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.
Acquisition basis is $56k per unit on purchase price and $70k per unit all-in in a submarket currently supporting similar asset quality trades at over $80k per unit.
Repeat Real Estate Company with whom RealtyMogul has previously invested on four deals.
Overall post-renovation rents for the Property are 9% below submarket average, per Axiometrics, leaving room for increasing rents during the hold period while still maintaining relative affordability.
NV2 Holdings, LLC
NV2 Holdings, LLC is a newly-formed multifamily acquisition venture established by Glenn Gonzales. Glenn Gonzales has previously acquired a multifamily portfolio of over 3,800 units at a cumulative purchase price of over $178 million via a partnership known as NAPA Ventures, LLC, of which Glenn was a Principal and Co-Founder.
In addition to his background with NAPA Ventures, LLC, Mr. Gonzales currently serves as the Chief Executive Officer for Place 10 Residential, Inc., a property management firm with over 6,000 units under management. Place 10 Residential, Inc. was established in 1969 and is headquartered in Renton, WA with satellite offices in Dallas and Austin Texas. Place 10 Residential, Inc. is a national U.S. community management firm committed to delivering exceptional service to its apartment communities and residents. Place 10 Residential, Inc. provides community and compliance management services that create positive living environments for residents and build value for clients. Place 10 Residential, Inc.'s corporate team has over 75 years of combined experience.
Glenn Gonzales of NV2 Holdings, LLC has, through predecessor entities, served as a Sponsor for four other real estate investments offered on the RealtyMogul platform. Those investments are known as Woodbridge Townhomes, Ravenwood Apartments, Yardarm Apartments, and Village Creek Townhomes.
As noted above, RealtyMogul investors previously invested alongside Glenn Gonzales in the Woodbridge Apartments acquisition in August 2016, the Ravenwood Apartments acquisition in October 2016, the Yardarm Apartments acquisition in July 2017, and the Village Creek Townhomes acquisition in August 2018.
As of the end of Q3 2018 both Woodbridge Apartments and Ravenwood Apartments have been sold, with those investments generating net IRRs to RealtyMogul investors of 21.8% and 48.5%, respectively.
As of the end of Q3 2018, Yardarm Apartments had achieved a stabilized occupancy of 98%. However, the Property has underperformed on an NOI basis since acquisition, with the NOI since inception only being 66% of the proforma NOI from the Issuer Document Package for that transaction. That property was acquired on August 9, 2017, and Hurricane Harvey made landfall in Corpus Christi, where that property is located, on August 25, 2017.
As of the end of Q3 2018, Village Creek Townhomes had an occupancy of 94%. Given the Property was acquired August 9, 2018, the Q3 2018 financials only represent 53 days of operations, but during that period that property outperformed the proforma NOI from the Issuer Document Package for that transaction by 35%.
https://www.place10residential.com/our-people-
Glenn GonzalesFounder and Managing Member
Mr. Glenn Gonzales is an entrepreneurial individual able to leverage 25 years of commercial real estate experience. Glenn served as Treasurer on the Board of Directors for the Washington Multi-family Housing Association, and was elected as President of the association in 2006. From 1994 to 1998, Glenn was a board member for the Utah Apartment Association. He also served a two-year term as the Chairman of the Public Relations Committee and a one-year term as the Secretary-Treasurer for the Institute of Real Estate Management (IREM). Since 1994, Glenn has also been an instructor for the Apartment Associations in his local markets.
| Property Name | Location | Asset Type | Date Acquired | # of Units | Purchase Price |
|---|---|---|---|---|---|
| Encinal | San Antonio, TX | Multifamily | 12/19/2013 | 201 | $4,818,750 |
| Lakeview Apartments | Killeen, TX | Multifamily | 4/4/2014 | 62 | $1,175,000 |
| Morgan Manor | San Antonio, TX | Multifamily | 9/26/2014 | 157 | $3,650,000 |
| Summerlyn | Killeen, TX | Multifamily | 1/6/2015 | 200 | $6,300,000 |
| Santa Fe | San Antonio, TX | Multifamily | 6/30/2015 | 327 | $7,300,000 |
| Montecito Creek | Dallas, TX | Multifamily | 9/30/2015 | 650 | $34,000,000 |
| Oates Creek | Mesquite, TX | Multifamily | 6/30/2016 | 280 | $15,700,000 |
| Parkside Townhomes | Arlington, TX | Multifamily | 7/14/2016 | 144 | $11,500,000 |
| Woodbridge Townhomes | Arlington, TX | Multifamily | 8/24/2016 | 91 | $6,225,000 |
| Westwood Apartments | Dallas, TX | Multifamily | 8/31/2016 | 187 | $7,400,000 |
| Ravenwood Apartments | Fort Worth, TX | Multifamily | 10/12/2016 | 122 | $4,900,000 |
| Brandon Mill | Dallas, TX | Multifamily | 9/26/2016 | 300 | $12,160,000 |
| Eagle Point | Dallas, TX | Multifamily | 11/15/2016 | 156 | $6,961,100 |
| Pleasant Creek | Lancaster, TX | Multifamily | 12/30/2016 | 159 | $8,580,000 |
| Oyster Creek | Lake Jackson, TX | Multifamily | 2/28/2017 | 201 | $15,900,000 |
| Treasure Bay | Lake Jackson, TX | Multifamily | 2/28/2017 | 200 | $15,100,000 |
| Prescott Woods | Tulsa, OK | Multifamily | 5/12/2017 | 256 | $8,300,000 |
| Yardarm Apartments | Corpus Christi, TX | Multifamily | 7/28/2017 | 150 | $8,875,000 |
| Village Creek Townhomes | Fort Worth, TX | Multifamily | 8/9/2018 | 184 | $11,000,000 |
| Totals | 4,027 | $189,844,850 |
Note - The above track record represents a portfolio for which Glenn Gonzales of the Real Estate Company served as a Principal and Co-Founder. However, the above portfolio was and is not owned by NV2 Holdings, LLC. Prior to the acquisition of the Property, NV2 Holdings, LLC will not own any commercial real estate assets.
The Real Estate Company's bio and track record were provided by the Real Estate Company and have not been verified by RealtyMogul or NCPS.
In this transaction, Realty Mogul investors are to invest in RealtyMogul 127, LLC ("The Company"). The Company will subsequently invest in NV2 Sienna Villas, LLC ("The Target"), a limited liability company that will hold title to the Property. NV2 Holdings, LLC (the "Real Estate Company") is under contract to purchase the Property for $8,675,000 ($55,609 per unit), and the total project cost is expected to be $10,971,474 ($70,330 per unit).
The business plan for the Property entails acquiring the Property at a below-market acquisition basis of $55,609 per unit and subsequently executing on a $1.4 million capital expenditure plan. The capital expenditure budget is focused on curing deferred maintenance, improving the Property's curb appeal, and executing interior renovations for 68 of the 156 total units at the Property with a per unit renovation budget of approximately $7,400. Additionally, the business plan calls for increasing occupancy at the Property during the hold period and selling the Property within approximately three (3) years, market conditions permitting.
Major curb appeal improvements throughout the Property anticipated to be completed as part of the business plan include: repainting the brick facades, renovating and repainting stairwells and handrails, replacing pool furniture, renovating the interior of the leasing office, updating exterior lighting and signage, renovating the laundry room, and installing enclosures around the dumpsters at the Property.
| CapEx Item | $ Amount | Per Unit |
|---|---|---|
| Interior Unit Renovations ($7.4k per renovated unit for 68 units) | $523,600 | $3,356 |
| Immediate Repair Items (Deferred Maintenance) | $190,000 | $1,218 |
| Exterior Painting | $130,000 | $833 |
| AC Units & Handlers | $70,000 | $449 |
| Foundation and Plumbing | $50,000 | $321 |
| Balcony Wood Rot | $35,000 | $224 |
| Stairwell and Metal Railing Repair | $30,000 | $192 |
| Pool and Leasing Office Furniture | $30,000 | $192 |
| Exterior Siding | $20,000 | $128 |
| Exterior Lighting | $20,000 | $128 |
| Exterior Signage | $20,000 | $128 |
| Leasing Office Interior Renovation | $20,000 | $128 |
| Dumpster Enclosures | $15,000 | $96 |
| Laundry Room Improvements | $11,500 | $74 |
| Window Replacement | $10,000 | $64 |
| Fencing Painting | $5,000 | $32 |
| Subtotal | $1,180,100 | $7,565 |
| Contingency 10.0% | $118,010 | $756 |
| Construction Management Fee 8.0% | $101,890 | $653 |
| Total | $1,400,000 | $8,974 |
| CapEx Item | Per Unit |
|---|---|
| New Black Appliances | $1,600 |
| New Faux Wood Flooring | $1,500 |
| New Cabinet Doors and Hardware | $800 |
| New Interior Paint | $750 |
| New Light Fixtures | $550 |
| Resurface or Replace Countertops | $500 |
| Repaint Cabinet Boxes | $500 |
| Replace Bathroom Vanity | $500 |
| Add Backsplash in Kitchen | $350 |
| Reglaze Bathtub | $350 |
| Total | $7,400 |
Sienna Villas ("The Property") is a 156-unit, Class C residential community built in 1977. The Property is located in the Brazosport area in the city of Freeport, Texas, approximately 55 miles south of downtown Houston, TX.
The Property includes a pool and various spacious grassy areas, as well as BBQ grills, washer and dryers, a laundry room and a deck/patio area with storage. The Property offers one, two and three-bedroom units with an average unit size of 727 square feet.
The Property is situated on 6.4 acres, providing for a density of 24.4 units per acre. The Property's 206 parking spaces equate to 1.32 spaces per unit. The Property consists of two-story, low-rise, wood-frame construction.
| Unit Type | # of Units | % of Total | Unit (SF) | Total SF | In-Place Rent | Post Renovation Rent |
|---|---|---|---|---|---|---|
| 1 Bed, 1 Bath Small | 68 | 44% | 620 | 42,160 | $710 | $779 |
| 1 Bed, 1 Bath Small - Renovated | 16 | 10% | 620 | 9,920 | $800 | $800 |
| 1 Bed, 1 Bath Large | 12 | 8% | 650 | 7,800 | $738 | $789 |
| 2 Bed, 1 Bath | 40 | 25% | 850 | 34,000 | $867 | $925 |
| 2 Bed, 2 Bath | 12 | 8% | 960 | 11,520 | $990 | $1,075 |
| 3 Bed, 2 Bath | 8 | 5% | 1,000 | 8,000 | $1,111 | $1,175 |
| Totals/Averages | 156 | 100% | 727 | 113,400 | $804 | $862 |
| Rental Comparables | Treasure Bay | Shadow Park Apartments | The Landing | The Lodge at Timbercreek | Averages | Subject |
|---|---|---|---|---|---|---|
| Occupancy | 93% | 85% | 90% | 98% | 92% | 88%* |
| # of Units | 200 | 168 | 256 | 248 | 218 | 156 |
| Year Built | 1972 | 1979 | 1986 | 1973 | 1978 | 1977 |
| 1x1 - # of Units | 78 | 30 | 46 | 64 | 55 | 96 |
| 1x1 - SF | 655 | 660 | 676 | 625 | 654 | 624 |
| 1x1 - Rent | $730 | $785 | $871 | $735 | $780 | $784 |
| 1x1 - $/SF | $1.11 | $1.19 | $1.29 | $1.18 | $1.19 | $1.26 |
| 2x1 - # of Units | 24 | 24 | 54 | 80 | 46 | 40 |
| 2x1 - SF | 886 | 857 | 792 | 846 | 845 | 850 |
| 2x1 - Rent | $931 | $950 | $915 | $900 | $924 | $925 |
| 2x1 - $/SF | $1.05 | $1.11 | $1.16 | $1.06 | $1.09 | $1.09 |
| 2x2- # of Units | -- | 24 | 24 | 48 | 32 | 12 |
| 2x2 - SF | -- | 960 | 1,131 | 930 | 1,007 | 960 |
| 2x2 - Rent | -- | $1,085 | $1,215 | $1,050 | $1,117 | $1,075 |
| 2x2 - $/SF | -- | $1.13 | $1.07 | $1.13 | $1.11 | $1.12 |
| 3x2- # of Units | 16 | -- | 20 | 8 | 15 | 8 |
| 3x2 - SF | 1,096 | -- | 1,131 | 1,200 | 1,142 | 1,000 |
| 3x2 - Rent | $1,082 | -- | $1,215 | $1,300 | $1,199 | $1,175 |
| 3x2 - $/SF | $0.99 | -- | $1.07 | $1.08 | $1.05 | $1.18 |
| Distance from Subject (mi.) | 4.8 | 1.1 | 4.2 | 2.6 | 3.2 | -- |
Source - Axiometrics
*Note - Subject occupancy as of November 2018.
| Sales Comparables | LakeVue Apartments | Crescent Wood | Oak Park Town Homes | Averages | Subject |
|---|---|---|---|---|---|
| Date | Jun-18 | Jul-18 | Aug-18 | -- | Jan-19 |
| # of Units | 360 | 216 | 20 | 199 | 156 |
| Year Built/Renovated | 1980 | 1983/2002 | 1965 | 1973 | 1977 |
| Purchase Price | $27,500,000 | $17,660,000 | $1,600,000 | $15,586,667 | $8,675,000 |
| Per Unit | $76,389 | $81,759 | $80,000 | $79,383 | $55,609 |
| Cap Rate | -- | 6.33% | -- | 6.33% | 5.17%* |
| Distance | 4.6 | 4.4 | 2.1 | 3.7 | -- |
*Note: Subject Cap Rate is representative of T-12 NOI adjusted for taxes.
Source - CoStar
Per CoStar, the Houston Market has experienced significant volatility in the past few years thanks to a weakened energy industry, a bloated construction pipeline, and Hurricane Harvey. 96,000 units have come on line since 2010, placing significant supply-side pressure on the market. In the submarkets that have received heavy supply this cycle, average annual rent growth was significantly slower than growth in the previous cycle (2006-09). Before Hurricane Harvey hit in 3Q17, the market’s four-quarter trailing rent growth was still negative. However, the storm created a sharp increase in demand from displaced residents, which caused an immediate increase in rent growth and reversed the trend of decreasing occupancy. Despite this recent volatility, the outlook for the market appears to be favorable. Healthcare and the Port of Houston have been the primary drivers in diversifying the Houston economy -- once totally reliant on the energy sector. Job and population growth have improved the demand picture and the market is expected to add fewer than 10,000 units this year for the first time since 2013, alleviating some of the supply side pressure.
Market Overview
Per Axiometrics, annual effective rent increased 3.1% from $1,081 in 3Q18 to $1,115 in 4Q18, which resulted in an annual growth rate of 2.4%. Annual effective rent growth is forecast to be 4.2% in 2019, and average 2.6% from 2020 to 2022. Annual effective rent growth averaged 2.0% from 1996 - 2017. The market's annual rent growth rate was below the national average of 2.5% for that period.
The market's occupancy rate decreased from 94.0% in 3Q18 to 93.7% in 4Q18, and was down from 94.3% a year ago. The market's occupancy rate was below the national average of 95.4% in 4Q18. For the forecast period, the market's occupancy rate is expected to be 93.2% in 2019, and average 92.9% from 2020 to 2022. The market's occupancy rate has averaged 92.8% since 1Q96.
Submarket Overview
Per Axiometrics, annual effective rent increased 6.6% from $905 in 3Q18 to $965 in 4Q18, which resulted in a 4Q17-4Q18 annual growth rate of 7.3% in the Brazoria County submarket of the Houston-The Woodlands-Sugar Land, TX market. The submarket's 2018 annual rent growth rate of 4.0% was at the market average. Annual effective rent growth is forecast to be 6.4% in 2019, and average 4% from 2020 to 2022. The annual effective rent growth has averaged 1.8% per year since 1Q96.
The submarket's occupancy rate increased from 93.5% in 3Q18 to 93.9% in 4Q18, and was down from 94.5% a year ago. The submarket's occupancy rate was above the market average of 93.7% in 4Q18. For the forecast period, the submarket's occupancy rate is expected to decrease to 93.8% in 2019 and average 93.4% from 2020 to 2022. The submarket's occupancy rate has averaged 95.0% since 1Q96.
Demographic Information
| 1 Mile | 3 Miles | 5 Miles | |
|---|---|---|---|
| Population (2018) | 5,177 | 13,050 | 29,130 |
| Estimated Population (2023) | 5,670 | 14,227 | 31,817 |
| Estimated Population Growth (2018-2023) | 9.52% | 9.02% | 9.22% |
| Average Household Income | $41,959 | $58,311 | $61,134 |
| Median Household Income | $26,441 | $37,944 | $44,474 |
| Median Home Value | $59,323 | $61,487 | $76,387 |
| Average Household Size | 3.1 | 3.1 | 2.8 |
Demographic information above was obtained from CoStar.
| Sources of Funds | Cost |
|---|---|
| Debt | $7,860,000 |
| Equity | $3,111,474 |
| Total Sources of Funds | $10,971,474 |
| Uses of Funds | Cost |
| Purchase Price | $8,675,000 |
| Acquisition Fee | $173,500 |
| Broker Dealer Fee | $110,400 |
| Capital Expenditures | $1,400,000 |
| Mortgage Broker Fee & Loan Origination Fee | $157,200 |
| Buyer's Closing, Legal Fees & Due Diligence | $231,322 |
| Tax and Insurance Escrows | $24,052 |
| Cash Flow Reserve | $100,000 |
| Working Capital | $100,000 |
| Total Uses of Funds | $10,971,474 |
The summary of the terms of the debt financing are as follows:
- Lender: Ready Capital
- Loan Type: Bridge
- Total Proceeds: $7,860,000
- Initial Loan Proceeds: $6,500,000
- Future Loan Proceeds: $1,360,000
- Initial Loan Term: 3 years
- Extension Options: Two (2) One Year extension options, subject to Extension Conditions
- Rate: 1-Month LIBOR + 3.75%, with a LIBOR floor of 2.30%
- Interest Rate Cap: 2 year cap to be renewed prior to expiration at a strike rate of 1-Month LIBOR = 3.50%
- Interest Only Period: 3 Years
- Amortization: 25 years in Extension Periods
- Cash Management: Full lender sweep of free cash flow in event of De-Stabilization Trigger
- De-Stabilization Trigger: Minimum of a 6.00% Debt Yield on the Current Outstanding Balance for one quarter or a minimum physical occupancy of 75% for two out of three months in a quarter
- Cash Management Release: Minimum of a 9.25% Debt Yield on the Total Outstanding Commitment is achieved for two consecutive testing quarters and a minimum physical occupancy of 90.0% has been achieved
- Ongoing Reserves: None during Year One of the hold period - thereafter the ongoing reserves are expected to be equal to $159 per unit per year
- Prepayment: 21-months on the Average Outstanding Balance according to the projected funding requirements
- Recourse: Non-recourse except for carve-outs
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 intends to make distributions of all available cash and capital proceeds to investors (The Company, and the Real Estate Company, collectively, the "Members") as follows:
- Pari passu to the Members to a 8% IRR,
- 80% to the Members pari passu and 20% to the promote to a 15% IRR,
- 65% to the Members pari passu and 35% to the promote to a 20% IRR,
- 50% to the Members pari passu and 50% to the promote 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 and fees) to the members of The Company (the RealtyMogul investors). The manager of The Company will receive a portion of the promote.
Distributions are expected to start in June 2019 and are expected 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 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Effective Gross Revenue | $1,451,971 | $1,626,876 | $1,695,098 |
| Total Operating Expenses | $795,302 | $841,118 | $858,693 |
| Net Operating Income | $656,668 | $785,758 | $836,405 |
| Year 0 | 2019 | 2020 | 2021 | |
|---|---|---|---|---|
| Distributions to The Company | ($2,780,000) | $210,581 | $181,113 | $3,880,303 |
| Net Earnings to Investor - Hypothetical $50,000 Investment |
($50,000) | $3,787 | $3,257 | $69,790 |
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 | $173,500 | Real Estate Company & RM Communities GP, LLC | Capitalized Equity Contribution | 2.0% of the Property purchase price, split 50% / 50% |
| Disposition Fee | 1.0% of Sales Price | Real Estate Company | Sales Proceeds | Subject to a full return of the Company's capital contributions |
| Broker-Dealer Fee | $110,400 | North Capital (1) | Capitalized Equity Contribution | 4.0% of equity raised by RealtyMogul |
| Construction Management Fee | 8.0% of Total Costs | Real Estate Company | Capitalized Capital Expenditure Budget |
| Type of Fee | Amount of Fee | Received By | Paid From | Notes |
|---|---|---|---|---|
| Asset Management Fee | 1.5% of Effective Gross Income | Real Estate Company | Distributable Cash | |
| Management and Administrative Fee | 1.0% of amount invested in the Target | RM Manager, LLC | Distributable Cash | RM Manager, LLC is the Manager of The Company 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, RM Communities GP, 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.