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Residential
Cottages at Foley Farms
Foley, AL
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Cottages at Foley Farms
Foley, AL
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Overview
Cottages at Foley Farms
Ground-up development of a single-family Build-for-Rent ("BFR") community featuring 321 cottages and numerous on-site amenities in Alabama's fastest-growing county.
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Details
For more information, view the Sponsor's Investment Memorandum.
Estimated First Distribution 7/2025
Minimum Investment 35000
Estimated Hold Period 7-10 Years
Investment Strategy Development
Investment Type Equity
# of Units 321
First Units Delivered 2/29/2024
Project Stabilization 4/30/2025
Target Stabilized Year Cash on Cash 8.4% (Stabilized Year 4)
Land Acquisition Price $3,562,500
Total Development Budget $68,014,874
Sponsor Documents
The offering documents above have been prepared and are being delivered by the Sponsor of this investment opportunity, and not by RM Securities, LLC. RM Securities, LLC and its associated persons did not assist in preparing, do not explicitly or implicitly adopt or endorse, and are not otherwise responsible for, the Sponsors offering documents posted below or any content therein.
Deal Highlights
Investment Highlights
Build-For-Rent ("BFR") development opportunity delivering long-term stable cash flow. Based on a 10-year hold period, the Sponsors estimate returns of more than 19% IRR to investors and a stabilized 7.4% return on cost for the whole Project.
Cottages at Foley Farms incorporates all of the best aspects of single-family rental with the operational efficiency of professionally managed, highly amenitized apartment communities. The M4_Ritmo Sponsors have designed a differentiated product to meet the needs of the growing demographic of renters looking for the best aspects of apartment living in a planned community setting while enjoying their own single-family, detached home.
While Baldwin County has experienced outstanding population and employment growth over the past ten years, the supply of new housing has been insufficient. The lack of quality rental housing has resulted in an increase in effective rents of 18.2% over the prior five-year period and an average vacancy rate of 3.5% for 2021.
Access to Mobile Bay, two interstate systems, and five Class 1 railways has made Baldwin County an ideal location for firms to relocate their operations. As a result, the county has added an astounding 20,000 new jobs since 2011, a 26% increase. Major firms include Airbus, Collins Aerospace, Austel, and Novelis.
In addition to its access to Mobile Bay, Pensacola, FL, and the diverse employment options in Baldwin County, Foley is less than 12 miles from Florida’s Gulf Coast, benefitting from numerous tourism amenities. This access results in a diversified renter base to include both working professionals and an aging, downsizer demographic.
The Project benefits from outstanding Sponsorship with over 50 years and $3.0 billion worth of combined multifamily and homebuilding development experience. The Principals have worked for some of the nation's leading development firms. The Project marks the Sponsor's third Cottages development in Alabama.
Build-For-Rent ("BFR") development opportunity delivering long-term stable cash flow. Based on a 10-year hold period, the Sponsors estimate returns of more than 19% IRR to investors and a stabilized 7.4% return on cost for the whole Project.
Cottages at Foley Farms incorporates all of the best aspects of single-family rental with the operational efficiency of professionally managed, highly amenitized apartment communities. The M4_Ritmo Sponsors have designed a differentiated product to meet the needs of the growing demographic of renters looking for the best aspects of apartment living in a planned community setting while enjoying their own single-family, detached home.
While Baldwin County has experienced outstanding population and employment growth over the past ten years, the supply of new housing has been insufficient. The lack of quality rental housing has resulted in an increase in effective rents of 18.2% over the prior five-year period and an average vacancy rate of 3.5% for 2021.
Access to Mobile Bay, two interstate systems, and five Class 1 railways has made Baldwin County an ideal location for firms to relocate their operations. As a result, the county has added an astounding 20,000 new jobs since 2011, a 26% increase. Major firms include Airbus, Collins Aerospace, Austel, and Novelis.
In addition to its access to Mobile Bay, Pensacola, FL, and the diverse employment options in Baldwin County, Foley is less than 12 miles from Florida’s Gulf Coast, benefitting from numerous tourism amenities. This access results in a diversified renter base to include both working professionals and an aging, downsizer demographic.
The Project benefits from outstanding Sponsorship with over 50 years and $3.0 billion worth of combined multifamily and homebuilding development experience. The Principals have worked for some of the nation's leading development firms. The Project marks the Sponsor's third Cottages development in Alabama.
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Management
For more information, view the Sponsor's Investment Memorandum.
Ritmo Properties and M4 Development

The Cottages joint venture is sponsored by Ritmo Properties and M4 Development. Ritmo Properties is owned and operated by Steve and Christy Strazzella, who have collectively been in the residential and commercial real estate markets since 1989 performing their own development, design, and general contracting services on single-family homes, townhouses, and multifamily apartment buildings. Steve has managed more than $2 billion in multifamily real estate construction and development projects for some of the largest firms in the country.

M4 Development was formed in July 2010. Its Principals, Jonathan Meyers and Joseph Meyers, have in-depth experience in developing numerous product types within various real estate disciplines. Within the last five years, M4 has developed or has under construction 2 multi-family projects, 3 single-family subdivisions, and 3 build-for-rent communities. The thorough analysis of projects utilizing their extensive knowledge and background in development and construction has translated into the success of the projects they have pursued. 

Sponsor Track Record

Projects completed or under construction as part of The Cottages Partnership.

Property City, State Asset Type Acquisition Date Units or SF Purchase Price Sale Price/Est. Value
Cottages at Oak Grove Dairy Huntsville, AL BFR 9/27/2020 318 $54,000,000 $120,000,000
Cottages at Dothan (Phase 1) Dothan, AL BFR 1/1/2017 120 $15,700,000 $32,200,000

 

M4 Development Experience

Project Descriptions Year Location SF Type Use Project Value
Orchard Park 2013-2016 Dothan, AL 29 Lots Subdivision Residential $5,365,000
Mayberry Subdivision 2017-2019 New Brockton, AL 70 Lots Subdivision Residential $14,250,000
Highland Cove 2017-Present Dothan, AL 53 Lots Subdivision Residential $17,225,000
Camellia Apartments 2018-Present Enterprise, AL 176 Units Multifamily Commercial/Residential $28,000,000
Cottages Bentonville, AR 2020-Present Bentonville, AL 350 Units Build for Rent (BFR) Commercial/Residential $94,000,000
Cottages Dothan Phase 2 & 3 2019-Present Dothan, AL 90 Units Build for Rent (BFR) Commercial/Residential $17,200,000
Cottages Dothan Phase 5 & 6 2020-Present Dothan, AL 121 Units Build for Rent (BFR) Commercial/Residential $21,237,000
Cottages at Magnolia Place 2020-Present Foley, AL 300 Units Build for Rent (BFR) Commercial/Residential $81,421,000
Total     1,189     $278,698,000

 

See Sponsorship section for a detailed list of experiences.

The above bios and track record were provided by Ritmo Properties and M4 Development and have not been independently verified by RealtyMogul.

Website
Management Team
Management
Steve Strazzella
President

Since 1989, Steve Strazzella has managed more than $2 Billion worth of development projects. Most recently he was President and Partner of Bozzuto Development Company and Bozzuto Homes Inc, where he spent nearly 20 years managing the development of over 15,000 apartments and homes in the major metropolitan markets on the U.S. East Coast. Prior to that, he served in various executive positions at the Clark Companies and Roy F. Weston, Inc. Steve holds a Bachelor of Civil Engineering degree from the Catholic University of America.

Some example projects are listed below:

Monroe Street Market
600+ unit apartment & retail mixed-use project
$150M+ Value
(by Bozzuto Development Company with Steve Strazzella as President)

Aperture Apartments at Wiehle Avenue
420+ unit apartment & retail mixed-use project
$120M+ Value
(by Bozzuto Development Company with Steve Strazzella as President)

The Abby Apartments at Quincy Transit Center
600+ unit apartment & retail mixed-use project
$300M+ Value
(by Bozzuto Development Company with Steve Strazzella as President)

 

 

Management
Jonathan Meyers
Principal

Jonathan Meyers began his real estate career in the mid 1990’s working for a large commercial contractor on retail projects in Salt Lake Valley. He gained experience there as a Superintendent/Project Manager until he moved to a large interior fit-out contractor in Dallas, Texas where he oversaw and completed the largest national distribution center for AT&T, among other projects at Pacific Builders. In the late 1990’s he began working for one of the largest privately held contractors, Clark Construction, in Bethesda, MD, as a Project Manager. In 2000, Mr. Meyers began working with ARC, one of the top ten developers in the Washington, DC area. In that capacity, he worked as an Owner’s Rep and then VP of Development until his departure in 2005, when he left to start WPC in Bethesda, MD.  While at ARC and WPC, Mr. Meyers's development experience includes the oversight, acquisition, entitlement, and development of over 6,000,000 SF of commercial, multifamily, and single-family development valued at over $1.4 billion.

He left to start M4 Development in 2009 with his partner and brother, Joseph Meyers. Since that time, he has partnered to oversee the growth of M4 Development from a startup to now having developed multiple single-family subdivisions, apartment communities, and Build-For-Rent communities.

Management
Joseph Meyers
Principal

Joseph Meyers has extensive experience in multifamily, SFR, and single-family development. As a partner, Joe has managed all field operations for M4 Development for the past 9 years.

Property
For more information, view the Sponsor's Investment Memorandum.

Cottages at Foley Farms will be a Class A development consisting of 321 single-family rental cottages with amenities featuring on-site storage, a centrally located clubhouse and pool, a business center, a pet park, and a fitness center. The Project will cater to the area's growing workforce and retirement population while fostering a community-focused environment through its numerous amenities and organized community events.

Unit Mix

Unit Type # of Units Avg SF/Unit $ / Unit $ / SF % of Total
A - 1x1 108 781 $1,375 $1.76 34%
B - 2x2 103 1162 $1,735 $1.49 32%
C - 2x2 110 1177 $1,750 $1.49 34%
Total/Averages 321 1039 $1,619 $1.56 100%
Comparables
For more information, view the Sponsor's Investment Memorandum.

Lease Comparables

  Colonial Grand at Traditions Gulf Shores Sevilla Place Apartments The Reserve of Foley Magnolia Landing Apartments Subject
Year Built 2017/2021 2019 2018 2020 2024
# of Units 324 120 360 264 321
Average Unit Size 993 SF 1,260 SF 1,115 SF 961 SF 1,039 SF
Occupancy 96% 98% 98% 100%  
Distance from Subject 4.0 mi 1.2 mi 1.9 mi 1.4 mi  
           
$/Unit (1x1) $1,373 $1,168 $1,350 $936 $1,375
SF (1x1) 816 951 945 842 781
$/SF (1x1) 1.68 1.23 1.43 1.11 1.76
           
$/Unit (2x2) $1,588 $1,727 $1,614 $1,198 $1,735 - $1,750
SF (2x2) 1,075 1,234 1,220 1,074 1,162 - 1,177
$/SF (2x2) 1.48 1.40 1.32 1.12 1.48 - 1.49
           
Address 6061 Colonial Pkwy, Gulf Shores, AL 36542 3151 Boulevard de Sevilla, Foley, AL 36535 21450 County Rd 12 S, Foley, AL 36535 9167 Hickory St S south, Foley, AL 36535 County Rd 20 S & S McKenzie St, Foley, AL 36535

Sales Comparables

  Palladian at Daphne The Village at Hickory Meridian at the Port Gulf Stream Sandy Shores Village Averages Subject
Date Sold 12/1/2021 10/1/2021 10/1/2021 9/1/2021 7/1/2021   2032
Year Built 2017 2021 2019 2021 2016 2019 2024
# of Units 120 120 267 64 108   321
Average Unit Size 1794 SF 1600 SF 853 SF 1440 SF 1218 SF 1381 SF 1619 SF
Sale Price $31,000,000 $43,200,000 $69,500,000 $21,100,000 $23,150,000 $37,590,000 $116,973,695
$/Unit $258,333 $360,000 $260,300 $329,688 $214,352   $364,404
$/SF $144 $225 $305 $229 $176 $216 $225
Cap Rate 4.37% 4.30% 3.92% 4.24% 4.50% 4.27% 5.50%
Distance from Subject 27.4 mi 2.6 mi 44.4 mi 9.4 mi   21.0 mi  
Address 27821 State Highway 181, Daphne, AL 36526 904 Shagbark Rd, Foley, AL 36535 300 N Water St, Mobile, AL 36602 24802 Gulf Stream Cir, Orange Beach, AL 36561 25624 W Perdido Ave, Orange Beach, AL 36561   County Rd 20 S & S McKenzie St, Foley, AL 36535
Financials
For more information, view the Sponsor's Investment Memorandum.
Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Debt $50,828,632 $158,345
GP Investor Equity $171,863 $535
LP Investor Equity(1) $17,014,379 $53,004
Total Sources of Funds $68,014,874 $211,884
     
Uses of Funds $ Amount $/Unit
Residential Hard Costs $30,593,216 $95,306
Amenity Hard Costs $2,555,877 $7,962
Infrastructure $17,923,300 $55,836
Soft Costs $5,577,222 $17,375
Owner's Contingencies $3,100,000 $9,657
Developers Fee $2,408,756 $7,504
Operating Deficit & Interest Reserve $2,039,860 $6,355
Loan Fee $254,143 $792
Land $3,562,500 $11,098
Total Uses of Funds(1) $68,014,874 $211,884

(1) RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform. RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the RM Technologies LLC’s proprietary Platform and receive Platform-related services. Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC. An estimate of this fee, in addition to estimated due diligence, travel, legal and other fees associated with the formation of the company and the related securities filings, in the amount of $200,000 is included in the Sources and Uses above; this estimated fee has also been factored into the calculation of projected economic returns. Please thoroughly review the Sponsor’s relevant offering documents and operating agreement(s) for additional detail concerning these fees. RM Technologies LLC’s receipt of fees creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.

Debt Assumptions

The expected terms of the debt financing are as follows:

Construction Loan Permanent Debt Assumptions
Lender: Regions Bank Refinance Date: 8/31/2027
Term: 4+1 Lender: TBD
LTC: 74.7% Term: TBD
Estimated Proceeds: $50,828,632 Estimated Proceeds: $66,020,000
Interest Type: Floating Interest Type: Fixed
Spread above SOFR: 2.5%(1) Annual Interest Rate: 5.5%
Interest-Only Period: 42 months Interest-Only Period: TBD
Amortization: 30 years Amortization: 30 years
Prepayment Terms: N/A  
Extension Requirements: 1-year option  
Term Sheet: Executed  

(1) 0.50% SOFR floor

A substantial portion of the total acquisition for the Property will be paid with borrowed funds, i.e., debt.  Please carefully review the Disclaimers section below for additional information concerning the Sponsors use of debt. 

Distributions

Ritmo Properties & M4 Development intend to make distributions as follows:

Cash Flow from Operations

  1. Prior to Stabilization of the Property (defined as 90% occupied for 90 consecutive days) and before Co-Investors are being paid current on their preferred return (8%), the Cash Flow will be distributed 99% to the Equity Co-Investors and 1% to Sponsors pro rata.
  2. Thereafter, the Cash Flow will be distributed 70% to Equity Co-Investors and 30% to Sponsors (the "Sponsor Promote").

Cash Flow from Capital Transactions

  1. Prior to return of capital, Capital Transactions will be distributed 99% to the Equity Co-Investors and 1% to Sponsors pro rata.
  2. Thereafter, the Capital Transactions will be distributed 70% to Equity Co-Investors and 30% to Sponsors (the "Sponsor Promote").

Ritmo Properties & M4 Development intend to make distributions to investors after the payment of the company's liabilities (loan payments, operating expenses, and other fees as more specifically set forth in the LLC agreements, in addition to any member loans or returns due on member loan).

Distributions are expected to start in May 2025 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Ritmo Properties & M4 Development, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Ritmo Properties & M4 Development will receive a promoted/carried interest as indicated above.

 

Cash Flow Summary
    Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Effective Gross Revenue   $0 $644,314 $5,903,099 $7,251,789 $7,472,359 $7,699,638 $7,933,830 $8,175,145 $8,423,800 $8,680,018
Total Operating Expenses   $0 ($993,054) ($1,810,934) ($2,049,224) ($2,108,624) ($2,169,831) ($2,232,899) ($2,297,886) ($2,364,849) ($2,433,849)
Net Operating Income   $0 ($348,740) $4,092,164 $5,202,565 $5,363,735 $5,529,807 $5,700,931 $5,877,259 $6,058,950 $6,246,168
                       
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Net Cash Flow ($17,186,242) $0 $0 $4,656,730 $1,961,882 $18,363,258 $956,556 $1,127,679 $1,304,007 $1,485,699 $55,849,516
                       
Investor-Level Cash Flows(1)
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Net Cash Flow ($3,200,000) $0 $0 $742,746 $212,145 $3,081,130 $88,063 $109,184 $130,947 $153,372 $6,863,227
                       
Investor-Level Cash Flows - Hypothetical $50,000 Investment(1)
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Net Cash Flow ($50,000) $0 $0 $11,605 $3,315 $48,143 $1,376 $1,706 $2,046 $2,396 $107,238

(1) RM Technologies, LLC and its affiliates do not provide any assurance of returns.  Returns presented are net of all fees.  Please carefully review the Fees and Disclaimers sections below for additional information concerning Sponsor’s use or projected returns and fees paid to Sponsor and RM Technologies, LLC.

 

Fees

Certain fees and compensation will be paid over the life of the transaction; please refer to Ritmo Properties & M4 Development's materials for details. The following fees and compensation will be paid(1)(2):

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From Notes
Development Fee $2,408,756 Ritmo Properties & M4 Development Upfront Capitalization 3.5% of the Total Project Cost
Technology Solution Licensing Fee(2) Flat one-time licensing fees of $15,000 plus $1,500 per each prospective investor onboarded by Sponsor through its license and use of RM Technologies’ Technology Solution RM Technologies, LLC

Capitalization (at Sponsor’s discretion)

 
         
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From Notes
Asset Management Fee $75,000/year Ritmo Properties & M4 Development Cash Flow Will be paid monthly after construction completion
Administration Solution Licensing Fee(2) Flat quarterly licensing fee of $125 per investor serviced by Sponsor through the license and use of  RM Technologies’ Administration Solution RM Technologies, LLC Cash Flow  

(1) Fees may be deferred to reduce impact to investor distributions.

(2) Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC.

.

Sources & Uses

Total Capitalization

Sources of Funds $ Amount $/Unit
Debt $50,828,632 $158,345
GP Investor Equity $171,863 $535
LP Investor Equity(1) $17,014,379 $53,004
Total Sources of Funds $68,014,874 $211,884
     
Uses of Funds $ Amount $/Unit
Residential Hard Costs $30,593,216 $95,306
Amenity Hard Costs $2,555,877 $7,962
Infrastructure $17,923,300 $55,836
Soft Costs $5,577,222 $17,375
Owner's Contingencies $3,100,000 $9,657
Developers Fee $2,408,756 $7,504
Operating Deficit & Interest Reserve $2,039,860 $6,355
Loan Fee $254,143 $792
Land $3,562,500 $11,098
Total Uses of Funds(1) $68,014,874 $211,884

(1) RM Technologies, LLC, an affiliate of RealtyMogul, operates the RealtyMogul Platform. RM Technologies, LLC charges a fixed, non-percentage-based fee for real estate companies and their sponsors to use the RM Technologies LLC’s proprietary Platform and receive Platform-related services. Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC. An estimate of this fee, in addition to estimated due diligence, travel, legal and other fees associated with the formation of the company and the related securities filings, in the amount of $200,000 is included in the Sources and Uses above; this estimated fee has also been factored into the calculation of projected economic returns. Please thoroughly review the Sponsor’s relevant offering documents and operating agreement(s) for additional detail concerning these fees. RM Technologies LLC’s receipt of fees creates a conflict of interest between RealtyMogul and its affiliates, and investors or prospective investors.

Debt Assumptions

The expected terms of the debt financing are as follows:

Construction Loan Permanent Debt Assumptions
Lender: Regions Bank Refinance Date: 8/31/2027
Term: 4+1 Lender: TBD
LTC: 74.7% Term: TBD
Estimated Proceeds: $50,828,632 Estimated Proceeds: $66,020,000
Interest Type: Floating Interest Type: Fixed
Spread above SOFR: 2.5%(1) Annual Interest Rate: 5.5%
Interest-Only Period: 42 months Interest-Only Period: TBD
Amortization: 30 years Amortization: 30 years
Prepayment Terms: N/A  
Extension Requirements: 1-year option  
Term Sheet: Executed  

(1) 0.50% SOFR floor

A substantial portion of the total acquisition for the Property will be paid with borrowed funds, i.e., debt.  Please carefully review the Disclaimers section below for additional information concerning the Sponsors use of debt. 

Distributions

Ritmo Properties & M4 Development intend to make distributions as follows:

Cash Flow from Operations

  1. Prior to Stabilization of the Property (defined as 90% occupied for 90 consecutive days) and before Co-Investors are being paid current on their preferred return (8%), the Cash Flow will be distributed 99% to the Equity Co-Investors and 1% to Sponsors pro rata.
  2. Thereafter, the Cash Flow will be distributed 70% to Equity Co-Investors and 30% to Sponsors (the "Sponsor Promote").

Cash Flow from Capital Transactions

  1. Prior to return of capital, Capital Transactions will be distributed 99% to the Equity Co-Investors and 1% to Sponsors pro rata.
  2. Thereafter, the Capital Transactions will be distributed 70% to Equity Co-Investors and 30% to Sponsors (the "Sponsor Promote").

Ritmo Properties & M4 Development intend to make distributions to investors after the payment of the company's liabilities (loan payments, operating expenses, and other fees as more specifically set forth in the LLC agreements, in addition to any member loans or returns due on member loan).

Distributions are expected to start in May 2025 and are projected to continue on a quarterly basis thereafter. Distributions are at the discretion of Ritmo Properties & M4 Development, who may decide to delay distributions for any reason, including maintenance or capital reserves.

Ritmo Properties & M4 Development will receive a promoted/carried interest as indicated above.

 

Cash Flow Summary
    Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Effective Gross Revenue   $0 $644,314 $5,903,099 $7,251,789 $7,472,359 $7,699,638 $7,933,830 $8,175,145 $8,423,800 $8,680,018
Total Operating Expenses   $0 ($993,054) ($1,810,934) ($2,049,224) ($2,108,624) ($2,169,831) ($2,232,899) ($2,297,886) ($2,364,849) ($2,433,849)
Net Operating Income   $0 ($348,740) $4,092,164 $5,202,565 $5,363,735 $5,529,807 $5,700,931 $5,877,259 $6,058,950 $6,246,168
                       
Project-Level Cash Flows
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Net Cash Flow ($17,186,242) $0 $0 $4,656,730 $1,961,882 $18,363,258 $956,556 $1,127,679 $1,304,007 $1,485,699 $55,849,516
                       
Investor-Level Cash Flows(1)
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Net Cash Flow ($3,200,000) $0 $0 $742,746 $212,145 $3,081,130 $88,063 $109,184 $130,947 $153,372 $6,863,227
                       
Investor-Level Cash Flows - Hypothetical $50,000 Investment(1)
  Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Net Cash Flow ($50,000) $0 $0 $11,605 $3,315 $48,143 $1,376 $1,706 $2,046 $2,396 $107,238

(1) RM Technologies, LLC and its affiliates do not provide any assurance of returns.  Returns presented are net of all fees.  Please carefully review the Fees and Disclaimers sections below for additional information concerning Sponsor’s use or projected returns and fees paid to Sponsor and RM Technologies, LLC.

 

Fees

Certain fees and compensation will be paid over the life of the transaction; please refer to Ritmo Properties & M4 Development's materials for details. The following fees and compensation will be paid(1)(2):

One-Time Fees:
Type of Fee Amount of Fee Received By Paid From Notes
Development Fee $2,408,756 Ritmo Properties & M4 Development Upfront Capitalization 3.5% of the Total Project Cost
Technology Solution Licensing Fee(2) Flat one-time licensing fees of $15,000 plus $1,500 per each prospective investor onboarded by Sponsor through its license and use of RM Technologies’ Technology Solution RM Technologies, LLC

Capitalization (at Sponsor’s discretion)

 
         
Recurring Fees:
Type of Fee Amount of Fee Received By Paid From Notes
Asset Management Fee $75,000/year Ritmo Properties & M4 Development Cash Flow Will be paid monthly after construction completion
Administration Solution Licensing Fee(2) Flat quarterly licensing fee of $125 per investor serviced by Sponsor through the license and use of  RM Technologies’ Administration Solution RM Technologies, LLC Cash Flow  

(1) Fees may be deferred to reduce impact to investor distributions.

(2) Please see the Fees and Disclaimers sections below for additional information concerning fees paid to RM Technologies, LLC.

.

Disclosures
RM Securities, LLC and its Affiliates Compensation

RM Securities, LLC, its registered representatives, affiliates, associated persons, and personnel of its affiliates who may also be associated with it, including our associated persons and personnel of our affiliates who are also be associated with RM Securities, LLC (it (“RM Securities,” “we,” “our,” or “us”) will receive fees, expense reimbursements, and other compensation (“Fees”) from the issuer of this investment offering, its sponsor, or an affiliate thereof (“Sponsor”), or otherwise in connection with Sponsor’s offering. The Fees paid to us are in addition to other fees you will pay to Sponsor or in connection with Sponsor’s investment offering. You will pay Fees to Sponsor, either directly or indirectly as an investor in the Sponsor’s offering. Sponsor will use the Fees you pay, as well as funds you invest in the relevant offering, to compensate us. The Fees paid to us will directly or indirectly be borne by you as the investor (typically, but not always, in the form of an expense of the Sponsor’s offering in which you invest) because such Fees will reduce the proceeds available for distribution to you and reduce the amount you earn over time.

For more information on the Fees paid to us, or any other Fees you will pay in connection with Sponsor’s offering, please carefully review the Sponsor’s Investment Documents. Please also carefully review RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

No Approval, Opinion or Representation, or Warranty by RM Securities, LLC

Sponsor has provided, approved, and is solely responsible in all aspects for the information on this webpage (“Page”), including Sponsor’s offering documentation, which may include without limitation the Private Placement Memorandum, Operating or Limited Partnership Agreement, Subscription Agreement, the Project Summary and all exhibits and other documents attached thereto or referenced therein (collectively, the “Investment Documents”). The Investment Documents linked on this page have been prepared and posted by Sponsor, and not by RM Securities. We did not assist in preparing, do not adopt or endorse, and we are not otherwise responsible for, the Sponsor’s Investment Documents. We make no representations or warranties as to the accuracy of information on this Page or in the Sponsor’s Investment Documents and we accept no liability therefor. No part of the information on this Page or in the Sponsor’s Investment Documents is intended to be binding on us.

Sponsor’s Information Qualified by Investment Documents

The information on this Page is qualified in its entirety by reference to the more complete information about the offering contained in the Sponsor’s Investment Documents. The information on this Page is not complete and subject to change at the Sponsor’s discretion at any time up to the closing date. The Sponsor’s Investment Documents and supplements thereto contain important information about the Sponsor’s offering including relevant investment objectives, the business plan, risks, charges, expenses, and other information, which you should consider carefully before investing. The information on this Page should not be used as a basis for an investor’s decision to invest.

Risk of Investment

This investment is speculative, highly illiquid, and involves substantial risk. There can be no assurances that all or any of Sponsor’s assumptions, expectations, estimates, goals, hypothetical illustrations, or other aspects of Sponsor’s business plans (“Assumptions”) will be true or that actual performance will bear any relation to Sponsor’s Assumptions, and no guarantee or representation is made that Sponsor’s Assumptions will be achieved. If Sponsor does not achieve its Assumptions, your investment could be materially and adversely affected. A loss of part or all of the principal value of your investment may occur. You should not invest unless you can readily bear the consequences of such loss. Sponsor’s Assumptions should not be relied upon as the primary basis for your decision to invest.

No Reliance on Forward-Looking Statements; Sponsor Assumptions

Sponsor is solely responsible for statements made concerning forward-looking statements and Assumptions, which apply only as of the date made, are preliminary and subject to change, and are expressly qualified in their entirety by the disclosures and cautionary statements included in Sponsor’s Investment Documents, which you should carefully review. Neither RM Securities nor Sponsor are obligated to update or revise such forward-looking statements or Assumptions to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events. Sponsor’s forward-looking statements and Assumptions are hypothetical, not based on actual investment achievements or events, and are presented solely for purposes of providing insight into the Sponsor’s investment objectives, detailing Sponsor’s anticipated risk and reward characteristics, and establishing a benchmark for future evaluation of actual results; therefore, they are not a predictor, projection, or guarantee of future results. You should not rely on Sponsor’s forward-looking statements as a basis to invest.

Importantly, we do not adopt, endorse, or provide any assurance of returns or as to the accuracy or reasonableness of Sponsor’s Assumptions or forward-looking statements.

No Reliance on Past Performance

Any description of past performance is not a reliable indicator of future performance and should not be relied upon as the primary basis to invest.

Sponsor’s Use of Debt

A substantial portion of the total cost of the real estate asset acquired by the Sponsor with investor funds (“Property”) will be paid with borrowed funds, i.e., debt. Sponsor’s estimated rates and terms of the debt financing are subject to lender approval, and there is no assurance that the Sponsor will secure debt at the rates and terms presented on this Page or in the Sponsor’s Investment Documents, or at all. The use of borrowed money to acquire real estate is referred to as leveraging, which can amplify losses and could result in lender foreclosure. In addition, if the debt includes a variable (or “floating”) interest rate, the total amount of interest paid over the term of the debt will fluctuate and can increase. As a result, Sponsor’s use of debt can result in a loss of some or all of your investment.

Sponsor’s Offering is Not Registered

Sponsor’s securities offering will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemptions from registration pursuant to Rule 506(c) of Regulation D as promulgated under the Securities Act (“Private Placement”). In addition, the offering will not be registered under any state securities laws in reliance on exemptions from state registration. Such securities (your ownership interests) are subject to restrictions on transferability and resale and may not be transferred or resold except as permitted under applicable state and federal securities laws pursuant to registration or an available exemption. All Private Placements on the Platform are intended solely for “Accredited Investors,” as that term is defined in Rule 501(a) under the Securities Act.

No Investment Advice

Nothing on this Page should be regarded as investment advice (either with respect to a particular security or regarding an overall investment strategy), a recommendation, an offer to sell, or a solicitation of or an offer to buy any security. Advice from a securities professional is strongly advised to understand and assess the risks associated with real estate or private placement investments. For additional information on RM Securities’ involvement in this offering, please carefully review the Sponsor’s Investment Documents, and RM Securities’ Form CRS, Regulation Best Interest Disclosures, and Limited Brokerage Services Agreement.

1031 Exchange Risk

Internal Revenue Code Section 1031 (“Section 1031”) contains complex tax concepts and certain tax consequences may vary depending on the individual circumstances of each investor. RM Securities and its affiliates make no representation or warranty of any kind with respect to the tax consequences of your investment or that the IRS will not challenge any such treatment. You should consult with and rely on your own tax advisor about the tax aspects with respect to your particular circumstances.

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