RealtyMogul - Detailed Review

Here are some frequently asked questions about RealtyMogul, along with detailed responses:

Who can invest in RealtyMogul?

RealtyMogul is open to both accredited and non-accredited investors. Non-accredited investors can invest in RealtyMogul’s REITs with a minimum investment of $5,000, while accredited investors have the additional option to invest in individual property offerings, which typically require a minimum investment of $25,000.

What types of investments are available on RealtyMogul?

RealtyMogul offers several types of investments, including REITs (Real Estate Investment Trusts) and private placements. The REITs include the RealtyMogul Income REIT and the RealtyMogul Apartment Growth REIT, which focus on income and capital appreciation, respectively. Private placements involve investing in individual commercial, residential, or industrial properties.

What are the typical returns on RealtyMogul investments?

The returns on RealtyMogul investments vary depending on the type of investment. The RealtyMogul Income REIT has paid monthly distributions with an annualized return of about 6% to 7.79% since its inception, net of fees. The RealtyMogul Apartment Growth REIT has paid quarterly distributions with an annualized return of around 4.5% to 6.4% since January 1, 2018, also net of fees. Private placements can offer returns ranging from 0% to 10% in average annualized returns, depending on the specific investment.

What fees are associated with investing in RealtyMogul?

Fees on RealtyMogul vary by investment type. For the Income REIT, there is a 1% annual asset management fee, organizational and offering costs capped at 3%, and a 0.5% servicing fee for debt and preferred equity. The Growth REIT has a 1.25% annual asset management fee, organizational and offering costs capped at 3%, and a 0.5% servicing fee for preferred equity. Private placements have fees set by the transaction sponsor, which can vary.

How often are distributions made from RealtyMogul REITs?

Distributions from RealtyMogul REITs are made on a regular basis. The RealtyMogul Income REIT distributes income monthly, while the RealtyMogul Apartment Growth REIT distributes income quarterly.

Can I sell my shares in RealtyMogul REITs?

Yes, you can sell your shares in RealtyMogul REITs, but there are some restrictions. There is a share repurchase program with varying repurchase rates based on the holding period. For example, shares held for less than one year have a 0% repurchase rate, while shares held for three or more years can be repurchased at 100% of their value.

How does RealtyMogul ensure the quality of its investment opportunities?

RealtyMogul conducts thorough due diligence on each investment opportunity and its sponsors. This process helps mitigate some of the risks associated with real estate investing, making the platform more secure for investors who may not have the time or expertise to conduct extensive research themselves.

What is the minimum investment required for RealtyMogul REITs?

For non-accredited investors, the minimum investment required to invest in RealtyMogul’s REITs is $5,000. For accredited investors investing in individual property offerings, the minimum is typically $25,000.

How transparent is RealtyMogul about its investments and fees?

RealtyMogul is very transparent about its investments and fees. The platform discloses its fee structure for every investment opportunity, allowing investors to make well-informed decisions. Investors can access detailed information about each investment, including target IRR, business plans, and specific fees associated with each offering.

What kind of customer support does RealtyMogul offer?

RealtyMogul provides customer support through various channels, including telephone, email, and social media. This ensures that investors can easily get help and answers to their questions.