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.
Comunidad Realty Partners
Comunidad Realty Partners (CRP) is a dynamic real estate investment firm specializing in multifamily apartment communities in densely-populated Hispanic neighborhoods. Core to its investment strategy is creating culturally-relevant, inclusive communities that are tailored to the various ethnicities living at its communities. CRP owns and manages over $286 million in multifamily assets overall, comprising approximately 4,800 units.
CRP specializes in acquiring and repositioning apartments in infill locations and implementing its proprietary cultural management platform which includes specific cultural upgrades and community-oriented resident services and programs. CRP uses its multifamily lifestyle brand “Buena Vida Community” at its properties to represent its mission of delivering an unparalleled experience of enhanced multifamily living by providing more than just a home but a lifestyle. The firm was founded on a simple principle: enrich lives through enhancing communities while creating value for all stakeholders involved. The firm takes a holistic approach to its investments through symbiotic stakeholder integration of residents, staff, vendors, the greater community, the environment, and investors in order to truly maximize economic and social returns. Its investment philosophy is predicated on fostering innovative lifestyle improvements that align with its residents wants and needs and differentiate the living experience in order to create long-term value for residents and communities in a socially responsible way. Additionally, the firm is focused on “green” environmental improvements that reduce its properties’ energy footprint while reducing utility costs for residents.
RealtyMogul has invested in six prior transactions with the Real Estate Company (Tuscany Apartments, Plano Portfolio, Gazebo Park, Villas de Serenada, Villas del Cabo & Villas de Santa Fe, and Villas de la Colonia). Villas de la Colonia (formerly Metrocrest Village) was acquired in Q2 2014, went full cycle in Q2 2017, and resulted in an IRR to RealtyMogul investors that exceeded pro forma. The renovation program at Villas de la Colonia pushed average leased rents up 20.1%, from $730 per unit to $877 per unit, and reduced the property's expense ratio from 56.8% to 37.3%. Net operating income increased by 32.4% at Villas de la Colonia over the hold period.
http://www.comunidadpartners.com/Property Name | Location | Asset | Units | Cost Basis | Occupancy |
---|---|---|---|---|---|
Villas de la Luz Apartments | Austin, TX | MF | 240 | $10,865,000 | 89% |
Villas de la Cascada Apartments | San Antonio, TX | MF | 268 | $18,265,000 | 94% |
Villas del Zocalo Phase 1 | Dallas, TX | MF | 206 | $5,344,828 | 96% |
Villas del Zocalo Phase 2 | Dallas, TX | MF | 192 | $4,810,345 | 95% |
Villas del Zocalo Phase 3 | Dallas, TX | MF | 224 | $5,344,828 | 98% |
Villas de Estancia Apartments | Irving, TX | MF | 206 | $12,667,724 | 95% |
Villas de Serenada Apartments | Euless, TX | MF | 208 | $13,625,000 | 96% |
Villas del Encanto Apartments | San Antonio, TX | MF | 334 | $15,580,000 | 95% |
The Vive Apartments | Dallas, TX | MF | 248 | $14,836,104 | 90% |
Cantera Creek Ph. 1 Apartments | Dallas, TX | MF | 200 | $11,038,800 | 90% |
Cantera Creek Ph. 2 Apartments | Dallas, TX | MF | 272 | $15,012,768 | 90% |
The Lantern Apartments | Dallas, TX | MF | 340 | $20,943,660 | 90% |
Villas de Santa Fe Apartments | San Antonio, TX | MF | 208 | $13,172,676 | 90% |
Azura Apartments | Phoenix, AZ | MF | 387 | $24,000,000 | 93% |
Colinas Ranch Apartments | Irving, TX | MF | 160 | $10,418,000 | 98% |
Villas del Solamar | Dallas, TX | MF | 212 | $5,800,000 | 96% |
Villas del Cabo | San Antonio, TX | MF | 272 | $19,613,324 | 93% |
Parkview on Hollybrook | Longview, TX | MF | 209 | $31,588,000 | 80% |
Gazebo Park Apartments | Acworth, GA | MF | 216 | $17,540,840 | 96% |
Tuscany Apartments | San Antonio, TX | MF | 190 | $16,046,556 | 93% |
Total | 4,792 | $286,513,453 |
Property Name | Location | Asset | Units | Cost Basis | Occupancy |
---|---|---|---|---|---|
Villas de Sendero Apartments | San Antonio, TX | MF | 209 | $8,750,000 | 97% |
Villas de las Colinas Apartments | Austin, TX | MF | 178 | $4,700,000 | 98% |
Villas del Sol Apartments | Austin, TX | MF | 294 | $9,650,000 | 93% |
Villas de Palmas Apartments | Houston, TX | MF | 659 | $22,425,687 | 98% |
Villas de la Colonia Apartments | Carrollton, TX | MF | 143 | $6,055,000 | 99% |
The Current Apartments | Austin, TX | MF | 302 | $22,650,000 | 95% |
Total | 1,785 | $74,230,687 |
The above track record information was provided by the Sponsor and has not been independently verified by RealtyMogul.
In this transaction, RealtyMogul investors are to invest in Realty Mogul 109, LLC ("The Company"), which is to subsequently invest in Villas Del Mar Partners 29, LLC ("The Target"), a limited liability company that will hold title to the Property. Comunidad Realty Partners (the "Real Estate Company") is under contract to purchase the Property for approximately $14.5 million ($55,250 per unit) and the total project cost is expected to be approximately $16.2 million ($61,468 per unit).
The Real Estate Company’s business plan is to implement a value-add strategy by completing interior and exterior renovations at the Property, while also installing low-flow water fixtures throughout the Property to lower utility expenses and beginning to bill back a portion of utility expenses to tenants of the Property. Unit interior upgrades are expected to include a combination of black-on-black appliances, faux-wood flooring, and new light fixtures. A summary of all capital expenditures planned by the Real Estate Company for the Property may be found in the table below.
CapEx Item | $ Amount | Per Unit |
---|---|---|
Interior Rehab ($3,200 each for 113 units) | $361,600 | $1,375 |
Utility Water Reduction Program | $147,200 | $560 |
Parking Lot Seal Coat and Striping | $25,000 | $95 |
Leasing Clubhouse Upgrades | $25,000 | $95 |
Signage | $25,000 | $95 |
Solar Screen Installations | $20,000 | $76 |
Immediate Repair Items | $17,188 | $65 |
Security Upgrades | $15,000 | $57 |
Carpentry and Exterior Paint | $10,000 | $38 |
Grill and Bench Installation | $10,000 | $38 |
Upgrading Existing Playground | $10,000 | $38 |
Exterior LED Light Installation | $9,000 | $34 |
Tree Trimming | $7,500 | $29 |
Dog Park | $7,500 | $29 |
Sewer Hydrojet Cleaning | $1,650 | $29 |
Contingency 10.0% | $71,681 | $273 |
Construction Management Fee 10.0% | $71,681 | $273 |
Total | $860,000 | $3,270 |
The seller of the Property has already completed interior renovations on 150 of the 263 units at the Property. The Real Estate Company plans to renovate the remaining 113 currently unrenovated units, achieving an average post renovated net effective rent of $908 per unit, and to sell the Property in five (5) years at a 7.00% cap rate. The pro forma financials included in the Issuer Document Package attached to the Financials tab of this offering anticipate a net yield to investors in the Company of 6.6% in Year One of the hold period, increasing to 12.3% in Year Two.
RealtyMogul has invested in six prior transactions with the Real Estate Company (Tuscany Apartments, Plano Portfolio, Gazebo Park, Villas de Serenada, Villas del Cabo & Villas de Santa Fe, and Villas de la Colonia). Villas de la Colonia (formerly Metrocrest Village) was acquired in Q2 2014, went full cycle in Q2 2017, and resulted in an IRR to RealtyMogul investors that exceeded pro forma. The renovation program at Villas de la Colonia pushed average leased rents up 20.1%, from $730 per unit to $877 per unit, and reduced the property's expense ratio from 56.8% to 37.3%. Net operating income increased by 32.4% at Villas de la Colonia over the hold period.
Built in 1968, the Property consists of one, two and three-bedroom floor plans combining to 263 units, 35 buildings, 437 parking spaces (1.66 per unit), and 274,213 square feet. As of December 2017, the Property was 94% occupied. The weighted average unit size and in-place net effective rent per unit is 1,043 square feet and $876 ($0.84 per square foot), respectively (per the December 2017 rent roll). Amenities across the Properties include a swimming pool, clubhouse, children's play area, a public mail center, a public laundry center, 24 hour emergency on-site maintenance, and a leasing center with full public kitchen.
Unit Type | # of Units | % of Total | Unit (Square Feet) | Total Square Feet | Rent Per Unit | Rent Per Square Foot |
---|---|---|---|---|---|---|
1 Bedroom | 44 | 17% | 860 | 37,840 | $785 | $0.91 |
2 Bedroom | 162 | 61% | 1,011 | 163,854 | $846 | $0.84 |
3 Bedroom | 57 | 22% | 1,272 | 72,519 | $1,031 | $0.81 |
Totals/Averages | 263 | 100% | 1,043 | 274,213 | $876 | $0.84 |
Tradewind I & II | Sonoma Apartments | French Colony | Hampton Terrace | Falls and Oak Village | Averages | Subject | |
---|---|---|---|---|---|---|---|
Date | February 2017 | August 2017 | August 2016 | December 2016 | January 2017 | February 2018 | |
# of Units | 308 | 60 | 94 | 244 | 408 | 223 | 263 |
Year Built | 1967 | 1964 | 1963 | 1969 | 1977 | 1973 | 1968 |
Purchase Price | $16,700,000 | $3,510,000 | $5,100,000 | $14,150,000 | $26,000,000 | $13,092,000 | $14,530,000 |
$/Unit | $54,221 | $58,500 | $54,255 | $57,992 | $63,725 | $57,739 | $55,250 |
Cap Rate | 6.69% | 6.50% | 6.45% | 5.40% | 5.40% | 6.09% | 5.83% |
El Ranchito West | Bella Terra | Westlake Gardens | El Jardin Apartments | Parkside Apartment Homes | Chilsolm Trail Townhomes | Averages | Subject (Post-Renovation) | |
---|---|---|---|---|---|---|---|---|
# of Units | 68 | 200 | 180 | 93 | 170 | 168 | 147 | 263 |
Year Built | 1968 | 1970 | 1984 | 1965 | 1973 | 1982 | 1974 | 1968 |
Occupancy | 92% | 93% | 95% | 95% | 89% | 97% | 94% | 94% |
Average SF | 1,046 | 921 | 740 | 1,098 | 819 | 1,068 | 949 | 1,043 |
Average Rental Rate | $906 | $824 | $834 | $1,104 | $881 | $878 | $905 | $908 |
Average $/SF | $0.87 | $0.89 | $1.13 | $1.01 | $1.08 | $0.82 | $0.97 | $0.87 |
Distance (miles from subject) | 0.1 | 0.7 | 0.7 | 1.9 | 1.9 | 0.4 | 1.0 |
Lease and Sale Comparable information provided by Property appraisal.
Located off of Las Vegas Trail, the Property offers easy access to I-30, Loop 820, TX State Highway 183, US Highway 377, and Chilsom Trail Parkway. and TX-151. It is in close proximity to several shopping, dining and entertainment options including Westover Marketplace, Ingram Park Mall, and Walmart Supercenter (less than one mile away).
Per CoStar, from an employment standpoint, Southwest Fort Worth's healthcare and government/defense jobs are key drivers of demand. The Southwest Fort Worth Submarket has dozens of healthcare facilities, including six hospitals, which employ more than 2,500 people. And the majority of Southwest Fort Worth's apartments are close to these hospitals. The submarket is also home to many defense sector employers, like Lockheed Martin, which recently won a nearly $1 billion contract for its Fort Worth facility and will add 1,800 jobs there. Such companies employ more than 3,000 people and occupy almost three million square feet in this submarket. The elephant in the room in terms of employment, though, is the proximity of Southwest Fort Worth to employment in Downtown Fort Worth and the economic headwinds associated with sustained low energy prices. However, while Fort Worth has not seen the type of exceptional job and population growth that the Dallas side of the metroplex has, it's still adding jobs at a faster clip than the national average. In a notable recent deal, WeWork announced it will take 44,000 SF at the Offices at Clearfork in 2018. That space will have enough room to accommodate more than 800 workers.
Per CoStar, Texas Christian University (TCU) also provides consistent apartment demand for the submarket. It is a strong demand driver in Southwest Fort Worth because of all the TCU students and graduates who work in Fort Worth. Its proximity to downtown Fort Worth gives it an appealing live/work/play environment. The school enrolls over 10,000 students, which creates a strong demand for apartments in the area, whether from students moving off campus or those who want to remain in the area and work in downtown Fort Worth after graduation.
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Market Overview
Per Axiometrics, annual effective rental growth rate in the Fort Worth-Arlington market was 4.4% in 2017. Annual effective rent growth is forecast to be 3.2% in 2018, and average 2.8% from 2019 to 2021. Annual effective rent growth has averaged 4.9% since the beginning of 2011. The market's annual rent growth rate was above the national average of 2.3%. Out of the 120 markets ranked by Axiometrics nationally, Fort Worth-Arlington, TX Metro Division was 50th for quarterly effective rent growth, and 29th for annual effective rent growth for 4Q17. The market's occupancy rate decreased from 95.3% in 3Q17 to 94.6% in 4Q17, and was down from 95.5% a year ago. The market's occupancy rate was below the national average of 94.7% in 4Q17. For the forecast period, the market's occupancy rate is expected to be 94.8% in 2018, and average 94.8% from 2019 to 2021. The market's occupancy rate has averaged 94.2% since the beginning of 2011.
Submarket Overview
Per Axiometrics, annual effective rental growth rate in the Southwest submarket of the Fort Worth-Arlington market was 3.5% in 2017. Annual effective rent growth is forecast to be 3.0% in 2018, and average 2.6% from 2019 to 2021. Annual effective rent growth has averaged 4.3% since the beginning of 2011. The submarket's annual rent growth rate was above the national average of 2.3%. Out of the 12 submarkets of the Fort Worth-Arlington market ranked by Axiometrics, the Southwest submarket ranked eighth of 12 for projected effective rent growth for the period 2018 to 2021. Occupancy in the submarket average 95.1% in 2017, equivalent to its average in 2016. For the period from 20181 to 2021 the submarket's projected occupancy averages 95.0%. The submarket's occupancy rate has averaged 94.2% since the beginning of 2011.
Demographic Information
Distance from Property | 1 mile | 3 miles | 5 miles |
Population (2017) | 19,768 | 81,282 | 151,049 |
Population (2022) | 21,476 | 87,809 | 163,155 |
Average Age | 34 | 36 | 38 |
Median Household Income | $40,267 | $67,379 | $77,652 |
Median Household Income | $40,267 | $67,379 | $77,652 |
Average Household Size | 2.3 | 2.5 | 2.3 |
Median Home Value | $94,745 | $130,037 | $154,719 |
Population Growth 2017-2022 | 10.6% | 9.5% | 8.9% |
Demographic information above was obtained from CoStar.
Sources of Funds | Cost |
---|---|
Debt | $12,658,000 |
Equity | $3,756,102 |
Total Sources of Funds | $16,414,102 |
Uses of Funds | Cost |
Purchase Price | $14,530,750 |
CapEx Reserve | $860,000 |
Real Estate Company Acquisition Fee | $217,960 |
MogulREIT II Acquisition Fee | $48,750 |
North Capital Broker Dealer Fee | $90,675 |
Lender Origination Fee | $46,500 |
Buyer's Broker Fee | $101,717 |
Working Capital | $50,000 |
Escrows | $95,000 |
Closing Costs | $74,750 |
Cash Flow Reserve | $298,000 |
Total Uses of Funds | $16,414,102 |
The expected terms of the debt financing are as follows:
- Lender: Arbor Commercial Funding I, LLC (as DUS Lender for Fannie Mae)
- Estimated Proceeds: $12,658,000
- Estimated Rate (Fixed): 10 Year Treasury + 2.07% (4.93% all-in as of February 9, 2018)
- Amortization: 30 years, with three years of interest-only
- Term: 12 years
- Prepayment Penalty: 11.5 years of yield maintenance
- Assumption Fee: 1.0% of outstanding loan principal balance
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.
The Target will make distributions to investors (The Company, MogulREIT II, and Real Estate Company, collectively, the "Members") as follows:
Operating Income, Refinance, and Sales Proceeds
- To the Members, in proportion to, and to the extent of, their accrued but unpaid preferred returns (8.0%).
- To the Members, in proportion to, and to the extent of, their unreturned capital.
- 70.0% / 30.0% (70.0% to Members / 30.0% to the Real Estate Company) of excess cash flows and appreciation to a 16.0% IRR to Members.
- 60.0% / 40.0% (60.0% to Members / 40.0% to the Real Estate Company) of excess cash flow and appreciation thereafter.
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).
The Company will distribute 100% of its share of excess cash flow (after expenses) to the members of The Company (the RealtyMogul investors). Distributions are expected to start in September 2018 and are projected 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 One | Year Two | Year Three | Year Four | Year Five | |
---|---|---|---|---|---|
Effective Gross Revenue | $2,493,314 | $2,897,914 | $2,992,545 | $3,071,008 | $3,143,439 |
Total Operating Expenses | $1,611,838 | $1,730,148 | $1,775,415 | $1,822,533 | $1,870,701 |
Net Operating Income | $881,476 | $1,167,767 | $1,217,130 | $1,248,476 | $1,272,739 |
Year 0 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
---|---|---|---|---|---|---|---|
Distributions to Realty Mogul 109, LLC Investors |
($1,875,000) | $120,733 | $222,811 | $248,413 | $189,322 | $185,663 | $2,505,006 |
Net Earnings to Investor - Hypothetical $50,000 Investment |
($50,000) | $3,220 | $5,942 | $6,624 | $5,049 | $4,951 | $66,800 |
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 | $217,961 | Real Estate Company | Capitalized Equity Contribution | 1.5% of the Property purchase price. |
Acquisition Fee | $48,750 | RM Advisor, LLC | Capitalized Equity Contribution | RM Advisor, LLC is the Manager of MogulREIT II and a wholly-owned subsidiary of Realty Mogul, Co. |
Disposition Fee | 1.0% of gross sale proceeds | RM Advisor, LLC | Distributable Cash | RM Advisor, LLC is the Manager of MogulREIT II and a wholly-owned subsidiary of Realty Mogul, Co. |
Broker-Dealer Fee | $90,675 | North Capital (1) | Capitalized Equity Contribution | 4.875% based on the amount of equity invested by Realty Mogul 109, LLC. |
Construction Management Fee | 10.0% of costs | Real Estate Company | Capitalized Equity Contribution |
Type of Fee | Amount of Fee | Received By | Paid From | Notes |
---|---|---|---|---|
Asset Management Fee | 1.5% of effective gross revenues | Real Estate Company | Operating Cash Flow | |
Management and Administrative Fee | 1.25% of amount invested in Realty Mogul 109, LLC | RM Manager, LLC | Distributable Cash | RM Manager, LLC is the Manager of Realty Mogul 109, 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 The Company, 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.