We run extensive background checks, criminal checks, bad actor checks, and reference checks on sponsors. In addition to never allowing a sponsor with a criminal history / any securities related issue to use the platform, we may also turn down sponsors due to poor reference checks even if background and criminal checks come back clear.
We require unaffiliated sponsors to use an unaffiliated third-party escrow agent. When an investor makes an investment with unaffiliated 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 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.
Our controls include visiting every property (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.
We have robust quality controls with detailed checklists and a review of third-party reports.
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 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 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.
At A Glance
| Property Type: | Residential, Single-Family |
| Investment Type: | Loan Purchase* |
| Estimated Return: | 9% annualized |
| Loan Term: | 12 months |
| Location: | Memphis, TN |
| Purchase Price: | $72,404 |
| Loan Amount: | $55,000 |
| Est. Value After Repair: | $125,000 |
| Est. LTV After Repair: | 44% |
| Est. Protective Equity: | $70,000 |
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.*
| STREET ADDRESS | PURCHASE PRICE | SQUARE FOOT | PRICE PSF | YEAR BUILT | PROXIMITY | DATE CLOSED |
|---|---|---|---|---|---|---|
| 3248 Kings Arms Street | $118,486 | 2,442 | $48 | 1965 | 0.41 mi | 08/02/13 |
| 3311 Spencer Drive | $100,000 | 2,327 | $43 | 1971 | 0.57 mi | 07/29/13 |
| 5440 Heritage Avenue | $105,000 | 2,341 | $45 | 1968 | 0.67 mi | 07/16/13 |
| 5604 Fairlane Cove | $106,500 | 3,000 | $35 | 1969 | 0.54 mi | 07/15/13 |
| 5592 Fox Meadows Cove | $104,900 | 2,385 | $44 | 1963 | 0.70 mi | 04/17/13 |
| 5790 Foxdale Road | $55,000** | 2,876 | $19 | 1971 |
**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.*
- 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.
Memphis is the largest city in the state of Tennessee with a population that exceeds 650,000 people. Memphis boasts a diverse and growing economy with its primary industries in distribution, manufacturing, agribusiness and healthcare. With more than 50,000 people working in the medical industry, Memphis is internationally recognized for its contribution to the medical field. Memphis is also known as “North America’s Distribution Center” due to its central location and the presence of the FedEx World Headquarters. Memphis has a growing bioresearch hub and is home to four Fortune 500 companies with the population projected to continue growing.
The property is located within the Winchester Rd / Hickory Hill Rd neighborhood, which is a suburban neighborhood located southeast of Memphis. Winchester Rd / Hickory Hill Rd real estate is primarily made up of medium sized (three or four bedroom) to large (four, five or more bedroom) single-family homes and townhomes. Most of the residential real estate is owner occupied. Many of the residences in the Winchester Rd / Hickory Hill Rd neighborhood are established but not old, having been built between 1970 and 1999. A number of residences were also built between 1940 and 1969.
