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RealtyMogul offers the average non-accredited investor the opportunity to make money in commercial real estate investments.
Are you looking to invest in commercial properties, but don’t think you have the money or resources to do so?
RealtyMogul is a legitimate real estate investment platform that allows users to invest in commercial properties that usually require accreditation and large amounts of funding.
Deciding which investment opportunity to place your money in can be confusing, but we’ve broken down each investment type to make your choice as simple as possible.
What is RealtyMogul?
RealtyMogul offers investors that don’t have the money or resources to own commercial property the opportunity to invest in commercial real estate.
Jilliene Helman founded RealtyMogul when she realized that the majority of people aren’t able to invest in commercial real estate.
Before crowdfunding opportunities arose, only accredited investors could invest in commercial real estate.
To become an accredited investor, you must usually have a minimum net worth of $5 million and an annual income of $200,000 ($300,000 if filing jointly).
Median income in the U.S. in 2020 was under $70,000, so commercial real estate investment seems unattainable for most people.
With this in mind, Jilliene decided that everyone should have access to commercial property investment, regardless of wealth.
To do this, she created a crowdfunding platform that allowed people access to such investment opportunities.
Commercial real estate investment can be a significant source of income, but most people will never have the millions of dollars needed to invest, so RealtyMogul offers the average person the opportunity to get in on commercial real estate profits.
How Does RealtyMogul Work?
RealtyMogul is a real estate crowdfunding platform offering three different investment types. The first two opportunities are real estate investment trusts (REITs), which invest in various properties using money they gather through crowdfunding.
The two RealtyMogul REITs are income and apartment REITs. Each has different benefits, but both require a $5,000 account minimum.
The other investment opportunity RealtyMogul offers is an individual investment, which is only available to accredited investors and has a significant minimum investment.
Most projects require a $25,000-$50,000 minimum to invest. Individual investments work a little differently than REITs, as they allow you to choose the project you want to support.
In this case, rather than being a crowdfunding opportunity, RealtyMogul is just a platform for you to invest directly in projects you want to support.
A few different types of commercial properties can receive money from RealtyMogul:
- Multifamily properties: Including multifamily homes, apartment complexes, student housing and other residencies.
- Industrial properties: Including freight or shipping warehouses, storage or manufacturing facilities.
- Office buildings: Ranging from high-rise to single-tenant buildings.
- Retail: Including strip malls, large shopping centers and outlets.
Organizations may be looking for funding for different kinds of projects, such as:
- Core: Core opportunities are solidly running organizations that are low risk but offer little profit for the investor.
- Value-Add: Some properties are looking to add value so that they may charge renters more. These are medium-risk projects for investors, with medium payouts.
- Opportunistic: Opportunistic opportunities are usually ground-up construction builds. While these projects are high risk, they can have high payouts.
RealtyMogul Investment Options
RealtyMogul offers users the opportunity to invest in REITs and individual properties, depending on what the user has available to put down and what their goals are.
Each investment has pros and cons, a cash minimum and different payouts. REITs are good options for those who don’t want to do their due diligence on property investments, are not accredited or do not have significant funds to put down.
Alternatively, individual investments from RealtyMogul are good options for those who are accredited investors willing to do due diligence and have more money to put into properties and investments.
The Income REIT from RealtyMogul invests and manages multiple commercial property portfolios. The properties offer more diversification than RealtyMogul’s other options because the REIT invests in numerous property types.
RealtyMogul provides full access to information about the Income REIT to investors. This includes information regarding individual investment properties in the REIT and past investment properties that have already been repaid.
The Income REIT’s goal is to provide monthly income to investors, and to do this, it offers a monthly repayment. Because this REIT repays monthly, it is the best option for investors looking to add to their cash flow.
The Income REIT repays monthly with an annualized rate of six percent. An annualized rate describes the rate you are expected to receive if you average out the rate you received over multiple months.
You may receive more or less than six percent each month. You must put down a minimum initial investment of $5,000 to participate in the Income REIT, although you are welcome to put down more.
The Income REIT is non-traded, meaning that the public cannot buy in. While there are some benefits to being non-traded, it’s very difficult for buyers to get out in an emergency.
You may not have the option to sell your investment if you need your money back, and if you do, you will likely lose money if you choose to sell early.
The Income REIT has so far surpassed its goal, has a return rate of 9.47 percent and has distributed more than $24 million to investors (as of fall 2022).
Overall, the past performance of the Income REIT is solid. As of this 2022 RealtyMogul review, the Income REIT has repaid its investors for 72 consecutive months.
Apartment Growth REIT
The Apartment Growth REIT from RealtyMogul offers quarterly distributions with an annualized rate of 4.5 percent.
Like the Investment REIT, the Apartment Growth REIT is non-traded, so it is difficult to leave if necessary.
The Apartment Growth REIT aims to “realize capital appreciation.” In simpler terms, this means that RealtyMogul aims to make capital gains from increased share prices.
The Apartment Growth REIT is less diversified than the Income REIT as it only invests in multifamily rental properties.
RealtyMogul discloses information on current and past investment properties for full transparency.
As with the Income REIT, you must put down a minimum initial investment of $5,000 to join the Apartment Growth REIT.
As of fall 2022, the Apartment Growth REIT has distributed $8.7 million back to investors and has a total asset value of $234 million.
The individual properties option is the only opportunity RealtyMogul offers that allows you to choose specific investments.
Each property has different minimum investments, but all are at or above $25,000.
Because of rules and regulations regarding commercial property investment, only accredited investors may invest in individual properties through RealtyMogul.
RealtyMogul allows accredited investors with the available funds to partially invest in all four primary categories of commercial real estate, including multifamily rentals, industrial properties, office properties and retail space.
You should only consider this type of investment if you are sure you are prepared to wait that long for a return.
There is no recourse available if you need the money invested back earlier.
REITs and Retirement Funds
RealtyMogul offers investors the choice of using money from their self-directed IRAs to invest in both REITs.
Using money from your IRA allows you to avoid paying “double tax” and to increase the amount of money you make overall.
Money paid into your IRA from your income is not taxed under $6,000. By investing money from your IRA into RealtyMogul, you can avoid paying income tax on the initial $6,000 and only pay income tax on dividends.
Note that if you chose to invest your IRA in RealtyMogul’s REITs, you would only be able to use that money in retirement. It would go directly back into your IRA.
RealtyMogul Fees & Investment Minimum
|Management Fee||1% to 1.25% per year|
Who Should Use RealtyMogul?
Anyone with excess money they want to invest in commercial real estate should use RealtyMogul.
Those looking to add to their cash flow should invest in the RealtyMogul Income REIT. Investors looking for capital appreciation should invest in RealtyMogul’s Apartment Growth REIT.
Accredited investors that want to get into commercial real estate investment should put their money into RealtyMogul’s individual properties.
How Does RealtyMogul Compare?
1% to 1.25%
.85% to 1%
0.25% to 2.50%
Getting Started with RealtyMogul
Getting started with RealtyMogul is simple. All you need to do to begin investing is:
- Sign up on their website using your name, phone number and email address.
- Verify that you have the necessary funds available.
- Choose your REIT or individual property investment.
- Wait for returns to begin rolling in.
All payments you make and that RealtyMogul makes are through bank transfers (ACH transfers), so you should have your banking information handy when you sign up.
“I an an accredited investor and I did my homework before choosing Realty Mogul. I have been impressed with the customer service that I have received from the Realty Mogul team. I look forward to increasing my investment portfolio with them in the coming months.”Greg N. Verified Google User
“I am going to give it 5 stars because i have been with them for over 4 years and selected the monthly and quarterly distributions which have been paid like clockwork in a timely manner. This year i even received a one time distribution in both of their reits.”George M. Verified Google User
Is RealtyMogul a Good Investment?
RealtyMogul provides a legitimate platform for accredited and non-accredited investors to break into the commercial real estate market.
Whether or not you make money depends on the success of the individual opportunities you choose to invest in.
Overall, if your personal finances allow you to meet the minimum in RealtyMogul and you want to try your hand at commercial real estate investment, RealtyMogul is a good investment opportunity.
You can start your commercial real estate journey by signing up on the RealtyMogul website.
If you still have questions about RealtyMogul, we have some answers below.
Can RealtyMogul be trusted?
Yes, RealtyMogul is a trustworthy platform for commercial real estate investment.
Can you really make money from RealtyMogul?
Yes, you can really make money from RealtyMogul, although it may take several years to see the full results.
Can you withdraw money from RealtyMogul?
Property is an illiquid investment, meaning you cannot withdraw money from RealtyMogul. You can only wait to be repaid for your investment or ask for a buyback if you have been invested for more than one year.
How often does RealtyMogul pay dividends?
RealtyMogul’s Income REIT pays dividends monthly, and RealtyMogul’s Apartment Growth REIT pays on a quarterly basis.
Individual investments have varying repayment agreements.
How does RealtyMogul make money?
RealtyMogul makes money by charging users a 1-1.25 percent fee for investments.
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