What is realtymogul.com? How does it help you achieve your objectives as an investor? Should you turn to it for what it offers or should you avoid it altogether? This review will help you get answers to these questions, you decide whether this company’s opportunities are worth taking up.
Name of the company: RealtyMogul
Official Website URL: https://www.realtymogul.com/
Overall Rating: (3.5 / 5)
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Table of Contents
- What is realtymogul.com?
- How does RealtyMogul work?
- What are you investing in? (as the investor)
- Which are some of the main features of RealtyMogul?
- Which types of deals are offered on this platform? (How to invest in RealtyMogul)
- Is RealtyMogul Legit or is It a Scam?
- Pros and Cons
What is RealtyMogul?
RealtyMogul is a commercial real estate crowdfunding platform that was established back in 2013. It has since then been allowing investors, both large and small, to try their hand in real-estate investment trusts, popularly known as REITs. The company has also been very helpful to accredited investors who are seeking out private deals.
As much as investors have to invest a minimum of $5000 at a time, RealtyMogul also allows investors to fund deals worth several millions of dollars. This essentially opens up a world of opportunities to commercial real estate investors who are familiar with this money-making approach.
This company tries to stand out from its competitors by offering investors an opportunity to invest using their 1031 exchange. Any investor who needs to reinvest the proceeds upon selling their rental property can turn to RealtyMogul, and start gaining the benefits that come with a 1031 exchange. This essentially means that such an investor can defer capital gains on their transaction until they decide to sell their RealtyMogul shares.
How does RealtyMogul Work?
Just like is the case with other top platforms in this industry RealtyMogul usually finds investments from both the developers and real estate veterans. The developers are required to submit deals to RealtyMogul for consideration. The real estate veterans have many contacts throughout the country.
According to the information presented on this company’s website, it usually reviews thousands of property deals every year, though less than 1% of these deals meet the set standards. For a deal to make it into the RealtyMogul marketplace, then it has to be very good and exceptional.
This company has its doors open to both accredited and non-accredited investors. Many deals are available for both types of investors, though there are outstanding limitations for the non-accredited ones. The non-accredited investors can only invest in REITs, while the accredited investors are also allowed to invest in standalone real estate deals.
What are you investing in? (as the investor)
This company has a wide range of investment offerings that are made accessible to a wide array of investors. Your options will vary depending on whether you are already an accredited investor or a non-accredited investor. Currently, RealtyMogul allows you to invest in:
- Real estate investment trusts (REITs)
- Individual properties
- 1031 private placements
Note that RealtyMogul usually does background checks on the investment opportunities that real estate companies list. At the time RealtyMogul is evaluating every opportunity, it usually looks at:
- The background of the listing company
- Nature of the property
- The market of that property
- The target returns
Which are some of the main features of RealtyMogul?
RealtyMogul has several outstanding features that you can take advantage of as an investor. Here are the main ones:
- MogulREIT I – this a public nontraded REIT that is registered with the Securities and Exchange Commission. It isn’t traded on stock exchanges like is the case with publicly-traded REITs. MogulREIT I focuses on commercial real estate-related equity and debt assets in property such as self-storage multifamily, office, industrial, etc.
- MogulREIT II– It’s a public non-traded REIT that invests in common and preferred equity investments. The dividends are paid out quarterly
- REIT buyback program –since a large number of real estate crowdfunding platforms are highly illiquid, investors can’t take out their money for a given time frame. RealtyMogul, therefore, offers to buy back your investments at a percentage of the initial capital (98% to 100%)after you’ve held them for a given time.
- High return targets –private placements, MogulREIT I, and MogulREIT II have the capacity of bringing you high returns, although this isn’t guaranteed.
Which types of deals are offered on this platform? (How to invest in RealtyMogul)
With RealtyMogul, you can make money through deals in any of the following categories:
- REITs – we’ve already established that this is the main way you can make money on this platform, though you’ll need a minimum investment of $5000 to get started, for MogulREIT I and MogulREIT II (note that the objectives of the two REITs, their distribution rates frequencies vary widely).
- Individual properties – you have to be an accredited investor for you to make an income through single investments in specific properties.
- 1031 exchange private placements – these exchanges allow investors to defer their federal capital gains taxes by simply swapping the investment properties they already own for similar real estate properties.
- Retirement – you can buy shares of RealtyMogul’s REITs using you’re the funds in your Self-Directed IRA.
Is RealtyMogul Legit or is It A Scam?
RealtyMogul is in my own opinion a legit business. It currently has an A+ rating on Better Business Bureau. As much as RealtyMogul is yet to become a BBB accredited business, the A+ rating goes a long way into defending its position as a legit business.
There are a couple of complaints listed by customers about RealtyMogul, which would make one very wary of what they’re getting themselves into. Platforms such as RealtyMogul are meant to give you returns over a short-term horizon, but the complaints show some customers are not happy with what they’re getting so far (zero returns in some cases). In this case, I’d simply opt to turn to long-term investment options, since there’s sufficient time for the proceeds to accumulate. Check out the recommended alternative below, in which you are presented with impressive tax benefits as you invest in retirement assets that wouldn’t lose their value entirely.
Pros and Cons
- Has REIT products that are open to non-accredited investors as well
- Its REIT buyback program offers liquidity to investors
- High targeted rates of return
- There are high investment minimums
- Complex fees structures that may vary by investment
Do you own or represent RealtyMogul?
If you are a representative or associate of RealtyMogul have found something not to be correct in this review please, feel free to tell us and I will make sure to update the info on this post. The easiest way to do it is in the comment section below or simply by sending us an e-mail to email@example.com.
Final Words and Verdict
Overall Rating: (3.5 / 5)
RealtyMogul is one of the big names in the real estate crowdfunding space. Despite having some very impressive deals, it’s yet to build itself a good reputation amongst investors. There are barely any positive customer reviews that point to massive success or anything close to what is promised. I’m not necessarily saying that this company is to be avoided, but I’m not one to recommend a company whose track record doesn’t speak for itself.
Check out the recommended alternatives to RealtyMogul below to see what other companies are helping investors to achieve- here you’ll find a good example of what firms with a good track record are helping investors achieve.
That will be all for today’s review on what realtymogul.com is about and what it’s out to help you achieve. I hope you enjoyed it and that you’re now in a better position to decide whether you’ll turn to RealtyMogul for the deals it promises to investors, or you’ll simply go with the available alternatives. Let me know what you have in mind about this company. You can also ask any questions about it in the comments section.
I wish you well,
Eric, Investor and Team Member at Gold Retired!