In my recent blog post about Realty Mogul, I mentioned that a Mini Storage was under contract. It did close on Nov 6. The sale price was about $600k higher than the purchase price. The 18 month hold will result in a 16.4% IRR. The estimated IRR on the 10 year hold of this facility was 16.29%. While the investment was not performing up to expectations during its first 12 months, Realty Moguls management team put enough pressure for its investors to not only exit the deal with the complete return of their principle, but the investors also netted a 16.4% IRR.
It turns out this was Realty Moguls first equity investment that was completed from start to finish. Happy to be a part of Realty Moguls first completed investment and thankful that their team was able to turn around a potentially poor investment. For the month of November, Realty Mogul is giving new accredited investor a $150 Amazon gift card when they successfully complete the investor registration process at RealtyMogul.com.
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David C
Member Since: 2015
Nov 18,2015@06;36 PM
I know what you mean, but I like that the investment is diversified across hundreds or even thousands of small business loans with an average default rate of around 5%. I don't like the lending club model either for the reason you stated.