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RealtyMogul is a reliable platform that caters to both accredited and non-accredited investors. As one of the best platforms, RealtyMogul provides you with direct access to highly vetted commercial deals. It also offers non-accredited investors the opportunity to buy shares of two different REITs. The idea that you can invest as low as $5000 and generate income makes the platform appealing. Better still, RealtyMogul focuses on quality and intense due diligence, which means it’s committed to satisfying investors. While its deal flow of individual properties is not very high, it has a strong track record of good offerings to help you venture into real estate and find quality investments. If you are looking to diversify your portfolio and can comfortably meet the requirements, then RealtyMogul may help you.
Pros
Suitable for both accredited and non-accredited investorsPre vetted investment thus safe and secureNo capital calls required; hence you’ll never be asked to provide additional capital above your initial investmentsOffers highly vetted commercial deals
Cons
Difficult to qualify as an accredited investor as most people as few people have had an annual income of $200000Maturity can take up to 7 years.
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Compare to Other Investment Apps
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Invest in real estate properties with a $10 minimum initial investment
Historical annual return varies from 8.8% to 12.4% (2019 – 9.47%)
Low annual fees: advisory – 0.15%; management fee – 0.85%
Public App
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Over 5000 stocks and ETFs to choose from (dividend stocks available)
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Acorns
Invest your spare change in a diversified portfolio built by experts
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Earn bonus investments from 350+ Acorns Earn partners
How Does RealtyMogul Work?
Started by Jullien Helman and Justin Hughes and based in Los Angeles, RealtyMogul is an online crowdfunding platform that allows investors to invest in real estate without buying one. Established in 2013, the company offers real estate investment trust and investment placement.
RealtyMogul allows you to participate in various commercial real estate investments. Examples include self-storage, industrial sites, multi-family dwellings, office buildings, and retail buildings.
It also allows you to;
Access and invest in private placements and get exposed to more deals
Invest in professionally managed and well-leased properties with the potential to generate income.
How Much You Can Earn with RealtyMogul?
RealtyMogul provides targeted returns based on individual deals offered on its platform.
Currently, it has three offering listings, including;
Internal Rate of Return: 15.6% of self-storage and 26.1% on multifamily development
Cash on cash returns: Targeted cash on cash returns range from 5.9% to 7.5%
Equity Multiple: This ranges from 1.51 times to 2.46 times
RealtyMogul Reviews: Is RealtyMogul Legit?
RealtyMogul is an online platform that has been operating for over a decade and is backed by several venture capital firms, hence can be considered legitimate. While the platform has not attracted a lot of reviews, it has an A + rating on BBB with few users happy with its pre-vetted investment that are considered safe.
With a rating of 3.3 on Trustpilot, one reviewer claimed that he had a 1-3 year hold, and it’s been four years since he invested. According to him, contacting them never bore any fruit as they continue saying they are sorry. Otherwise, we can say that RealtyMogul is safe, secure, and legitimate.
Who is RealtyMogul Best For?
RealtyMogul is for both non-credited and accredited investors. However, if you are a non-credited investor, you can only invest in no-traded REITS. This means you cannot invest in standalone investment properties.
RealtyMogul Fees: How Much Does it Cost to Invest with RealtyMogul?
While RealtyMogul is free to join, you’ll have to pay commissions that vary between 1% to 1.5% for REITs.In addition, the company charges management fees as follows;
Hybrid REITEquity REITFeesAnnual fees capped at 3%Annual fee capped at 3%Asset Management Fee1% annual asset management fee billed monthly1.25% annual asset management fee billed monthly
RealtyMogul Features: What Does RealtyMogul Offer?
Easy Sign-Up Process
Signing up with RealtyMoguls is a straightforward process that only requires three steps.
Open to Non-Accredited Investors
RealtyMogul offers nonaccredited investors access to the public non-traded REITs, MogulREITs I and II. To invest with the company, you must be qualified purchasers with your investment not representing more than 10% of your income. You can sign up here to get started.
Investments
RealityMogul offers public non traded REITs and private placements, including:
MogulREIT I: This LLC invests in and manages a portfolio of real estate investments. As a public non-traded REIT, it is registered with the Securities and Stock Exchange Commission but not traded on stock exchanges.
MogulREIT II: This is also a public non-traded REIT that invests In common and preferred equity investments in multifamily apartments. While its dividends are lower than MogulREIT I, it aims for significant value appreciation over time.
High Investment Minimum
While RealtyMogul’s minimum investment varies by the investment, you must have at least $5000 to invest with RealtyMogul.
RealtyMogul Buy Back Program
RealtyMogul offers a program where you can sell your MogulREIT I and MogulREIT II back to RealtyMogul quarterly for a reduced price for the first year. The company may buy back your investments at a lesser percentage. This percentage depends on how long you’ve held the investment.
For instance, you’ll be paid;
98% if you’ve saved the investment for one year or less
99% if you’ve held the investment for two years
100% if you’ve held the investment for three years
0% If you’ve held the investment for less than 1 year
RealtyMogul Requirements
To open an account with RealtyMogul, you must meet the following requirements;
Minimum $5000 for REITs and $15000 for direct investment
At least 18 years
The US or international resident
Accredited investors for direct investment and all investors for REITs offerings
Since Investments on RealtyMogul are illiquid and loss of capital is possible, you need to review risk factors for private placements before investing your money.
How Does RealtyMogul Protect Your Money?
RealtyMogul maintains appropriate physical, electronic, and procedural safeguards and controls to protect your investment. While it’s not insured, it uses algorithms and combined years of experience to vet every detail of every potential asset and ensure your investment is safe.
Unfortunately, if you lose your money there is no way to claim compensation.
What are the RealtyMogul Pros & Cons?
RealtyMogul Pros
Suitable for both accredited and non-accredited investors
Pre vetted investment thus safe and secure
No capital calls are required; hence you’ll never be asked to provide additional capital above your initial investments
RealtyMogul Cons
Difficult to qualify as an accredited investor as most people as few people have had an annual income of $200000
Maturity can take up to 7 years.
How Good Is RealtyMogul Support and Knowledge Base?
RealMogul has detailed articles and videos on how to use the platform. You can also get in touch with them over live chat, phone, and email between Monday to Saturday 8 AM to 6 PM. With the agents very friendly and supportive, we can conclude that the support is helpful.
RealtyMogul Review Verdict: Is RealtyMogul Worth it?
RealtyMogul is a reliable platform that caters to both accredited and non-accredited investors. As one of the best platforms, RealtyMogul provides you with direct access to highly vetted commercial deals. It also offers non-accredited investors the opportunity to buy shares of two different REITs.
The idea that you can invest as low as $5000 and generate income makes the platform appealing. Better still, RealtyMogul focuses on quality and intense due diligence, which means it’s committed to satisfying investors.
While its deal flow of individual properties is not very high, it has a strong track record of good offerings to help you venture into real estate and find quality investments. If you are looking to diversify your portfolio and can comfortably meet the requirements, then RealtyMogul may help you.
How to Sign Up with RealtyMogul?
To get started with RealtyMogul;
Go to the website and click join
Choose whether you’re a real estate company or an individual
Enter your name, email address, and phone number and click continue
Verify your email address, then continue
Add your annual income for the past three years and net worth
Wait for approval
Sites Like RealtyMogul
RealtyMogul vs. Fundrise
Fundrise Summary
Low minimum starting investment of $10High historical returns of 8.8% to 12.4%1% of management feesDiverse portfolios of up to 16 investments
Fundrise is a leading crowdfunding firm with a minimum investment of just $500 compared to RealtyMogul’s $5000. Like RealtyMogul, Fundrise’s main interests are average investors seeking to join the real estate market.
Similar in many ways, the most notable difference between RealtyMogul and Fundrise is that Fundrise has a lower investment of $1000 and a simpler fee structure. Unfortunately, Fundrise does not offer property listings like RealtyMogul.its offers are more REIT focused
RealtyMogul vs. Crowdstreet
CrowdStreet is one of the most favorite competitors of RealtyMogul.Like RealtyMogul, CrowdStreet only accepts accredited investors with criteria similar to RealtyMogul. Compared to RealtyMogul, CrowdStreet’s primary focus is commercial real estate, with some of them having double-digit expected returns.
Since these investments are long-term, you must let them hold your money for a while. CrowdStreet also has a minimum investment of $25000 with no option for early withdrawal. While crowdStreet only provides one offering for non-accredited investors, it boasts higher deal flows than RealtyMogul, lower fees, and more transparency. Otherwise, both platforms offer long-term investments.
RealtyMogul vs. Equitymultiple
EquityMultiple offers investors professionally managed commercial real estate opportunities. Compared to RealtyMogul, this firm lets you invest in funds or direct real estate opportunities. It also provides tax-deferred investing and focuses heavily on institutional, commercial real estate.
RealtyMogul FAQ
What is RealtyMogul?
Currently, the company has over 175000 investors who have invested in more than $375 and financed more than 300 properties valued at $2.8 billion. The company also has above $100 million in investment distributions.
With the platforms 1031 exchange, you can defer your capital gains until you decide to sell your shares. Accredited by the Better Business Bureau, the company enjoys a rating of A+ on BBB.
RealtyMogul Summary of the Features
Minimum Investment5000Accreditation Required1% TO 1.25%/YearAccount Fees6 monthsTime CommitmentYesPrivate REITYesProperty TypesCommercialRegions Served50 States
How do you list an investment opportunity on RealtyMogul?
Once the company receives an application, it passes it through the due diligence process while focusing on the project and the sponsor. A RealtyMogul representative will then visit the property to confirm its location and condition. If the project passes this, it gets listed.
Can RealtyMogul increase your net worth?
Yes, investing in RealtyMogul is one of the best ways to increase your net worth. If you set up an auto investment plan and track it, your money will grow as your net worth increases.
Which is better, Individual Properties or REITs?
While some people prefer to invest directly in properties, others see REITs as the best option. So, this largely depends on your goals as an investor.
Does RealtyMogul invest in multi-family homes?
Yes, RealtyMogul tends to focus on multi-family homes with solid cash flows.
How do I withdraw money from RealtyMogul?
If you’re a REITs investor, you can withdraw money at a 2% penalty after the first year. But if you invest in individual property, your investment will be locked up until the project is complete.
RealtyMogul offers a REIT payback program but this depends on the company’s availability of capital. Also, the fees associated with this program can be up to 2%.