Platform Provided Due Diligence:
Quality of Deals:
URL - Realty Mogul
Fees - 1-2% annual management fee
Phone - 310.907.7129
SEC REG - USES 506(b) - Open Investments can NOT be advertised or publicly discussed
Realty Mogul is a real estate crowdfunding platform for accredited investors. It is one of the largest and most active real estate crowdfunding portals. Jilliene Helman founded the company in 2013 and now has over 12,000 active accredited investors that have invested over $36 million dollars in almost 100 properties. Realty Mogul has raised over $10 million in venture capital, making it one of the highest capitalized firms in its niche.
Realty Mogul is the middle man for both equity and debt deals between the sponsors/developers and the registered investors on their platform. The company sets up unique LLC’s for every investment. The standard fee to investors is 2% yearly administration fee. The fee has been reduced to 1% on some deals. All projected IRR and cash on cash returns are net of all fees. Projected IRR’s have ranged from 8% to 20+%. Average term for debt deals is 6-12 months and 3-10 years on equity investments.
Realty Mogul has in in house investment committee that vets and approves all projects that are offered on their site. WealthForge is their broker-dealer partner that provides compliance and regulatory oversight. They utilize regulation 506b for the vast majority of their offering. The 506b regulation does not allow advertising and accreditation is self-certified. In contrast 506c offerings allow general solicitation, but requires the real estate crowdfunding platform to verify accreditation credentials.
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Feb 10, 2017
I liked that they reduce the platofrom fee from 2% to 1%. They have a great investor relation guy in Heath Binder. If they had more guys like Heath there, it would be a stronger platform. Deal flow is low of late..
Feb 03, 2017
My 1st 2 crowd RE investments were made via RM and I felt they were responsive to my questions and didn't try to really sell me on any specific deal at the time. Adding their platform fee to the investment raises cost to me but I would still consider investing w/them again if the deal was right..
Jan 30, 2017
I agree Realty Mogul is a good platform for the novice real estate investor. They have a strong investor committee that screen investments. A few suspect deals have slipped through. Until recently they charged a 2% annual fee on typo of the sponsors fees. That was enough incentive to find deals elsewhere. They seem to have lowered that to 1% which is more reasonable. Now that they have gone the eReit route, deal flow has slowed to a trickle..
Jan 30, 2017
I had hoped that RM would provide better than average deals because of their own due diligence process, but I have found that their deals seem no better / worse than what I find elsewhere. Two equity deals I have with them are well below pro-forma. The third is too soon to tell..
Jan 27, 2017
My experience with them is very good. My questions are always answered quickly. This was my first platform I invested with, I felt RM did more hand holding vs other platforms and that was exactly what I needed. Good for beginers or anyone who needs more hand holding..