One of the most well-known commercial real estate crowdfunding platforms available today is RealtyMogul. Hundreds of thousands of investors have used the platform to diversify their portfolios by increasing exposure to real estate.
Is RealtyMogul the best real estate investment strategy for you? We’ll discover that in this review.
This study will examine RealtyMogul to determine whether it is in fact, the greatest real estate platform available.
You’ll discover if real estate is the ideal online venture for you.
In the end, the questions are answers about RealtyMogul.
However, the most significant thing is that you’ll discover the precise strategy many others have employed to grow their internet marketing businesses to over $40,000 a month in primarily passive income.
Because it employs some of the same talents, but in a far more potent and successful manner, this approach made them swear off real estate forever!
RealtyMogul is a real estate investing program.
Like most real estate investing training courses, you’ll likely be exposed to the “Big 3” investing types:
- Flipping
- Wholesaling
- Long-term buy-and-hold
Regardless of which path you go down, there is a lot of potential with real estate investing.
After all, it is the world’s oldest wealth-builder.
However, before you leave this RealtyMogul review and go sign up, you might want to ask yourself:
“Is now the right time for me to get into real estate investing?”
Because, no matter which way you slice it, real estate investing is extremely capital intensive, labor intensive, or both.
So if you’ve only got an hour or two a day, or your savings account is a few zeroes lighter than you’re comfortable with, this might not be the best time for you to jump into real estate investing.
But that doesn’t mean you’re out of luck. It just means you need a system to free up more time and give yourself a stronger financial cushion.
A good way to get yourself there is with Digital Leasing.
Digital Leasing takes all the best parts of real estate investing, while eliminating most of the headaches:
- Low cashflow
- Interest payments
- Mortgages
- High overhead
- Expensive repairs and maintenance
- Problematic tenants
And the best part?
Digital Leasing allows you to build a passive income stream that’s actually passive!
An income stream that brings in consistent revenues every single month (from a couple thousand dollars to well over $10,000).
An income stream you could actually build in your spare time, and grow as large or as small as you want to, without having to spend hours a day analyzing deals, cold-calling homeowners, or dealing with contractors.
If that sounds like something you’d be interested in, check out Digital Leasing.
What Is RealtyMogul?
A commercial real estate crowdfunding platform called RealtyMogul establishes in 2013. The investment platform has made it possible for both big and little investors to put money into privately held real estate investment trusts since 2014. (REITs). Additionally, it makes it possible for accredited investors to participate in secret deals.
RealtyMogul enables investors to fund projects worth millions of dollars even though they must pay $5,000 at a time. It introduces regular investors to the world of commercial real estate.
One of RealtyMogul’s unique selling features is that it simplifies investing through a 1031 exchange. If you need to reinvest the funds from the sale of a rental property, you can use a 1031 exchange to invest in RealtyMogul. Simply put, you can delay capital gains on the deal until you sell your RealtyMogul shares. It is a terrific approach for someone wanting to become a more passive real estate investor. Always get the advice of a tax professional before engaging in a 1031 exchange.
In some situations, you can invest in a self-directed IRA through RealtyMogul. However, RealtyMogul does not have a partner for these investments.
When Was RealtyMogul Founded?
Since its founding in 2013 by Jilliene Helman, the organization has grown to include over 12,000 registered active investors. She has put more than $36 million into close to 100 properties. One of the best-capitalized businesses in its sector, RealtyMogul has raised more than $10 million in venture capital.
Who Is Eligible To Invest On RealtyMogul?
RealtyMogul accepts accredited and non-accredited investors, in contrast to most commercial real estate crowdfunding platforms. Participation in the site’s proprietary REITs is open to non-accredited investors. These REITs are privately held and not traded on the open market. It typically indicates that your funds are permanently locked.
In contrast, RealtyMogul offers to buy back shares once every quarter (after you’ve been an investor for a year) at the current share price. Since they lack short-term liquidity, many REITs have medium-term liquidity.
Individual “equity opportunities” can be purchased by accredited investors. Investors can buy a stake in an LLC through equity opportunities. The LLC is then the owner of a certain property. Also, these investments are quite volatile. You should not expect to receive your funds until the project completes and the LLC dissolves.
To qualify as an accredited investor, you should meet one of the following requirements:
You have earned more than $200,000 in the last two years. (Or a joint income of more than $300,000 in the previous two years.)
You have a net worth of over $1 million (excluding the value of your residence).
You have a trust with assets worth more than $5 million.
Product Offerings Of RealtyMogul
Many investment opportunities are available with RealtyMogul. Either directly in an asset or through one of their REITs are options for investing.
RealtyMogul offers a range of direct investments from multi-family houses to commercial buildings. Debt or preferred stocks are also options for investment. To make these investments, you often need to be an accredited investor.
You can invest in their REIT products as a non-accredited investor (or anyone else who is interested). MogulREIT I and MogulREIT II are two private REITs managed by RealtyMogul.
How Does RealtyMogul Work?
Investors can choose from a range of commercial real estate projects with RealtyMogul. Examples include multi-family housing, office buildings, industrial locations, self-storage, retail, and healthcare facilities.
You typically invest by buying stock in a RealtyMogul limited liability company (LLC), which makes investments in an LLC or Limited Partnership (LP) that owns the real estate. By investing in this way, investment sponsors will have lower overhead and access to more investment options, as well as streamlined payout and tax reporting via the platform.
The RealtyMogul LLCs handles by RM Manager, LLC, a wholly-owned subsidiary of RealtyMogul.
The period of individual investments varies according to the investment. Moreover, the normal duration of equity investments is from three to ten years. Distributions from equity investments produce quarterly or semi-annually. These are only broad guidelines, and it’s critical to remember that distributions on any investment are never guaranteed.
For income tax reasons, an IRS form K-1 will be supplied each year for each stock investment, detailing the outcomes of that specific investment. The IRS form 1099 records distributions from RealtyMogul’s two REITs.
What Are The Charges?
You must read each offer’s small print or REITs to determine RealtyMogul’s fees. A net price of 5.8% percent is what MogulREIT II expects. Every dollar uses effectively to the tune of $0.942. The plan sponsors must also cover a few fees and costs related to the REITs.
The fee schedule for each project is available to investors interested in equity investments (including management fees).
It is a lot like other RealtyShares options.
Minimum Investment For Real Estate Investment Trusts
Each investment will have a different minimum investment requirement. However, $5,000 is generally the lowest requirement for Realty Mogul’s investing packages. To confirm investment minimums, carefully review the prospectus papers for each investment.
Target Returns
For its investment packages, Realty Mogul advertises unrealistic return targets. It is crucial to remember that the actual return on any real estate investment might change. There are no guarantees that you will get a return on your investment or even a break after the investment term is up; when fees take, you might even lose equity in a property. RealtyMogul shared the following objectives:
Investment opportunities available through private placements settle to pay out monthly or quarterly. Depending on the investment type and business model, annualized returns could be between 0% and 15%. If you don’t have a high-risk tolerance for real estate investing, these placements might not be right for you.
MogulREIT I Returns: This publicly listed, non-traded REIT has traditionally provided monthly payments. Annualized return rates range from 7.7 percent at the low end to 8 percent at the top. These are net returns after fees lessen.
MogulREIT II Returns: This REIT, which concentrates almost entirely on multi-family equity property investing, pays weekly, with historical performance corresponding to an annualized 4.5 percent since January 2018. These performance data, like those for MogulREIT I, are net profits after fees.
Fee Schedule
There are certain costs associated with each asset type offered by RealtyMogul. Additionally, many investing possibilities within each asset class come with fees. To find out the charges you’ll have to cover. It’s essential to read the Offering Circular of each investment before signing on the signed line. A private placement investment typically costs 1%, and MogulREIT I and II charge fees equal to 1% and 1.25 % of the total property equity value, respectively.
Customer Support
Regular customer service is offered by RealtyMogul. The business offers 24/7 phone and email support during regular business hours in addition to a thorough FAQ for self-service.
Track Record
One of the recent entrants into the real estate crowdfunding market is RealtyMogul, established in 2013. It suggests that even if its early reporting indicated significant growth in its investments, it is still a relative newcomer with an unproven track record as an investing platform.
It may be riskier than older, more established platforms because it is a younger platform. No investment is completely risk-free, though. Whether you choose to invest on RealtyMogul or another platform, it is always a good idea to consider real estate crowdfunding in general. As usual, research and weigh all your possibilities before deciding.
Is RealtyMogul Publicly Traded?
It is a public non-traded REIT, which means that although it registers with the Securities and Exchange Commission (SEC), unlike publicly listed REITs, it isn’t trading on stock markets.
How Much Can You Make From RealtyMogul?
No matter what you decide to invest in, trying to figure out how to invest money is a risky effort. You take on additional risk when investing in illiquid assets because they are harder to sell, like those provided by RealtyMogul and real estate.
However, RealtyMogul’s potential profits might be attainable. Annualized payments of 6.00 percent of NAV (net asset value) after expenses have traditionally pay completely by MogulREIT I. Annualized dividends of 4.50 percent of NAV after fees have usually pay by MogulREIT II. Despite this propensity, RealtyMogul warns that these distributions are not guaranteed and could alter at any time.
The return on certain properties will vary according to the property, location, timeline, handled property, and other factors. These elements are tough to estimate effectively because real estate values fluctuate with the economy.
How Do I Withdraw Money From RealtyMogul?
The funds have a longer lockup period than the industry standard of one year, during which you cannot withdraw your money ( the average fund has no lockup). The following are the withdrawal fees:
- A year in lockup
- Cost increases by 2 percent from one to two years.
- There is a 1% fee for two to three years.
- If you stay for three years or longer, there is no fee.
Your investment returns reinvest, or you can withdraw.
Is RealtyMogul A Scam?
So, is RealtyMogul a scam? Not technically. You can make money with this program, but it’s definitely not as easy as Jilliene Helman makes it sound.
There’s a ton of work to be done upfront, no real guarantee of success, and – most importantly – the actual profit margins on real estate investments are pretty small.
Now, there’s nothing wrong with front-loading the work and making the money later.
But if you’re grinding it out for 3 months – looking at deals, sending out offers, negotiating with the seller and lender to buy a rental property – and then your reward is like $100 a month in profits, it’s not really worth it.
What if, instead, you could do that same 3 months of work (in your spare time), and your reward was a $500 to $2,000 payment that came in every single month (with a 90-95% profit margin)?
And what if you actually didn’t need to wait 3 months? What if you could get started today and have your first payment in a week?
And what if you could double it next week?
Well, that’s the power of Digital Leasing.
And, unlike traditional real estate, you can legitimately do this from anywhere. It’s a true lifestyle business.
Your laptop and an internet connection is all you need.
Some of the most successful students in this program run their entire 6-figure businesses from:
- A camper in the middle of the woods
- A beach chair on the water in Mexico
- A small villa in Greece
They’re able to travel around, living their lives first, and focusing on their income second.
Because even if they stop working for an extended period of time, the money keeps coming in.
So adventure, memories, and experience are the top priority.
And they never have to worry about how to pay for the next trip, or consider asking for time off.
If this sounds more like the type of life you want to lead, just click here to find out more about Digital Leasing.
Are There Alternatives To RealtyMogul?
Yes, there are plenty of other business models to choose from if you want to pursue this making money online. Here are just a few:
What Is My Top Recommendation In Making Money Online In 2024?
Our review team has spent months researching, reviewing, and vetting dozens of business models and thousands of programs.
While there may be no “perfect business”, the research IS conclusive:
Digital Leasing is the #1 online business model for those just starting out.
Whether you’ve never made a dollar online, or you’ve been in this space for a while but never really “made it,” Digital Leasing is for you.
Why?
1) It’s Flexible: got an hour a day? You can do this. Ready to drop everything else and dive in full time? You can do this. Yes, the more time you put in, the faster you see results. But even with a little time each day, you can move the needle in a Digital Leasing business.
And because this system is so flexible, you don’t have to constantly be working to make more money. It’s called PASSIVE INCOME because if you stop working, the money doesn’t.
Imagine taking 3 months off to just tour around Europe, rent a cabin in the woods to write a book, hike the Appalachian Trail, or live on the beach and surf all day.
This is only possible if you have an income stream that’s not tied to your time.
Flipping and wholesaling are full-time jobs (and more), no matter what any real estate guru tells you. You always have to be searching for deals, because if you stop, so does the money.
2) You Own & Control EVERYTHING: Yes, in traditional real estate you kind of “own” the properties. But there’s also a ton of debt tied to most real estate investments, which means the property isn’t truly yours.
A lender can take it away if you miss a payment. Not to mention, loan payments really impact your profit margins.
With Digital Leasing, you own the assets outright (with a 90-95% profit margin), which means you have all the power and all the control.
3) Little To No Startup Costs: It’s possible to get into Digital Leasing with zero dollars upfront. Because, using the strategies outlined in this program, you can get a client to pay you BEFORE spending a penny out of your own pocket…even before you do any work.
Even without getting paid in advance, you can have your first Digital Rental Property up, running, and generating profits for less than $100.
4) Minimal Ongoing Expenses: With traditional real estate, monthly expenses are HIGH. Between loan payments, ongoing maintenance, and repairs (not to mention the possibility of having to go through the eviction process), profit margins are slim.
Plus, whenever you have a vacancy, factor in the costs to turn over a unit (plus the fact there’s no money coming in until the next tenant moves in).
With Digital Leasing, a 100% online business with minimal maintenance and ongoing costs, you never even have to think about that risk.
5) Easy To Duplicate: Ok, here’s the best part: once you have your first Digital Rental Property up and running, you can literally DOUBLE your income with a few clicks, a couple keystrokes, and a single phone call (and you don’t actually need the phone call).
Remember: each Digital Rental Property is worth $500 to $2,000 a month in semi-passive income (over 95% profit). Every time you decide to create another one and increase your income, it gets easier.
Because you have more knowledge, more experience, more results, and more momentum.
If you wanted to double your income with traditional real estate investing, you’d have to double your monthly rent, double your deals/number of units OR double your profit margins. And, guaranteed that’s a lot harder than a few clicks and a few minutes of your life.
6) Make Money Helping Real People: This part is what makes it all worth it. With Digital Leasing, you’re actually helping people by solving your clients’ biggest problem:
Small, local businesses need more customers, and with Digital Leasing, you are unleashing a flood of happy, paying customers for these businesses.
You make money by helping them make money.
Not a big, faceless corporation either…a small business owner who’s using that money to put food on the table for their family, start a college fund for their kids, or take care of a sick parent.
Once you see how Digital Leasing makes a real impact in the lives of real people, you’ll sleep like a baby with a big smile on your face.
Now, the choice is yours. You could continue browsing, looking at opportunities like RealtyMogul which could one day make you money.
You could continue researching, never making a decision.
OR, you could take a look inside, consider what you really want, and join a program that makes your dreams a reality. At the same time, joining a community of over 2,000 successful students that are living life on their own terms thanks to Digital Leasing.
A consistent, reliable, semi-passive stream of income that doesn’t depend on you or your time to keep producing profits.
All while genuinely helping real people who are grateful and happy to pay for it.
If this sounds more like what you want out of life (or if you just want some nice side income), click here to learn more about Digital Leasing.
