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RealtyMogul is a commercial real-estate crowdfunding platform for accredited and non-accredited investors. Investors can earn regular returns by investing in income-generating and growth-focused public, non-traded REITs.
Business Insider's personal finance team compared RealtyMogul to the best real estate investing apps and found it to be an industry leader for accessibility and trustworthiness.
$5,000
Varies by investment
- Offers real estate investment trusts (REITs), single properties, or 1031 private placement investments
- You can use a self-directed IRA (SDIRA) to invest in commercial real estate
- RealtyMogul performs due diligence on each investment properties
- Fairly high account minimum
- Non-accredited investors can't access individual properties
- Highly illiquid investments
RealtyMogul is one of the best real estate investing apps for buying and selling commercial real estate. It's ideal for investors interested in earning regular returns from public, non-traded REITs.
RealtyMogul- Consider it if: You want access to a larger range of real estate investment options.
- App store rating: 4.38 out of 5
Introduction to RealtyMogul
RealtyMogul is a comprehensive real estate crowdfunding platform for generating passive income and simple portfolio diversification with income and growth-focused real estate investment trusts (REITs). REITs provide regular distributions through debt and equity investments.
In addition to REIT options, RealtyMogul offers individual properties, 1031 exchange properties, and retirement account opportunities. Non-accredited investors are limited to the platform's public, non-traded REITs and retirement options.
RealtyMogul conducts research into each investment opportunity a real estate company lists. When evaluating an opportunity, RealtyMogul reviews the company's reputation and background, as well as the property, market, and target returns.
Holding terms vary depending on the investment, but investors will have their money locked up with RealtyMogul for at least a year. REITs are more liquid than individual and 1031 exchange properties.
RealtyMogul: Overall Rating
| Features | Insider rating (out of 5) |
| Fees | 4.00 |
| Investment selection | 4.50 |
| Platform navigability | 5.00 |
| Customer service | 4.50 |
| Trustworthiness | 5.00 |
| Liquidity | 3.00 |
| Overall score | 4.33 |
How RealtyMogul Works
REITs
RealtyMogul's primary offerings for non-accredited investors are public, non-traded REITs. There's a $5,000 minimum to invest. Non-accredited investors have access to two REIT options:
- Income REITs: Non-traded and diverse REITs of varying property types, investments, and locations. This fund is focused on meeting the REIT's distribution target and earning investors monthly income. It is distributed monthly with 92 months of consecutive distribution periods. Passive income is earned through equity and debt investments.
- Apartment Growth REITs: Non-traded REITs that invest in strong economic apartment buildings and communities with high occupancy or that show growth potential. It has quarterly distributions. This fund focuses on the investment's long-term value through renovation and stability. Tenants' rent payments earn cash flow.
The Income REITs fund could be a better option if you're looking for a more diversified set of investments with a higher annual distribution rate. Growth REITs, however, are better for those looking for long-term growth and capital appreciation from one type of investment — multi-family properties — over time.
Individual and 1031 Exchange Properties
You can also invest in specific properties, but you have to be an accredited investor. As for property types, you'll have the choice of office, multi-family, retail, and industrial properties. These investments have minimums ranging from $25,000 to $50,000 and investment terms from three to seven years.
RealtyMogul's curated selection of 1031 exchange properties is pre-vetted through its partnered broker-dealer, RM Securities. These properties aim to defer capital gains taxes when selling property. The proceeds are then used to purchase a "like-kind" property (equal or greater) within a specific time frame.
RealtyMogul provides a step-by-step process for 1031 exchange investing and a dedicated team of 1031 experts. Only experienced investors with a high-risk tolerance should invest in RealtyMogul's 1031 exchange properties.
On RealtyMogul's marketplace, you can sort investment options by investment strategy, property type, and investment type. RealtyMogul is transparent with each investment offering. Investors can view property details, target market, investment strategy, and estimated hold period.
Self-Directed IRA
RealtyMogul lets you purchase shares of its REITs with any SDIRA retirement funds. Plus, you can have RealtyMogul automatically reinvest any distributions, but you'll first need to sign up for its distribution reinvestment plan.
You also can fund your SDIRA by transferring funds from a 401(k), 403(b), or other qualified retirement account.
RealtyMogul Fees
RealtyMogul requires a $5,000 minimum to start investing. However, individual properties and 1031 exchange properties are typically around $25,000 or $35,000 depending on the property/relevant real estate company. There's a $1,000 minimum to invest in a self-directed IRA or with a registered investment advisor.
The platform doesn't charge fees, but individual real estate companies may charge fees for specific investments. These fees usually cover the cost of ongoing reporting and communication. You can access a transparent fee structure for each real estate investment on the RealtyMogul platform.
Pros and Cons of RealtyMogul
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RealtyMogul Trustworthiness
RealtyMogul currently has an A+ rating with the Better Business Bureau. Though the bureau says RealtyMogul isn't BBB accredited, this is the highest rating a company can receive.
The BBB reports on known marketplace practices and considers several factors when assessing companies. These include licensing, government actions, advertising issues, time in business, and more.
RealtyMogul is not a part of any recent public lawsuits or scandals.
RealtyMogul vs. Other Real Estate Investment Apps
RealtyMogul vs. DiversyFund
RealtyMogul and DiversyFund are both real estate investment crowdfunding platforms available for non-accredited investors interested in instant diversification through REITs. The two platforms differ regarding fees, minimums, and access.
DiversyFund is a good option for low-cost real estate investing through its Multifamily Fund (available for non-accredited investors) and individual properties (only for accredited investors). Passive investors can benefit from the platform's set-it-and-forget strategy. However, DiversyFund doesn't pay out dividends.
If you're interested in generating passive income on a monthly or quarterly basis, RealtyMogul is the better option. Although its minimum investment is much higher than DiveresyFund's, you'll get access to cash flow much sooner through dividend payouts and property appreciation. RealtyMogul also lets you withdraw your shares as soon as a year after investing.
RealtyMogul vs. Roofstock
Roofstock, however, is the best option for those who want to actually buy the investment properties themselves. This platform offers single-family rental properties for monthly returns. The regular Roofstock account has no minimum. But a Roofstock One account, which also has a $5,000 minimum, offers auto investing features.
RealtyMogul is a better option for investing in REITs and mitigating risk through instant portfolio diversification, whereas Roofstock may be better for experienced real estate investors looking to invest in single-family rental homes. It does not offer REITs.
RealtyMogul FAQs
RealtyMogul is a good option for investors seeking straightforward real-estate market exposure through income and growth-focused REITs. However, there's significant risk involved when investing in real-estate-backed assets. Real-estate investments are also highly illiquid, so be prepared for you funds to be locked up for several years.
RealtyMogul doesn't charge investors fees for using its platform. Investors may be charged fees from some sponsors when investing in certain investment opportunities. You can view potential fees in the investment's listing description on RealtyMogul's platform.
Yes, you can invest in RealtyMogul if you're not an accredited investor. Non-accredited individuals can invest in RealtyMogul's income and growth REITs. Individual properties are limited to accredited investors.
Why You Should Trust Us: How We Reviewed RealtyMogul
RealtyMogul real-estate investing app was reviewed using Business Insider's rating methodology for investing platforms to compare account features, pricing, ethics, security, and overall customer experience. Each real estate investment platform also receives a liquidity rating based on how it compares next to other real estate apps, not other types of investment app. Platforms are given a rating between 1 to 5.
Real-estate investing platforms generally offer various asset classes, trading tools, user-friendly platforms, low fees, and other resources. While certain platforms are better for more advanced investors or active investors, others are more suited for beginner investors and passive investors. RealtyMogul was evaluated with a focus on how it performed in each category.
