Realty Mogul is a popular online real estate platform that brings together investors and project developers. The platform allows investors to find the right projects to invest in and offers project sponsors a platform to connect with investors.
Realty Mogul Review
The company was founded in 2012 by Jilliene Helman and Justin Hughes to help investors get access to real estate investment opportunities that were previously only available to institutional investors.
Realty Mogul gives investors opportunities to invest in commercial real estate such as apartment buildings, office buildings, self-storage facilities, office, and medical buildings. The platform offers investment opportunities for both accredited and non accredited investors.
Private Placements
Accredited investors can invest in private placements. An accredited investor is someone who
- earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, or
- has a net worth over $1 million, either alone or together with a spouse excluding the value of the person’s primary residence
Accredited investors can invest in private placements, which are single properties such as apartment buildings or a portfolio of properties. The minimum investment amount varies by deal (typically $25,000 to $50,000). Investment horizon is 3 to 7 years.
Private placements are not liquid and your money will be locked in for the investment period. These are unregistered security offerings that are exempt from registration with the SEC.
REITs
Non accredited investors can invest in public non-traded Real Estate Investment Trusts (REITs).
RealtyMogul Income REIT – This REIT invests in commercial real estate. It’s a public nontraded REIT. It focuses on generating income and pays out monthly dividends.
RealtyMogul Apartment Growth REIT – This public nontraded REIT invests in multifamily apartment buildings. Dividends are typically lower than the RealtyMogul Income REIT fund as this fund focuses on capital appreciation and not income.
Account minimums and Fees
Account minimum – $5,000
Management fees – 1 to 1.25%
Pros and Cons
Pros
- Excellent online platform – all docs are available online and can be executed electronically
- Good choice of investments
- Investment opportunities are vetted before they are offered to investment
Cons
- Some investments are illiquid
- Private placements are only available to accredited investors
Self-directed IRA and 1031 exchanges
You can invest in Realty Modul through a self-directed IRA. If you are rolling over funds from selling another investment, Realty Mogul allows 1031 exchanges, which allow you to postpone capital gains taxes.
Bottom Line
Realty Mogul offers accredited and non-accredited investors opportunities to invest in commercial real estate. Though some investments have high minimum and lock-up periods, the platform offers plenty of investment opportunities to choose from based on your preferences.