RealtyMogul Review – Real Estate Investing for Newcomers
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If you don’t have a lot of money to invest and want to take advantage of the expert analysis at the heart of RealtyMogul’s platform, there are plenty of reasons to create an account.
8.5/10
Cost
8/10
Features
9/10
Ease of use
9/10
Services
8/10
“Ninety percent of all millionaires become so through owning real estate. More money has been made in real estate than in all industrial investments combined. The wise young man or wage earner of today invests his money in real estate.” - Andrew Carnegie
Generally speaking, investing in real estate is only for accredited investors with a net worth of over $1 million or meet annual income requirements of at least $200,000 over two or more years. So how are those of us looking to invest in real estate to make money ever going to get to invest in real estate without the money required? It's the chicken or the age-old egg question.
This is why real estate crowdfunding platforms like RealtyMogul, EquityMultiple, and Fundrise are so promising for individual investors since they leverage collective buying power to offer you real estate investment options you’d otherwise be unable to access.
Want to get your foot in the door on real estate? Here's how you can with RealtyMogul.
In this article
What is RealtyMogul?
CEO Jilliene Helman founded RealtyMogul after years of working in wealth management when she realized that her clients who had accrued the most wealth all had one thing in common: They invested in real estate. To address the fact that most novice investors were shut out of real estate investment opportunities, she created RealtyMogul. (Thank you!)
RealtyMogul lets everyday investors access various individual properties and Real Estate Investment Trusts ("REITs") through a simple user interface and transparent business practices around each type of investment. RealtyMogul even has an in-depth vetting process to make sure that the apartment buildings, commercial real estate, multifamily homes, and office buildings you’re considering are in areas that are likely to net you a positive return.
Today, the company boasts more than 280,000 members, and the RealtyMogul platform has been used to finance $7 billion of property value.
Especially if you’re someone like myself who doesn’t have a very high-risk tolerance, it’s nice to know that the real estate projects available to you through RealtyMogul are in areas with a history of above-average performance on the secondary market.
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How does Realty Mogul work?
To get started with RealtyMogul, you’ll need to create an account as a personal investor. It’s also worth noting that real estate companies can use RealtyMogul to raise capital for a project.
When you get to your account creation page, you’ll have to fill out some general information about yourself, including your first and last name, email address, and a valid United States phone number. You also must agree to RealtyMogul’s terms and conditions during this step of the account creation process and can choose to opt in or out of SMS messaging and updates from RealtyMogul.
You’ll then need to verify your email address before setting up your investment profile and digging into the platform. Your main dashboard lets you view various commercial real estate investments that have undergone RealtyMogul’s due diligence process, make new investments, and track how your investment portfolio performs.
You can decide whether or not you also want to have your account automatically invest distributions from your equity investments, which are tracked separately in RealtyMogul’s dashboard. The dashboard also gives you access to any messages and correspondence with RealtyMogul’s dedicated investor relations team and tax documents when it’s time to file.
You'll need to be an accredited investor to invest with RealtyMogul and take full advantage of its options. That being said, if you aren’t an accredited investor, you still have options available through the MogulREIT I and MogulREIT II offerings. It’s important to note that there are some legal limitations to how you invest in these REITs, so it’s a good idea to reach out to support before you make an account if you’re not accredited but want to purchase REITs as an investment.
Overall, the platform is clean and simple to use, making it a great fit for new investors who are mostly focused on how much cash they’ve invested and the return on that investment.
One place for all your investing
Options Trading
- Get up to a $0.18 rebate
- No commission or per-contract fees
High-yield cash
- Earn 5.1% APY*
- No fees. No subscription required.
Bonds
- 6% Yield or more
- Explore thousands of bonds yielding 6%+
How much does RealtyMogul cost?
While browsing RealtyMogul’s dashboard and creating an account is completely free, you will run into a few different fees and charges when you choose to invest.
For starters, the minimum amount on the equity investments you’re looking at will change depending on what properties you’re considering. The minimum investment on some options is as low as $5,000. It's not the best for the new investor, but it is still not nearly as expensive as most REIT-accredited requirements.
It’s also worth noting that the fee structure for RealtyMogul is tailored specifically to the different types of securities you’re considering. For example, the fees and charges are different for a real estate loan versus equity investments, and the terms of these deals vary from transaction to transaction. Generally speaking, you’ll have legal, administrative, and management fees associated with each transaction, and RealtyMogul is quite transparent about these fees before you decide to commit to an investment.
Compare rates from a network of lenders
- Low fixed mortgage rates
- Check and monitor your credit for free
- Only a few steps to your best mortgage rates
- Great deals on your mortgage
RealtyMogul features
RealtyMogul has a few features that are definitely worth highlighting. Here are just some of the key components that set RealtyMogul apart from other crowdfunding investment platforms:
Quality properties
Compared to other crowdfunding platforms laser-focused on transactions, RealtyMogul focuses on quality, not quantity. As a result, even though more than 30,000 deals have been submitted to the company over its history, only a little more than 1% have made it to the platform.
RealtyMogul’s due diligence process is extensive and aimed at ensuring that investors get a solid return. Data about the real estate market, the property itself, and the company behind the real estate all determine whether RealtyMogul will let investors access the investment on its platform. As such, you know you’re getting the cream of the crop when you use RealtyMogul for your preferred equity investing.
Simple investments
The real estate investment process requires many forms to be filled out, signed, and submitted to run smoothly. RealtyMogul’s simple-to-use online interface streamlines real estate investing significantly. Particularly when it comes to reviewing how your investments are doing and what your current portfolio liquidity is, RealtyMogul’s clear, concise dashboard shines — and is available 24/7.
Secure investing
Anytime you deal with sensitive data and money, your platform must be secure. Thankfully, RealtyMogul’s creators have gone above and beyond to ensure that the website is secure and will protect your assets and your data. From firewalls and encryption approaches to internal and external reviews of all websites, you can rest assured that your data is in good hands with Realty Mogul.
Who is RealtyMogul best for?
While there’s a lot to celebrate about RealtyMogul, the platform and its features aren’t for everyone. Here’s who will likely get the most out of using RealtyMogul:
Individual investors who aren’t accredited
If you’re a non-accredited investor looking to grab a piece of the real estate investment pie, RealtyMogul is right up your alley. The platform lets you quickly and effectively spread your investment dollars across multiple properties to mitigate risk and increase your chance of maximizing your return. You often need a million-dollar net worth or a high-paying job to qualify for real estate investment opportunities. Still, RealtyMogul’s REITs are a great option for anyone, regardless of income.
Investors looking for a way to diversify passive income
Investing in real estate and REITs is a great way to boost your returns if you're interested in generating passive income. As such, many investors who’ve already invested in traditional stock and bond options will find a lot to like in the options RealtyMogul offers them, especially thanks to the due diligence process, which helps take some of the risks out of making a choice yourself.
Who shouldn’t use Realty Mogul?
Investors who want lots of options
As has been mentioned multiple times throughout this review, RealtyMogul has an extremely rigorous due diligence process. While this means that the properties you’re considering as an investor are likely high quality, it does take some element of choice off the table. If you want a platform that isn’t as limited in the options it gives you as a real estate investor, you’re probably better off with a different platform than Realty Mogul.
Overseas investors
You can only have a RealtyMogul account if you’re based in the United States. As such, if you live overseas and are interested in real estate investing, you will need to look into other options online.
Compare rates from a network of lenders
- Low fixed mortgage rates
- Check and monitor your credit for free
- Only a few steps to your best mortgage rates
- Great deals on your mortgage
Pros and cons
Pros
- Easy to use. Everything about the platform’s user interface is crisp and clean, making it simple and intuitive to navigate. Even when it comes to reviewing fees and due diligence data, RealtyMogul’s commitment to transparency makes it almost effortless.
- Due diligence process. RealtyMogul only accepts about 1.1% of the properties submitted to it.
- Low minimum investments. If you don’t have a lot of working capital, you’ll appreciate that some properties will let you start investing for as little as $5,000.
Cons
- Still must be accredited to get full benefits. While RealtyMogul does allow non-accredited investors to invest in REITs, if you’re really serious about getting in on the real estate investment game, you’ll need to be accredited to access other commercial properties through the platform.
- Only available in the United States. You must live in the U.S., and the real estate investments are based in the U.S.
RealtyMogul vs. Fundrise vs. Crowdstreet
RealtyMogul isn’t the only crowdfunding real estate investment option on the market. Here’s how RealtyMogul stacks up compared to two popular competitors: Fundrise and Crowdstreet.
Feature | RealtyMogul | Fundrise | CrowdStreet |
Minimum investment | $5,000 | $10 | $25,000 |
Open to non-accredited investors | Yes | Yes | No |
Annual fees | 1%-1.25% | 1% | N/A |
Fundrise
Fundrise and RealtyMogul are the most similar of the above three options; however, it’s worth noting that RealtyMogul’s due diligence process is much more intense than Fundrise’s approach. That being said, with similar annual fees for management costs and lower minimum investments, if you don’t have much working capital, Fundrise might be a better option if you have a higher risk tolerance.
Crowdstreet
Crowdstreet doesn’t offer private placement REITs (also known as private REITs), which means that all of the REITs offered on the platform are subject to regulations by the SEC. Even so, the lack of an annual fee may be worth it for investors who can meet the minimum investment amount of $25,000.
FAQs
Who can invest on RealtyMogul?
As long as you live in the United States and are over the age of 18, you’re eligible to invest using RealtyMogul. That being said, if you want to invest in something beyond Realty Mogul’s REITs, such as some of their private placements, you’ll need to be an accredited investor, which involves meeting a few different income and net worth requirements.
Is investing through RealtyMogul safe?
From a data security standpoint, investing through RealtyMogul is exceptionally safe and secure. RealtyMogul takes data security seriously and uses a multilayered approach to ensure that customers’’ data is protected at all times. From an investment standpoint, there is always some element of risk when you invest in a stock, bond, or real estate property. That being said, the returns on real estate investments have historically been quite good, so if you aren’t completely risk-averse you’ll likely find that real estate investment is no less “dangerous” than other investment options in your portfolio.
What sorts of properties make up an equity investment?
RealtyMogul’s equity investments come from a wide range of places throughout the world of real estate. Just a few of the types of properties making up the equity investments available on the platform include industrial properties, self-storage, offices, and multi-family homes, among others.
Compare rates from a network of lenders
- Low fixed mortgage rates
- Check and monitor your credit for free
- Only a few steps to your best mortgage rates
- Great deals on your mortgage
The bottom line
The real estate market has been a major aspect of people’s wealth generation over the past few decades. That being said, for a long time, accreditation requirements as an investor have prevented all but the wealthy from tapping into real estate investing as a form of wealth building. Crowdfunding platforms like RealtyMogul aim to change that.
While it’s true that you may not have the ability to invest in all of RealtyMogul’s options unless you’re leveraging a higher amount of capital and can qualify as an accredited investor, there’s still value in getting in now as an individual. RealtyMogul has low minimums, meaning you only need as little as $5,000 to start investing in REITs.
It’s also worth noting that REITs are a great way of diversifying your real estate investment since you’re spreading your money across multiple properties to lower your risk. Especially when coupled with the extensive process real estate companies are put through before being accepted to RealtyMogul’s platform, you can reasonably believe that you will make a nice return on your investment when using RealtyMogul.
Ultimately, which crowdfunding platform to use as an investor is completely up to you, and there are certainly competitors on the market to look at. Even so, RealtyMogul’s strong focus on helping others build wealth by making real estate investing clear, transparent, and streamlined certainly makes it worthy of consideration. Particularly if you don’t have a lot of money to invest and want to take advantage of the expert analysis at the heart of RealtyMogul’s platform, there are plenty of reasons to create an account. You can learn more about RealtyMogul on their website, which has an extensive knowledge base and FAQ section worth checking out for free before you even press "Sign Up."
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Writer
Brent Ervin-Eickhoff is a Chicago-based writer, stage director, and filmmaker with a background in digital marketing and content creation. In addition to Joy Wallet, Brent has written for Complex, Volkswagen, HowlRound, Picture this Post, and Third Coast Review, among others. He currently serves as the Associate Director of Marketing for Content Creation at Court Theatre at the University of Chicago. Brent graduated from Ball State University with Academic Honors in Writing.
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