Looking for a new investment opportunity? You might have come across RealtyMogul and wondered if it’s worth your time and money. To help you decide, here’s a review of RealtyMogul.
RealtyMogul is a real estate crowdfunding platform that lets investors pool their money to invest in high-quality properties across the country. It operates on a crowdfunding model, making real estate investing accessible to anyone, regardless of their income or net worth.
RealtyMogul offers a variety of real estate investment opportunities, including fix-and-flip projects, commercial properties, and multifamily apartments. They provide services like property management and loan servicing, carefully vetting each property before listing it and working only with experienced sponsors.
The platform also offers public, non-traded real estate investment trusts (REITs). These allow investors to invest in a diverse portfolio of properties without owning or managing them directly. By law, REITs must pay out at least 90% of their profits as dividends to shareholders, making them attractive for those seeking regular income.
RealtyMogul has two types of REITs with different investment strategies. They make real estate investing more accessible by allowing investments as low as $5,000. By pooling investments, they finance large commercial real estate projects, reducing risk for individual investors and opening up a market that was previously limited to accredited investors.
The platform offers various financing options, enabling investors to tailor their strategies to their needs and goals, diversify their portfolios, and earn passive income without the usual hassles of traditional real estate investing. You simply pool your money with other investors to finance a real estate project, and once the property is sold, profits are distributed among the investors.
RealtyMogul is transforming real estate investing, making it possible for anyone to participate. If you’re looking to invest in real estate without the usual hassles, RealtyMogul could be the right choice for you.
RealtyMogul’s projects are managed by professionals who handle everything from finding the property to negotiating the purchase price, overseeing repairs, and selling the property. They rigorously check each opportunity to ensure it meets strict standards for profitability and risk, giving investors confidence that their money is being used wisely.
The platform operates on a hands-off approach, allowing investors to sit back and watch their investments grow. They offer comprehensive property management services, covering everything from marketing and leasing to repairs and maintenance. RealtyMogul makes money by charging a success fee on profitable investments, with fees varying by investment and typically including 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 operates on a monthly cycle, collecting payments from renters at the start of each month and using those funds to pay members, set aside money for repairs and maintenance, and maintain a reserve fund for vacancies. They offer two payout options: monthly dividends and property appreciation. With monthly dividends, you receive a percentage of the rental income each month. With property appreciation, you get a lump sum when the property is sold.
RealtyMogul offers higher returns than traditional investments like stocks and bonds. For instance, their fix-and-flip loans have an average annual return on investment (ROI) of 15%, compared to the S&P 500’s historical average of 10%. They also share extensive data on their returns, including average annual, total, and cash-on-cash returns.
Overall, RealtyMogul is a solid option for those looking for a passive way to invest in real estate. While the fees are higher than some other platforms, the thorough vetting process and range of available properties make up for it. Real estate is a proven asset class, but buying property outright can be expensive. RealtyMogul makes it possible to invest in high-quality properties without breaking the bank. The online platform is easy to use and available in all 50 U.S. states.
Whether you’re looking to diversify your portfolio or start investing in real estate, RealtyMogul is worth considering.