RealtyMogul is an online real estate investing and crowdfunding platform that has been making waves in the investment community since it was launched in 2013. The company allows everyday investors to invest in pre-vetted real estate deals and earn returns as high as 12%. In this Realty Mogul review, we’ll take a look at what RealtyMogul offers, how it works, who can invest, and whether or not it’s a good option for you.
Who founded RealtyMogul?
RealtyMogul was founded in 2013 by co-CEOs Jilliene Helman and Justin Hughes. Helman is a former real estate investment banker, while Hughes has over 15 years of experience in the real estate industry. RealtyMogul was launched with the mission of democratizing access to quality real estate investments. The company has raised over $300 million in venture capital from investors like Union Square Ventures and TPG Growth. RealtyMogul is headquartered in Los Angeles.
The company says its mission is to democratize access to real estate investing by making it easy and accessible for everyone. RealtyMogul does this by vetting and curating investment opportunities, providing educational resources, and offering a user-friendly platform.
How does RealtyMogul work?
RealtyMogul operates as an online marketplace that connects accredited and non-accredited investors with real estate investment opportunities. RealtyMogul evaluates and curates each investment opportunity on the platform, which typically includes large commercial properties like office buildings, retail centers, and multifamily apartment complexes.
To get started, investors create an account on RealtyMogul.com. From there, they can view available investments and decide which ones they want to invest in. RealtyMogul will then provide the investor with all of the necessary paperwork and facilitate the closing process.
Once an investment is selected, RealtyMogul handles all of the due diligence, paperwork, and closing processes on behalf of the investor. RealtyMogul also offers an online dashboard where investors can track the progress of their investments and receive regular reports. RealtyMogul will also handle all of the accounting and reporting for the investment.
RealtyMogul only offers investments that meet its strict criteria, which includes things like location, asset type, sponsor experience, and more. Once an investment has been vetted and approved by RealtyMogul, it is then made available to investors on the RealtyMogul platform.
Who can invest with RealtyMogul?
RealtyMogul is open to accredited and non-accredited investors. Accredited investors are individuals who meet certain criteria set forth by the SEC, including having a net worth of $200,000 or more (or $300,000 combined with a spouse) and an annual income of $200,000 or more (or $300,000 combined with a spouse). Non-accredited investors are individuals who do not meet these criteria.
RealtyMogul does have some requirements for all investors, regardless of accreditation status. These requirements include being a U.S. citizen or legal resident and being at least 18 years of age.
What are the ways to invest with RealtyMogul?
There are two ways to invest with RealtyMogul: direct investing and MogulREIT.
With direct investing, you can hand-pick the individual real estate investments that you want to invest in. This is a good option if you have the time and resources to do your own due diligence on each investment.
MogulREIT is RealtyMogul’s flagship product. It is a real estate investment trust (REIT) that allows investors to pool their money and invest in a diversified portfolio of commercial real estate properties. MogulREIT is a good option for investors who want the convenience of a hands-off investment.
MogulREIT is only available to accredited investors. RealtyMogul has two MogulREITs: MogulREIT I and MogulREIT II.
- MogulREIT I was launched in 2014 and invests in a portfolio of commercial real estate properties located across the United States. As of June 2019, the portfolio includes 85 properties with a total value of $825 million. The minimum investment for MogulREIT I is $5,000.
- MogulREIT II was launched in 2016 and invests in a portfolio of commercial real estate properties located in the major markets of the United States. As of June 2019, the portfolio includes 49 properties with a total value of $670 million. The minimum investment for MogulREIT II is $25,000.
What are the fees and costs of RealtyMogul?
The fees and costs associated with RealtyMogul will depend on which investment option you choose.
For direct investing, RealtyMogul charges a flat fee of $15 per month. There are also some miscellaneous fees that may be charged, such as a $250 closing fee and a $500 loan origination fee.
For MogulREIT I, the investment minimum is $5,000 and there is a $250 annual fee. For MogulREIT II, the investment minimum is $25,000 and there is a $500 annual fee.
What are the benefits of investing with RealtyMogul?
There are several benefits of investing with RealtyMogul, including:
- Access to high-quality investment opportunities: RealtyMogul only offers investments that meet its strict criteria. This provides investors with peace of mind knowing that they are investing in a high-quality investment.
- Convenience: RealtyMogul makes it easy for investors to get started with a hands-off approach.
- Transparency: RealtyMogul is transparent with its fees and costs, as well as the performance of its investments. Investors can easily see how their investment is performing.
- Diversification: RealtyMogul offers investors the ability to diversify their portfolios with a variety of investment options.
What are the risks of investing with RealtyMogul?
There are some risks associated with investing with RealtyMogul, including:
- Real estate is a risky asset class: Real estate investing is generally considered to be a high-risk investment. There is the potential for loss of capital if the property values decrease.
- RealtyMogul is a young company: RealtyMogul was founded in 2013, which means it is a relatively new company. This may make some investors hesitant to invest with RealtyMogul.
- RealtyMogul is a niche investment: RealtyMogul only invests in real estate, which means it is a niche investment. This may not be ideal for investors who are looking for diversification in their portfolios.
Has RealtyMogul faced any complaints or lawsuits?
RealtyMogul has not faced any major complaints or lawsuits. There have been some minor complaints filed with the Better Business Bureau (BBB) and RealtyMogul has an A+ rating with the BBB.
Are there alternatives to RealtyMogul?
There are several alternatives to RealtyMogul, including:
- Fundrise: Fundrise is an online real estate investing platform that offers a variety of investment options, such as eREITs and eFunds.
- Rich Uncles: Rich Uncles is an online real estate crowdfunding platform that offers investments in commercial real estate properties.
- RealtyShares: RealtyShares is an online real estate investing platform that offers a variety of investment options, such as equity and debt investments.
What is our opinion of RealtyMogul?
We believe that RealtyMogul is a legitimate company that offers investors a convenient way to invest in high-quality real estate investment opportunities. We like that RealtyMogul is transparent with its fees and costs, as well as the performance of its investments. However, we do believe that RealtyMogul is a high-risk investment due to the nature of real estate investing. We also believe that RealtyMogul is a niche investment and may not be ideal for investors who are looking for diversification in their portfolios.
If you're considering investing with RealtyMogul, we recommend that you research the company thoroughly and consult with a financial advisor to ensure that it is the right investment for you.
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