RealtyMogul is a commercial real-estate crowdfunding platform for accredited and non-accredited investors. Investors earn regular returns by investing in income-generating REITs, 1031 exchange properties, and private placements.
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.
Pros and Cons
RealtyMogul Pros
- Available to accredited and non-accredited investors
- Multiple asset classes available with income and growth potential
- RealtyMogul performs due diligence on each investment property
RealtyMogul Cons
- High $5,000 minimum
- Highly illiquid investments
- Non-accredited investors limited to REITs
Open an Account
$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.
- Consider it if: You want access to a larger range of real estate investment options.
- App store rating: 4.38 out of 5
Compare RealtyMogul
Overview
RealtyMogul is a comprehensive real estate crowdfunding platform for portfolio diversification and generating passive income through growth-focused real estate investment trusts (REITs). REITs provide regular distributions through debt and equity investments.
There is a $5,000 minimum to invest with RealtyMogul. However, certain investment options, like 1031 exchange properties, require higher minimums.
In addition to REIT options, RealtyMogul offers individual properties, 1031 exchange properties, and retirement account opportunities.
When evaluating an opportunity, RealtyMogul reviews the company's reputation and background and the property, market, and target returns. Customer service phone and email support is available from 6 a.m. to 6 p.m. PT.
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 is available to accredited and non-accredited investors. However, non-accredited investors are limited to the platform's REITs. A different real estate investing platform may be better if you have a net worth of less than $1 million (with or without a spouse) and want more investment options.
Real estate investing is not recommended for beginners.
Ways to Invest
Here's how you can invest with RealtyMogul:
RealtyMogul 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 98 months of consecutive distribution periods. Passive income is earned through equity and debt investments.
- Apartment Growth REITs: These non-traded REITs invest in economic apartment buildings and communities with high occupancy or that show growth potential. This fund has 27 quarterly distribution periods and 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.
RealtyMogul Individual and 1031 Exchange Properties
Accredited investors can also invest in specific properties: office, multi-family, retail, and industrial. These investments have minimums ranging from $25,000 to $35,000 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 timeframe.
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. Investors can view property details, target market, investment strategy, and estimated hold period.
RealtyMogul Self-Directed IRA
RealtyMogul lets you purchase shares of its REITs with any self-directed IRA 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 IRA by transferring funds from a 401(k), 403(b), or other qualified retirement account.
Fees
RealtyMogul requires a $5,000 minimum to start investing. However, individual properties and 1031 exchange properties typically cost around $25,000 or $35,000, depending on the property and relevant real estate company.
Most investments have a 1% to 1.25% asset management fee. The placement sponsor may set private placement fees.
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.
Trustworthiness
RealtyMogul 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.
Alternatives
Here's how RealtyMogul compares to similar real-estate investing platforms.
DiversyFund
$500
2% annual asset management fee and a closing real estate transaction fee
- $500 minimum investment
- Automated real-estate investment management
- Available to non-accredited investors
- Limited investment selection
- Can't choose your own investment projects and you must hold for at least four years
- No IRAs
- Can't withdraw your investments' earnings until the real estate assets, or properties, are sold
DiversyFund is one of the best real estate investing apps for non-accredited investors who don't mind waiting four to six years to see their investments grow.
DiversyFund- Consider it if: You prefer robo-advice over DIY real estate investing, and you want to minimize management fees.
- App store rating: 3.4 iOS/ 3.5 Android
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 offers 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 DiversyFund'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.
Roofstock
$0 ($5,000 for Roofstock One)
$500 or 0.5% of the contract price for offers on properties
- No minimum deposit for Roofstock's regular platform
- Wide range of pre-vetted single-family rental properties
- Access to vetted property managers, brokers, and agents
- Available to non-accredited investors
- Must be accredited to access Roofstock One
- High $5,000 minimum for a Roofstock One account
- Only offers single-family real estate properties
- Highly illiquid investments
Roofstock is a good real estate investing app for accredited and non-accredited investors who can use the platform to invest in single-family rental homes with no minimum requirement.
Roofstock- Consider it if: You want to earn regular income from single-family rental investments.
- App store rating: No mobile apps
- Awards: Listed on Forbes' Fintech 50 list for 2022
Roofstock, however, is the best option for those who actually want to buy the investment properties themselves. This platform offers single-family rental properties for monthly returns. The regular Roofstock account has no minimum. A Roofstock One account, which 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. Roofstock may be better for experienced real estate investors looking to invest in single-family rental homes. It does not offer REITs.
Why You Should Trust Us
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 apps. Platforms are given a rating between 1 and 5.
RealtyMogul was evaluated with a focus on how it performed in each category.
Business Insider's Overall RealtyMogul Rating
| Features | Insider rating (out of 5) |
| Fees | 4.50 |
| Investment selection | 4.00 |
| Platform navigability | 4.50 |
| Customer service | 4.50 |
| Trustworthiness | 4.50 |
| Liquidity | 3.00 |
| Overall score | 4.17 |
FAQs
Is RealtyMogul a good investment?
RealtyMogul is a good investment option for investors seeking straightforward real-estate market exposure through income and growth-focused REITs. However, non-accredited investors have limited investment opportunities.
What are the fees associated with RealtyMogul?
Fees associated with RealtyMogul include 1-1.25% assets under management fees and private placement fees. You can view potential fees in the investment's listing description on RealtyMogul's platform.
Can I invest in RealtyMogul if I'm not an accredited investor?
Yes, you can invest in RealtyMogul if you're not an accredited investor. Non-accredited investors can invest in RealtyMogul's income and growth REITs, but individual properties are limited to accredited investors.
