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.

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

Confidentiality Agreement
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Completed Debt
Estimated Hold Period 6 to 12 months
FUNDED 100%
...
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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St. Georges Single Family Rehab
Offered By
OCG Properties
Investment Type Debt
Overview
Management
Cumulative Distributions

OCG Properties

Owens Consulting Group ("OCG") is a professional residential rehabilitation company based in Memphis, TN that specializes in purchasing, renovating, tenanting and selling investment properties. OCG has completed over 300 transactions in the past five years alone, representing over $25 million in real estate, most of which has been held for long term growth or sold to cash flow investors.

The OCG team consists of property managers, contractors, insurance agents, certified public accountants, attorneys, title companies, funding sources, lenders, and realtors. OCG’s team has over 60 years of combined experience in various aspects of real estate investment including due diligence, acquisition, renovation, property management and sales on all of its properties, therefore increasing its efficiency and decreasing outsourcing risk.

OCG runs its own in-house property management and renovation companies in order to control and protect investors' assets more efficiently and is currently acquiring 5 to 10 investment properties per month.

http://www.ocgproperties.com
  • Mathew Owens, CPA
  • Tyler Owens
Mathew Owens, CPA

Mathew graduated from UC Santa Barbara with a B.A. in economics and an emphasis in accounting. He earned his CPA license in 2000 and specializes in real estate investments, syndications, corporate and individual taxation, business consulting and real estate consulting. He worked as a CPA, auditor and business advisor while running his own tax business before founding OCG. Matt is responsible for operations management, deal analysis, advertising, sales, accounting control systems and teaching financial literacy courses.

Tyler Owens

Tyler is the Acquisition and Finance Manager with OCG. Tyler earned his B.S. in Business Finance at Cal State Dominguez Hills. Tyler established an E-bay business in addition to working for various finance companies before joining his brother in an effort to create OCG.

Now with several years of real estate experience and his own real estate portfolio, Tyler assists in all parts of the business inlcuding the acquisition of properties, investor relations, property analysis, due diligence, property management coordination, renovation estimates, marketing, sales, accounting, bookkeeping and record retention procedures.

Summary

At A Glance

Property Type: Residential, Single-Family
Investment Type: Loan Purchase*
Estimated Return: 9% annualized
Loan Term: 12 months
Location: Newnan (Atlanta), GA
   
Purchase Price: $107,934
Loan Amount: $85,000
Est. Value After Repair: $160,000
Est. LTV After Repair: 53%
Est. Protective Equity: $75,000

Summary

OCG Properties is obtaining a loan for the purpose of a rehab. OCG Properties is performing renovations on the property and will look to sell as quickly as possible at a higher price than the purchase price. Renovations typically include new paint, new carpet, AC system replacement, minor plumbing upgrades, minor electrical upgrades, and general clean up items. Upon completion, the property will look like other renovations OCG Properties has executed. ​

Investors will receive interest payments of 9% with a final balloon payment at the end of the loan term. The security interest for the underlying borrower loan is a deed of trust secured by the property in first position.* 

Comparable Transactions
STREET ADDRESS PURCHASE PRICE SQUARE FOOT PRICE PSF YEAR BUILT PROXIMITY DATE CLOSED
80 St. Georges Lane $167,900 1,953 $85 1992 0.16 mi 10/11/13
180 Northcrest Drive $222,000 2,309 $96 1992 0.77 mi 09/19/13
57 Fieldstone Way $179,700 2,045 $87 1999 1.53 mi 09/05/13
39 Kingsbrook Circle $145,000 1,586 $91 1998 1.80 mi 08/08/13
             
135 St. Georges Lane $85,000** 1,775 $47 1994    

**Loan Amount

Risk Mitigation***

  • There is a personal guarantee on the underlying borrower loan.*
  • The borrower is a real estate investor with a history and a track record of success.
  • The security interest for the underlying borrower loan is a deed of trust.*
  • The underlying borrower loan is protected by title insurance.*
  • The underlying property is protected by property insurance.*
  • Investor returns are not contingent on the appreciation of the property value and investor returns do not increase based on any resale price. The borrower is still obligated to repay the corresponding borrower loan.
  • In a worst case scenario, a foreclosure of the property is possible. Proceeds would be distributed to investors according to the percentage of the total investment opportunity initially funded net of any expenses incurred for the foreclosure proceedings. 

*An investment in this loan will be made through a borrower dependent payment note issued by Realty Mogul. This promissory note is dependent on payments that Realty Mogul receives on the underlying borrower loan. While the underlying borrower loan is secured by legal title on real estate, the borrower dependent payment note is not itself secured nor does it have a personal guarantee. 

***The above is not intended to be a full discussion of all the risks of this investment. Please see the Risk Factors in the Investor Document Package for a discussion of additional risks.

Location Information

Atlanta is the capital of and the most populous city in the state of Georgia, with a city population that exceeds 440,000 people and a greater metropolitan area population of over 5 million. Atlanta is a primary transportation hub in the southeastern United States, with Hartsfield-Jackson Atlanta International Airport being the world's busiest airport since 1998. Although Atlanta's economy is considered diverse, the dominant economic sectors include logistics, professional and business services, media operations, and information technology. Corporate operations comprise a large portion of Atlanta’s economy, with the city serving as the regional, national, or global headquarters for many corporations. In 2012, Atlanta was home to the country’s fourth largest concentration of Fortune 500 companies, serving as the global headquarters for corporations such as The Coca-Cola Company, Home Depot, Delta Air Lines, UPS, and Newell-Rubbermaid.

The property is located within the Lakeside Way / Route 34 neighborhood, which is a suburban neighborhood located southwest of Atlanta in the city of Newnan. Lakeside Way / Route 34 real estate is primarily made up of medium sized (three or four bedroom) to small (studio to two bedroom) single-family homes and apartment complexes/high-rise apartments. Most of the residential real estate is occupied by a mixture of owners and renters. Many of the residences in the Lakeside Way / Route 34 neighborhood are established but not old, a large number of them having been built between 1970 and 1999. A number of residences have also been built there more recently.

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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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