Invest directly in commercial real estate through this crowdfunding platform.RealtyMogul is a crowdfunding platform that allows accredited investors to invest directly in commercial real estate and purchase REITs. But you’ll pay variable fees depending on the investment type.
Minimum deposit to open
How does RealtyMogul work?RealtyMogul offers a wide range of commercial real estate investments including office buildings, industrial sites, multi-family dwellings and self-storage facilities. This is how RealtyMogul works:
- Screens properties. The company vets commercial real estate properties until it finds one that passes its underwriting process. These investments are either equity or debt investments.
- Approves. It releases approved investments to investors.
- Investments. Fill out an online application when you’re ready to invest.
- Tracks distributions. Your dashboard keeps track of your investments and the distributions RealtyMogul releases on a recurring basis.
Commercial real estate properties typically have a minimum investment ranging from $15,000 to $50,000. REITs have a minimum $5,000 investment.
Who is RealtyMogul best for?RealtyMogul is best for the following investors:
- Accredited investors. While the platform has REIT options for non-accredited investors, most investments are for accredited investors only.
- Long-term investors. Direct investments are typically held for at least 10 years.
- Real estate investors. Unlike other investing platforms, RealtyMogul lets you invest directly in commercial real estate.
What are the benefits of RealtyMogul?
In addition to pre-vetted investments and recurring monthly, quarterly or semi-annual distributions, RealtyMogul has the following benefits:
- REITs for nonaccredited investors. REITs are available to all investors — including those who aren’t accredited.
- Tax deductions. Those who invest directly in real estate can write depreciation off on their taxes.
- Access to professionals. Members have email and phone access to a team of licensed investment professionals.
- IRAs. Rollover an existing self-directed IRA or open one directly with RealtyMogul.
What to watch out for
Potential drawbacks of RealtyMogul include:
- Variable Fees. Watch out for fees that vary depending on investment type.
- Illiquid. Real estate is a long-term investment. Most holding periods are three to 10 years.
- Direct investments for accredited investors only. All investors can invest in REITs, but only accredited investors can invest directly in real estate.
Compare with other real estate investing platforms
RealtyMogul reviews and complaintsRealtyMogul was founded by Jilliene Helman and Justin Hughes in 2013. The site has an A+ rating based on the Better Business Bureau’s internal criteria. As of September 2019, it doesn’t have any customer reviews on TrustPilot or the BBB.
Reddit users love RealtyMogul’s thorough vetting process claiming the site “does better due diligence on sponsors and after investment monitoring.” But users also think the platform’s high fees and low liquidity are drawbacks.
How do I get started?
Get started with RealtyMogul in five steps:
- Go to the RealtyMogul website and click Join.
- Choose whether you’re joining as an individual investor or a real estate company. Click Continue.
- Enter your name, email, phone number and password. Click Continue.
- Verify your email address and click Continue.
- Add your net worth and annual income for the past three years.
You must meet the following requirements to open an account with RealtyMogul:
- At least 18 years old
- Minimum $5,000 deposit for REITs
- Minimum $15,000 deposit for direct investments
- US or international resident
- Accredited investor for direct investments
Have the following information on hand when opening your account:
- Social Security number
- Physical address
- Government-issued ID number
- Net worth
- Annual gross income for the past three years
Accredited investors should have this additional information on hand:
- Tax returns
- Investment account statements
- A third-party confirmation from an accountant or broker
I’ve signed up with RealtyMogul. Now what?
Now that you’ve signed up with RealtyMogul, make the most of your experience by:
- Scheduling a phone call. Set up a five-minute phone call with a RealtyMogul representative and get your questions answered.
- Funding an investment opportunity. Search available investments until you find one you’d like to fund.
- Tracking your investments. Log into your RealtyMogul account regularly to track your progress.
- Exploring the Knowledge Center. Learn about topics like REITs, commercial real estate, passive income, building wealth and more.
RealtyMogul customer serviceRealtyMogul’s hours of operation are weekdays from 9 a.m. to 5 p.m. PT. Get support from its customer service team by:
- Calling 877-977-2776
- Emailing firstname.lastname@example.org
- Clicking the Support button on the RealtyMogul website
- Visiting its headquarters at:
- 10780 Santa Monica Blvd
Los Angeles, CA 90025
If you’re an investor looking to invest in REITs or an accredited investor wanting to invest directly in commercial real estate, RealtyMogul may be for you. But if you’re interested in other types of real estate or investment opportunities, explore other investing platforms before you decide to open an account.