359 | 100.00% |
| Uses | Amount | Amount per Unit | Percentage |
| Purchase Price | $34,650,000 | $203,824 | 90.00% |
| Loan Fee | $210,260 | $1,237 | 0.50% |
| Non-Recourse Carveout Guarantee | $105,130 | $618 | 0.30% |
| Closing Costs | $341,839 | $2,011 | 0.90% |
| CapEx Budget | $2,056,660 | $12,098 | 5.30% |
| Acquisition Fee | $540,000 | $3,176 | 1.40% |
| Taxes and Insurance | $314,111 | $1,848 | 0.80% |
| Working Capital | $263,000 | $1,547 | 0.70% |
| Total | $38,481,000 | $226,359 | 100.00% |
The expected terms of the debt financing are as follows:
Senior Debt:
- Loan Type: Assumable Fixed
- Lender/Servicer: Fannie Mae/Walker & Dunlop
- Total Loan Amount: $21,026,000
- Loan Term: 7.75 Years Remaining
- Interest Rate: 3.33%
- Interest-Only Period: 1.75 Years Remaining
- Amortization: 30 Years
- Initial Loan-to-Value: 60.7%
- Loan-to-Cost(1): 57.3%
Future Supplemental in Month 25:
- Loan Type: Supplemental Fixed
- Lender/Servicer: Fannie Mae/Walker & Dunlop
- Total Loan Amount: $2,993,790
- Loan Term: 5.75 Years
- Interest-Only Period: 0 Years
- Amortization: 30 Years
- Interest Rate: 8.28%
- Loan-to-Stabilized Value: 50.5%
- Loan-to-Cost(1): 65.4%
- Underwritten DSCR: 1.35x
(1) Loan-to-cost is calculated as the loan amount divided by total cost (purchase price + capex budget)
There can be no assurance that the Sponsor will secure debt on the rates and terms noted above, or at all. All of the Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, including but not limited to possible increases in capital reserve requirements for funds to be held in a lender-controlled capital reserve account.
A substantial portion of the total acquisition 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.
RM Communities intends to make distributions from Hunters Ridge Investors, LLC as follows:
Operating Cash Flow:
- To the Investors, pari passu, all operating cash flows to a 7.0% preferred return;
- Return of Capital to Members;
- 70% / 30% (70% to Investors / 30% to Promote) of excess cash flow thereafter.
Capital Event:
- To the Investors, pari passu, all operating cash flows to a 7.0% preferred return;
- Return of Capital to Members
- Payment of Disposition Fee
- 70% / 30% (70% to Investors / 30% 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(1) |
Year 4 |
Year 5(2) |
Reversion(3) |
|
Effective Gross Income (EGI) |
$3,511,735 |
$3,904,052 |
$4,158,917 |
$4,313,058 |
$3,320,354 |
$4,543,300 |
|
Expense |
$1,480,345 |
$1,529,039 |
$1,578,836 |
$1,627,038 |
$1,252,783 |
$1,774,207 |
|
Net Operating Income |
$2,031,391 |
$2,375,013 |
$2,580,081 |
$2,686,020 |
$2,067,571 |
$2,769,093 |
|
Total Property Cash Flow |
$1,340,403 |
$1,531,609 |
$4,052,010 |
$1,241,534 |
$27,689,873 |
|
| Projected Investor Cash Flow | ||||||
| Investor-Level Cash Flows - Hypothetical $50,000 Investment(4) | ($50,000) | $3,880 | $4,435 | $11,756 | $3,593 | $68,447 |
(1) Assumes a supplemental loan in Month 25 constrained to a 1.35x DSCR, fully amortizing immediately.
(2) The current business plan contemplates exiting prior to the end of the fifth year of operations, hence the decrease in Income, Expenses, and NOI.
(3) Reversion Expenses and Net Operating Income are tax-adjusted without the tax abatement based on the projected purchase price at sale.
(4) Projected returns are net of all fees.
RM Technologies, LLC and its affiliates do not provide any assurance of returns. The content on this page, including Sponsor’s pro forma projections, was provided by the Sponsor or an affiliate thereof. Although RM Technologies, LLC believes the Sponsor reliably produced this content, RM Technologies, LLC makes no representations or warranties as to the accuracy of such information and accepts no liability therefor. The assumptions and projections included in the content on this Page, including the Sponsor’s pro forma projections, are not reflective of the position of RM Technologies, LLC or any other person or entity other than the Sponsor or its affiliates. There can be no assurances that all or any of the Sponsor’s assumptions will be true, that actual performance will bear any relation to these hypothetical illustrations, or that the Sponsor’s investment objectives will be achieved. For additional information concerning the Sponsor’s assumptions and projections, and the significant risks involved in investing in real estate, please see the Disclaimers section below.
Certain fees and compensation will be paid over the life of the transaction; please refer to RM Communities' materials for details. The following fees and compensation will be paid(1)(2)(3)(4):
| One-Time Fees | ||
| Type of Fee | Amount of Fee | Received By |
| Acquisition Fee |
1.56% of Purchase Price, or $540,000 |
Sponsorship Group |
| Financing Fee(1) | 1.0% of Refinanced Loan Amount or Supplemental | Sponsorship Group |
| Non-Recourse Carveout Guarantor Fee(2) |
0.5% of Assumable Loan Amount |
Split Among Specific Principals of the Sponsorship Group |
| Disposition Fee(3) |
Up to 1.0% of Gross Sale Proceeds paid to Sponsorship |
Sponsorship Group |
| Recurring Fees | ||
| Type of Fee | Amount of Fee | Received By |
| Asset Management Fee | 1.5% of Effective Gross Income (EGI) | Sponsorship Group |
| Capital Improvement Supervision Fee | 5% Capital Improvement Supervision fee on cost of major capital improvements | Village Green, Third Party Property Manager |
| Property Management Fee |
Monthly, 2.85% of Effective Gross Income (EGI) |
Village Green, Third Party Property Manager |
(1) A Financing Fee will only be charged in the event of a refinancing or supplemental event. The current business plan and returns presented herein assume a supplemental event during the investment hold period outlined
(2) The lender is requiring a warm body guaranty in connection with the loan assumption. Principals from the Sponsorship Group, including the CEO of RM Communities, will be paid this fee in connection with serving as the guarantor and facilitating the loan assumption
(3) The Disposition Fee will only be paid if investors have received their full 7% accrued pref and had a full return of capital.
(4) Fees may be deferred to reduce impact to investor distributions.
Sponsor’s Projections and Targets
*Assumptions and projections included in the information on this Page, including pro forma projections (collectively “Projections”) were provided by the Sponsor or an affiliate thereof (“Sponsor”) and are not reflective of the position or opinions of, nor are they endorsed by, RM Technologies, LLC, or any other person or entity other than the Sponsor or its affiliates. RM Technologies, LLC and its affiliates do not provide any assurance of returns or the accuracy or reasonableness of the Projections provided by the Sponsor or its affiliates. There can be no assurance that the Sponsor’s methodology used for calculating any Projections, including Target IRR, Target Annualized Cash-on-Cash Return, and Target Equity Multiple (“Targets”), are appropriate or adequate. The Sponsor’s Projections and Targets are hypothetical, are not based on actual investment results, and are presented solely for the purpose of providing insight into the Sponsor’s investment objectives, detailing its anticipated risk and reward characteristics and for establishing a benchmark for future evaluation of the Sponsor’s performance. The Sponsor’s Projections and Targets are not a predictor, projection or guarantee of future performance. There can be no assurance that the Sponsor’s Projections or Targets will be met or that the Sponsor will be successful in meeting these Projections and Targets. Projections and Target returns should not be used as a primary basis for an investor’s decision to invest.
No Approval, Opinion or Representation, or Warranty by RM Technologies, LLC
The information on this Page, including the Sponsor’s offering documentation, which may include without limitation the Private Placement Memorandum, Operating or Limited Partnership Agreement, Subscription Agreement, the Project Summary and all exhibits and other documents attached thereto or referenced therein (collectively, the “Investment Documents”) was provided by the Sponsor or an affiliate thereof. RM Technologies, LLC makes no representations or warranties as to the accuracy of such information and accepts no liability therefor. No part of the information on this Page is intended to be binding on RM Technologies, LLC, or to supersede any of the Sponsor’s Investment Documents. The opinions expressed on this page are solely the opinions of the Sponsor and its affiliates and none of the opinions expressed on this Page are the opinions of, nor are they endorsed by, RM Technologies, LLC.
Sponsor’s Information Qualified by Investment Documents
The Information on this Page, including of the principal terms of the Sponsor’s offering, is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete, and each prospective investor should carefully read all of the Investment Documents and any supplements thereto, copies of which are available by clicking the links above or upon request, before deciding whether to make an investment. The information on this page should not be used as a primary basis for an investor’s decision to invest. In the event of an inconsistency between the information on this Page and the Investment Documents, prospective investors should rely on the information contained in the Investment Documents. The information on this Page and the information in the Investment Documents are subject to last minute changes up to the closing date at the sole discretion of the Sponsor and its affiliates.
Risk of Investment
This real estate investment is speculative and involves substantial risk. There can be no assurances that all or any of the assumptions will be true or that actual performance will bear any relation to the hypothetical illustrations herein, and no guarantee or representation is made that investment objectives of the Sponsor will be achieved. In the event that actual performance is below the Sponsor’s Targets, your investment could be materially and adversely affected, and there can be no assurance that investors will not suffer significant losses. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Please see the Sponsor’s Investment Documents for additional information, including the Sponsor’s discussion concerning risk factors.
Risk of Forward-Looking Statements
Forward-looking statements are found here and in the applicable Investment Documents and may include words like “expects,” “intends,” “anticipates,” “estimates” and other similar words. These statements are intended to convey the Sponsor’s projections or expectations as of the date made. These statements are inherently subject to a variety of risks and uncertainties. Please review the applicable Investment Documents for disclosure relating to forward-looking statements. All forward–looking statements attributable to the Sponsor or its affiliates apply only as of the date of the offering and are expressly qualified in their entirety by the cautionary statements included elsewhere in the Investment Documents. Any financial projections are preliminary and subject to change; the Sponsor undertakes no obligation to update or revise these forward-looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Inevitably, some assumptions will not materialize, and unanticipated events and circumstances may affect the ultimate financial results. Projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic and competitive risks, and the assumptions underlying the projections may be inaccurate in any material respect. Therefore, the actual results achieved may vary significantly from the forecasts, and the variations may be material.
Sponsor’s use of Debt
A substantial portion of the total acquisition for the Property will be paid with borrowed funds, i.e., debt. There can be no assurance that the Sponsor will secure debt on the rates and terms noted above, or at all. All of the Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, including but not limited to the annual interest rate and possible increases in capital reserve requirements for funds to be held in a lender-controlled capital reserve account. The use of borrowed money to acquire real estate is referred to as leveraging. Leveraging increases the risk of loss. If the Sponsor were unable to pay the payments on the borrowed funds (called a "default"), the lender might foreclose, and the Sponsor could lose its investment in its property.
In addition, unless the debt provides for a fixed rate of interest during the term of the loan and/or any subsequent extensions, the total amount of interest paid over the term of the debt will increase by the same amount as the related index. For example, if the index rate increases by 0.50% (50 basis points) the interest rate on the loan will increase by the same amount. The amount of such interest rate increases may be capped either by its terms or as the result of the Sponsor entering into an arrangement that caps the interest rate with respect to the debt at a particular rate.
Sponsor’s Offering is Not Registered
The interests offered by the Sponsor will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement.”). In addition, the interests will not be registered under any state securities laws in reliance on exemptions from registration. Such interests are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the RealtyMogul Platform are intended solely for “Accredited Investors,” as that term is defined Rule 501(a) of the Securities Act. Prospective investors must certify that they are Accredited Investors and provide either certain supporting documents or third party verification, and must acknowledge that they have received and read all investment materials.
RM Technologies, LLC is Affiliated with Sponsor
RM Technologies, LLC is affiliated with Sponsor. Sponsor will license and utilize the online platform (located at www.realtymogul.com) operated by RM Technologies, LLC, as well as receive technological, software and platform services provided by RM Technologies, LLC. No fee will be paid to RM Technologies by the Sponsor or its affiliates for such use and services.
No Investment Advice
RealtyMogul and RM Technologies, LLC are not a registered broker-dealer, investment adviser or crowdfunding portal. Nothing on this Page should not be regarded as investment advice, either on behalf of a particular security or regarding an overall investment strategy, a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised, and we recommend that you consult with a financial advisor, attorney, accountant, and any other professional that can help you to understand and assess the risks associated with any real estate investment.