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
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Canceled
Estimated Hold Period 5 Years
Estimated First Distribution 9/2017
...
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.
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Fremont Multifamily
Offered By
Trion Properties
Investment Type Equity
Overview
Value-add acquisition in Fremont by an experienced Real Estate Company who currently owns four other apartment communities in the Bay Area.
Management
Cumulative Distributions

Trion Properties

Trion Properties focuses on potentially maximizing investor returns by increasing net operating income throughout the holding period through a hands-on management style of heavy renovation and aggressive lease-up.  Trion Properties is a private equity investment company which acquires opportunistic real estate investments that need moderate to heavy rehab on a mid to long term investment horizon.

Founded in 2005, Trion has successfully closed over $160 million in transactions through either the purchase of the fee simple interest or taking ownership of the asset through acquiring the non-performing debt.  Trion Properties is managed by principals whose combined experience spans over 20 years in West Coast real estate markets and is in excess of one billion dollars in transactions.

 

http://www.trion-properties.com/
  • Max Sharkansky, Managing Partner
  • Mitch Paskover, Managing Partner
Max Sharkansky, Managing Partner

Max Sharkansky, co-founder of Trion Properties, oversees all aspects of acquisition, disposition, and property analysis for Trion Properties. Since founding Trion Properties, Max has led the acquisition, renovation and disposition of over $100,000,000 in mismanaged and distressed assets, primarily in multifamily, yielding an average IRR in excess of 30%. Max launched the foray into investments with two acquisitions of value-add multifamily properties in 2005. Following the first two closings, Max, along with partner Mitch Paskover, created the platform and formed the Company in 2005 to execute a business plan of acquiring mispriced and mismanaged properties throughout Los Angeles. Max led Trion in the execution of several acquisitions in its first two years of existence and exiting the portfolio prior to the economic crisis. With cash on hand and no resources tied up in workouts, Max assisted in implementing an acquisition strategy of targeting distressed debt secured by multifamily, and distressed multifamily REO’s, which led to the ultra-successful campaign of the acquisition of 20 properties throughout the downturn. Since the recovery and the clearing of distress from the marketplace, Max has shifted strategies to the acquisition of value-add properties where value can be created through extensive renovations, hands-on management, and improvement of operating efficiencies.

Prior to co-founding Trion Properties, Max was a Senior Associate at Marcus & Millichap from 2002 through 2006. While at Marcus & Millichap, Max managed the sale of several million dollars in real estate throughout the continental United States, specifically in the multifamily arena, elevating him to one of the top-ranking brokers in Los Angeles, California.

His ability to seek out and acquire distressed multifamily properties and his expertise of the marketplace has been instrumental in the success of Trion Properties.

He graduated from Loyola Marymount University where he earned a Bachelor's degree in Business Administration with an emphasis on Finance.

Mitch Paskover, Managing Partner

Mitch Paskover co-founded Trion Properties with Max Sharkansky in 2005 when they acquired their first investment property in Los Angeles. Mr. Paskover oversees all aspects of debt and equity placement for Trion Properties as well as the overall development of the firm. Prior to co-founding Trion Properties, Paskover was a Managing Director in the Los Angeles office of HFF (Holliday Fenoglio Fowler, L.P.). Paskover has over eight (8) years of experience in commercial real estate finance. Paskover’s primary focus was on debt and equity transactions including multifamily, office, retail and hospitality properties with an emphasis on multifamily. During the course of his career in commercial real estate, Paskover has been involved in over $2.0 billion in commercial real estate transactions. He graduated from University of Southern California where he earned a Bachelor’s degree in Business Administration with an emphasis on Finance.

Track Record

Sponsor Portfolio
                     
Currently Owned Properties
Property Address City Property Type Date
Acquired
# of
Units
Square Feet Status Purchase
Price
Total Cost Basis BOV/ Appraisal Valuation Date
3536 Watt Ave Sacramento, CA MF 4/1/2013 128 - 2016 Sale $4,900,000 $5,932,025 $10,000,000 2/1/2016
24510 Town Center Dr Valencia, CA Retail 10/22/2013 - 26,186 2016 Sale $6,900,000 $7,900,000 $11,000,000 11/10/2015
5416 Jackson St North Highlands, CA MF 1/28/2014 185 - 2016 Sale $9,300,000 $10,738,981 $16,000,000 1/15/2016
412 S Lake St Los Angeles, CA MF 8/1/2013 41 - Cash-out Refi $1,600,000 $4,181,454 $8,500,000 2/1/2016
4620 S Slauson Ave Los Angeles, CA MF 9/12/2014 28 - Cash-out Refi $6,750,000 $7,418,379 $10,000,000 2/17/2016
1802-1820 Pacific Coast Hwy Redondo Beach, CA Retail 11/24/2014 - 20,191 Stabilized $5,781,250 $6,962,500 $9,800,000 7/10/2015
Penn St Whittier, CA N/A 6/1/2012 - N/A Entitlement $1,100,000 $1,100,000 n/a n/a
28955 Pacific Coast Hwy Malibu, CA Retail/ Office 2/28/2014 - 16,711 Renovating $5,750,000 $7,500,000 n/a n/a
1804 NE 104th St Portland, OR MF 5/14/2015 74 - Renovating $6,642,598 $8,122,000 n/a n/a
3635 College Ave San Diego, CA MF 6/15/2015 98 - Renovating $9,650,000 $12,441,030 n/a n/a
6180 Aldama Los Angeles, CA MF 7/31/2015 15 - Renovating $3,375,000 $4,113,253 n/a n/a
2222 SW Spring Garden Portland, OR MF 8/14/2015 44 - Renovating $4,450,000 $5,713,266 n/a n/a
324 S Catalina St Los Angeles, CA MF 11/23/2015 47 - Renovating $7,540,000 $8,245,741 n/a n/a
23924 2nd St Hayward, CA MF 12/23/2015 30 - Renovating $6,650,000 $7,830,000 n/a n/a
348 Estabrook San Leandro, CA MF 1/4/2016 38 - Renovating $7,200,000 $8,574,811 n/a n/a
Total       728 63,088   $87,588,848 $106,773,440    
                     
Sold Properties
Property Address City Property Type Date
Acquired
# of
Units
Square Feet Purchase
Price
Total Cost Basis Sale Value Sale Date  
909 Sunshine Ave El Cajon, CA MF 4/10/2013 22 - $2,350,000 $2,619,213 $3,740,000 5/7/2015  
3298 Mooney Blvd Visalia, CA Retail 12/31/2012 - 57,254 $2,746,650 $2,756,277 $4,000,000 6/1/2013  
7629-7633 Normal Ave La Mesa, CA MF 11/20/2012 21 - $1,900,000 $2,263,689 $3,580,000 6/9/2015  
Arden Loan Portfolio Sacramento, CA MF 7/26/2012 224 - $5,750,000 $6,085,860 $7,134,385 2/1/2013  
1535 N Cedar Ave Fresno, CA MF 7/13/2012 124 - $3,248,750 $4,435,709 $5,500,000 3/4/2015  
4318 Avalon Los Angeles, CA MF 1/3/2012 11 - $515,000 $563,902 $680,000 7/18/2012  
2280 South Drive Auburn, CA MF 12/30/2011 16 - $1,350,000 $1,727,568 $2,400,000 7/12/2012  
210 43rd Place Los Angeles, CA MF 9/26/2011 30 - $949,000 $1,040,393 $1,480,000 6/25/2012  
8833 Tobias Ave Panorama City, CA MF 9/21/2011 20 - $1,169,000 $1,278,675 $1,430,000 12/30/2011  
225 N Avenue 53 Los Angeles, CA MF 4/28/2011 20 - $1,249,463 $1,526,243 $2,075,000 5/12/2012  
4620 Coliseum Los Angeles, CA MF 12/17/2010 35 - $1,800,000 $1,985,773 $2,550,000 12/29/2011  
1324 57th St Los Angeles, CA MF 11/23/2010 14 - $875,000 $977,018 $1,155,000 10/28/2011  
6407 10th Ave Los Angeles, CA MF 5/5/2010 28 - $1,500,000 $1,763,512 $2,125,000 7/29/2011  
East West Bank Portfolio Los Angeles County, CA MF 8/14/2009 21 - $725,000 $740,024 $960,000 9/1/2010  
13490-13520 Foothill Blvd Sylmar, CA MF 6/4/2007 81 - $11,150,000 $11,786,570 $12,850,000 7/1/2008  
7445 Vineland Sun Valley, CA MF 4/10/2007 20 - $1,867,125 $1,928,485 $2,250,000 8/5/2008  
4632 Laurel Canyon (1) Valley Village, CA MF 3/20/2007 44 - $5,225,000 $5,529,035 $4,851,125 5/29/2009  
12717 Barbara Ann North Hollywood, CA MF 11/2/2006 24 - $2,625,000 $2,800,887 $3,200,000 4/10/2009  
417 W Los Feliz Glendale, CA MF 12/30/2005 34 - $2,200,000 $2,444,000 $3,495,000 5/17/2007  
7355 - 7359 Vineland Sun Valley, CA MF 12/28/2005 12 - $1,147,466 $1,263,093 $1,600,000 4/11/2007  
Realized Total       801 57,254 $50,342,454 $55,515,926 $67,055,510    
Combined Portfolio Total       1,529 120,342 $137,931,302 $162,289,366      
Gallery
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.

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