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.
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.
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.
We have formalized processes and checklists for every private placement deal listed on the platform.
Crown Bay Group
Crown Bay Group ("Crown Bay"), founded in 2013 is actively involved in the acquisition, asset management, renovation, repositioning and disposition of value-add apartment assets. Their primary investment strategy is to seek out properties that can be bought at a discount and then expeditiously resolve problem issues with the purpose of increasing net cash flow and in turn increasing the market value to the subject property.
The Real Estate Company will employ their related entity Crown Bay Management, LLC (“CBM”) as the property manager. CBM is managed by Director of Property Management, Michelle Fischer, Regional Property Manager, Jarrett Turner and Regional Maintenance Director/Project Manager, Dion Varner. Both Ms. Fischer and Mr. Turner have previous experience managing similar properties in the Columbia-area. Mr. Turner previously managed the 300-unit Arbors at Windsor Lake from September 2009 to March 2011, the 420-unit Greenbrier Apartments from September 2009 to March 2011, the 280-unit Lullwater at Saluda from June 2010 to December 2016 and the 300-unit Paddock Club from June 2010 to May 2011. Ms. Fischer and Mr. Varner were also involved with Lullwater at Saluda and Paddock Club. First Communities, a large national multifamily management company, will handle the back-office components.
https://www.crownbaygroup.com/Investment Name | City | State | Units | Acquisition Date | Purchase Price |
---|---|---|---|---|---|
Parkside Crossing Apartments | Forest Park | GA | 250 | Dec-2015 | $7,150,000 |
Greenbrier Mill | Atlanta | GA | 79 | Feb-2016 | $3,020,000 |
Hairston Woods Apartments | Stone Mountain | GA | 240 | Mar-2016 | $9,400,000 |
Flint River Crossing | Jonesboro | GA | 200 | Nov-2016 | $8,000,000 |
Waterford Manor Apartments | Decatur | GA | 118 | Dec-2016 | $3,150,000 |
Park at Greenbrier | Atlanta | GA | 209 | May-2017 | $8,650,000 |
Kenilworth Manor | Macon | GA | 237 | May-2017 | $4,400,000 |
Total | 1,333 | $43,770,000 |
The Real Estate Company's bio and track record were provided by the Real Estate Company and have not been verified by RealtyMogul.com or NCPS
In this transaction, RealtyMogul.com investors are to invest in Realty Mogul 80, LLC, which is to subsequently invest in LVA Holdings, LLC, a limited liability company that will hold title to the Property. The Real Estate Company is purchasing the Property for $11,450,000 ($40,893/unit), and the total project cost is $13,393,829 ($47,835/unit).
Crown Bay Group (the "Real Estate Company") believes this investment offers a rare opportunity to participate in an off-market, value-add acquisition of a stabilized Property that can achieve upside value creation through a targeted capital improvement plan and intensive hands on management. The current owners have maintained the buildings well, but have not aggressively targeted operations to increase value.
Rents are currently well below market and the sellers have already renovated a handful of units which are achieving $70 to $100 rental premiums over current rents (the Real Estate Company is underwriting an average renovation premium of $69). The Real Estate Company intends to continue this renovation program as units vacate, which will include resurfaced countertops, brushed nickel fixtures, hardware, flooring, lighting and new cabinet doors. The Real Estate Company intends to renovate an average of six units per month. Planned exterior renovations include creation of a new amenity space next to the leasing office with a playground, picnic/grilling area, and a pavilion, as well as re-plastering and upgrading the pool in year two.
Operational improvements the Real Estate Company intends to target include implementation of a RUBS program to recapture water expenses from the tenants and leasing of washer/dryer units. The Property was recently annexed into the City of Columbia, which when coupled with the implementation of a RUBS program, should result in lower Property expenses. There are over 200 units which have existing washer/dryer connections which the Real Estate Company plans to leverage by offering their washer/dryer rental program which has proven successful at their other communities. Lastly, the Real Estate Company has already identified various other expenses that they plan on reducing starting day one, while working with their management company to identify where further costs savings can be had.
The Real Estate Company plans to create a new amenity space next to the office with a playground, picnic/grilling area, and a pavilion as well as re-plastering and upgrading the pool in year two. Additionally, upon the recent annexation, the water charges are expected to be reduced by 36.8% per the appraiser and by comparing the city and county water charges. The annexation is also anticipated to increase property taxes but the net impact of the annexation is expected to increase net cash flow by about $78,000.
Exteriors/Common Areas | Cost | Cost/Unit |
---|---|---|
Landscaping/Purchase of 140 Washer/Dryer Units | $185,000 | $661 |
Roof Replacement | $200,000 | $714 |
New Amenity Area | $80,000 | $286 |
Other Amenities | $20,000 | $71 |
Mechanical Reserve | $50,000 | $179 |
Pool Renewal | $40,000 | $143 |
Deferred Maintenance | $100,000 | $357 |
Unit Interiors | Cost | Cost/Renovated Unit |
Counters, fixtures, hardware, flooring, lighting, cabinets | $411,429 | $2,857 |
Total | $1,086,429 |
RealtyMogul.com, along with Crown Bay Group (the "Real Estate Company"), is providing the opportunity to invest in the acquisition of Lake Shore Village, a 280-unit multifamily Property located in Columbia, SC (the "Property").
The primary objective of this investment is to acquire the Property, perform common area upgrades, interior renovations, and improve management efficiencies, then sell the Property within approximately five (5) years.
The Real Estate Company sees this investment as an opportunity to capitalize on a well-occupied, well-located asset in an expanding market that can be improved through targeted capital improvements and improved management and leasing efforts.
Lake Shore Village, located on almost 23 acres, enjoys some of the larger floorplans in the submarket, offers a well-appointed amenity package and attractive unit features. Amenities include a lakefront swimming pool, dog park, grilling areas, fitness center, large clubhouse and a 33-acre lake. The Property’s units, which average 959 SF, feature walk-in closets, fully-equipped kitchens, large patios and balconies, outside storage and washer/dryer connections in select units.
The Property was originally developed in 1974 as a 296-unit apartment community. In April 2016, a fire destroyed an entire building at the Property next to the office. A total of 16 units were destroyed in the fire and are not planned to be reconstructed. The footprint of the burnt down building will become the new community amenity area.
The Property enjoys an amenity rich location with with easy access to popular retail destinations, including East Point Plaza and Garners Ferry Marketplace are within walking distance of Lake Shore Village and boast numerous national retailers and restaurants including Walmart, Aldi, Lowe’s and Chick-fil-A. Per Multi Housing Advisors, the Columbia MSA population of 800,495 (2013) is expected to grow by approximately 7% through 2017, adding 55,000 new residents. The City of Columbia is a “population magnet” for the surrounding area and within a 30-mile commute of a the entire MSA.
Unit Type | # of Units | % of Total | Unit (SF) | Total SF | Rent/Unit | Rent/SF |
---|---|---|---|---|---|---|
Studio | 32 | 11% | 480 | 15,360 | $530 | $1.10 |
1 Bed, 1 Bath | 72 | 26% | 763 | 54,936 | $610 | $0.80 |
2 Bed, 1 Bath | 32 | 11% | 768 | 24,576 | $609 | $0.79 |
2 Bed, 2 Bath | 64 | 23% | 1,090 | 69,760 | $643 | $0.59 |
2 Bed, 1.5 Bath | 48 | 17% | 1,248 | 59,904 | $679 | $0.54 |
3 Bed, 3 Bath | 32 | 11% | 1,375 | 44,000 | $758 | $0.55 |
Totals/Averages | 280 | 100% | 959 | 268,536 | $637 | $0.71 |
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Harbour Landing | Mallard Pointe | Shandon Crossing | Subject - In-Place | Comp Set Averages | |
---|---|---|---|---|---|
# of Units | 208 | 120 | 152 | 280 | 160 |
Year Built | 1969 | 1973 | 1974 | 1974 | 1972 |
Miles from Subject | 0.2 | 0.9 | 3.8 | - | - |
Studio | |||||
# of Units | - | - | - | 32 | - |
Average Rent | - | - | - | $530 | - |
Average $/SF | - | - | - | $1.10 | - |
1 Bedroom | |||||
# of Units | 32 | 24 | 24 | 72 | 27 |
Average Rent | $659 | $644 | $680 | $610 | $661 |
Average $/SF | $0.84 | $0.76 | $0.81 | $0.80 | $0.81 |
2 Bedroom | |||||
# of Units | 120 | 72 | 120 | 144 | 104 |
Average Rent | $736 | $724 | $728 | $647 | $730 |
Average $/SF | $0.68 | $0.69 | $0.78 | $0.60 | $0.72 |
3 Bedroom | |||||
# of Units | 56 | 24 | 8 | 32 | 29 |
Average Rent | $885 | $804 | $900 | $758 | $864 |
Average $/SF | $0.64 | $0.64 | $0.85 | $0.55 | $0.66 |
Source: Axiometrics |
Garners Crossing | Wellington Farms | Deer Meadow Village | Huntington Place | Subject - Post-Renovation Units | Comp Set Averages | |
---|---|---|---|---|---|---|
# of Units | 210 | 236 | 304 | 192 | 144 | 236 |
Year Built | 1998 | 2000 | 2005 | 1998 | 1974 | 2000 |
Miles from Subject | 0.1 | 0.8 | 1.4 | 2.0 | - | - |
Studio | ||||||
# of Units | 18 | - | - | - | 16 | 18 |
Average Rent | $525 | - | - | - | $570 | $525 |
Average $/SF | $1.62 | - | - | - | $1.19 | $1.62 |
1 Bedroom | ||||||
# of Units | 60 | 88 | 68 | - | 37 | 72 |
Average Rent | $734 | $768 | $798 | - | $667 | $768 |
Average $/SF | $1.37 | $0.96 | $1.10 | - | $0.87 | $1.12 |
2 Bedroom | ||||||
# of Units | 108 | 96 | 180 | 160 | 75 | 136 |
Average Rent | $850 | $887 | $841 | $890 | $739 | $865 |
Average $/SF | $0.86 | $0.80 | $0.88 | $0.73 | $0.64 | $0.82 |
3 Bedroom | ||||||
# of Units | 24 | 52 | 86 | 32 | 16 | 41 |
Average Rent | $850 | $972 | $1,021 | $1,060 | $858 | $988 |
Average $/SF | $0.77 | $0.80 | $0.70 | $0.73 | $0.62 | $0.75 |
Source: Axiometrics |
Austin Woods |
Harbour Landing | Forestbrook Apartments | Hunters Ridge | Subject | Comp Set Total / Averages | |
---|---|---|---|---|---|---|
Date | June-17 | March-17 | June-16 | May-17 | - | - |
# of Units | 240 | 208 | 180 | 205 | 280 | 208 |
Year Built | 1975 | 1969 | 1984 | 1972 | 1974 | 1975 |
Purchase Price | $10,277,000 | $8,550,000 | $9,825,000 | $11,363,825 | $11,450,000 | $10,015,563 |
$/Unit | $42,821 | $41,106 | $54,586 | $55,433 | $40,893 | $48,094 |
Cap Rate | - | - | 5.7% | 7.0% | 6.8% | 6.4% |
Miles from Subject | 0.2 | 0.2 | 9.0 | 11.0 | - | - |
Source | RCA | RCA | Appraisal | Appraisal | - | - |
The Property enjoys a highly accessible location with frontage on Garners Ferry Road (34,507 VPD) and just minutes from I-77 (1.25 miles). Positioned 5.5 miles southeast of downtown Columbia (state capital of South Carolina), the community’s residents enjoy a short 10-minute commute to the CBD. Downtown Columbia, home of the University of South Carolina in addition to numerous government entities, has an employee base of over 85,000. The University of South Carolina (6,773 jobs), Fort Jackson (3,500 civilian jobs) and Wm. Jennings Bryan Dorn VA Medical Center (1,500 jobs) are all located within six miles of the Property. Per CoStar, the immediate area is expecting a 6.0% annual population growth after realizing a 10.9% average growth rate since 2010. Average HHI within the area is $46,000, $70,000 and $74,000 within one, three and five miles according to CoStar.
Popular retail destinations, including East Point Plaza and Garners Ferry Marketplace are within walking distance of Lake Shore Village and boast numerous national retailers and restaurants including Walmart, Aldi, Lowe’s and Chick-fil-A.
Amazon.com employs over 1,500 full-time employees in Columbia and recently announced the addition of 500 jobs at its 1.25 million SF distribution center in Lexington County. It’s estimated that Amazon.com will now have a $125 million economic impact on the Midlands region according to the State of South Carolina.
According to the Department of Defense, Fort Jackson is the US Army’s largest and most active Initial Entry Training Center, training 50 percent of the Army’s Basic Combat Training load and 60 percent of the women entering the Army each year. The 52,000-acre campus, located less than two miles from the Property, consists of over 1,260 buildings, ranges and training sites. Each year, Fort Jackson graduates more than 44,000 soldiers from basic and advanced training. Fort Jackson employs almost 3,500 civilians and provides services for more than 46,000 retirees and their family members. An additional 10,000 students attend courses at the Soldier Support Institute, Armed Forces Chaplaincy Center, National Center for Credibility Assessment and Drill Sergeant School annually.
Market Overview
A range of economic drivers such as low business and living costs, generous state and local tax incentives, and a central location have attracted businesses to the Columbia area. Development has ramped up over the past year, and these units have absorbed well. Columbia added more than 1,100 units in 2016, and over 1,000 units are under construction as of third quarter of 2017. Yearly rent growth reached 4.2% in the third quarter of 2015 but has decreased slightly since. Sales volume reached over $700 million in 2016, by far the highest volume the metro has ever seen according to Multi Housing Advisors (Cushman & Wakefield).
The South multifamily submarket of Columbia, SC saw rents increase 1.8% in the first quarter of 2017 which ranked 2nd in the market. Additionally, the occupancy rate increased from 92.4% to 94.5% in the second quarter of 2017 and is expected to remain around 93% over the hold per AXIO.
Per Multi Housing Advisors (Cushman & Wakefield), the Columbia MSA population of 800,495 (2013) is expected to grow by approximately 7% through 2017, adding 55,000 new residents. The City of Columbia is a “population magnet” for the surrounding area and within a 30-mile commute of a the entire MSA. The population is heavily weighted towards the prime renter demographic with approximately 45% of the population between the ages of 20 and 44. Median household incomes in Columbia are on the rise. Approximately 38% of households make above $50,000 annually (2012), roughly 12% above the state average of $41,457. The number of households expected to eclipse $50,000 is anticipated to grow by an additional 6% by 2017.
Demographic Information
Demographics | 1 Mile | 3 Miles | 5 Miles |
---|---|---|---|
Population (2017) | 6,589 | 33,248 | 88,143 |
Population Growth (2010-2017) | 10.9% | 4.6% | 5.6% |
Population Growth (2017-2022) | 6.0% | 5.0% | 4.8% |
Average Household Income (2017) | $46,328 | $69,972 | $74,128 |
Source: CoStar
Sources of Funds | Cost |
---|---|
Debt | $9,100,000 |
Equity | $4,293,829 |
Total Sources of Funds | $13,393,829 |
Uses of Funds | Cost |
Purchase Price | $11,450,000 |
Real Estate Company Acquisition Fee | $171,750 |
Broker Dealer Fee | $80,000 |
Capital Expenditures | $1,086,429 |
Closing Costs & Fees | $605,650 |
Total Uses of Funds | $13,393,829 |
The terms of the debt financing are as follows:
- Lender: Fannie Mae - Hunt Mortgage Group
- Loan Type: Agency (7/6 ARM)
- Proceeds: $9,100,000
- Loan to Purchase: 80.0%
- Term: Seven (7) years
- Rate: One-Month LIBOR + 233 bps floating*
- Amortization: 30 years
- Interest-Only Period: N/A
- Extensions: None
- Prepayment: 12-month lockout then 1.0% until the last three months of the term
- Recourse: Non-recourse
*The interest rate has the option to be fixed at the beginning of month 13.
LVA Holdings, LLC intends to make distributions of all available cash and capital proceeds to investors (Realty Mogul 80, LLC, Other LP investors and Real Estate Company, collectively, the "Members") as follows:
- Pro rata share of cash flow to a 15% Internal Rate of Return ("IRR") hurdle;
- Excess balances will be split pro rata 70% to Members and 30% to Real Estate Company to a 20% IRR;
- Excess balances will be split pro rata 60% to Members and 40% to Real Estate Company.
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 80, LLC will distribute 100% of its share of excess cash flow (after expenses and fees) to the members of Realty Mogul 80, LLC (the RealtyMogul.com investors). The manager of Realty Mogul 80, LLC will receive a portion (up to 10%) of the Real Estate Company's promote interest.
Distributions are expected to start in March 2018 and are expected to continue on a quarterly basis thereafter. These distributions are at the discretion of the Real Estate Company, who may decide to delay distributions for any reason, including maintenance or capital reserves.
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
---|---|---|---|---|---|
Effective Gross Revenue | $2,168,368 | $2,343,300 | $2,473,306 | $2,548,579 | $2,625,464 |
Total Operating Expenses | $1,391,528 | $1,432,505 | $1,472,651 | $1,511,603 | $1,551,642 |
Net Operating Income | $776,840 | $910,795 | $1,000,655 | $1,036,976 | $1,073,822 |
Distributions to Realty Mogul 80, LLC Investors | $88,129 | $143,674 | $177,847 | $189,177 | $3,641,292 |
Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
---|---|---|---|---|---|---|
Net Earnings to Investor | ($50,000) | $2,181 | $3,556 | $4,402 | $4,683 | $90,131 |
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 |
---|---|---|---|---|
Acquisition Fee | $171,750 | Real Estate Company | Capitalized Equity Contribution | 1.5% of the property purchase price |
Broker-Dealer Fee | $80,000 | North Capital (1) | Capitalized Equity Contribution | 4.0% of equity raised by RealtyMogul.com ($50,000 minimum) |
Type of Fee | Amount of Fee | Received By | Paid From | Notes |
---|---|---|---|---|
Property Management Fee | 4.0% of Effective Gross Income | Crown Bay Management | Distributable Cash | Real Estate Company Affiliate |
Asset Management Fee | 1.0% of Effective Gross Income | Real Estate Company | Distributable Cash | |
Construction Management Fee | 3.0%/5.0% of hard costs | Crown Bay Management | Construction Hard Costs | Real Estate Company Affiliate; 3.0% on projects up to $10,000 and 5.0% of projects over $10,000 |
Management and Administrative Fee | 1.0% of amount invested in Realty Mogul 80, LLC | RM Manager, LLC | Distributable Cash | RM Manager, LLC is the Manager of Realty Mogul 80, 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 Real Estate Company or others. Realty Mogul, Co., RM Manager, LLC, and Realty Mogul 80, 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.
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, LLCSponsor 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 DocumentsThe 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 InvestmentThis 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 AssumptionsSponsor 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 PerformanceAny 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 DebtA 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 RegisteredSponsor’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 AdviceNothing 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 RiskInternal 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.