Are you searching for a new investment opportunity? Then, you may have come across RealtyMogul. You may wonder what it is and ask yourself, “is it worth my time and money?” To help you decide, we have prepared this RealtyMogul review.
RealtyMogul is a real estate crowdfunding platform that allows investors to pool their money and invest in high-quality properties nationwide.
The company operates on a crowdfunding model, meaning anyone can become a real estate investor, regardless of income or net worth.
Read on to find out if RealtyMogul is the investment platform for you.
How RealtyMogul Works
RealtyMogul provides various opportunities for real estate investments, including fix-and-flip projects, commercial properties, and even multifamily apartments.
It provides services, such as property management and loan servicing (e.g., bridge loans and long-term rental property loans), carefully vetting each property before site listing and working only with experienced and reputable sponsors.
RealtyMogul offers public, non-traded real estate investment trusts (REITs), which allow investors to invest in a portfolio of diverse real estate properties without owning or managing them. A REIT is required by law to regularly pay dividends to its shareholders–at least 90% of its profits–making it attractive to investors who want a regular payout.
Realty Mogul has 2 REIT types with differing investment strategies:
- Income REIT. Focusing on income-producing assets, the Income REIT invests in all property types and distributes monthly cash dividends.
- Apartment Growth REIT. This type is oriented towards growth investments, investing in multifamily properties with value-added opportunities and value appreciation potential.
RealtyMogul is Easy, and Accessible
RealtyMogul makes real estate investing more accessible by allowing people to invest with as little as $5,000. They do this by crowdfunding, pooling investments together to finance loans for large commercial real estate projects. This approach lowers the risk for individual investors, allowing them to access a market previously available only to accredited investors.
RealtyMogul provides access to a wide range of financing options, allowing investors to tailor their investment strategy to their individual needs and goals, diversify their portfolios and earn passive income without traditional real estate investing hassle.
You simply pool your money with other investors to finance a real estate project. Once the property is sold, the profits are distributed among the investors, and you receive your share of the return.
RealtyMogul is changing the landscape of real estate investing and making it easy and possible for anyone to participate. So, if you’re looking for an option to invest in real estate without the hassle, RealtyMogul is the perfect platform.
RealtyMogul is Managed Professionally
RealtyMogul projects are managed by a team of professionals who handle everything from finding the property to negotiating the purchase price, overseeing repairs and renovations, and selling the property.
The team rigorously checks each opportunity to ensure it meets strict standards for profitability, risk, and maximum returns. Consequently, investors can feel confident that their money is being used for high-quality financing projects that have the potential to generate significant returns.
RealtyMogul adopts a hands-off approach, so investors can sit back and watch their investments grow. It offers a comprehensive property management service that covers all the details, from marketing and leasing to repairs and maintenance.
The company makes money by charging a success fee on each investment, which is only paid out if the investment is profitable.
The associated fees, shown on the specific investment page at the start, vary for each investment and are determined by the real estate company (the “Sponsor”) handling the project. Typically, there is also a 1% to 1.25% fee for asset management and legal expenses and an average of 0.50% to 0.60% in REIT fees.
RealtyMogul Schedule and Payout
RealtyMogul operates on a monthly cycle. At the beginning of each month, they collect payments from renters and use those funds to pay their members. They also set aside funds for repairs and ongoing maintenance and a reserve fund in case of vacancies.
RealtyMogul offers 2 different payout options: monthly dividends and property appreciation. If you choose the monthly dividend option, you’ll receive a percentage of the rental income each month.
If you choose the property appreciation option, you’ll receive a lump sum when the property is sold. Either way, you can expect to earn a healthy return on your investment.
RealtyMogul Maximized and Higher Returns
RealtyMogul has impressive features designed to help real estate investors maximize their return on investment (ROI).
RealtyMogul offers higher returns than traditional investment vehicles such as stocks and bonds. For example, the average annual ROI for RealtyMogul’s fix-and-flip loans is 15%, compared to the S&P 500’s historical average of 10%.
The company also shares a wide range of data on its returns, including average annual, total, and cash-on-cash returns.
RealtyMogul – Pros and Cons
Let’s take a look at the strengths, drawbacks, and overall performance ratings of RealtyMogul.
Pros:
- You can invest in fractional shares of properties, so you don’t need to shell out the full purchase price.
- The minimum investment is only $5,000, so it’s relatively accessible.
- The properties are available to both accredited and non-accredited investors.
- There is a wide range of properties to choose from, including residential, commercial, and industrial.
- The team does extensive due diligence on each property before listing it on the site.
- You can track your investments and performance online.
- You can withdraw your money at any time without penalty.
Cons:
- There is no guarantee of positive returns.
| RealtyMogul Features | Rating (out of 5.0) |
| Fees and Costs | 4.00 |
| Investment Selection | 4.00 |
| Website Transparency | 4.00 |
| Customer Service Support | 3.5 |
| Reliability | 5.00 |
| Educational Research | 4.00 |
| Overall Score | 4.08 |
Overall, RealtyMogul is a solid option for investors who are looking for a passive way to invest in real estate. The fees are higher than some other platforms, but the due diligence process and range of properties available make up for it.
Is RealtyMogul Right for Me?
There’s no doubt that real estate can be a great investment. After all, it’s one of the oldest and most proven asset classes. But for the average person, buying a piece of property outright can be prohibitively expensive.
That’s where RealtyMogul comes in.
By pooling funds from a sea of investors, RealtyMogul makes it possible for people to invest in high-quality properties without breaking the bank. And because RealtyMogul is an online platform, it’s easy to get started, and the service is available in 50 U.S. states.
Whether you’re trying to diversify your portfolio or simply get started in real estate investing, RealtyMogul is worth considering.
10 RealtyMogul Alternatives
RealtyMogul is just one platform that allows investors to pool their money and invest in real estate. For those who prefer different features, here are 10 other alternatives:
1. Fundrise
One of the most popular real estate crowdfunding platforms focusing on residential and mixed-use properties, Fundrise has a well-established track record of success.
For more details, here is our full Fundrise review.
2. DiversyFund
DiversyFund focuses on diversity and inclusion, making it an excellent choice for investors who want to support underrepresented communities.
Read more about its features in our complete DiversyFund review.
Open An Account At DiversyFund
3. CrowdStreet
A crowdfunding platform that offers several real estate investment opportunities, CrowdStreet is the biggest online real estate investing platform in the US.
4. Acorns
A micro-investing app that allows users to invest spare change in a diversified portfolio of assets, including real estate, Acorns. It also offers a variety of investment options, including a portfolio of exchange-traded funds (ETFs) focused on real estate.
Check our full Acorns review for more information.
5. EstateGuru
Available only for E.U. residents, EstateGuru is a leading European real estate crowdfunding platform for property-backed business loans.
Use this link to EstateGuru to sign up and get our 0.5% bonus. Here’s our complete EstateGuru review for more details about the platform.
Frequently Asked Questions (FAQs) – The RealtyMogul Review
Is RealtyMogul a REIT?
RealtyMogul is a crowdfunding real estate investment company that offers both public and nontraded properties in the form of REITs and individual private placements, making it an excellent, flexible option for those looking to invest in real estate.
How Long Has RealtyMogul Been Around?
RealtyMogul was founded in 2012 to provide investors with a convenient and easy way to invest in real estate.
Since then, they’ve helped over 250,000 people invest in properties all over the country.
What Is Better Than Fundrise?
There is no one-size-fits-all answer to this question, as each person’s investment goals and risk tolerance differ.
However, some alternatives to Fundrise that you may want to consider are DiversyFund, Fundrise, CrowdStreet, and Acorns.
Who Is the Most Successful Real Estate Investor?
No one holds the title of the most successful real estate investor, as success in this field depends largely on the individual’s ability to find and capitalize on opportunities.
However, some of the most successful real estate investors in recent years include Grant Cardone, Jeff Greene, and Bruce Berkowitz.
Conclusion – The RealtyMogul Review
If you want to invest in real estate and find the crowdfunded approach appealing, RealtyMogul may be your ideal platform.
The company offers many excellent features, including various investment opportunities, a professional management team, an easy process, accessible information, relatively higher returns, and an initial $5,000 minimum investment.
Of course, the bottom line is your financial goals and preferences, which you should determine clearly before deciding which platform is best for you. With this RealtyMogul review and further research, you can weigh your options and start investing in profitable real estate soon.
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Marjolein is a financial consultant who has built over €4,000 monthly passive income and saves over 70% of her income. Read Radicals’ inspiring story, from stuck in the 9-to-5 to loving life. Feel free to send Radical a message at the bottom of this page