FORMALIZED DUE DILIGENCE PROCESS 
Sponsors

The team at our affiliated broker-dealer, RM Securities, conducts diligence on of the issuer, including detailed background checks, criminal checks, bad actor checks, and reference checks on sponsors. In addition to screening for any criminal background, we may also turn down sponsors due to poor reference checks, even if the background and criminal checks are satisfactory.

Escrow accounts

We require unaffiliated sponsors to use an unaffiliated third-party escrow agent.* When an investor makes an investment with such 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 contingency 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.

Unless otherwise disclosed, escrow accounts are not required for some investments that accommodate 1031 investments where the property is already acquired.

Boots on the ground

Our processes typically includes visiting certain properties (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. For certain properties that accommodate 1031 exchange investments, the team will review third-party prepared due diligence reports in lieu of a site visit.

Detailed Checklists

We have formalized processes and checklists for every private placement deal listed on the platform.

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:
Canceled
Estimated Hold Period 12 months
...
View Our Due Diligence Process
Investment Returns: Discerning investors don't rely on a single projected return metric as a basis to invest. Rather, when assessing a potential investment, we encourage you to evaluate all information provided by a sponsor including the business plan, assumptions, and risk factors which can be found in the relevant offering documents. This approach is consistent with our requirements as a broker-dealer, which prohibit us from communicating projected returns.
webinar-background
PROJECT WEBINAR
COMING SOON!
PROJECT WEBINAR COMING SOON!
49th St. Duplex Rehab
Offered By
AH Capital
Investment Type Debt
Overview
Management
Cumulative Distributions

AH Capital

AH Capital is a real estate investment company focused on taking advantage of opportunities in residential properties. They operate in Los Angeles, Raleigh-Durham and Atlanta and acquire single family homes and duplexes (REO's and foreclosures) that are in disrepair and then fix and sell them as fast as possible. These transactions average 6 to 12 months and have produced gross returns ranging from 9%-33%. Over the past three years, they have successfully deployed over $16M and have executed over 66 transactions. http://ah-cap.com/
  • Nick Halaris
  • John Young
  • Daniel Alexander
  • Yusef Alexander
Nick Halaris
Nick Halaris is Co-Founder and Managing Director of AH Capital, where he’s responsible for managing all aspects of the firm’s investment process. Prior to forming AH Capital, he founded and managed Halaris Global, an international macro hedge fund where he successfully managed $15M in investor funds from 2006 to 2009. Before his work with Halaris Global, Nick served as Executive Vice President for Industrial Services of America, a $300M recycling company in Louisville. He was responsible for all administrative functions and served as General Counsel and Head of Mergers and Acquisitions. He also worked as a Strategy and Management Consultant advising senior executives at companies including GlaxoSmithKline, NiSource, Delphi, and Caterpillar on strategy development and implementation. Nick has a Bachelor of Arts with High Honors from the University of Michigan and a Juris Doctor from Stanford Law School. He is licensed to practice law in the state of California. Nick’s motivation is informed by his active philanthropy: in 2006, he developed a unique financial education, leadership, and citizenship curriculum for high school students and has been teaching in Los Angeles charter schools ever since. Nick started a nonprofit organization called the Los Angeles Institute of Financial Education, and as Founder and Executive Director, he’s responsible for directing the organization’s education and scholarship programs.
John Young

Before joining AH Capital as a partner, John Young had over 30 years of real estate experience. His early years were spent in sales and real estate brokerage focused on single family homes, and he later purchased and operated a residential mortgage company where he specialized in FHA and VA loans. The expertise John built in sales and finance proved to be a major asset to Young Homes, which John founded and operated for nearly 20 years, and which is one of the region’s largest homebuilders.

 
Young Homes shares a vision similar to AH Capital’s: to provide entry level homes that would make the dream of homeownership attainable for young families and other first time buyers. Young Homes eventually evolved to serve higher end markets, and John now brings his expertise to the AH Capital team.
 
John is a former Chair of the Member Services and Public Affairs Committees at the California Building
Industry Association, and he was the 2007 President of the Building Industry Association of Southern
California. He also served as BIA/SC’s Interim President for most of 2006. He’s served as President of
BIA/SC’s Baldy View Chapter and President of Home Aid Inland Empire.
 
John continues to be active in the National Association of Home Builders.
Daniel Alexander

Daniel Alexander, Co-Founder and Managing Director of AH Capital, manages the firm’s deal sourcing, acquisitions negotiations, and construction management. Daniel has 20 years of experience in various sectors of the real estate industry, and has had extensive involvement with hundreds of transactions. Daniel specializes in due diligence, financial evaluation, and development, and he’s sold over $150M in multifamily assets across markets in multiple states.

 
Daniel serves on the Advisory Board of Directors and acted as Director of Operations in Africa for MobileXL, a Los Angeles based mobile phone software company that has launched throughout Africa in partnership with Nokia and Orange Telecom. Daniel has also founded Sycamore Property Management, where he manages over 1000 units. Daniel earned a Bachelor’s Degree in Business Economics from UCLA and has done graduate work in Psychology at the University of Santa Monica.
Yusef Alexander

 

As Co-Founder and Managing Director, Yusef Alexander handles the firm’s deal sourcing, acquisition
negotiations, and property marketing and disposition. He focuses especially on home repositioning in the Southeast, where he acquires distressed assets to build outstanding homes for renters across the region.
 
Yusef excels in the negotiation side of the acquisition process, and he’s been involved in hundreds of
transactions over the course of his 16 years of experience in real estate. Yusef’s achievements are consistently driven toward helping people. In early 2012, Dog Ear Books published Yusef’s autobiographical real estate guide for aspiring investors called Deal to Deal, which chronicles his hands on experience with real estate negotiations and problem solving in Los Angeles. Yusef earned a Bachelor’s Degree in Business Economics from the University of California at Los Angeles. He writes for several periodicals and has regular speaking appointments with students on local campuses. Yusef also currently serves on the board of Symmetry Health Solutions, a Southern California based health facility that seeks to restrain America’s obesity epidemic.
Summary
Property Type: Residential, Duplex
Investment Type: Rehab
Estimated Rate of Return: 8% annualized
Estimated Hold Period: 12 months
Region: Los Angeles, CA
Purchase Price: $223,000
Loan Value: $175,000
LTV (Loan-to-Value) Before Repair: 78%
Est. Value After Repair: $340,000
Est. LTV After Repair: 51%
Protective Equity After Repair: $165,000

Investors in this opportunity will pool their money to make a loan to a real estate investor, AH Capital, for the purpose of a rehab.  

AH Capital will look to rehab the property as quickly as possible and resell to an end buyer.  Renovations will be top to bottom including a complete re-plumbing and rewiring, new kitchen, new bathrooms, new flooring, new windows, new stucco and new fixtures.  The rehab budget is $75,000.   Upon completion, the property will look like 60+ other renovations AH Capital has executed.

Investors will receive interest payments of 8%, with a final, balloon payment at the end of the loan term. The loan is secured by the property, in first position.

Risk Mitigation

  • There is a personal guarantee on the loan. 
  • AH Capital is a real estate investor with a history and a track record of success.
  • The loan is secured by a deed of trust.
  • The loan is protected by title insurance.
  • Investor returns are not contingent on the appreciation of the home value and investor returns do not increase based on the final sale price. Even if the property does not sell for the projected sale price, the borrower is still obligated to repay the loan.
  • In a worst case scenario, Realty Mogul will foreclose on the property. Upon acquisition of the property, Realty Mogul will facilitate the sale of the property and will distribute the proceeds to investors according to the percentage of the total investment opportunity they initially funded.
Location Information

The property is located in the The Avalon Blvd / E 47th St neighborhood of Los Angeles, CA, a densely urban neighborhood.

Avalon Blvd / E 47th St real estate is primarily made up of small (studio to two bedroom) to medium sized (three or four bedroom) single-family homes and small apartment buildings. Most of the residential real estate is renter occupied. Many of the residences in the Avalon Blvd / E 47th St neighborhood are relatively historic, built no later than 1939, and in some cases, quite a bit earlier. A number of residences were also built between 1940 and 1969.

According to Zillow, Southeast Los Angeles home values will rise 11% next year, compared to a 7.9% increase for Los Angeles as a whole.

Gallery
current
current
current
current
current
The following offering documents 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.
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.

INVEST TODAY

...

Questions?

(877) 781-7062

Contact Investor Relations
Staff Menu (IO ID#: 351):
EDIT IO DOCUMENTS
Staff Menu (IO ID#: 351):
EDIT IO DOCUMENTS
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 8 AM - 6 PM PST 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.