RealtyMogul is a digital crowdfunding platform that permits financiers, both accredited and non-accredited, to purchase properties with substantial capital minimums. Investors with authorization can use the platform to search for investment opportunities, and real estate businesses or advertisers can apply to post their deals.
Equity and debt real estate investments in a variety of industrial, residential, and mixed-use projects property types can be found on RealtyMogul. They can also choose from a variety of investment approaches, including growth and development, core-plus, and value-add. Keep on reading this article to find out more about its features, costs, and required minimum capital.
How Does RealtyMogul Work?
Investing in residential, commercial, or corporate real estate is made possible by the platform RealtyMogul. Registered investors can participate in particular property offerings, while non-accredited investors can select between two REITs. Investing with an income or growth focus allows investors to profit from their investments.
Income REIT: Since the fund's founding, investors have received a monthly payout from the Income REIT, which has an 85-month uninterrupted distribution period and an annualized distribution rate of 7.79 percent.
Apartment Growth REIT: Since the investment was set up, the Apartment Growth REIT has distributed funds for 23 consecutive quarters and has returned 6.4 percent. The Growth REIT has an income focus, just like the Income REIT. But the financial appreciation of the real estate itself is this REIT's secondary goal.
Individual Properties: Those with accredited investor status can select which individual properties to invest in. Information on the property, goal IRR, and additional information is available to investors through investigation and reports.
Features of RealtyMogul
RealtyMogul offers a wealth of financial data and research on each property and REIT, even if it does not offer specific investing recommendations. In addition, RealtyMogul offers an information sheet for the REITs and standard disclosures for every single property, making them unique in the crowdfunding space in terms of reporting.
Fees
It costs nothing to use RealtyMogul's site and become a member. With every investment, members are required to pay some fees, though. The real estate firm making the investment determines the fees. The investor's payment will vary based on the form of transaction and the kind of investment. RealtyMogul makes its fee schedule available for each investment option that the company provides.
This enables the investor to assess each offer fairly and decide on it in order to make an informed choice. The sponsor of each private placement sets this, and it varies depending on the investment. 1% of the entire equity value is the annualized RealtyMogul Income REIT. The annualized total equity value of RealtyMogul Residence Growth REIT is 1.25%.
Transparency
RealtyMogul's website makes no secret of the fact that purchasing one of its products is an extremely liquid, long-term investment. It is transparent about the fees investors should anticipate; nevertheless, these fees are not set in stone and can differ depending on the specific investment. Even while the website goes into great detail about the different kinds of costs investors might anticipate, determining their precise fees can still be a complicated procedure for investors.
Upon accessing the RealtyMogul dashboard, members can obtain up-to-date information on their assets. They can see details about their total investment performance, impending milestones, and the dividends made thus far.
Liquidity
Real estate investment trusts (REITs) and individual offerings are long-term investments, and RealtyMogul discloses this to its more than 280,000 investors. Real estate investments made on the RealtyMogul website cannot be readily sold or traded because they are private transactions that are not listed on the stock market. Investors are expected to hold onto their money for the length of the property holding when they make an individual property investment.
The shares of the REITs are locked up for a full year, during which time they cannot be bought back. Shares may be purchased again at the effective acquisition rate multiplied by the most recent reported NAV per share following this holding period.
Investment Options
Members of RealtyMogul can purchase real estate depending on their investing goals and preferred property type. Investors with accreditation can invest in individual properties or REITs; non-accredited investors are restricted to REITs. Certain investments might even qualify for other kinds of retirement accounts, such as self-directed IRAs. RealtyMogul does not currently provide other investing options other than real estate.
Learning Resources
Currently, RealtyMogul does not provide webinars, live training, or instructional training videos, which is comparatively inadequate when compared to other companies in the sector. It does, however, provide detailed research and analysis on investments for its available options, along with a blog covering a variety of investment subjects, including passive income, generating wealth, REITs, and commercial properties.
Pros of RealtyMogul
Although the idea of real estate crowdfunding is relatively new, RealtyMogul was one of the first companies in this field and has been operating for more than ten years. The business has been able to give investors an overall internal rate of return (IRR) of twenty-six percent during this time, which is greater than many of its competitors.
RealtyMogul provides immediate contact through social media, electronic mail, and phone support. Real estate crowdfunding firms frequently provide little customer support. RealtyMogul provides investment options in homes, businesses, and factories, whereas many of its competitors in the real estate crowdfunding space concentrate on a fairly limited number of property types.
Cons of RealtyMogul
Accredited investors must invest a minimum of twenty-five thousand dollars in a single property, while non-accredited investors must invest a minimum of five thousand dollars in a REIT. For the length of the property holding, qualified commercial properties investors are expected to hold their investments.
REIT investors are subject to a 12-month lock-up period, after which they can participate in the REIT's acquisition program. Only two REITs are now available to non-accredited investors: Income REITs and Apartment Growth REITs. Currently, non-accredited investors are not offered any options for individual properties.
Conclusion
In a comparatively new sector, RealtyMogul has provided investors with consistent returns for more than ten years. Additionally, the business is very satisfied with being open with investors and informing them rapidly and precisely about the wide range of possible and existing investments it offers.
This platform is more appropriate for knowledgeable investors with some spare capital they would like to invest in in the long term because of the substantial investment minimums and up to fifteen-year investment goals.
