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.
Willow Creek Partners is a repeat RealtyMogul sponsor with whom RealtyMogul investors have previously invested in the Triangle Park Apartments and Lofts at Midtown transactions.
The Real Estate Company has budgeted for interior unit renovations of $6,500 per unit for 250 units, and over $8 million, inclusive of contingency, in exterior improvements.
The Property is situated in a fundamentally strong market; multifamily rents in Raleigh have increased by more than 50% this cycle (Per Axiometrics), and the population in the vicinity of the Property is set to increase by over 10% in the next five years (per CoStar).
Willow Creek Partners
Willow Creek Partners ("Willow Creek" or the "Real Estate Company"), is a privately-held, vertically integrated multifamily investment and management firm based in Reston, VA. Over the past three years, Willow Creek has acquired ten assets, nine of which are in North Carolina, four of which are in Greensboro, NC. Willow Creek has also recently opened an office in Raleigh, NC and upsized their team from seven employees to twelve, including a VP of Property Management, two VPs of Construction, and two Regional Managers. Willow Creek primarily targets multifamily, both conventional and student housing, in markets where economic conditions provide for increased real estate demand and aims to be long term investors in income-producing real estate. Willow Creek executes their business plans by employing a proven investment strategy comprised of three major elements: identifying markets with built-in demand drivers, focusing on secondary and tertiary markets where local knowledge can potentially create a competitive advantage, and unlocking value through rigorous underwriting and proactive asset management. RealtyMogul previously invested with Willow Creek in Hawthorne North Ridge, Lofts at Midtown, and Triangle Park Apartments.
An investment overview of Hawthorne North Ridge can be found here: https://www.realtymogul.com/investment-opportunity/905616
An investment overview of Lofts at Midtown can be found here: https://www.realtymogul.com/investment-opportunity/633421
An investment overview of Triangle Park can be found here: https://www.realtymogul.com/investment-opportunity/477060
http://willowcreekpartners.co
-
Matthew BradyManaging Partner -
Giuliano SalvoManaging Partner -
Phat DangPartner -
Alex GregoryManaging Director
| Property Name | Location | Asset | Units | Beds | Purchase Price | Date Acquired |
|---|---|---|---|---|---|---|
| Madison Woods | Greensboro, NC | Multifamily | 180 | - | $13,350,000 | June 2017 |
| Terrace at Olde Battleground | Greensboro, NC | Multifamily | 156 | - | $13.608.000 | June 2017 |
| Terrace Oaks | Greensboro, NC | Multifamily | 120 | - | $9,924,000 | June 2017 |
| Campus East | Greensboro, NC | Student Housing | - | 36 | $2,150,000 | November 2017 |
| Blue Ridge | Raleigh, NC | Student Housing | - | 48 | $6,500,000 | September 2017 |
| Hunt Club | Winston-Salem, NC | Multifamily | 128 | - | $7,680,000 | December 2017 |
| Triangle Park | Raleigh, NC | Multifamily | 120 | - | $11,500,000 | March 2018 |
| Azalea Hill | Greenville, SC | Multifamily | 160 | - | $19,000,000 | June 2018 |
| Lofts at Midtown | Raleigh, NC | Multifamily | 184 | - | $24,000,000 | August 2018 |
| Stonegate & Carlton Scott | Blacksburg, VA | Student Housing | - | 196 | $10,948,000 | August 2018 |
| Hawthorne North Ridge | Raleigh, NC | Multifamily | 600 | $70,000,000 | April 2019 | |
| Total | 1,648 | 280 | $175,052,000 |
The above track record information was provided by the Real Estate Company and has not been independently verified by RealtyMogul.
In this transaction, RealtyMogul investors are to invest in RealtyMogul 130, LLC ("The Company"), which is to subsequently invest in North Ridge Partners, LLC ("The Target"), a limited liability company that will, through a wholly-owned subsidiary, hold title to Hawthorne North Ridge (the "Property"). Willow Creek is acquiring the Property at a purchase price of $70,000,000, or a 5.50% cap rate on T12 NOI (exclusive of capital reserves), and plans to sell the 41.2 acre parcel of entitled adjacent land after closing the Property acquisition. On January 29, 2019, The Aventon Companies signed a letter of intent to purchase the land for $18,000,000, and intends to construct two Class-A multifamily communities consisting of approximately 750 market rate apartments, clubhouse/amenity facilities, surface parking infrastructure, and site amenities. For the sake of conservatism, the Estimated Financials in the Issuer Document Package attached to this offering assume that land sale consummates at a gross sale price of $15,750,000.
The Business Plan for the existing Property includes approximately $8.3 million (inclusive of contingency) in exterior upgrades with a substantial amenity package upgrade, as well as approximately $1.7 million (inclusive of contingency) for 250 unit interior units renovations (approximately $6,500 per unit) bringing the capital expenditures budget to $10 million total. The interior upgrades include major bathroom renovations (resurface countertops/sinks, replace cabinets, update flooring) and kitchen renovations (replace cabinets/countertops, stainless steel appliances, update flooring).
Upon completing these upgrades, the proforma financials in the Issuer Document Package of this offering expect that Willow Creek is able to increase rents between $200 and $250 per unit from current leasing levels. Additionally, Willow Creek anticipates increasing tenant fees such as trash fee, pest control, renter's insurance and pet rent, from which they anticipate capturing another approximately $230k (approximately $380 / unit / year).
Upon execution of the business plan the Real Estate Company plans to sell the Property in five (5) years at a 6.0% cap rate.
RealtyMogul investors previously invested alongside the Real Estate Company in the Triangle Park acquisition in March 2018 and the Lofts at Midtown acquisition in August 2018. For detail on those investments please scroll up to the Management section of this offering.
| CapEx Item | $ Amount | Per Unit |
|---|---|---|
| Exterior Upgrades | (Applicable to all 600 units) | |
| Clubhouse | $2,133,333 | $3,556 |
| HVAC | $1,080,000 | $1,800 |
| Pop-out Siding | $666,667 | $1,111 |
| Balcony Railing | $432,000 | $720 |
| Landscaping | $386,667 | $644 |
| Common Railing | $360,000 | $600 |
| Immediate Repairs | $333,333 | $556 |
| Roofing | $300,000 | $500 |
| Staircase Railing | $280,000 | $467 |
| Pool | $266,667 | $444 |
| Lounge and Playground Areas | $200,000 | $333 |
| Maintenance Shop | $200,000 | $333 |
| Project Managers | $200,000 | $333 |
| Raised Garden Beds | $150,000 | $250 |
| Drainage | $133,333 | $222 |
| Community Path | $133,333 | $222 |
| Mailbox Center | $133,333 | $222 |
| Unit Locks | $120,000 | $200 |
| Exterior & Common Area Paint | $100,000 | $167 |
| Pressure Wash | $58,000 | $97 |
| Roof Repairs | $53,333 | $89 |
| Unit Door Paint | $40,000 | $67 |
| Total Exterior Upgrades | $7,760,000 | $12,933 |
| Interior Upgrades | (Applicable to the 250 units being renovated) | |
| Light Fixtures | $75,000 | $300 |
| Plumbing Fixtures | $100,000 | $400 |
| Countertops | $200,000 | $800 |
| Appliances | $375,000 | $1,500 |
| Cabinets | $250,000 | $1,000 |
| Common Flooring | $125,000 | $500 |
| Labor | $500,000 | $2,000 |
| Total Interior Upgrades | $1,625,000 | $6,500 |
| Contingency (6.55% of Interior & Exterior budget) | $615,000 | $1,025 |
| Total CapEx Budget | $10,000,000 | $16,667 |
Note - Capital expenditures budget is not anticipated to be fully capitalized at closing of the Property acquisition. It is anticipated that funds generated from the sale of the entitled adjacent land will be partially used to cover any shortfall in the capital expenditures budget at closing.
Built in 1973, The Property is a 30-acre, 600-unit multifamily community. It consists of studios (72 units), one bed one baths (228 units), two bed one baths (228 units), and two bed two baths (78 units), with an average unit size of 828 square feet. The Property is located in the Near North submarket of Raleigh, which per Axio was ranked first among the Raleigh Durham market’s 12 distinct submarkets in effective rent growth for 2018 at 6.0%. The Property also includes an adjacent 41.2 acres of land, which will be fully entitled for the development of up to 900 additional multifamily units at the time of the acquisition of the Property. The development tract and existing unit and amenity renovations create substantial opportunity given the strong Raleigh multifamily market.
| Unit Type | # of Units | % of Total | Unit (Square Feet) | Rent Per Unit (In-Place) | Rent Per Unit (Stabilized) |
|---|---|---|---|---|---|
| Studio | 72 | 12% | 535 | $750 | $1,000 |
| 1 Bed, 1 Bath | 228 | 38% | 735 | $805 | $1,055 |
| 2 Bed, 1 Bath | 212 | 35% | 960 | $850 | $1,150 |
| 2 Bed, 1 Bath (R) | 16 | 3% | 960 | $950 | $1,250 |
| 2 Bed, 2 Bath | 71 | 12% | 1,000 | $940 | $1,240 |
| 2 Bed, 2 Bath (R) | 1 | 0% | 1,000 | $950 | $1,250 |
| Totals/Averages | 600 | 100% | 828 | $834 | $1,109 |
| Vert at Six Forks | Woodlyn on the Green | Beech Lake | Triangle Park | Berkshire 54 | Averages | Subject* | |
|---|---|---|---|---|---|---|---|
| Date | January-19 | July-18 | May-18 | March-18 | December-17 | - | March-19 |
| # of Units | 174 | 461 | 344 | 140 | 296 | 283 | 600 |
| Year Built | 1986 | 1985 | 1987 | 1986 | 1982 | 1985 | 1973 |
| Purchase Price | $21,025,000 | $59,200,000 | $37,200,000 | $11,500,000 | $33,666,925 | $32,518,385 | $65,000,000 |
| $/Unit | $120,833 | $128,416 | $108,140 | $82,143 | $113,740 | $110,654 | $108,333 |
| Cap Rate | 4.99% | 5.60% | 5.41% | 6.32% | 5.66% | 5.60% | 5.50% |
| Distance from Subject | 1.7 miles | 10.0 miles | 20.0 miles | 14.0 miles | 26.0 miles | 14.3 miles | - |
*Purchase price of the Subject Property does not include the $5 million allocated to the adjacent entitled land in the acquisition. The Subject Property cap rate is representative of trailing 12-month net operating income, without capital reserves.
| Hunting Ridge | Mayfaire | Lofts at Midtown | Shellbrook | Averages | Subject | |
|---|---|---|---|---|---|---|
| # of Units | 176 | 143 | 183 | 238 | 185 | 600 |
| Year Built | 1972 | 1995 | 1974 | 1972 | 1978 | 1973 |
| Average SF | 1,036 | 1,046 | 1,118 | 875 | 1,019 | 828 |
| Average Rental Rate | $1,075 | $1,087 | $1,188 | $1,035 | $1,096 | $1,109 |
| Distance from Subject |
0.8 miles | 2.2 miles | 1.1 miles | 1.4 miles | 1.4miles | - |
Lease and Sale Comparable information provided by Axiometrics and the CBRE appraisal of the Subject Property.
The Property is situated in close proximity to the 2 million square-foot North Hills mixed use development. Additionally, the site is positioned between two of Midtown Raleigh’s main North South thoroughfares (Six Forks & Falls of Neuse Roads), which provide convenient access to both I-440 (South) and I-540 (North). Hawthorne North Ridge is also located near several of the wealthiest neighborhoods in the area, such as North Ridge Country Club, Devon, and Sheffield Manor, all with homes ranging from $500K-$10 million. The Property provides tenants with a convenient commute to both Downtown Raleigh (6.0 miles away) and the Research Triangle (13.2 miles away).
The Research Triangle was founded in 1959 and placed in between Duke University (10 miles), the University of North Carolina at Chapel Hill (12 miles), and North Carolina State University (14 miles), with the intention of keeping educated talent leaving those universities within the state of North Carolina. Today the Research Triangle employs over 48,000 skilled workers in fields such as: (i) biotechnology and life sciences, (ii) information technologies, (iii) business and professional services, and (iv) foundation think tanks, among other industries. There are over 260 companies in the Research Triangle, with major employers including IBM Corporation, Cisco Systems, Inc., Credit Suisse, and Biogen, among many others. Per the self-reported economic brochure attached to the Financials tab of this offering, since its inception the Research Triangle has been home to companies which have been awarded over 3,200 patents and received approximately 2,000 trademarks for their work therein, and over $1 billion of investment into the Research Triangle has occurred over the past five years.
Market Overview
Per CoStar, Raleigh boasts a low cost of living and a well-educated population, both of which have contributed to recent economic growth. High-paying pharmaceutical and tech jobs are abundant in the metro, with an average annual salary of more than $75,000. Raleigh's economic growth has contributed to a surge in housing demand and an uptick in construction to house new residents. Strong leasing in the metro has drawn vacancies downward in recent quarters with Raleigh's premium apartment inventory the most affected. The strongest rent growth has been in suburban submarkets to the north and east of Raleigh where construction has been limited and absorption has been decidedly positive. In these submarkets, communities purchased as value-add opportunities have easily pushed rents following renovations. Multifamily assets in Raleigh have appreciated by more than 50% this cycle, with the strongest appreciation in lower and mid-end properties.
Per Axiometrics, effective rent decreased 0.3% from $1,097 in 3Q18 to $1,094 in 4Q18; even so, annual effective rent growth was 3.9% in 2018. Annual effective rent growth is forecast to be 2.8% in 2019, and average 2.7% from 2020 to 2023. Annual effective rent growth has averaged 1.8% since 1Q95. The market's annual rent growth rate was above the national average of 2.3%. The market's occupancy rate decreased from 95.4% in 3Q18 to 95.0% in 4Q18, and was up from 94.5% a year ago. For the forecast period, the market's occupancy rate is expected to be 94.9% in 2019, and average 94.8% from 2020 to 2023. The market's occupancy rate has averaged 94.2% since 1Q95.
Submarket Overview
Apartment demand in the submarket is driven in part by its office market. These relatively high-paying jobs support demand for luxury units from renters who for a multitude of reasons have not ventured into homeownership. North Hills continues to grow, and demand is expected to keep up with the continued commercial development.
Per Axiometrics, effective rent increased 1.9% from $1,073 in 3Q18 to $1,093 in 4Q18. The submarket's annual rent growth rate of 6.0% was above the market average of 3.9% in 2018. Annual effective rent growth is forecast to be 3.5% in 2019, and average 2.7% from 2020 to 2023. The annual effective rent growth has averaged 1.9% per year since 1Q95. The submarket's occupancy rate decreased from 95.4% in 3Q18 to 95.2% in 4Q18, and was up from 93.9% a year ago. The submarket's occupancy rate was above the market average of 95.0% in 4Q18. For the forecast period, the submarket's occupancy rate is expected to increase slightly to 94.9% in 2019 and average 94.8% from 2020 to 2023. The submarket's occupancy rate has averaged 94.1% since 1Q95.
Demographic Information
| 1 Mile | 3 Miles | 5 Miles | |
|---|---|---|---|
| Population (2018) | 14,715 | 90.084 | 222,762 |
| Estimated Population (2023) | 16,189 | 99,623 | 246,153 |
| Estimated Population Growth (2018-2023) | 10.02% | 10.59% | 10.50% |
| Median Household Income | $53,120 | $67,370 | $71,588 |
| Median Home Value | $239,927 | $272,674 | $276,598 |
| Average Household Size | 2.2 | 2.3 | 2.3 |
Demographic information above was obtained from CoStar.
| Sources of Funds | Cost |
|---|---|
| Debt | $49,400,000 |
| Equity* | $28,000,000 |
| Total Sources of Funds | $77,400,000 |
| Uses of Funds | Cost |
| Purchase Price | $70,000,000 |
| Real Estate Company Acquisition Fee | $700,000 |
| Loan Fee | $240,585 |
| Interest Rate Cap | $200,000 |
| Capital Expenditures Budget | $4,150,000 |
| Escrows & Prepaids | $360,000 |
| Working Capital | $400,000 |
| Closing Costs & Fees | $1,349,415 |
| Total Uses of Funds | $77,400,000 |
*Note - The total equity capitalized to the acquisition at the time of closing may be more or less than represented above. Should less equity be capitalized to the transaction than is represented above, the equity shortfall would be accretive to the RealtyMogul Estimated Financials in the Issuer Document Package attached to this offering. Should more equity be capitalized to the transaction than is represented above, the additional equity would be dilutive to the RealtyMogul Estimated Financials in the Issuer Document Package attached to this offering.
The expected terms of the debt financing are as follows:
- Lender: Berkeley Point Capital, LLC
- Estimated Proceeds: $49,400,000
- Loan Term: 3 years
- Extension Options: Two (2) one-year extension options
- Interest Only Period: Full Term
- Estimated Rate (Floating): 1 Month LIBOR + 2.30%
- Amortization: None
- Prepayment: TBD
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 the Company as follows:
- To the Company, pro rata share of distributable cash to an 8% IRR;
- 80%/20% (80% to the Company pro rata / 20% to the Real Estate Company) of excess distributable cash to a 16% IRR;
- Excess balances will be split 50%/30%/20% (50% to the Company pro rata / 30% to the Real Estate Company / 20% to RM Manager, Co.).
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 (up to 10% pro-rata) of the Real Estate Company's promote interest.
Distributions are expected to start in September 2019 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 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Effective Gross Revenue | $6,955,188 | $7,721,440 | $8,124,325 | $8,464,862 | $8,738,795 |
| Total Operating Expenses | $2,798,166 | $2,881,392 | $2,955,222 | $3,028,725 | $3,101,813 |
| Net Operating Income | $4,157,022 | $4,840,048 | $5,169,103 | $5,436,137 | $5,636,982 |
| Year 0 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|---|
| Distributions to the Company | ($3,655,000) | $116,879 | $250,867 | $1,498,940 | $306,427 | $329,150 | $4,397,592 |
| Net Earnings to Investor - Hypothetical $50,000 Investment |
($50,000) | $1,599 | $3,432 | $20,505 | $4,192 | $4,503 | $60,159 |
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 | $700,000 | Real Estate Company | Capitalized Equity Contribution | 1.0% of the Property purchase price. |
| Broker-Dealer Fee | 4.8% |
North Capital (1) |
Capitalized Equity Contribution Real Estate Company |
3.55% based on the amount of equity invested by RealtyMogul 130, LLC, rounded to the nearest multiple of $5,000. 1.25% based on the amount of equity invested by RealtyMogul 130, LLC, rounded to the nearest multiple of $5,000. This portion fee is paid outside of the transaction and has no bearing on RealtyMogul 130, LLC investors' economics |
| Type of Fee | Amount of Fee | Received By | Paid From | Notes |
|---|---|---|---|---|
| Property Management Fee | 3.0% of Effective Gross Income |
Real Estate Company | Distributable Cash | |
| Management and Administrative Fee | 1.25% of amount invested in RealtyMogul 130, LLC | RM Manager, LLC | Distributable Cash | RM Manager, LLC is the Manager of RealtyMogul 130, 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.