The most recent tranche of this fund has been fully funded and the offering is now paused for new investments. Please click add to the Waitlist if you would like to participate in the next tranche of capital being raised.
Multifamily
The RM Communities Distressed GP Fund
Geographically Diversified
Waitlisted
The most recent tranche of this fund has been fully funded and the offering is now paused for new investments. Please click add to the Waitlist if you would like to participate in the next tranche of capital being raised.
The RM Communities Distressed GP Fund
Geographically Diversified
All Investments > The RM Communities Distressed GP Fund
Overview
The RM Communities Distressed GP Fund
The RM Communities Distressed GP Fund ("the Fund") offers investors the chance to invest alongside repeat sponsor, RM Communities. The Fund will receive 25% of RM Communities' realized carried interest with no fees charged by RM Communities at the fund level. The Fund’s objective is to acquire multifamily properties in strong markets that are experiencing distress, be it financial, operational, physical, or other situational distress.
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Details
For more information, view the Sponsor's Investment Memorandum.
Estimated First Distribution
10/2025
Minimum Investment
50000
Investment Strategy
Value-Add
Investment Type
Equity
Sponsor Documents
The offering documents above have been prepared and are being delivered by the Sponsor of this investment opportunity.
Deal Highlights
Experienced, Repeat Sponsor: RM Communities is a private investment firm with over 2,700 multifamily units acquired and a fully dedicated team of acquisitions, underwriting, and asset management professionals.
Lower Potential Costs: No fees or expenses are charged by RM Communities at the fund level. RM Communities only shares in the carried interest with investors. This arrangement allows the potential for higher net returns due to lower direct costs.
Earn Carried Interest: As the Fund's general partner, RM Communities has the potential to receive carried interest on investments. The Fund will receive 25% of RM Communities' realized carried interest.
Distress in Multifamily: An evolving economic and interest rate environment has opened a window of opportunity where select multifamily properties can be acquired at prices that are significantly discounted. A tighter lending environment coupled with rapid interest rate hikes to combat inflation have put downward pressure on valuations and left many owners forced to sell. RM Communities believes the next 12-24 months will present opportunities to capitalize on a brief period of market dislocation.
Leveraged Equity Return: The Fund is structured to gain a leveraged equity return by co-investing an anticipated 5% to 25% in individual property acquisitions with various co-investors. By receiving a portion of RM Communities' carried interest, Fund investors will receive a return that is anticipated to be above the property-level returns, surpassing the returns of traditional limited partners.
Targeted Opportunities: The Fund will target core-plus and/or value-add multifamily opportunities that are experiencing distress, be it financial, operational, physical, or other situational distress.
Immediate Capital Deployment: The Fund has already made two investments, Rose Hill Townhomes & Villas and Xander Apartments, both located in the Columbus MSA. This allows for an immediate participation in cash flow distribution.
Contact Us
Questions before investing?
Speak with our Investor Relations team.
Management
For more information, view the Sponsor's Investment Memorandum.
RM Communities
RM Communities is a sister-company to RealtyMogul, one of the leading online platforms for real estate investing. RM Communities is an owner/operator of multifamily assets with a proprietary playbook to deliver strong risk-adjusted returns. RM Communities has acquired over 2,700 multifamily units and more than $455 million(1) in real estate with a fully dedicated team of acquisitions, underwriting, and asset management professionals.
Management Team
Financials
For more information, view the Sponsor's Investment Memorandum.
Distributions
By investing in the Fund, investors avoid property-level waterfalls and consequently, do not pay any property-level carried interest.
The Fund receives 25% of RM Communities' carried interest. (2)
At the Fund level, there is an 8% preferred return and then an 80/20 split to the Investors / Sponsor after an 8% preferred return.
Fees
There are no management fees paid to the Sponsor at the Fund level. (3)
(1) References made to the RM Communities portfolio include four properties that were acquired prior to the formation of RM Communities. Consequently, these assets 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.
(2) The receipt of any portion of carried interest by the Fund is not guaranteed. Furthermore, with respect to any particular investment, carried interest may be paid to parties other than the Sponsor, including but not limited to, affiliates of the Sponsor, joint venture partners, and/or co-GP partners. The Fund will not receive any portion of any carried interest paid to any such other parties, and the 25% referred to above is solely 25% of any carried interest actually received (whether directly or through other affiliated entities) by the Sponsor itself.
(3) Acquisition fees, asset management fees, and other fees will be paid to RM Communities and/or affiliates at the individual property investment level; please refer to the Memorandum materials for details.
Disclosures
Sponsor’s Information Qualified by Investment Documents
The information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.
Risk of Investment
This investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.
No Reliance on Forward-Looking Statements; Sponsor Assumptions
Sponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. A Sponsor is obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.
Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.
No Reliance on Past Performance
Any description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.
Sponsor’s Use of Debt
A substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.
Sponsor’s Offering is Not Registered
Sponsor’s securities offering will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement”). In addition, the offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership interests) are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.
No Investment Advice
Nothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments.
The information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.
Risk of Investment
This investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.
No Reliance on Forward-Looking Statements; Sponsor Assumptions
Sponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. A Sponsor is obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.
Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.
No Reliance on Past Performance
Any description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.
Sponsor’s Use of Debt
A substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.
Sponsor’s Offering is Not Registered
Sponsor’s securities offering will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement”). In addition, the offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership interests) are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.
No Investment Advice
Nothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments.