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

We run extensive background checks, criminal checks, bad actor checks, and reference checks on sponsors. In addition to never allowing a sponsor with a criminal history / any securities related issue to use the platform, we may also turn down sponsors due to poor reference checks even if background and criminal checks come back clear.

Escrow accounts

We require unaffiliated sponsors to use an unaffiliated third-party escrow agent. When an investor makes an investment with unaffiliated sponsors using the RealtyMogul platform, the investor’s money is transferred directly into a third-party escrow account. All closing conditions in connection with a sponsor’s offering need to be met before the third-party escrow agent will approve releasing investor funds to the issuer or general partner. For example, if an issuer or general partner plans to use funds for a real estate acquisition that does not ultimately transact, the third-party escrow agent will not transfer investor funds to the issuer or general partner, and funds will be returned to investors.

Boots on the ground

Our controls include visiting every property (or a subset of properties if it’s a fund) to confirm the real estate is what and where the real estate is supposed to be.

Detailed Checklists

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

Confidentiality Agreement
To access the Sponsor’s private offering documents for this investment, you must first acknowledge and agree to the below.
By clicking the ‘I Agree’ button below:
Waitlist
Target IRR  17.6%-19.6% *
18.6%
Target Avg. Cash on Cash* 7.6%
Target Equity Multiple* 2.19X
Estimated Hold Period* 5 Years
FUNDED 100%
...
View our Risk and Quality Controls.
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
Offered By
Lone Star Capital
Investment Strategy Value-Add
Investment Type Equity
Estimated First Distribution 8/2024
Minimum Investment 35000
Overview
Aspire Apartments (the "Property") is a 335-unit, garden-style apartment community located in the growing Inspiration Hills submarket of San Antonio, TX, being purchased by a Texas-focused Sponsor (3,000+ units acquired in the state) with a strong track record. The Property is being acquired with a unique nonprofit partnership, resulting in a 50% property tax exemption.
Basis

The Property is being purchased for $25,550,000 ($76,269/unit) which reflects a substantial discount to recent trades. Including the partial tax exemption which will be placed on the Property at closing, the trailing cap rate is 7.43%

 

Location

Aspire is in the Inspiration Hills neighborhood of Northwest San Antonio and benefits strongly from San Antonio’s ongoing population growth. San Antonio’s steadily rising 5.8% job growth is easily capitalized by the property’s central location. Aspire has quick access to major highways, Loop 410 and Interstate Highway 10, which provide access to employers such as H-E-B (145,000 employees), USAA Headquarters (36,000 employees), Valero World Headquarters (9,743 employees), and South Texas Medical Center (30,000+ employees).

Cash Flow

Through attractive fixed-rate financing and the partial property tax exemption, cash flow is projected to be very strong and resilient. With a trailing cap rate of 7.43% (inclusive of the tax exemption) and fixed-rate debt at an interest rate of approximately 6%, the investment opportunity creates substantial positive leverage, which results in projected net cash on cash returns of 7.6% over a five-year hold period.

Property at a glance
# Units 335
Current Occupancy 94%
Year Built 1986
Total CapEx Budget $2,455,952
Exit Cap Rate 6.25%
Acquisition Price $25,550,000
Investment Highlights
A 50% property-tax exemption will allow for outsized consistent cash flow through the hold period.
Attractive five-year fixed rate debt provides positive leverage at closing and ample time to execute the business plan.
Since 2018, the owners of Aspire have completed ~$5M of major renovations, leading to substantial rental increases and 93.5% average occupancy over the past 27 years (Axiometrics).
Current owner rapidly accumulated a large portfolio and is currently unloading the majority of their assets to raise capital. Aspire has fallen through the cracks at its management arm, holding back the asset from reaching its full potential.
The Sponsor will push Other Income through the implementation of a bulk Wi-Fi package, generating $35/unit in net income.
Management
Cumulative Distributions

Lone Star Capital

Since 2018, Lone Star Capital has acquired over $500 million in acquisitions and delivered 30%+ returns on their full-cycle transactions through tax-advantaged multifamily investment opportunities with robust monthly cash flow and strong upside potential. Its exclusive focus on workforce housing in Dallas, Houston, and San Antonio submarkets with favorable growth enables them to pinpoint exceptional opportunities with superior risk-adjusted returns. By employing prudent, long-term financing, they aim to reduce risk for investors, ensuring their capital is well-positioned to profitably exit during opportune market conditions. 

Lone Star's Houston-based, vertically integrated property management firm, Radiance Living, adds value through improved management and strategic renovations. Additionally, Lone Star continually strives to create unique value for its extensive network of high-net-worth investors, family offices, and private equity firms through innovative property tax exemption strategies, creative financing, and 1031 exchange structuring. 

Furthermore, Lone Star delivers institutional-level reporting through consistent, transparent investor communication to ensure peace of mind.

https://www.lscre.com/
  • Rob Beardsley
    Principal
  • Kent Piotrkowski
    Principal
Rob Beardsley
Principal

Rob Beardsley oversees acquisitions and capital markets for Lone Star Capital and has acquired over $500M of multifamily real estate. He has evaluated thousands of opportunities using proprietary underwriting models and published the number one book on multifamily underwriting, The Definitive Guide to Underwriting Multifamily Acquisitions. He has written over 50 articles about underwriting, deal structures, and capital markets and hosts the Capital Spotlight podcast, which is focused on interviewing institutional investors.

Kent Piotrkowski
Principal

Kent Piotrkowski leads operations and asset management for Lone Star Capital and is the CEO of Radiance Property Management, Lone Star's property management subsidiary. Kent has overseen the acquisition and management of over $500M in multifamily properties. Prior to Lone Star, Kent was a Senior Counsel at MetLife, where he managed a variety of corporate and international tax issues, advised on the tax implications for the company’s real estate and alternative investment transactions, and proposed, designed and implemented a global online platform for tracking all enterprise tax issues. He also led the tax department in MetLife’s $180M acquisition of the Fairmont Washington hotel in DC. Kent received his J.D. and L.L.M in Taxation from New York University School of Law and is a licensed attorney and real estate broker in New York State.

Track Record

Property Name City, State Asset Type Status Acq Date Units Purchase Price Sales Price or Estimated Value IRR EM
Meritage Houston, TX  Multifamily OWNED 11-01-2023 240 $45,900,000 $45,900,000 NA NA
Beckley Houston, TX  Multifamily OWNED 10-30-2023 210 $34,100,000 $34,100,000 NA NA
Highland Houston, TX  Multifamily OWNED 10-30-2023 216 $32,950,000 $32,950,000 NA NA
Azul Houston, TX  Multifamily OWNED 07-17-2023 90 $13,600,000 $13,600,000 NA NA
Candlelight Park Dallas, TX Multifamily OWNED 03-16-2023 128 $18,500,000 $18,500,000 NA NA
Madison at Bear Creek Houston, TX  Multifamily OWNED 11-03-2022 180 $26,000,000 $26,000,000 NA NA
Briar Court Houston, TX  Multifamily OWNED 09-08-2022 201 $33,200,000 $33,200,000 NA NA
5 Oaks Houston, TX  Multifamily OWNED 08-22-2022 228 $37,300,000 $37,300,000 NA NA
Timberwalk Houston, TX  Multifamily OWNED 07-13-2022 300 $39,500,000 $39,500,000 NA NA
Broadstone Briar Forest Houston, TX  Multifamily OWNED 04-29-2022 342 $55,400,000 $55,400,000 NA NA
Parc at Champion Forest Houston, TX  Multifamily OWNED 02-11-2022 232 $34,600,000 $34,600,000 NA NA
Encore on the Bay Houston, TX  Multifamily OWNED 12-21-2021 296 $40,500,000 $40,500,000 NA NA
Hollister Houston, TX  Multifamily OWNED 10-12-2021 156 $19,455,000 $20,000,000 NA NA
Solano Houston, TX  Multifamily OWNED 07-15-2021 262 $28,000,000 $30,000,000 NA NA
The Landing Lubbock, TX Multifamily OWNED 04-15-2021 228 $12,000,000 $16,500,000 NA NA
Forest Point Texarkana, TX Multifamily OWNED 01-20-2020 104 $5,075,000 $6,400,000 NA NA
The Commons Texarkana, TX Multifamily OWNED 08-19-2019 196 $7,200,000 $11,500,000 NA NA
Verandas at Bear Creek Houston, TX  Multifamily SOLD 06-19-2019 160 $12,800,000 $17,500,000 37.00% 2.24x
Cranbrook Forest  Houston, TX  Multifamily SOLD 07-18-2018 261 $17,900,000 $22,100,000 23.60% 1.69x
Total         4,030 $513,980,000 $535,550,000    

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

Since 2018, the owners of Aspire have completed ~$5M of major renovations, leading to substantial rental increases and 93.5% average occupancy over the past 27 years (Axiometrics). These improvements will allow the Sponsor and its investors to achieve stable returns without the concern of major capital projects in the future. 46 units are classic, while the remaining 289 units have minor upgrades, including updated fixtures, black appliances, and refreshed paint. The Sponsor will complement the existing offering with new flooring and fixtures as needed. In addition, the Sponsor will push Other Income through the implementation of a bulk Wifi package, generating $35/unit in net income. A 50% property-tax exemption will allow for outsized cash flow through the hold period.

CapEx Breakdown

Interior Renovations Total Amount Per Unit
Interior Unit Upgrades $950,765 $2,838
AC (100 units) $80,000 $239
Down Units (4 @ $16k each) $64,000 $191
Total Interior Renovations $1,094,765 $3,268
     
Exterior Renovations Total Amount Per Unit
Common Area Amenities (Leasing Office, Fitness Center, Dog Park, Soccer Court, Pool Area, Common Area) $191,000 $570
Common Area Improvements (Signage, Carports, Lighting, Park Lot, Carports, Security) $175,000 $522
Mechanical System Upgrades $167,100 $499
HVAC 4 / Building (16 total buildings) $153,600 $459
Deferred Maintenance $104,900 $313
Landscaping Enhancements $90,000 $269
Driveway/Sidewalk  $60,000 $179
Gates/Entry System $55,000 $164
Wooden Fence Line  $35,000 $104
Total Exterior Renovation Costs $1,031,600 $3,079
     
Contingency (10%) $212,637 $635
Construction Management Fee (5%) $116,950 $349
     
Grand Total $2,455,952 $7,331
Summary
Property Information

Built in 1989, Aspire is strategically located on Bandera Road, which is one of the most trafficked thoroughfares in the North West submarket. The property has notable drive-by visibility to the 29,325 vehicles that pass the 10-acre site daily. Current ownership has repositioned this asset with some of the best-in-class amenities within this submarket, having executed a transformational renovation in excess of $5M that included major exterior ($2.2M) improvements and the successful implementation of an upscale interior ($3.4M) value-add program that led to rental increases of over $100 per renovated unit.

In addition to its premier location, Aspire features economical floorplans for the blue collar working class renter in San Antonio that consist of efficiencies, one and two-bedroom residences that average 521 square feet. The 84 efficiencies average 395 SF, the one-bedroom residences average 525 SF, and the 89 two-bedroom residences average 629 SF.

Unit Type # of Units Avg SF/Unit Avg Rent (Proforma) Rent PSF (Proforma) Avg Rent (In-Place) Rent PSF (In-Place)
EFF-D (Studio) 75 395 $775 $1.96 $775 $1.96
Eff-P (Studio) 9 395 $774 $1.96 $774 $1.96
A1-D (1x1) 66 500 $896 $1.79 $896 $1.79
A1-P (1x1) 12 500 $889 $1.78 $889 $1.78
A2L-D (1x1) 74 550 $900 $1.64 $900 $1.64
A2L-P (1x1) 10 550 $899 $1.63 $899 $1.63
B1-D (2x1) 69 610 $1,168 $1.91 $1,168 $1.91
B1-P (2x1) 15 610 $1,168 $1.91 $1,168 $1.91
B2-D (2x1.5) 3 900 $1,240 $1.38 $1,284 $1.43
B3-D (2x1.5) 2 1,050 $1,247 $1.19 $1,299 $1.24
Totals / Averages 335 521 $940 $1.80 $940 $1.80
Comparables

Lease Comparables

  The Branch at Medical Center Fredericksburg Place Diamond Ridge Vivid Balcones Urban Flats Averages Aspire Apartments (Post-Reno)
Distance from Subject Property 3.2 Miles 2.9 Miles 1.7 Miles 3.4 Miles 2.5 Miles 2.7 mi NA
Year Built 1985 1983 1978 1983 1974 1981 1986
Number of Units 426 224 304 104 327 277 335
                   
Studios              
$ / Unit - $818 - - $710 $764 $895
Square Feet - 480 SF - - 350 SF 415 SF 500 SF
$ / SF - $1.70/SF - - $2.03/SF $1.87/SF $1.79/SF
               
1 Bedrooms              
$ / Unit $934 $907 $947 $1,091 $810 $938 $1,034
Square Feet 674 SF 654 SF 632 SF 672 SF 500 SF 626 SF 580 SF
$ / SF $1.39/SF $1.39/SF $1.50/SF $1.62/SF $1.62/SF $1.50/SF $1.78/SF
               
2 Bedrooms              
$ / Unit $1,249 $1,314 $1,318 $1,207 $1,100 $1,238 $1,243
Square Feet 954 SF 870 SF 955 SF 834 SF 700 SF 863 SF 960 SF
$ / SF $1.31/SF $1.51/SF $1.38/SF $1.45/SF $1.57/SF $1.44/SF $1.29/SF

 

Sales Comparables

  Sterling at Viva Max Parc 410 Branch at Medical Center Villas de Santa Fe Broadstone on Medical Averages Aspire Apartments (Going-in)
Sale Date Aug-22 Oct-22 Mar-22 May-22 Aug-21 April-22  
Sales Price $27,315,936 $36,000,000 $51,900,000 $24,250,000 $54,000,000 $38,693,187 $25,550,000
Year Built 1983 1980 1984 1982 1981 1982 1986
# of Units 240 344 426 208 384 320 335
Average Unit Size 764 SF 716 SF 721 SF 735 SF 681 SF 723 SF 521
Sales Price / Unit $113,816 $104,651 $121,831 $116,587 $140,625 $119,502 $76,269
Sales Price / SF $149 $146 $169 $159 $206 $166 $146
Cap Rate 5.25% 5.00% 5.00% 5.00% 4.75% 5.00%  
Occupancy at Sale 93.0% 92.0% 93.0% 94.0% 94.0% 93.2% 88.0%
Distance from Subject Property 2.0 Miles 2.1 Miles 2.3 Miles 2.6 Miles 2.7 Miles 2.3 mi  
Location Information

Market Overview

San Antonio, Texas, is rapidly emerging as a powerhouse in the multifamily real estate market, offering a compelling investment opportunity for savvy investors. With a thriving economy, a growing population, and a diverse range of attractions, San Antonio boasts several key factors that make it a strong multifamily investment market.

Economic Vibrancy: San Antonio's economy is robust and diverse, with a strong foundation in the healthcare, military, and technology sectors. The presence of major companies, including USAA, H-E-B, and Toyota, has contributed to steady job growth, making it an attractive destination for professionals seeking employment opportunities. The city's economic stability is a promising sign for multifamily investors, as a strong job market often correlates with a high demand for rental housing.

Population Growth: San Antonio's population has been steadily increasing over the years. With a population exceeding 1.5 million, it is the seventh-largest city in the United States. This growth is driven by both natural increases and an influx of newcomers drawn to the city's affordability, quality of life, and employment prospects. As the population continues to rise, the demand for multifamily housing is expected to remain strong, creating a favorable environment for investors.

Tourism and Culture: San Antonio's rich cultural heritage and vibrant tourism industry contribute to its multifamily appeal. The city is home to world-famous attractions like the Alamo, the River Walk, and numerous festivals, drawing millions of visitors annually. Investors can capitalize on this by offering short-term rentals or long-term housing options to the workforce employed in the tourism sector.

Affordability: Compared to other major Texas cities like Austin and Dallas, San Antonio offers a more affordable cost of living. This affordability makes it an attractive destination for individuals and families looking for housing options that won't break the bank. Investors can leverage this affordability factor to maintain competitive rental rates and maximize their returns.

Infrastructure Investment: San Antonio has been actively investing in its infrastructure, including transportation and education. These improvements enhance the city's overall appeal and contribute to long-term stability, making it an even more attractive multifamily investment location.

Submarket Overview

According to the Bureau of Labor Statistics, San Antonio’s steadily rising 5.8% job growth is easily capitalized by the property’s central location. Aspire has quick access to major highways Loop 410 and Interstate Highway 10, which provide access to Forbes’ “Best of” employers like H-E-B (145,000 employees), USAA Headquarters (36,000 employees), Valero World Headquarters (9,743 employees), South Texas Medical Center (30,000+ employees). Job growth is expected to average an additional 11,016 jobs to the MSA each year. Major attractions are also available such as Six Flags Fiesta Texas, Ingram Park Mall (1.12M SF), La Cantera (1.3M SF) and the Rim (2.4M SF), and the city’s central business and tourist destination, Downtown San Antonio. Additionally, educational opportunities continue to grow in and around the submarket. Established universities, St. Mary’s University and the University of Texas at San Antonio, continue to expand their programs to support the city’s demand for first-generation and Latinx graduates.

The Property receives over 30,000 vehicles per day via Bandera Road and the property's adjacent roadways. This vehicle's per day count rivals that of the immediate Loop 410 but is dwarfed by I-10’s 200,000 VPD, of which the property benefits the most by their intersection less than 5 miles north of Aspire. A seasoned neighborhood of San Antonio, Aspire and the surrounding Woodlawn Hills are well established and offer a stabilized submarket that sits between the expanding Medical District, Downtown, and Joint Base San Antonio.

Cap Stack
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $ / Unit
Senior Debt $21,424,000 $63,952
LP Investor Equity $7,932,204 $23,678
GP Investor Equity(1) $1,000,000 $2,985
Total Sources of Funds $30,356,204 $90,616
     
Uses of Funds $ Amount $/Unit
Purchase Price $25,550,000 $76,269
Closing Costs $832,360 $2,485
Acquisition Fee $383,250 $1,144
CapEx & Reserves $3,590,594 $10,718
Total Uses of Funds $30,356,204 $90,616

(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: Greystone (Freddie Mac)
  • Loan Type: Permanent Loan
  • Term: 60 Months
  • Loan-to-Value (LTV): 83.9%
  • Loan-to-Cost (LTC): 76.5%
  • Estimated Proceeds: $21,424,000
  • Interest Type: Fixed
  • Annual Interest Rate: 1.84% + 5-Year U.S. Treasury (with Treasury floor rate of 3.56%)
  • Interest-Only Period: 2 Years
  • Amortization: 30 Years
  • Prepayment Terms: Standard Defeasance
  • 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. 

Distributions

Lone Star 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 cumulative, 8.00% Preferred Return (Compounding Annually);
  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. 70% / 30% ( 70% to Equity Investors / 30% to Promoted/Carried Interest ) of all cash flow available for distribution to a 15.0% IRR;
  4. 60% / 40% ( 60% to Equity Investors / 40% to Promoted/Carried Interest ) of all cash flow available for distribution thereafter.

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

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

(2) Lone Star 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
Effective Gross Revenue   $4,068,398 $4,382,668 $4,612,862 $4,753,167 $4,897,739
Total Operating Expenses   $2,118,338 $2,159,265 $2,222,754 $2,287,304 $2,353,818
Net Operating Income   $1,950,060 $2,223,402 $2,390,109 $2,465,863 $2,543,921
             
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Cash Flow ($8,932,154) $603,594 $872,222 $695,793 $769,443 $22,530,655
             
Investor-Level Cash Flows(1)
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Cash Flow ($2,105,000) $135,151 $185,299 $135,795 $152,286 $3,998,176
             
Investor-Level Cash Flows - Hypothetical $50,000 Investment(1)
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Cash Flow ($50,000) $3,210 $4,401 $3,226 $3,617 $94,969

(1) 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 Lone Star Capital's materials for details. The following fees and compensation will be paid(1)(2)(3):

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From
Acquisition Fee 1.50% of Purchase Price(4) Lone Star Capital Capitalized Equity Contribution
Debt Guarantee Fee 0.50% of Loan Proceeds Lone Star Capital Capitalized Equity Contribution
Construction Management Fee 5.00% of Hard and Soft Costs Lone Star Capital Construction Expenditure Budget
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 1.50% of Gross Collected Rent Lone Star Capital Cash Flow
Property Management Fee 3.00% of Gross Collected Rent Radiance Living(3) 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.

(3) Radiance Living is a wholly-owned subsidiary of Lone Star Capital.

Sponsor’s Projects and Targets

*Assumptions and projections included in the information on this Page, including pro forma projections (collectively “Projections”) were provided by the Sponsor or an affiliate thereof and are not reflective of the position or opinions of, nor are they endorsed by, RM Technologies, LLC or its affiliates, or any other person or entity other than the Sponsor or its affiliates.  RM Technologies, LLC and its affiliates do not provide any assurance of returns or the accuracy or reasonableness of the Projections provided by the Sponsor or its affiliates.   There can be no assurance that the Sponsor’s methodology used for calculating any Projections, including Target IRR, Target Annualized Cash-on-Cash Return, and Target Equity Multiple (“Targets”), are appropriate or adequate.  The Sponsor’s Projections and Targets are hypothetical, are not based on actual investment results, and are presented solely for the purpose of providing insight into the Sponsor’s investment objectives, detailing its anticipated risk and reward characteristics and for establishing a benchmark for future evaluation of the Sponsor’s performance. The Sponsor’s Projections and Targets are not a predictor, projection or guarantee of future performance.  There can be no assurance that the Sponsor’s Projections or Targets will be met or that the Sponsor will be successful in meeting these Projections and Targets.  Projections and Target returns should not be used as a primary basis for an investor’s decision to invest.

No Approval, Opinion or Representation, or Warranty by RM Technologies, LLC or it Affiliates

The information on this Page, including the Sponsor’s offering documentation, which may include without limitation the Private Placement Memorandum, Operating or Limited Partnership Agreement, Subscription Agreement, the Project Summary and all exhibits and other documents attached thereto or referenced therein (collectively, the “Investment Documents”) was provided by the Sponsor or an affiliate thereof.  RM Technologies, LLC makes no representations or warranties as to the accuracy of such information and accepts no liability therefor.  No part of the information on this Page is intended to be binding on RM Technologies, LLC or its affiliates, or to supersede any of the Sponsor’s Investment Documents.  The opinions expressed on this page are solely the opinions of the Sponsor and its affiliates and none of the opinions expressed on this Page are the opinions of, nor are they endorsed by, RM Technologies, LLC or its affiliates.

Sponsor’s Information Qualified by Investment Documents

The Information on this Page, including of the principal terms of the Sponsor’s offering, is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents.  The information on this Page is not complete, and each prospective investor should carefully read all of the Investment Documents and any supplements thereto, copies of which are available by clicking the links above or upon request, before deciding whether to make an investment.  The information on this page should not be used as a primary basis for an investor’s decision to invest.  In the event of an inconsistency between the information on this Page and the Investment Documents, investors should rely on the information contained in the Investment Documents.  The information on this Page and the information in the Investment Documents are subject to last minute changes up to the closing date at the sole discretion of the Sponsor and its affiliates.

Risk of Investment

This real estate investment is speculative and involves substantial risk.  There can be no assurances that all or any of the assumptions will be true or that actual performance will bear any relation to the hypothetical illustrations herein, and no guarantee or representation is made that investment objectives of the Sponsor will be achieved.  In the event that actual performance is below the Sponsor’s Targets, your investment could be materially and adversely affected, and there can be no assurance that investors will not suffer significant losses.  A loss of part or all of the principal value of your investment may occur.  You should not invest unless you can readily bear the consequences of such loss.  Please see the Sponsor’s Investment Documents for additional information, including the Sponsor’s discussion concerning risk factors.

Risk of Forward-Looking Statements

Forward-looking statements are found here and in the applicable Investment Documents and may include words like “expects,” “intends,” “anticipates,” “estimates” and other similar words. These statements are intended to convey the Project Sponsor’s projections or expectations as of the date made. These statements are inherently subject to a variety of risks and uncertainties. Please see the applicable Investment Documents for disclosure relating to forward-looking statements.  All forward-looking statements attributable to the Sponsor or its affiliates apply only as of the date of the offering and are expressly qualified in their entirety by the cautionary statements included elsewhere in the Investment Documents.  Any financial projections are preliminary and subject to change; the Sponsor undertakes no obligation to update or revise these forward-looking statements to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events.  Inevitably, some assumptions will not materialize, and unanticipated events and circumstances may affect the ultimate financial results. Projections are inherently subject to substantial and numerous uncertainties and to a wide variety of significant business, economic and competitive risks, and the assumptions underlying the projections may be inaccurate in any material respect. Therefore, the actual results achieved may vary significantly from the forecasts, and the variations may be material.

Sponsor’s use of Debt

A substantial portion of the total acquisition for the Property will be paid with borrowed funds, i.e., debt.  There can be no assurance that the Sponsor will secure debt on the rates and terms noted above, or at all.  All of the Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, including but not limited to the annual interest rate and possible increases in capital reserve requirements for funds to be held in a lender-controlled capital reserve account. The use of borrowed money to acquire real estate is referred to as leveraging.  Leveraging increases the risk of loss.  If the Sponsor were unable to pay the payments on the borrowed funds (called a "default"), the lender might foreclose, and the Sponsor could lose its investment in its property.

In addition, unless the debt provides for a fixed rate of interest during the term of the loan and/or any subsequent extensions, the total amount of interest paid over the term of the debt will increase by the same amount as the related index. For example, if the index rate increases by 0.50% (50 basis points) the interest rate on the loan will increase by the same amount. The amount of such interest rate increases may be capped either by its terms or as the result of the Sponsor entering into an arrangement that caps the interest rate with respect to the debt at a particular rate.

Sponsor’s Offering is Not Registered

The interests offered by the Sponsor will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement.”).  In addition, the interests will not be registered under any state securities laws in reliance on exemptions from registration.  Such interests are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption.  All Private Placements on the RealtyMogul Platform are intended solely for “Accredited Investors,” as that term is defined Rule 501(a) of the Securities Act.  Prospective investors must certify that they are Accredited Investors and provide either certain supporting documents or third party verification, and must acknowledge that they have received and read all investment materials.

RM Technologies, LLC Fees and Conflicts

RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform.  RM Technologies, LLC charges a fixed, non-percentage-based licensing fee for real estate companies and their sponsors to license and use the RM Technologies LLC’s proprietary Platform, including one-time flat licensing fees for its Technology Solution and an ongoing quarterly flat licensing fees for its Administration Solution.  A portion of the offering proceeds may be allocated as a reserve to ensure timely payment of the ongoing licensing fees for RM Technologies’ Administration Solution. For the avoidance of doubt, the Administration Solution Fee is not due with respect to any quarter until the Administration Solution has been provided by RM Technologies and without regard to any amounts on reserve for the payment of such fees. An estimate of the Technology Solution licensing fee is included in the Closing Costs above and is intended to be capitalized into the transaction at the discretion of the Sponsor.  The licensing fees received by RM Technologies, LLC are disclosed in the relevant operating agreement(s). Additionally, from time to time, employees of RM Technologies, LL C and its affiliates invest in Sponsor’s offering.  RM Technologies LLC’s receipt of licensing fees and its employee’s investments in Sponsor’s offering creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.

No Investment Advice

None of RM Technologies nor any affiliate are registered as a broker, dealer, investment adviser, or funding portal (except with respect to RM Adviser, LLC, which has no involvement in the transactions to be consummated hereby or contemplated herein and solely for the purposes hereof, shall not be deemed an affiliate or RM Technologies). They do not provide investment advice or recommend the purchase of any securities that are the subject of this agreement or the Sponsor’s offering with respect to the Project. Project Sponsor’s use of the Platform, including Project Sponsor’s license to utilize the Platform and any related technology, software and supporting services, Project Sponsor’s posting of offering documents and all related information on the Platform does not constitute the approval of or endorsement by RM Technologies or any of its affiliates of Project Sponsor’s securities offering with respect to the Project or signify the suitability thereof in any manner.

For additional information on risks and disclosures visit https://www.realtymogul.com/investment-disclosure.

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