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.
New Standard Equities
NSE was formed in 2010 in an effort to capitalize on the extraordinary dislocation in the post‐financial crisis real estate investment market. With significant experience in buying and operating large, institutional-quality multifamily properties throughout the Western U.S., the company is deploying private and institutional capital to purchase and operate apartment assets that offer steady, long-term cash flow to its investors. New Standard Equities’ full-service real estate platform is actively engaged in property management, asset management, construction management and project consultation.
NSE has successfully operated multifamily assets in major markets throughout the Western U.S. There are inherent risks in the task of operating apartment assets, but the firm’s strict philosophy is to minimize those risks by targeting markets it knows and understands. In-fill, supply-constrained markets that offer long-term job growth potential are among the most important dynamics.
Their team has the wisdom and patience to operate in today’s new environment, and the experience and entrepreneurial spirit to find and create bona fide opportunities across today’s investment landscape.
The below track record for Edward Ring includes all the acquisitions completed by New Standard Equities, as well as those Mr. Ring was responsible for while at Kennedy Wilson Multifamily.
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Edward RingFounder / CEO -
Cyrus BlourtchiChief Financial Officer -
Pauline Imamura – VP of Operations -
Todd Weiss – Director of Acquisitions & Asset Management
With over 23 years of real estate and financial consulting experience, Ring’s expertise includes providing strategic leadership for all aspects of the investment process, including sourcing new projects, business plan development, optimizing capital structures and actively overseeing each project’s execution phase from soup to nuts.
Previously, Ring was chief operating officer at Kennedy Wilson Multifamily Management Group, where he was responsible for the acquisition and operation of approximately 11,000 apartment units. At the time of his departure, roughly half of those acquisitions had been sold for a project level profit of over $100 million and had achieved a 1.80 multiple on equity, a 28.5 percent IRR, and an ROI of 55.4 percent. Ring also forged key partnerships with institutional investors, such as The Dubai Investment Group, General Electric, Mitsubishi Corporation, General Motors, AIG, RREEF and Wachovia Securities, among others.
In addition to his background as a real estate professional, Ring is an Emeritus member of the Writers Guild of America (WGA). He wrote for a variety of television comedies for NBC, UPN, Saban Entertainment, VH1 and HBO, where he earned a Cable ACE nomination for his work on “The Larry Sanders Show.”
A graduate of U.C. Berkeley in 1988, Ring went on to earn his MFA from New York University in 1992 and his MBA from UCLA Anderson in 2003. Ring served on the Executive Committee of the Anderson School’s Alumni Association and currently serves on The Board of Governors at Cedars Sinai Medical Center in Los Angeles. He is also a member of Mensa.
Cyrus Blourtchi brings 26 years of financial accounting and senior management experience to the company, including 19 years in the multifamily industry. Prior to joining New Standard Equities, Cyrus served as Director of Accounting/Controller with Kennedy Wilson Multifamily for seven years. Prior to that, Cyrus held accounting positions at Welk Real Estate and RCMI in Southern California.
Mr. Blourtchi is responsible for maintaining all aspects of the accounting records for New Standard Equities' assets and management assignments. He is highly trained in GAAP accounting procedures and professional protocols, including a strict adherence to Sarbanes-Oxley regulatory compliance standards for public investors. Cyrus also provided financial accounting services for organizations outside the real estate sector, including spending two years as a finance officer for the United Nations.
Pauline Imamura has served NSE since its inception, following 15 years of site and multi-site management for Fore Properties, Kennedy Wilson Multifamily, and FPI Management. She has supervised over $3,000,000 in unit-level property improvements, spearheaded successful marketing and repositioning programs in properties throughout California, and produced same-store income growth of above 6% on stabilized assets, and nearly 20% on value-add repositioning projects.
At New Standard Equities, Ms. Imamura is responsible for all site-level operations, including enforcing standard operating procedures, preparing week and monthly operational reports, conducting quarterly asset inspections and conducting regular safety training seminars to ensure properties are compliant with company policies, Fair Housing Standards and OSHA regulations.
Todd Weiss joined New Standard Equities in 2013 and is primarily responsible for NSE's acquisitions, asset management and construction management activities. In addition, he is involved with sourcing new debt and equity for all of NSE’s acquisitions.
Prior to joining New Standard Equities, Todd was an independent commodities trader at The Chicago Board of Trade where he specialized in agricultural commodities. Todd received his BA from The University of Arizona’s College of Agriculture in 2000. Todd co-chaired the 2007 Maccabi USA golf team to successful gold medal victories in the youth, open and senior divisions.
At A Glance
| Investment Strategy: | Buy and Hold |
| Hold Period: | 5 years |
| Total Project Budget: | $9,076,056 ($84,823 per unit) |
| Acquisition Price: | $7,500,000 ($70,093 per unit) |
| Property Type: | Multifamily |
| Number of Units: | 107 units |
| Distributions to Realty Mogul 38, LLC: | 9% IRR Hurdle 70/30 split to a 16% IRR 60/40 split thereafter |
| Projected IRR: | 16.1% - 18.1% |
| Projected Avg Cash on Cash: | 12.3% - 13.1% |
| Projected Equity Multiple: | 1.88x - 2.02x |
| Projected First Distribution: | February 2016 |
| Distribution Schedule: | Quarterly |
| Investor Funding Deadline: | July 24, 2015 |
| Estimated Closing Date: | August 4, 2015 |
Investment Details
New Standard Equities (the "Sponsor" or "NSE") plans to acquire the Property, a 107-unit apartment community located in Oak Harbor, WA approximately 70 miles north of Seattle.
The seller is a local Seattle investment sales broker with whom the Sponsor has a strong relationship. When the seller purchased the property in late 2013, it had significant deferred maintenance and was roughly 40% vacant with a very marginal tenant base. The seller then began the process of stabilizing the asset, including light exterior work such as paint and roof repairs, along with a gradual improvement in the Property's tenant base by increasing rents as occupied units turned over. This process has proven successful as occupancy has surpassed 95% and recent new lease signings have seen average rent increases of $138/month. With fruition of the turnaround strategy, the seller contacted the Sponsor and entered into an off-market sale transaction.
While the seller has stabilized the asset operationally, the Sponsor believes there is much room left for a true value-add program with strong upside potential. Recent new lease signings have achieved substantial increases in rents despite unit interiors only receiving minimal paint and carpet upgrades by the seller. The Sponsor intends to execute a significant interior renovation plan including appliances, flooring, fixtures and washer/dryers in select units, along with exterior improvements with a focus on amenity upgrades like a new fitness center, which the Sponsor feels would be a draw for the military-oriented residents. Additionally, the Sponsor plans to enact a targeted marketing program to higher ranking military personnel and other prospective tenants that would be interested in higher quality apartments. While the Sponsor has asserted that unit rehabs on par with their plan typically garner $100/month rent increases or more, their projections assume only $63/month average increases above rental rates that have been achieved at the Property just by rolling units to market.
The Sponsor plans to handle all aspects of the investment including purchasing the Property, overseeing the renovations, and selling the Property. With respect to these renovations, the Sponsor has budgeted $1,130,495, or $10,565 per unit ($5,450/unit for interior rehab and $4,243/unit for exterior improvements). While this asset is the first purchase in the State of Washington for NSE, the CEO of NSE and his team have substantial experience in Seattle, having worked on and invested in over 2,400 units, with a combined value of over $350 million including renovation. NSE is also experienced with military-focused housing as they currently own and operate a 132-unit property with over 20% military in San Diego, CA. In addition, the CEO of NSE and his VP of Operations asset and property managed 530 units in Lompoc, CA, and another 208 units in Santa Maria, CA, both of which flank Vandenberg Air Force Base.
The Sponsor intends to hold the Property for five (5) years before exiting the investment, though the hold period could be longer or shorter as it will largely be dictated by execution of the business plan and market conditions. RealtyMogul.com investors have the opportunity to participate as equity stakeholders and earn a share of the cash flow and asset appreciation. RealtyMogul.com investors will invest in Realty Mogul 38, LLC. Realty Mogul 38, LLC will invest with Oak Harbor Investors, LLC, which will control Oak Harbor Fee Owner, LLC, the entity that will hold title to the Property. Investors can expect to receive quarterly updates and distributions, with the first distribution expected in February 2016 and continuing on a quarterly basis thereafter.
Investment Highlights
- Sponsorship Experienced with Military Housing
- Well-Occupied Apartment Community with Upside Potential Through Conservative Rent Increase Upon Unit Rehab
- Tenant Base with Strong Military Demand Due to Stable, Growing Base Operations, Lack of On-Base Housing Supply and Shortage of Viable, Off-Base Competing Apartment Complexes
- Off-Market Acquisition with In-Place Yield
Risk Factors*
- Forward-Looking Statements: Investors should not rely on any forward-looking statements made regarding this opportunity, because such statements are inherently uncertain and involve risks. We use words such as “anticipated,” “projected”, “forecasted”, “estimated”, “prospective”, “believes,” “expects,” ”plans” “future” “intends,”, “should,” “can”, “could”, “might”, “potential,” “continue,” “may,” “will,” and similar expressions to identify these forward-looking statements.
- Illiquid Investment - Transfer Restrictions & No Public Market: The transferability of membership interests in Realty Mogul 38, LLC are restricted both by the operating agreement for that entity and by U.S. federal and state securities laws. In general, investors will not be able to sell or transfer their interests. There is also no public market for the investment interests and none is expected to be available in the future. Persons should not invest if they require any of their investment to be liquid. This is particularly important for persons of retirement age, who should plan carefully to assure that their assets last throughout retirement.
- High Military Tenant Concentration and Base Dependency: With 60% of the tenant base related to the local military base, there is risk associated with redeployment or some other change occurring at the base and the impact it would have on the military-related population in town and the subsequent impact on the Property's operations.
- New Development: There is risk associated with potential new development and the impact it would have on the Property's operations.
- Lack of Comparable Properties: There is risk associated with the lack of comparable Property's available in the area to support the underwriting assumptions used by the Sponsor's in their financial projections.
- Uncertainty Surrounding Future Sales Price: There is risk associated with the Sponsor being unable to sell the Property as projected.
- Interest-Only Loan: The loan being used to acquire the Property is expected to have an interest-only period during the first 60 months of the loan term, which means that there will be no reduction in the principal balance during that interest-only period.
- Rising Interest Rates: The Federal Reserve has methodically reduced the amount of stimulus it was earlier injecting into the U.S. economy, and has signaled that increases in the federal funds rate may be forthcoming. This could potentially lead to rising interest rates offered by other lenders and could have an effect on the future value of the Property (since higher loan interest rates might mean that potential buyers would face proportionately higher debt service expenses). The interest rate of the projected debt financing that will be used to acquire the loan is also variable, so debt service payments during the hold will rise or fall in line with the movements of market interest rates. There is a risk that interest rates may rise faster than what has been projected in the Sponsor's underwriting, which could lead to a reduction in net cash flow compared with the Sponsor's projections.
- Mortgage Risk and Prepayment Penalty: The Sponsor has a signed loan application with a lender to provide the debt financing for the acquisition of the Property, but there can be no assurance that the lender will complete financing on the rates and terms included in the underwriting being presented in the model for this investment opportunity. Should the terms of the debt financing change materially and adversely, investors will be notified. If the debt financing does not close as anticipated and the Sponsor needs an extension on the purchase contract, the seller of the Property may not so extend and the transaction may be cancelled. The lender's due diligence may result in modifications of the proposed terms indicated in the executed loan application, which may result in the transaction being cancelled. The Sponsor expects that the loan used to acquire the Property will be subject to a prepayment penalty; a shorter than expected hold period would increase the risk of a prepayment penalty being assessed.
- Management Risk: Investors will be relying solely on the manager of Oak Harbor Investors, LLC for the execution of its business plan. That manager in turn may rely on other key personnel with relevant experience and knowledge, including contractors and consultants. Members of Oak Harbor Investors, LLC (including Realty Mogul 38, LLC) will agree to indemnify the manager in certain circumstances, which may result in a financial burden if any litigation results from the execution of the business plan. While the manager of Oak Harbor Investors, LLC has significant operating experience, Oak Harbor Investors, LLC was recently formed and has no significant operating history or record of performance.
- Manager of Realty Mogul 38, LLC Will Participate in Sponsor's Promote Interest: The manager of Realty Mogul 38, LLC (or one of its affiliates) will be entitled to a participation in the value of any excess distributable cash flow and any appreciation of the Property realized upon its sale. This could lead to a potential conflict of interest between the manager and Realty Mogul 38, LLC. Investors must recognize and agree to waive and bear the risk of this conflict of interest. Realty Mogul 38, LLC itself is pursuing a venture capital strategy through investments in operating companies that manage and develop real estate; under this strategy, the manager of Realty Mogul 38, LLC is expected to be treated as an investment adviser exempt from federal or state registration.
- Uncertain Distributions: The manager of Oak Harbor Investors, LLC cannot offer any assurances that there will be sufficient cash available to make distributions to its members (including Realty Mogul 38, LLC) from either net cash from operations or proceeds from the sale of the asset. That manager, in its discretion, may retain any portion of such funds for property operations or capital improvements.
- Risk of Interest Charges or Dilution for Capital Calls: The amount of capital that may be required by Oak Harbor Investors, LLC from Realty Mogul 38, LLC is unknown, and although Oak Harbor Investors, LLC does not require that its members contribute additional capital to it, it may from time to time request additional funds in the form of additional capital. Realty Mogul 38, LLC does not intend to participate in a capital call if one is requested by Oak Harbor Investors, LLC and in such event the Manager of Oak Harbor Investors, LLC may accept additional contributions from other members of Oak Harbor Investors, LLC. Amounts that the manager or other members of Oak Harbor Investors, LLC advances on behalf of Realty Mogul 38, LLC will be deemed to be either a loan at an interest rate of 10% or an additional capital contribution, in which case Realty Mogul 38, LLC's interest in Oak Harbor Investors, LLC will suffer a proportionate amount of dilution.
- General Economic and Market Risks: While the Sponsor has conducted significant research to justify the intended rental rates and sales price relative to comparable properties in the market, there can be no assurance that investor sentiment will be favorable, or that purchase financing to a buyer will be readily available, when the Sponsor attempts to sell the Property. The real estate market is affected by many factors, such as general economic conditions, supply and demand for real estate investments, interest rates, the availability of financing, and other factors, all of which are beyond the control of both RealtyMogul.com and Oak Harbor Investors, LLC.
*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.
| Address: | 945 N Oak Harbor St., Oak Harbor, WA 98277 |
| Year Built: | 1989 |
| Property Type: | Multifamily |
| Number of Units: | 107 units |
| Occupancy: | 95.3% |
| Major Amenities: | Laundry Center Private Patios & Balconies Covered Parking Fitness Center (Post-Renovation) Washer & Dryers in 50% of 2X2 units (other 50% Post-Renovation) |
The Property is located near the intersection of North Oak Harbor Street and NW Crosby Avenue, approximately 1 mile from WA‐20. Numerous dining, entertainment, and shopping options are proximate to the property including The Home Depot, Walmart, Safeway, Albertsons, Flyers Restaurant & Brewery, Seabolt’s Smokehouse, Oak Bowl, and Oak Harbor Cinemas. Crescent Harbor Elementary, North Whidbey Middle School, and Oak Harbor High School are all located within two miles of the property.
Whidbey Island, located northwest of Everett, Washington, is home to approximately 79,700 people. Oak Harbor is the largest City on Whidbey Island, with a population of 22,000. It is both a tourist destination as the area’s natural beauty is a significant draw, and it is home to one of the country’s critical Naval Air stations. The city has both local and national retailers.
Naval Air Station Whidbey Island Overview
The population listed above and the market information below are from the Military Installations website and the Whidbey News-Times website.
Operated by the United States Navy, there are 19 active duty squadrons and 3 Ready Reserve squadrons currently based at NAS Whidbey Island. The air station also maintains a Search and Rescue Unit, flying three Sikorsky MH-60S Nighthawks. Navy Search and Rescue provides 24-hour day and night maritime, inland and mountainous rescue support for Department of Defense personnel and the greater Pacific Northwest community. Over 50 military facilities are also located on the Island, which facilities provide training, medical and dental, and support services for Whidbey’s staff and Marine Corps personnel.
The base has been in operation since 1941 and had a $49.2 million renovation project completed in 2010. The base was described as "a strategic asset" during a recent visit by Vice Admiral Mike Shoemaker, Commander of U.S. Naval Air Forces in charge of all Naval aircraft on the West Coast, during which it was made clear that Whidbey Island Naval Air Station will remain open for the foreseeable future and be a key player in international affairs. The assets Whidbey brings to the table for training aviators are hard to replicate anywhere else in the world, he said. With comfort in the military's long term commitment to the base, the Property may benefit from resistance to possible economic fluctuations.
The Property is located approximately 1.5 miles from Naval Air Station Whidbey Island. As such, it has approximately 60% military concentration. The Base population of approximately 38,000 includes 7,000 military personnel along with 14,000 family members, 14,000 retirees, and 2,400 civilian and contract employees. The number of military personnel is expected to grow to roughly 9,000 with the arrival of several P-8A squadrons starting in 2016. In April 2014, Congressman Rick Larsen stated in response to this announcement, “The Navy’s decision today signifies the prominent role that NAS Whidbey Island plays for maritime patrol and other naval operations in the Pacific…basing six squadrons of P-8As on the island is great news for the stability of the base, for the Whidbey Island community and for our national security...I am pleased the Navy has once again shown its commitment to NAS Whidbey Island.” While as a result of the additional aircraft and personnel expected in the coming years, the base has plans for facility additions and upgrades in anticipation of the growth, on-base housing and barracks will not be expanded so the additional personnel and their families will be renting or owning in the community. With only 1,500 available on-base housing units, this increase in personnel along with their respective family members in some cases, will exacerbate the existing lack of on-base housing supply.
Oak Harbor Apartment Overview
Vacancy levels for apartments in Oak Harbor average around 5% with the majority of apartment communities in the area comprised entirely of affordable housing, and the remainder being primarily lower quality, class B & C product. While there appears to be a significant lack of supply, per a February 2015 report completed by Colliers International Valuation & Advisory Services, there are no new multifamily projects underway or planned in the Oak Harbor area (per the Oak Harbor Planning Department). Overall, new multifamily construction is anticipated to be very limited over the next few years.
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.