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

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.

Completed Equity
Target IRR  15.1%-% *
Target Avg. Cash on Cash* 8.0%
Estimated Hold Period* 7 years
View our Risk and Quality Controls.
*Please carefully review the Disclaimers section below, including regarding Sponsor’s assumptions and target returns
Offered By
Birge & Held Asset Management
Investment Strategy Value-Add
Investment Type Equity
Estimated First Distribution 9/2017
Acquisition of a well located multifamily property in Louisville, KY by an experienced repeat Sponsor.
Property at a glance
Year Built 1968
Number of Units 384
Current Occupancy 92%
Parking Ratio 1.38 spaces/unit
Acquisition Price $26,000,000
Investment Highlights
Well Located Near Employment Centers, Retail Amenities and Within the Jeffersontown School District
Well Occupied With In-Place Cash Flow
Post-Renovation Rents Compare Favorably to Comps
Will Be the Sixth Transaction With the Sponsor on RealtyMogul.com
Cumulative Distributions

Birge & Held Asset Management

Birge & Held is a national apartment real estate, private equity and investment firm located in Carmel, Indiana.  In an effort to take advantage of strategic real estate acquisition opportunities in the distressed real estate marketplace, J. Taggart Birge and Andrew J. Held started what is now Birge & Held in 2008.  Birge & Held has acquired and managed over $400,000,000 in multi-family assets across the country and currently employs over 80 professionals, per the Sponsor.  Through private equity and creative debt structures, Birge & Held continues to grow its portfolio of assets.  For capital investors who seek to identify and pursue apartment real estate opportunities, Birge & Held provides an experienced operating partner.

  • Tag Birge - CEO
  • Andrew Held - President & COO
Tag Birge - CEO

Mr. Birge has been involved in commercial development and financing since 1997. He graduated cum laude from Indiana University in 1993 (BA – Political Science). In 1997, he received his JD from the University of Virginia and joined Bose McKinney & Evans, LLP, Indianapolis, Indiana, as an associate, becoming a partner in the real estate group in 2004. His legal practice focused on office and industrial development representing Duke Realty Corporation on numerous transactions around the United States. As an attorney, Mr. Birge was ranked by his peers as one the best real estate attorneys in the State of Indiana. 

In 2004, Mr. Birge withdrew from the partnership of Bose McKinney & Evans and joined Lauth Property Group. While at Lauth Property Group, Mr. Birge developed approximately $200 million worth of office and health care buildings around the country. Initially, Mr. Birge ran the Midwest office and health care development for Lauth Property Group and in 2007 assumed responsibility for all of Lauth’s medical development in the United States. During his tenure at Lauth, they were named a top ten developer of medical office buildings as tracked by Modern Healthcare. 

Since 2008, Mr. Birge has overseen the acquisition, financing and management of BH's $230 million in multifamily assets. Mr. Birge currently serves on the Board of Directors of Bowen Engineering, the Sports Corporation Board, Heart of Gold Charity Board, and the Orchard School Board of Trustees.

Andrew Held - President & COO

Mr. Held has been involved in commercial and residential development and financing since 2003. He graduated from Indiana University in 1999 (BA – History) where he was a student-athlete and received academic All-American honors. In 2002, he received his JD from the Indiana University School of Law and practiced with the law firms of Hackman Hullet & Cracraft and Bose McKinney & Evans. His practice areas focused on commercial and residential real estate development, handling acquisitions, leasing, financing and dispositions for many of the largest commercial development and construction companies in the United States.

In 2007, Mr. Held received his MBA with a finance focus from Butler University. Since 2008, Mr. Held has overseen BH’s acquisition, financing and management of the company’s $230 million in multifamily assets. Mr. Held currently serves as the President of the Penrod Society focused on raising millions of dollars to serve the Indiana cultural and arts community. He was recently named to the Indianapolis Business Journal’s 2013 “Forty Under Forty” Class.

Track Record

Currently Owned Assets
Property Name Location Number of Units Date Acquired Total Cost Basis
Aurum Indianapolis, IN 208 2/12/13 $13,940,593
Beacon Hill Apartments Indianapolis, IN 14 4/1/13 $1,000,000
Clinton Estates Indianapolis, IN 184 7/1/13 $13,553,680
College Court Condominiums Frankfort, IN 48 11/25/13 $1,800,000
Cypress Square Apartments Indianapolis, IN 188 3/27/14 $12,350,000
Eagle Creek Apartments Muncie, IN 67 4/25/14 $5,279,925
Echo Ridge Apartments Muncie, IN 36 4/25/14 $2,376,609
Elston Point Apartments Elkhart, IN 76 10/16/14 $3,550,000
English Village Apartments Elkhart, IN 95 10/16/14 $3,300,000
Greenleaf Hunter's Pond Apartments Indianapolis, IN 208 10/22/14 $8,600,000
Kensington/Chesterfield South Bend, IN 60 11/7/14 $6,000,000
Parc Bordeaux Apartments Bloomington, IN 62 11/7/14 $4,000,000
Pheasant Run Apartments Indianapolis, IN 208 12/9/14 $8,700,000
Railway Manor Bloomington, IN 32 8/31/15 $3,575,000
Regency Park Indianapolis, IN 632 9/18/15 $45,000,000
The Arbors Bloomington, IN 24 10/6/15 $2,732,000
The Oaks of Eagle Creek Apartments Indianapolis, IN 304 12/22/15 $15,322,000
Walnut Springs Apartments Lafayette, IN 62 1/19/16 $3,882,000
Woodwind Apartments Lafayette, IN 44 1/28/16 $2,220,000
The Villager Centerville, OH 276 2/19/16 $22,900,000
Chesapeake Landing Centerville, OH 256 4/28/16 $22,110,000
Beechmill Apartments Indianapolis, IN 256 5/6/16 $19,175,000
Trails at Lakeside Apartments Indianapolis, IN 208 9/8/16 $18,100,000
Lakeshore Apartments Indianapolis, IN 740 9/15/16 $84,900,000
Cross Creek Apartments Indianapolis, IN 208 1/9/17 $14,725,000
Total   4,496   $339,091,808
Sold Assets
Property Name Location Number of Units Date Acquired Total Cost Basis Sale Price
Harborview Condominiums San Diego, CA 81 3/1/09  $20,406,491 $22,000,000
Bear Valley Apartments San Diego, CA 24 11/8/10  $4,200,000 $4,900,000
Walnut Manor Apartments Muncie, IN 120 11/30/11  $2,471,700 $4,850,000
Centro Apartments San Diego, CA 60 12/19/11  $11,213,764 $15,800,000
Palm Valley Apartments Goodyear, AZ 264 4/1/12  $22,925,000 $27,200,000
Fox Brook Apartments Muncie, IN 41 4/2/12  $1,275,000 $1,900,000
Total   590   $62,491,955 $76,650,000
Total Currently Owned and Sold   5,086   $401,583,763 $76,650,000

*Performance information provided by the Sponsor

In this transaction, RealtyMogul.com investors will invest in Realty Mogul 78, LLC. Realty Mogul 78, LLC will subsequently invest in BH Chestnut Ridge, LLC, the entity that will indirectly hold title to the Property.  

Upon acquisition, the Sponsor’s business plan is to complete upgrades to the clubhouse and fitness center, install washer dryers in 183 units, as well as renovate 30 unit interiors. The seller has completed upgrades on 23 units which are currently achieving rental premiums of $50-125 over unrenovated units, which the Sponsor intends to continue to capitalize on. The level of improvements to the unit interiors will be determined on a case-by-case basis, but will typically include new floors, painting cabinets, lighting, appliances and re-glazed bathtubs. The Sponsor believes the current out of state ownership has not given the asset the appropriate attention and sees an opportunity to increase value through continuing a targeted renovation program as well as implementing increased hands on management. 

Per conversations with the on-site manager and residents, as well as studying competitive properties, the Sponsor believes that installation of washer dryer units will provide the greatest increase in value to the asset, as the Property currently only has one laundry facility on site, causing many residents to have to travel to one of the nearby offsite laundromats. Including the 30 units slated for renovations, the Sponsor intends to install a total of 183 washer dryer units in the 2x1 units. The Sponsor has selected the 2x1 units to receive the washer dryers, as the bathrooms in those floor plans have a vacant space adjacent to the vanity which will allow a stackable washer dryer to fit with no need to build a ‘’box’’ or other housing unit to hold the appliances. The required water supply is located next to the installation locations, and the electrical panels, which were recently upgraded to allow for higher amperage, are located in the hallway outside of the bathroom doors. The buildings at the Property are not set up to allow for proper ventilation for dryers on the first or second floors, so the Sponsor intends to use a lint trap kit to capture the exhaust from units on the first and second floors. Those units work by having the exhaust run into the box where a pool of water collects the expelled lint. The onsite maintenance staff will be responsible for making sure there is an appropriate level of water in the boxes and this will be added to the maintenance schedule. The Sponsor is targeting rental increases for the 30 renovated units averaging $115/unit, a 16% increase over average in-place rents for those units and is projecting a $55 increase for the units receiving only washer dryers, an 8% increase from in place. The Sponsor intends to complete all renovations within the first two years of ownership, and intends to sell the Property within seven years.

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A summary of the capital expenditures planned at the Property is as follows:

Capital Expenditures Budget
CapEx Item $ Amount Per Unit
Interior Rehabs (30 units)    
   Kitchen and Bath Hnges/Handles $19,500 $650
   White Resin Countertops in Bathrooms $30,000 $1,000
   Granite Countertops in Kitchen $36,000 $1,200
   LVT Plank Flooring $48,000 $1,600
   Lighting & Door Hardware/Handles $30,000 $1,000
   Paint Cabinets and add Hardware $36,000 $1,200
   New Appliances $42,000 $1,400
   Replace Tub Surround/Glaze Tub $30,000 $1,000
   General Contractor Fee (8%) $21,720 $724
Total Interiors $293,220 $9,774
Washer Dryer Installations (183 units) $457,500 $2,500
Clubhouse/Fitness Center Remodel $250,000 $651
Total $1,000,720 $2,606

RealtyMogul.com, along with Birge and Held Asset Management (the "Sponsor"), is providing the opportunity to invest in the acquisition of Chestnut Ridge, a 384-unit multifamily Property located in Jeffersontown, KY (Louisville MSA) the "Property".

The primary objective of this investment is to acquire the Property, perform common area upgrades, interior renovations, and install much needed washer dryers in approximately 48% of the units, then sell the Property within approximately seven (7) years.

The Sponsor sees this investment as an opportunity to capitalize on a well occupied, well located asset in a strong market that can be improved through targeted capital improvements and improved management and leasing efforts.

Property Information

Chestnut Ridge is a 384-unit garden-style apartment complex located at 9601 Balsam Way, Jeffersontown, KY. Built in 1968, the unit mix consists of 72 one (1) bedroom, one (1) bathroom units, 201 two (2) bedroom, one (1) bathroom units, 51 two (2) bedroom, one and a half (1.5) bathroom units, 31 three (3) bedroom, one (1) bathroom units, and 29 three (3) bedroom, one and a half (1.5) bathroom units across 15 buildings. Current occupancy is 92% with in-place rents averaging $723 and ranging from $624 for one bedrooms and $851 for three bedrooms.

Amenities at the Property include a fitness center, a pool, laundry room, clubhouse, dog park, tennis court, playground, and mature landscaping. There are 528 parking spaces for a parking ratio of 1.38 spaces/unit. The Seller has renovated 23 unit interiors to date which are currently achieving rental premiums of $50-125 over unrenovated units. 

Unit Mix
Unit Type # of Units Avg SF/Unit In-Place Rent Rent/SF Stabilized Rent Rent/SF
1 Bed, 1 Bath 72 850 $624 $0.73 $659 $0.78
2 Bed, 1 Bath 201 950 $721 $0.76 $783 $0.82
2 Bed, 1.5 Bath 51 950 $739 $0.78 $774 $0.81
3 Bed, 1 Bath 31 1,000 $826 $0.83 $861 $0.86
3 Bed, 1.5 Bath 29 1,000 $851 $0.85 $886 $0.89
Total 384 939 $723 $0.77 $773 $0.82

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Rental Comparables
  Saddle River Four Seasons The Park at Hurstbourne Mallgate at Saint Matthews Breckenridge Square Total / Averages Subject - Stabilized
Year Built 1972 1975 1976 1969 1970 1972.4 1968
# 1 Bed Units 40 52 106 129 112 88 72
1 Bedroom Rent $742 $625 $737 $675 $734 $705 $654
SF 914 700 850 768 800 801 850
# 2 Bed Units 150 84 159 246 32 134 252
2 Bedroom Rent $852 $745 $777 $832 $814 $812 $780
SF 1,291 1,000 967 1,065 1,000 1,081 950
# 3 Bed Units 38 40 53 38 40 42 60
3 Bedroom Rent $998 $900 $882 $1,008 $1,024 $957 $870
SF 1,525 1,500 1,260 1,301 1,550 1,417 1,000
Distance 2.4 mi 1.9 mi 3.2 mi 3.8 mi 4.0 mi    
Sales Comparables
  Subject Saddle River Woodbridge Apts Willowbrook Apts Enclave at Breckenridge Carlisle Arms Total / Averages
Date May-17 February-17 January-16 December-16 January-17 February-16  
# of Units 384 228 360 120 384 67 232
Year Built 1968 1972 1984 1970 1970 1971 1973
Purchase Price $26,000,000 $21,000,000 $30,450,000 $6,175,000 $34,000,000 $4,500,000 $19,225,000
$/Bed $67,708 $92,105 $84,583 $51,458 $88,542 $67,164 $82,938
Cap Rate 7.54% 5.50% 6.22% N/A N/A N/A 5.86%
Distance   2.4 mi 6.1 mi 5.5 mi 3.7 mi 4.4 mi  


Location Information

The Property is located in Jeffersontown, KY (Louisville MSA) along Taylorsville Rd, a major local thoroughfare connecting I-265 to S. Hurstbourne Pkwy., which connects to I-64, leading to downtown Louisville 20 minues away. The Property is within walking distance to a Dollar General anchored retail center and Jeffersontown High School. Other retail amenities nearby include a Kroger anchored center, a Target Anchored center, Home Depot and a Walmart Supercenter. Major employers within an eight-mile radius include: UPS Worldport & UPS Supply Chains Solutions (22,800 employees), Norton Healthcare (11,389 employees), Kentucky One Health (6,000 employees), Baptist Healthcare (4,995 employees), University of Louisville Hospital (2,331 employees), and the Ford Assembly and Ford Truck Plants (12,990 employees).

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Market Overview

Per Axiometrics, Louisville/Jefferson County, KY-IN Metro Area's two largest job sectors are the Trade, Transportation, and Utilities sector (22.6% of employment), followed by the Professional and Business Services sector (14.3% of employment). The Trade, Transportation, and Utilities sector gained 1,900 jobs during the 12 months ending December 2016, constituting job growth of 1.3%. The Professional and Business Services sector grew 5,500 jobs during the same period; a 6.0% growth rate.

Louisville/Jefferson County, KY-IN Metro Area's 2014 population of 1,269,702 was an increase of 7,458, or 0.6% from the previous year, below the national population change of 0.7%, according to the U.S. Census Bureau. The median price for existing single family homes in Louisville/Jefferson County, KY-IN Metro Area was $164,000 in 4Q16, according to the National Association of Realtors, 6.9% more than the previous year. According to the U.S. Department of Housing and Urban Development, the market's median family income was $64,670, an increase of 3.4% from the prior year. When combining median home price, median family income, interest rate, and the loan-to-price ratio into the housing affordability index, Louisville/Jefferson County, KY-IN Metro Area ranks as the 64th most affordable single family market out of the 211 markets measured nationwide.

Effective rent decreased 0.6% from $851 in 3Q16 to $846 in 4Q16, which resulted in an annual growth rate of 3.4%. Annual effective rent growth is forecast to be 2.7% in 2017, and average 3.1% from 2018 to 2020. Annual effective rent growth has averaged 2.1% since 3Q96. The market's annual rent growth rate was above the national average of 2.6%. Out of the 120 markets ranked by Axiometrics nationally, Louisville/Jefferson County, KY-IN Metro Area was 51st for quarterly effective rent growth, and 52nd for annual effective rent growth for 4Q16. The market's occupancy rate decreased from 96.1% in 3Q16 to 95.1% in 4Q16, but was up from 94.6% a year ago. The market's occupancy rate was above the national average of 94.7% in 4Q16. For the forecast period, the market's occupancy rate is expected to be 95.3% in 2017, and average 94.9% from 2018 to 2020. The market's occupancy rate has averaged 93.7% since 3Q95. 

Submarket Overview

Effective rent decreased 0.1% from $856 in 3Q16 to $855 in 4Q16. The submarket's annual rent growth rate of 2.0% was below the market average of 3.4%. Out of the 7 submarkets in the market, the Chenoweth/Taylorsville submarket ranked 4th for quarterly effective rent growth and 5th for annual effective rent growth for 4Q16. Annual effective rent growth was forecasted to be 2.7% in 2016, and average 2.4% through 2016 to 2018. The annual effective rent growth has averaged 1.9% per year since 3Q96. The submarket's occupancy rate decreased from 96.0% in 3Q16 to 95.0% in 4Q16, and was up from 93.8% a year ago. The submarket's occupancy rate was below the market average of 95.1% in 4Q16. For the forecast period, the submarket's occupancy rate is expected to decrease to 94.5% in 2016 and average 94.6% from 2016 to 2018. The submarket's occupancy rate has averaged 94.0% since 3Q96

Axiometrics Market Performance Summary Report - Chenoweth/Taylorsville Submarket
  2016 2017 2018 2019
Submarket Vacancy 5.4% 4.9% 5.8% 5.4%
Avg Rent Growth 2.7% 2.6% 2.0% 3.1%

Demographic Information


Distance from Property 1 Mile 3 Miles 5 Miles
Population (2016) 11,160 78,393 190,760
Projected Growth (2016-2021) 3.04% 2.26% 2.55%
Median Household Income (2016) $53,042 $64,381 $58,945
Median Household Value (2016) $146,795 $183,596 $180,273

*Demographic information was obtained from CoStar.  

Cap Stack
Sources & Uses
Total Capitalization
Sources of Funds Cost
Debt $19,012,012
Equity $8,404,988
Total Sources of Funds $27,417,000
Uses of Funds Cost
Purchase Price $26,000,000
CapEx Reserve $1,000,000
Sponsor Acquisition/Guarantor Fee $390,000
Sr. Loan Assumption Costs $490,650
Supplemental Loan Financing Costs $98,500
Closing Costs $50,000
Working Capital $285,558
Broker Dealer Fee $64,000
Tax, Rent, CapEx and Deposit Credits ($961,708)
Total Uses of Funds $27,417,000
Debt Assumptions

The projected terms of the debt financing are as follows:

Loan Assumption: Due to the yield maintenance provisions, the Sponsor anticipates assuming the loan currently in place at the Property and plans to obtain additional supplemental financing from the existing lender which is to be coterminous with the existing debt. 

  • Lender: Fannie Mae (Arbor)
  • Estimated Balance at Closing: $15,712,012
  • Rate: Fixed (5.36%)
  • Amortization: 30 years
  • Maturity Date: February 2024
  • Prepayment Penalty: Yield maintenance until July 2023

Supplemental Debt:

  • Lender: Fannie Mae (Arbor)
  • Estimated Proceeds: $3,300,000
  • Rate: 7 Year Treasury + 3.43% (5.61% as of 4/6/2017). Rate has not been locked yet, RM has assumed a rate of 5.75% for underwriting purposes. 
  • Amortization: 30 years
  • Maturity Date: February 2024
  • Prepayment Penalty: Yield maintenance until August 2023, 1% thereafter

There can be no assurance that a lender will provide debt on the rates and terms noted above, or at all. All 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.


BH Chestnut Ridge, LLC intends to make distributions to investors (Realty Mogul 78, LLC, Sponsor and Other LP Investors, collectively, the "Members")  as follows:

Operating Cash Flow

  1. First, to investors for any accumulated unpaid preferred return
  2. Second, a cumulative non-compounded 8% annual preferred return
  3. Then, any excess balance will be split 70% to members ​pari passu (which will reduce the Member's capital accounts) and 30% to Sponsor.

Capital Events (sale, refinance)

  1. First, to investors for any accumulated unpaid preferred return
  2. Second, a cumulative non-compounded 8% annual preferred return
  3. Third, return of capital
  4. Then, any excess balance will be split 70% to members ​pari passu and 30% to Sponsor.

Note that these distributions will occur after the payment of the Company's liabilities (loan payments, operating expenses and other fees as set forth in the LLC agreement, in addition to any member loans or returns due on member loans).

Realty Mogul 78, LLC will distribute 100% of its share of excess cash flow (after expenses and fees) to the members of Realty Mogul 78, LLC (the RealtyMogul.com investors). 

Distributions are expected to start in September 2017 and are expected to continue on a semi-annual basis thereafter. These distributions are at the discretion of the Sponsor, who may decide to delay distributions for any reason, including maintenance or capital reserves. 

Cash Flow Expectations
  2017 2018 2019 2020 2021 2022 2023
Effective Gross Revenue $2,637,694 $3,686,821 $3,830,276 $3,959,566 $4,083,087 $4,205,782 $4,331,955
Total Operating Expenses $1,228,109 $1,673,610 $1,719,784 $1,766,697 $1,814,680 $1,863,943 $1,914,677
Net Operating Income $1,409,586 $2,013,211 $2,110,492 $2,192,869 $2,268,407 $2,341,839 $2,417,278
Annual Debt Service $1,003,490 $1,337,987 $1,337,987 $1,337,987 $1,337,987 $1,337,987 $1,337,987

Distributions to Realty
Mogul 78, LLC Investors

$62,049 $108,438 $124,230 $131,944 $141,196 $149,987 $2,990,864

Certain fees and compensation will be paid over the life of the transaction. The following fees and compensation will be paid:

Type of Fee Amount of Fee Received By Paid From Notes
One-Time Fees
Acquisition/Guarantor Fee $390,000 Sponsor Capitalized Equity Contribution 1.5% of the Property purchase price
Broker-Dealer Fee $64,000 North Capital (1) Capitalized Equity Contribution 4.0% of the amount of equity raised by RealtyMogul.com
Recurring Fees
Property Management Fee 3.0% of Effective Gross Income Sponsor Operating Cash Flow  
Management and Administrative Fee 1.0% of amount invested in Realty Mogul 78, LLC RM Manager, LLC Distributable Cash  RM Manager, LLC is the Manager of Realty Mogul 78, LLC and a wholly-owned subsidiary of Realty Mogul, Co. (2)

(1) Certain employees of Realty Mogul, Co. are registered representatives of, and are paid commissions by, North Capital Private Securities Corp., a Delaware corporation ("North Capital"). In addition, North Capital pays a technology provider services fee to Realty Mogul, Co. for licensing and access to certain technology, reporting, communications, branding, entity formation and administrative services performed from time to time by Realty Mogul, Co., and North Capital and Realty Mogul, Co. are parties to a profit sharing arrangement.

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

The above presentation is based upon information supplied by the Sponsor or others.  Realty Mogul, Co., RM Manager, LLC, and Realty Mogul 78, LLC, along with their respective affiliates, officers, directors or representatives (the "RM Parties") hereby advise you that none of them has independently confirmed or verified any of the information contained herein.  The RM Parties further make no representations as to the accuracy or completeness of any such information and undertake no obligation now or in the future to update or correct this presentation or any information contained herein.

Forward-Looking Statements

Investors should not rely on any forward-looking statements made regarding this opportunity, because such statements are inherently uncertain and involve risks. We use words such as “anticipated”, “projected”, “forecasted”, “estimated”, “prospective”, “believes”, “expects”, “plans”, “future”, “intends”, “should”, “can”, “could”, “might”, “potential”, “continue”, “may”, “will” and similar expressions to identify these forward-looking statements.

Illiquid Investment - Transfer Restrictions & No Public Market

The transferability of membership interests in Realty Mogul 78, LLC are restricted both by the operating agreement for that entity and by U.S. federal and state securities laws. In general, investors will not be able to sell or transfer their interests. There is also no public market for the investment interests and none is expected to be available in the future. Persons should not invest if they require any of their investment to be liquid. This is particularly important for persons of retirement age, who should plan carefully to assure that their assets last throughout retirement.

Uncertainty Surrounding Future Sales Price

There is risk associated with the Sponsor being unable to sell the Property as projected.

Interest Rate Risk

The Federal Reserve has methodically reduced the amount of stimulus it was earlier injecting into the U.S. economy, and has signaled that increases in the federal funds rate may be forthcoming. This could potentially lead to rising interest rates offered by other lenders and could have a negative effect on the future value of the Property (since higher loan interest rates might mean that potential buyers would face proportionately higher debt service expenses).

Mortgage Risk

The Sponsor has a signed term sheet with a lender to provide the debt financing for the acquisition of the Property, but there can be no assurance that the lender will complete financing on the rates and terms included in the underwriting being presented in the model for this investment opportunity. All rates and terms of the debt financing are subject to final lender committee approval, including but not limited to a modification in lender held capital reserve requirements that may result in a corresponding movement of certain funds currently projected as being held in a Sponsor controlled capital escrow account.

Management Risk

Investors will be relying solely on the Sponsor for the execution of its business plan. The Sponsor may in turn rely on other key personnel with relevant experience and knowledge, including contractors and consultants. Members of BH Chestnut Ridge, LLC (including Realty Mogul 78, LLC) will agree to indemnify the manager in certain circumstances, which may result in a financial burden if any litigation results from the execution of the business plan. While the Sponsor has significant operating experience, BH Chestnut Ridge, LLC is a newly formed company and has no operating history or record of performance. Realty Mogul 78, LLC is pursuing a venture capital strategy through its investment in BH Chestnut Ridge, LLC, and the manager of Realty Mogul 78, LLC is expected to be treated as an investment adviser exempt from federal or state registration under this strategy.

Manager of Realty Mogul 78, LLC Will Participate in Sponsors' Promote Interest

The manager of Realty Mogul 78, LLC will be entitled to a participation in the value of any excess distributable cash flow and any appreciation of the Property realized upon its sale. This could lead to a potential conflict of interest between the manager and Realty Mogul 78, LLC. Investors must recognize and agree to waive and bear the risk of this conflict of interest.

Uncertain Distributions

The Sponsor cannot offer any assurances that there will be sufficient cash available to make distributions to its members (including Realty Mogul 78, LLC) from either net cash from operations or proceeds from the sale or refinancing of the asset. Sponsor, in its discretion, may retain any portion of such funds for tenant improvements, tenant refurbishments and other lease-up costs or for working capital reserves. Sponsor has chosen to make distributions quarterly.

Risk of Interest Charges for Sponsor Capital Calls

The amount of capital that may be required by BH Chestnut Ridge, LLC from Realty Mogul 78, LLC is unknown, and although BH Chestnut Ridge, LLC does not require that its members contribute additional capital to it, it may from time to time request additional funds in the form of loans or additional capital. Realty Mogul 78, LLC does not intend to participate in a capital call if one is requested by BH Chestnut Ridge, LLC, and in such event the manager of BH Chestnut Ridge, LLC may accept additional contributions from other members of BH Chestnut Ridge, LLC. Amounts that the manager of BH Chestnut Ridge, LLC advances on behalf of Realty Mogul 78, LLC will be deemed to be a manager loan at an expected interest rate of 10%. Amounts that are contributed by existing or new members will be deemed to be additional capital contributions, in which case Realty Mogul 78, LLC's interest in BH Chestnut Ridge, LLC will suffer a proportionate amount of dilution.

Uncertain Exit Timing

Although it is anticipated that the Property will be sold at the end of the expected seven (7) year hold period, Realty Mogul 78, LLC will not have full control over the timing of the sale of the Property, and therefore we cannot offer assurances of when the exit will occur. If the Property is not sold after seven (7) years, Realty Mogul 78, LLC may have the right (either at that point or at a later time), subject to other contractual limitations such as the loan on the Property and the requirements of the operating agreement of BH Chestnut Ridge, LLC, to force a sale of the Property or force a sale of the interests of Realty Mogul 78, LLC in BH Chestnut Ridge, LLC.

General Economic and Market Risks

While the Sponsor has conducted significant research to justify the intended rental rates and sales price relative to comparable properties in the market, its best efforts to forecast economic conditions cannot state for certain whether or not rental rates will be achieved or investor sentiment and the capital markets will be favorable to the Property at the intended disposition date. The real estate market is affected by many factors, such as general economic conditions, the availability of financing, interest rates and other factors, including supply and demand for real estate investments, all of which are beyond the control of the Sponsor.

Apartment Complex - Competition

Competition in the Property’s local market area is significant and may affect the Property’s occupancy levels, rental rates and operating expenses. The Property will compete with other residential alternatives to attract tenants, including but not limited to other apartment units that are currently available for rent, new apartments that are built and condominiums/houses that are for rent or sale. If development of apartment complexes by other operators were to increase, due to increases in availability of funds for investment or other reasons, then competition with the Property could intensify. If the Property is not able to successfully compete with the competitive residential alternatives in the local or regional area this could adversely affect the ability of Sponsor Entity to sell the Property, rent its units as necessary to maintain occupancy, and/or to increase or maintain unit rental rates.

Lease-up Risks

The Property currently has a 92% occupancy level, and the Sponsor intends to implement a capital improvement plan involving light renovation of the clubhouse and fitness center, approximately 30 unit interiors, and installation of washers and dryers in 183 units in its effort to maintain and/or increase that occupancy level. There can be no assurance that such renovations will be consummated on a timely basis, that such work will not materially adversely affect other aspects of the operation of the Property, or that the plan will result in the Property maintaining its occupancy level at rental rates in line with those projected. Any delays or adverse effects of such work could adversely affect the Property’s financial results or business operations and thus the value of the Company’s investment. Although the Sponsor believes that comparable properties are currently achieving rental rates that are in line with those expected from the Property, there can be no assurance that such rental rates will be achieved. Failure to realize such increased rental rates could adversely affect the Property’s financial results or business operations and thus the value of the Company’s investment.

Tornado Risk

Jeffersontown, Kentucky lies in the northern part of the state of Kentucky, in an area which can be subject to destructive tornadoes. There is no guarantee that the Sponsor Entity will obtain tornado insurance. If no insurance is obtained, a tornado could have a material adverse impact on the Sponsor Entity, and thus the Company. Further, even if tornado insurance is obtained, there can be no assurance that a tornado will not cause significant damage to the Property or otherwise interrupt its operations in a manner not covered by the Property’s insurance, in which case the business and financial condition of the Sponsor Entity.

The above is not intended to be a full discussion of all the risks of this investment. Please see the Risk Factors in the Issuer Document Package for a discussion of additional risks.

The above presentation is based upon information supplied by the Sponsor and others. Realty Mogul, Co., RM Manager, LLC, and Realty Mogul 78, LLC, along with their respective affiliates, officers, directors or representatives (the "RM Parties") hereby advise you that none of them has independently confirmed or verified any of the information contained herein. The RM Parties further make no representations as to the accuracy or completeness of any such information and undertake no obligation now or in the future to update or correct this presentation or any information contained herein.




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