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:
Multifamily
Lotus Village - Member Loan 2025
Austin, TX
Funded
...
Lotus Village - Member Loan 2025
Austin, TX
All Investments > Lotus Village - Member Loan 2025
...
Overview
Lotus Village - Member Loan 2025
Lotus Village is a 2012-built, 222-unit multifamily community located in Austin, Texas with value-add potential.
current
current
current
current
current
current
current
current
current
current
current
current
current
current
current
current
current
current
current
current
current
current
current
Videos
Details
For more information, view the Sponsor's Investment Memorandum.
Estimated First Distribution 11/2021
Minimum Investment 1
Estimated Hold Period 4 Years
Investment Strategy Value-Add
Investment Type Debt
# of Units 222
Year Built 2012
Current Occupancy 94.1%
Parking Ratio 1.9 per unit
# of Buildings 11
Sponsor Documents
The offering documents above have been prepared and are being delivered by the Sponsor of this investment opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are not otherwise responsible for, the Sponsors offering documents posted below or any content therein.
Deal Highlights
Investment Highlights
OREI is under contract to purchase the Property for $173,423 per unit, representing an acquisition cap rate of 4.15%.
The Property will be managed by Allied Orion Group, an experienced management agent in Texas.
The exit strategy to sell the Property after a 4-year hold at a 5.00% cap rate.
The Property is situated within 3 miles of The Domain, dubbed Austin's second downtown; 6 miles of Apple's Austin campus; 8-miles from Downtown Austin; and 12-miles from Tesla's new Gigafactory.
Property amenities include 8 picnic areas with barbeques, a state-of-the-art fitness center, swimming pool with spa, business center, clubhouse, dog park, billiards room, and children's play area.
OREI is under contract to purchase the Property for $173,423 per unit, representing an acquisition cap rate of 4.15%.
The Property will be managed by Allied Orion Group, an experienced management agent in Texas.
The exit strategy to sell the Property after a 4-year hold at a 5.00% cap rate.
The Property is situated within 3 miles of The Domain, dubbed Austin's second downtown; 6 miles of Apple's Austin campus; 8-miles from Downtown Austin; and 12-miles from Tesla's new Gigafactory.
Property amenities include 8 picnic areas with barbeques, a state-of-the-art fitness center, swimming pool with spa, business center, clubhouse, dog park, billiards room, and children's play area.
Contact Us
Questions before investing?
Speak with our Investor Relations team.
Schedule a Call
Management
For more information, view the Sponsor's Investment Memorandum.
One Real Estate Investment

Founded in 2001, One Real Estate Investment (“OREI”) is a privately owned, Miami-based real estate investment and asset management company. OREI is a disciplined investor, manager, and operator focused on acquiring multifamily assets in the Southeast United States and Texas. The firm’s expertise is in executing and managing strategic asset repositioning, amenity upgrade, and operational optimization programs to maximize value for its tenants, investors, and communities in which it invests. The firm’s deals are capitalized by proprietary funds and programmatic relationships with institutional, family office, and ultra-high-net-worth capital partners. OREI has over 5,000 units under management nationally and has acquired and sold over 10,000 value-add multifamily units since its inception. 

Sponsor Track Record

OREI Track Record

Divestments                    
Property City State Units Acquisition Date Acquisition Price Capex Total Equity Disposition Price Disposition year Realized IRR Total Distributions Net Sale Proceeds Total Proceeds
The Townhomes on Peackcock Hills Houston TX 211 Mar-20 $17,050,000 $2,403,159 $8,309,825 $26,750,000 2023 22% $924,328 $13,845,984 $14,770,313
The Element at University Park College Station TX 192 May-20 $19,872,000 $868,693 $7,484,245 $24,600,000 2022 16% $1,568,665 $15,719,941 $17,288,606
La Villita Apartments Houston TX 308 Nov-20 $21,750,000 $1,589,678 $8,134,108 $33,000,000 2022 50% $1,300,245 $16,293,445 $17,593,690
Azure at Riverside Atlanta GA 267 May-21 $32,840,000 $1,625,661 $12,455,971 $44,000,000 2022 46% $1,888,042 $18,290,631 $20,178,673
Axiom Apartments Charlotte NC 202 Nov-19 $22,844,180 $1,534,030 $6,976,854 $28,987,000 2022 13% $911,764 $9,122,401 $10,034,166
The Aurora @ 2700 Atlanta GA 280 May-19 $31,250,000 $2,107,381 $15,817,785 $53,000,013 2022 33% $2,204,617 $38,075,753 $40,280,370
The Plaza at Windsor Hills Austin TX 200 Sep-19 $23,250,000 $664,125 $10,059,500 $32,600,000 2021 17% $904,330 $12,877,185 $13,781,515
West End Apartments Fayetteville NC 360 Mar-19 $39,800,000 $1,192,451 $15,449,675 $78,500,000 2021 65% $4,271,543 $44,572,168 $48,843,711
The Carter Atlanta GA 300 Feb-19 $34,962,000 $2,022,097 $10,005,082 $48,000,000 2021 18% $1,155,165 $14,752,915 $15,908,080
Oakwood Apartments Lake Worth FL 160 Aug-18 $25,642,000 $974,375 $8,721,404 $35,400,000 2021 8% $566,891 $10,770,934 $11,337,826
Summit at 7700 Houston TX 172 May-18 $9,576,000 $1,163,800 $5,847,237 $15,560,000 2021 21% $399,059 $8,517,562 $8,916,621
Westbury Crossings Houston TX 240 May-18 $12,261,000 $2,359,200 $7,512,452 $20,940,000 2021 21% $512,706 $10,943,249 $11,455,955
The Summit at Landry Way Fort Worth TX 224 Jun-17 $14,112,000 $1,276,800 $3,310,899 $23,700,000 2021 31% $463,526 $8,806,991 $9,270,517
Winding Trails Houston TX 438 Jul-17 $28,470,000 $790,000 $8,835,680 $33,000,000 2019 17% $795,211 $15,109,013 $15,904,224
Uvalde portfolio (2 assets) Houston TX 882 Jul-16 $47,877,320 $3,721,580 $15,076,150 $55,850,000 2017 18% $1,206,092 $22,915,748 $24,121,840
Houston Portfolio (5 assets) Houston TX 1312 Sep-13 $35,178,422 $1,631,598 $14,902,805 $56,900,000 2015 24% $1,266,738 $24,068,030 $25,334,769
Riverwalk II Apartments Miami FL 112 May-12 $5,750,000 $700,000 $6,152,500 $7,200,000 2015 14% $430,675 $8,182,825 $8,613,500
Crystal Lakes Miami FL 491 Mar-12 $14,350,000 $3,700,000 $7,587,500 $36,000,000 2015 30% $1,024,313 $19,461,938 $20,486,250
Cardsound Apartments Miami FL 105 Jun-10 $3,200,000 $600,000 $1,344,000 $6,500,000 2013 63% $215,040 $4,085,760 $4,300,800
Average / Total     6,456   $440,034,922 $30,924,628 $173,983,672 $660,487,013   28% $22,008,951 $316,412,474 $338,421,425
                           
Assets Under Management
Property City State Units Acquisition Date Acquisition Price Capex Total Equity Debt Amount Maturity Date LTV Occupancy Cash on Cash return Projected IRR Projected Equity Multiple
Elite Crossing Atlanta GA 210 Apr-23 $31,292,500 $1,955,230 $15,775,000 $19,069,000 May-33 61% 82% 7% 18% 2.1x
Garden Walk Atlanta GA 240 Dec-22 $31,500,000 $3,025,510 $18,000,000 $17,831,000 Jan-33 57% 82% 7% 20% 2.3x
The One @ 5959 Houston TX 308 Nov-22 $33,000,000 $661,437 $18,000,000 $16,319,000 Dec-30 49% 91% 9% 17% 2.0x
Shadowbluff Apartments Nashville TN 220 Oct-22 $35,330,000 $3,327,693 $20,500,000 $20,730,000 Nov-32 59% 95% 7% 19% 2.2x
The Cobb Townhome Apartments Austell GA 232 Sep-22 $34,850,000 $4,550,824 $15,982,822 $27,500,000 Sep-29 79% 86% 6% 21% 2.2x
The Edge at Lees Chapel Greensboro NC 299 Aug-22 $36,590,000 $4,742,960 $18,912,036 $25,000,000 Aug-25 68% 88% 6% 16% 1.8x
Lakehurst Apartments Spring Lake NC 96 Jun-22 $13,000,000 $4,319,003 $7,704,815 $11,575,000 Jul-24 89% 95% 8% 25% 1.9x
Summit Village Greensboro NC 276 May-22 $33,775,000 $3,083,912 $13,511,229 $27,475,500 May-25 81% 86% 7% 19% 1.9x
Villas de Santa Fe San Antonio TX 208 May-22 $24,250,000 $1,984,409 $8,330,168 $20,135,000 Jun-24 83% 95% 6% 19% 1.5x
The Fredd San Antonio TX 278 May-22 $47,750,000 $3,352,410 $21,997,868 $28,710,000 Jun-32 60% 91% 6% 17% 2.0x
The Summit San Antonio TX 284 May-22 $41,000,000 $4,465,900 $21,227,353 $33,166,000 May-25 81% 88% 6% 18% 2.1x
Axio Apartments San Antonio TX 360 May-22 $46,250,000 $5,976,330 $22,028,648 $30,956,000 Aug-29 67% 82% 6% 21% 2.0x
Pointe Grand Savannah Port Wentworth GA 288 Feb-22 $86,400,000 $507,071 $25,000,000 $66,164,000 Mar-24 77% 91% 4% 12% 1.1x
Heritage at Fort Bragg Fayetteville NC 296 Feb-22 $43,500,000 $4,193,906 $22,104,216 $27,002,000 Mar-32 62% 91% 5% 19% 2.2x
Villas de Toscana San Antonio TX 190 Dec-21 $17,650,000 $1,420,000 $8,000,000 $12,155,000 Feb-30 69% 92% 8% 18% 1.8x
Wildcreek Apartments Atlanta GA 242 Dec-21 $31,500,000 $1,622,000 $19,500,000 $16,625,000 Oct-30 53% 91% 8% 17% 1.7x
Liberty Club Hinesville GA 240 Nov-21 $44,950,000 $583,200 $18,000,000 $30,010,000 Aug-32 67% 87% 8% 21% 2.3x
Canyon Grove Dallas TX 310 Aug-21 $34,525,000 $2,050,413 $11,500,000 $28,000,000 Sep-24 81% 92% 8% 17% 1.6x
Lotus Village Austin TX 222 Jun-21 $38,500,000 $761,417 $10,934,658 $30,200,000 Jul-23 78% 95% 7% 19% 1.9x
The Avalon Charlotte NC 240 Dec-20 $32,400,000 $1,485,413 $14,236,219 $20,148,000 Jan-31 62% 90% 6% 16% 1.9x
The Kelston Charlotte NC 310 Dec-23 $36,300,000 $5,128,377 $12,226,500 $31,250,000 Jan-24 86% 93% 7% 17% 1.8x
Whitney Manor New Orleans LA 199 Sep-20 $14,632,275 $1,766,876 $5,795,765 $10,901,000 Oct-30 74% 95% 4% 9% 1.2x
Westchase Apartments New Orleans LA 380 Sep-20 $31,060,724 $2,749,765 $10,915,008 $23,295,000 Oct-30 75% 86% 4% 9% 1.2x
Summit on 401 Fayetteville NC 291 Jun-20 $26,750,000 $2,090,560 $12,173,048 $17,902,000 Jul-30 67% 95% 15% 35% 2.3x
The Carter @4250 Atlanta GA 300 Feb-19 $34,962,000 $2,022,097 $10,005,082 $33,125,000 Oct-31 95% 94% 6% 19% 1.6x
Summit at 7700 Houston TX 172 May-18 $15,560,000 $1,163,800 $6,480,000 $11,305,000 Dec-28 73% 92% 7% 25% 1.6x
Westbury Crossings Houston TX 240 May-18 $20,940,000 $2,359,200 $7,020,000 $15,579,000 Dec-28 74% 96% 7% 25% 1.6x
Average / Total     6,931   $918,217,499 $71,349,713 $395,860,435 $652,127,500   71% 90% 7% 19% 1.8x

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

Website
Management Team
Management
Jeronimo Hirschfeld
Founder, Chairman, and CEO

Jeronimo Hirschfeld is the Founder, Chairman, and CEO of One Real Estate Investment (OREI). Under his direction, the Company has acquired and manages a portfolio valued at over $800 Million. He is a leading developer and sophisticated investor with seats on the Boards of a number of highly successful real estate-oriented companies. Today, Mr. Hirschfield’s firm is composed of experienced real estate professionals who work full time on the management of company properties, allowing him to continue to successfully seek out new investments and effectively grow One Real Estate Investment’s real estate portfolio.

Management
Alexander Rose
Chief Investment Officer

Alexander (AJ) brings over 15 years of experience in institutional real estate investment management and serves as OREI’s Chief Investment Officer overseeing the Acquisitions Team and the Asset Management Division. AJ is involved in the debt and equity raise for each OREI transaction as well as structuring long-term programmatic capital structures for OREI’s investment platform. Over his career, he has overseen the investment of over $1 billion of equity into commercial real estate assets. AJ has an MBA from the University of Cambridge and a Bachelor of Science degree in business administration, with a concentration in real estate finance, from the University of Southern California.

Management
Matt Hathaway
Chief Financial Officer

As the Chief Financial Officer of OREI, Matt is responsible for overseeing the accounting and finance functions of the company, which includes financial planning and analysis, risk management, strategic planning, tax strategy, and treasury operations. Matt brings over 15 years of varied experience in mergers and acquisitions, financial management, business leadership, and corporate strategy.

Matt received his MBA from UCLA’s Anderson School of Business and his Bachelor of Science degree in Business Administration from the University of Southern California. Matt also holds the Chartered Financial Analyst (CFA) designation.

Property
For more information, view the Sponsor's Investment Memorandum.

One Real Estate Investment ("OREI") has secured under contract an opportunity to acquire and manage Lotus Village (the "Property"), a 222 Unit, Class A Multifamily asset built in 2012. The Property is 94% occupied and situated in rapidly expanding North Austin. Located only 8-miles from downtown Austin and within 6 miles of Apple's Austin Campus, the Property is also situated near several retail centers, schools, and major transit stops, and only 3 miles east of The Domain, dubbed Austin's second downtown.

Unit Mix

Unit Type # of Units Avg SF/Unit Avg Rent (In-Place) Avg Rent (Stabilized) Post-reno rent per SF
1x1 60 700 $998 $1,130 $1.61
1x1 24 749 $997 $1,175 $1.57
2x2 90 1000 $1,285 $1,470 $1.47
2x2 24 1040 $1,327 $1,495 $1.44
3x2 24 1239 $1,582 $1,800 $1.45
Total/Averages 222 922 $1,213 $1,385 $1.51
Comparables
For more information, view the Sponsor's Investment Memorandum.

Lease Comparables

  502 North Copper Mill Addison at Kramer Station Walnut Park Altair Tech Ridge Total Averages Subject (Proforma)
Year Built 1985 1984 2015 2018 2019 2004 2012
# of Units 160 320 388 277 230 275 222
Average Rental Rate $1,327 $1,244 $1,682 $1,572 $1,513 $1,468 $1,385
Average Unit Size 814 818 904 977 950 893 922
Average $/SF $1.63 $1.52 $1.86 $1.61 $1.59 $1.64 $1.50
Levels 3 2 3 3 3 3 4
Occupancy 96% 94% 94% 96% 95% 95% 92% proforma
Distance from subject 1.2 mi 1.0 mi 2.7 mi 1.7 mi 3.5 mi 2.0 mi  
               
$/Unit (1x1) $1,164 $1,189 $1,570 $1,315 $1,224 $1,292 $1,143
SF (1x1) 642 759 800 664 633 700 714
$/SF (1x1) $1.81 $1.57 $1.96 $1.98 $1.93 $1.85 $1.60
               
$/Unit (2x2) $1,459 $1,509 $2,150 $1,905 $1,836 $1,772 $1,475
SF (2x2) 925 998 1,136 1,235 1,208 1,100 1,008
$/SF (2x2) $1.58 $1.51 $1.89 $1.54 $1.52 $1.61 $1.46
               
$/Unit (3x2)     $2,570   $2,009 $2,290 $1,800
SF (3x2)     1,387   1,441 1,414 1,239
$/SF (3x2)     $1.85   $1.39 $1.62 $1.45

Sales Comparables

  The Copeland Windsor Burnet Crestview Commons Parmer Place Apartments Altair Tech Ridge Averages Subject
Date Sold 10/15/2019 10/17/2019 10/1/2019 12/1/2020 11/1/2019   6/16/2021
Year Built 2019 2018 2018 2008 2019 2016 2012
# of Units 328 352 353 290 230 311 222
Average Unit Size 748 SF 800 SF 784 SF 1144 SF 860 SF 867 SF 922 SF
Sale Price $72,300,000 $89,300,000 $79,900,000 $44,750,000 $42,500,000 $65,750,000 $38,500,000
$/Unit $220,427 $253,693 $226,346 $154,310 $184,783 $207,912 $173,423
$/SF $245 $317 $207 $132 $189 $218 $188
Building Size 295,102 SF 281,703 SF 385,806 SF 339,956 SF 225,355 SF 305,585 SF 204,787 SF
Distance from subject 2.5 mi 3.0 mi 3.4 mi 3.1 mi 3.5 mi 3.1 mi  
Financials
For more information, view the Sponsor's Investment Memorandum.
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Debt $29,600,000 $133,333
Additional Debt Future Funded (CapEx) $600,000 $2,703
GP Investor Equity $1,564,584 $7,048
LP Investor Equity $7,250,001 $32,658
MogulREIT II $2,500,000 $11,261
Total Sources of Funds $41,514,585 $187,003
     
Uses of Funds $ Amount $/Unit
Purchase Price $38,500,000 $173,423
RM Acquisition Fee $385,000 $1,734
OREI Acquisition Fee $481,250 $2,168
Loan Fee $347,300 $1,564
Closing Costs $250,000 $1,126
Future Funded CapEx $600,000 $2,703
Working Capital & Unfunded CapEx $575,000 $2,590
Escrows and Reserves $342,735 $1,544
Other $33,300 $150
Total Uses of Funds $41,514,585 $187,003

Please note that OREI's equity contribution may consist of friends and family equity and equity from funds controlled by OREI. Additionally, the numbers represented above can change prior to closing depending on final loan proceeds, property condition assessments, appraisals, final closing costs, and other lender-mandated expenses.

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: LoanCore
  • Term: 3+1+1
  • Loan-to-Value: 76.9%
  • Estimated Proceeds: $30,200,000
  • Interest Type: Floating
  • Spread Above One-Month LIBOR: 3.10%
  • Interest-Only Period: 3+1+1
  • Amortization: Interest Only
  • Prepayment Terms: Yield maintenance through 18 months, no fees thereafter
  • Loan Extensions: Yes with conditional approvals

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.

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 funds available for investment or development purposes, on the one hand, but also increases the risk of loss on the other. If the Company were unable to pay the payments on the borrowed funds (called a "default"), the lender might foreclose, and the Company could lose its investment in its property.

Distributions

OREI intends to make distributions from Lotus Village Holdco, LLC as follows:

  1. To the Investors, pari passu, all operating cash flows to an 8.0% IRR;
  2. 75% / 25% (75% to Investors / 25% to Promote) of excess cash flow to a 12.0% IRR;
  3. 65% / 35% (65% to Investors / 35% to Promote) of excess cash flow thereafter.

OREI 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 November 2021 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of OREI, who may decide to delay distributions for any reason, including maintenance or capital reserves.

OREI will receive a promote as indicated above, and a portion of this promote may be received by RM Adviser, LLC.

Cash Flow Summary            
    Year 1 Year 2 Year 3 Year 4 Year 5
Effective Gross Revenue   $3,359,974 $3,752,821 $3,957,781 $4,172,737 $4,535,026
Operating Expenses   $1,762,477 $1,826,184 $1,865,282 $1,917,642 $1,974,719
NOI Excluding Reserves   $1,597,497 $1,926,637 $2,092,500 $2,255,095 $2,560,307
Replacement Reserves   $55,278 $56,384 $57,511 $58,662 $59,835
NOI Including Reserves   $1,542,219 $1,870,253 $2,034,989 $2,196,433 $2,500,473*
* NOI used for reversion value.            
             
Project-Level Cash Flows            
  Year 0 Year 1 Year 2 Year 3 Year 4  
Net Cash Flow -$11,314,585 $679,899 $703,119 $797,363 $20,191,943  
             
Investor-Level Cash Flows*            
  Year 0 Year 1 Year 2 Year 3 Year 4  
Net Cash Flow -$4,000,000 $200,362 $208,571 $241,889 $6,113,794  
             
Investor-Level Cash Flows - Hypothetical $50,000 Investment*      
  Year 0 Year 1 Year 2 Year 3 Year 4  
Net Cash Flow -$50,000 $2,505 $2,607 $3,024 $76,422  

*Returns are net of all fees including RM Admin's 1.0% administrative services fee. 

NO ASSURANCE OF RETURN: The Company's pro-forma projections are based on assumptions regarding future events, such as the timing and extent of the recovery of the residential market and the stabilization of the debt markets. While the Manager believes that these assumptions are reasonable and achievable, the likelihood of its occurrence is subject to many factors that are not within the control of the Company or its Manager and that could impair the ability of the Company to meet its projections.

 

Fees

Certain fees and compensation will be paid over the life of the transaction; please refer to OREI's materials for details. The following fees and compensation will be paid(1)(2):

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From
OREI Acquisition Fee 1.25% of Purchase Price OREI Total Capitalization
RM Acquisition Fee 1.0% of Purchase Price RM Adviser, LLC  Total Capitalization
       
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From
Asset Management Fee 1.5% of EGI OREI Operating Cash Flows
Administrative Services Fee 1.0% of Equity* RM Admin(2) Cash Flow

*Only applies to equity raised through the RealtyMogul Platform

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

(2) RM Admin will be providing the following services: (a) responding to inbound investor inquiries regarding how to subscribe to the Project, (b) distribution of all annual tax forms (after receipt of same from Project Sponsor), (c) processing distributions that are payable from Lotus Village Holdco, LLC to Investors, however, RM Admin will not be deemed to have custody of client funds, (d) distribution of all quarterly reports (after receipt of same from Project Sponsor) and (e) summarizing sponsor information on property performance, responding to investor inquiries regarding sponsor performance information as well as the real estate market generally.

Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Debt $29,600,000 $133,333
Additional Debt Future Funded (CapEx) $600,000 $2,703
GP Investor Equity $1,564,584 $7,048
LP Investor Equity $7,250,001 $32,658
MogulREIT II $2,500,000 $11,261
Total Sources of Funds $41,514,585 $187,003
     
Uses of Funds $ Amount $/Unit
Purchase Price $38,500,000 $173,423
RM Acquisition Fee $385,000 $1,734
OREI Acquisition Fee $481,250 $2,168
Loan Fee $347,300 $1,564
Closing Costs $250,000 $1,126
Future Funded CapEx $600,000 $2,703
Working Capital & Unfunded CapEx $575,000 $2,590
Escrows and Reserves $342,735 $1,544
Other $33,300 $150
Total Uses of Funds $41,514,585 $187,003

Please note that OREI's equity contribution may consist of friends and family equity and equity from funds controlled by OREI. Additionally, the numbers represented above can change prior to closing depending on final loan proceeds, property condition assessments, appraisals, final closing costs, and other lender-mandated expenses.

Debt Assumptions

The expected terms of the debt financing are as follows:

  • Lender: LoanCore
  • Term: 3+1+1
  • Loan-to-Value: 76.9%
  • Estimated Proceeds: $30,200,000
  • Interest Type: Floating
  • Spread Above One-Month LIBOR: 3.10%
  • Interest-Only Period: 3+1+1
  • Amortization: Interest Only
  • Prepayment Terms: Yield maintenance through 18 months, no fees thereafter
  • Loan Extensions: Yes with conditional approvals

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.

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 funds available for investment or development purposes, on the one hand, but also increases the risk of loss on the other. If the Company were unable to pay the payments on the borrowed funds (called a "default"), the lender might foreclose, and the Company could lose its investment in its property.

Distributions

OREI intends to make distributions from Lotus Village Holdco, LLC as follows:

  1. To the Investors, pari passu, all operating cash flows to an 8.0% IRR;
  2. 75% / 25% (75% to Investors / 25% to Promote) of excess cash flow to a 12.0% IRR;
  3. 65% / 35% (65% to Investors / 35% to Promote) of excess cash flow thereafter.

OREI 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 November 2021 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of OREI, who may decide to delay distributions for any reason, including maintenance or capital reserves.

OREI will receive a promote as indicated above, and a portion of this promote may be received by RM Adviser, LLC.

Cash Flow Summary            
    Year 1 Year 2 Year 3 Year 4 Year 5
Effective Gross Revenue   $3,359,974 $3,752,821 $3,957,781 $4,172,737 $4,535,026
Operating Expenses   $1,762,477 $1,826,184 $1,865,282 $1,917,642 $1,974,719
NOI Excluding Reserves   $1,597,497 $1,926,637 $2,092,500 $2,255,095 $2,560,307
Replacement Reserves   $55,278 $56,384 $57,511 $58,662 $59,835
NOI Including Reserves   $1,542,219 $1,870,253 $2,034,989 $2,196,433 $2,500,473*
* NOI used for reversion value.            
             
Project-Level Cash Flows            
  Year 0 Year 1 Year 2 Year 3 Year 4  
Net Cash Flow -$11,314,585 $679,899 $703,119 $797,363 $20,191,943  
             
Investor-Level Cash Flows*            
  Year 0 Year 1 Year 2 Year 3 Year 4  
Net Cash Flow -$4,000,000 $200,362 $208,571 $241,889 $6,113,794  
             
Investor-Level Cash Flows - Hypothetical $50,000 Investment*      
  Year 0 Year 1 Year 2 Year 3 Year 4  
Net Cash Flow -$50,000 $2,505 $2,607 $3,024 $76,422  

*Returns are net of all fees including RM Admin's 1.0% administrative services fee. 

NO ASSURANCE OF RETURN: The Company's pro-forma projections are based on assumptions regarding future events, such as the timing and extent of the recovery of the residential market and the stabilization of the debt markets. While the Manager believes that these assumptions are reasonable and achievable, the likelihood of its occurrence is subject to many factors that are not within the control of the Company or its Manager and that could impair the ability of the Company to meet its projections.

 

Fees

Certain fees and compensation will be paid over the life of the transaction; please refer to OREI's materials for details. The following fees and compensation will be paid(1)(2):

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From
OREI Acquisition Fee 1.25% of Purchase Price OREI Total Capitalization
RM Acquisition Fee 1.0% of Purchase Price RM Adviser, LLC  Total Capitalization
       
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From
Asset Management Fee 1.5% of EGI OREI Operating Cash Flows
Administrative Services Fee 1.0% of Equity* RM Admin(2) Cash Flow

*Only applies to equity raised through the RealtyMogul Platform

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

(2) RM Admin will be providing the following services: (a) responding to inbound investor inquiries regarding how to subscribe to the Project, (b) distribution of all annual tax forms (after receipt of same from Project Sponsor), (c) processing distributions that are payable from Lotus Village Holdco, LLC to Investors, however, RM Admin will not be deemed to have custody of client funds, (d) distribution of all quarterly reports (after receipt of same from Project Sponsor) and (e) summarizing sponsor information on property performance, responding to investor inquiries regarding sponsor performance information as well as the real estate market generally.

Disclosures
RM Securities, LLC and its Affiliates Compensation

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

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

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

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

Sponsor’s Information Qualified by Investment Documents

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

Risk of Investment

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

No Reliance on Forward-Looking Statements; Sponsor Assumptions

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

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

No Reliance on Past Performance

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

Sponsor’s Use of Debt

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

Sponsor’s Offering is Not Registered

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

No Investment Advice

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

1031 Exchange Risk

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

JOIN REALTYMOGUL
Create an account or sign in.
Are you an Accredited Investor?
Must be 8 characters or more with an uppercase and lowercase character, a number, and a symbol.
By clicking "JOIN REALTYMOGUL" you are agreeing to our Terms of Service and Privacy Policy, and that you've had an opportunity to review RM Securities, LLC's Form Customer Relationship Summary.
SIGN IN
Don't have an account yet? Join RealtyMogul.
Forgot Password?
Questions? Our Investor Relations team is available to help 9 AM - 8 PM ET Monday to Friday. Contact us at (877) 977-2776.
Forgot Password
Enter your email address to receive a code to reset your password.
Enter the code sent to your email address below and your new password.

Resend Code

WELCOME
Welcome,

Welcome to RealtyMogul! We need to ask a few additional questions to get to know you.

Your Net Worth
Are you interested in 1031 exchanges?
Thank you!

We’ve received your information and updated your Investor Profile.

Welcome to RealtyMogul

As part of RealtyMogul's commitment to transparency, we want to inform you that you have been directed to our website from an unaffiliated third-party marketing company who is compensated up to $250 for each investor who registers on our site. RealtyMogul and its affiliates have no relationship with the marketing company other than this compensation arrangement. RealtyMogul and its affiliates are not responsible for the preparation or accuracy of, and do not explicitly or implicitly adopt or endorse, any content provided by the unaffiliated marketing company.

SECURITY SETUP

Secure Your Account

Add a layer of protection to your RealtyMogul account. Set up two-factor authentication below.

Select your preferred method of two-factor authentication to continue:

Set Up SMS Verification

Receive a one-time code via text message to verify your identity when you log in.

Use an Authenticator App

Use an authenticator app on your device to verify your identity when you log in.

Remind me later
SECURITY SETUP

Security setup is complete.

You can manage your two-factor authentication settings anytime in your profile.

SECURITY SETUP

Verify your phone number.

We've sent a text message with a one-time verification code to:

Request another code.

SECURITY SETUP

Verify your phone number.

Request a one-time verification code to verify the phone number we'll use for two-factor authentication.

US phone number only. Message and data rates may apply.

SECURITY SETUP

Connect your authenticator app.

1. Install an authenticator app

of your choice on your mobile device.

2. Scan this QR code

with your authenticator app to get a verification code.

QR Code

3. Enter the code

from your authenticator app:

SIGN IN

Verify your identity.

REPLACE ME

Request another code.

SECURITY SETUP

Security setup skipped.

You can manage your two-factor authentication settings anytime in your profile.