So, in this video today, we are going to be doing
a review of the real Realty Mogul crowd-funded
real-estate investing platform.
Now, I've been researching and studying
these different crowd-funded real-estate platforms
for the last year and a half or so,
and writing about them over on my bog, Investing Simple.
And we actually have a pretty
on the top nine best crowd-funded
real estate platforms from 2020.
So that's a great resource
if you guys are looking to
navigate these different platforms
and see which one is a good fit for you.
But Realty Mogul is one that is on the list
and it's near the top of our list.
And one of the reasons for that
is because they have options for both accredited investors
and non-accredited investors.
One of the issues a lot of people
run into with these different platforms
is that they are limited to just accredited investors,
but the good news this year
we have options for both
with Realty Mogul.
Now, if at the end of this video
you decide you wanna sign up for Realty Mogul
or learn more about them,
there is a link down in the description below to learn more.
And it is an affiliate link
so if you do use that link
I earn a commission in the process.
Your use of that link is totally optional,
but it is a way to give back to me
and support my channel for putting this video together.
So that is always appreciated, but never expected.
So just like other platforms out there like Fund Rise
or Rich Uncles, Realty Mogul essentially offers
investments and portfolios of real estate
through non-traded reits.
Now, most of us are familiar with the publicly traded reit,
where you're able to buy shares on the major exchange,
this is similar, but it's a non-traded reit,
so you don't buy shares on a major exchange,
you buy them directly through a platform like Realty Mogul,
Fund Rise, or other options out there.
And these non-traded reits
often come with a number of benefits,
one of them being that in most cases they see better returns
than publicly traded investments.
And one of the bigger reasons behind that
is that they're not susceptible to the same panic selling
that you tend to see with the stock market.
So changes in legislation allowed for this crowd-funded
real estate platforms to emerge,
and they are rapidly growing in popularity.
So investors from all over are pooling money together,
and that money is being invested
in different real estate portfolios
through these non-traded reits.
Now, these non-traded reits are available to all investors,
both accredited and non-accredited.
However, Realty Mogul also offers
a different type of investment called a private placement.
And these private placements are where you're investing
in one specific property
rather than a portfolio of different investments.
And because this is a higher risk,
higher potential return investment,
the SEC limits these private placements
to accredited investors only.
But there are two non-traded reits available
on the platform for all investors.
And we're gonna cover what those are right now.
And both of these reits have a minimum investment of $5,000.
That is one of the downsides to this platform
is the minimum investment is quite high.
There are some platforms out there
that let you invest as little as $5 or $500.
So that minimum investment is a little bit high.
The Mogul Reit one is the income oriented reit,
and this one pays monthly distributions.
So it's meant to generate income for investors,
and it pays those distributions monthly.
The objective of the Mogul Reit I
is to pay attractive and stable cash distributions,
and this is accomplished by holding
a blend of debt and equity investments
where the interest payments
allow them to pay monthly distributions.
So you still do have some growth potential
here because of the equity investments,
but you also have that consistent cash flow
from the debt investments held in this portfolio.
The current yield on this reit is 7.81%
on an annualized basis after fees.
And next up we have the Mogul Reit II,
which is a growth oriented portfolio,
but it still pays quarterly distributions.
So that's one of the main differences here,
is that Mogul Reit I
is going to pay monthly distributions.
Mogul Reit II is going to pay quarterly distributions.
And then do keep in mind,
just like the stock market,
just like other platforms out there,
these distributions are not guaranteed.
Now the objective of the Mogul Reit II
is to realize longterm capital appreciation
while still paying attractive
and stable cash distributions.
And this is accomplished by primarily making investments
in equity and preferred equity investments
in apartment buildings across the U.S.
So the goal for this reit is not
to generate as much cash as possible
in terms of distributions,
the goal is to make money
by buying into a property
and selling it for more money down the road,
making a majority of their money
from capital appreciation.
But the good news is that quarter to quarter
they are still paying you those distributions
to reward you as an investor.
The current yield for Mogul Reit II
is 4.5% on an annualized basis after fees.
So speaking of those fees,
let's talk about those fees for the Realty Mogul platform.
They do range based on the investment,
whether you're doing Mogul Reit I,
Mogul Reit II or a private placement,
but they tend to range between 1%
and 1.25%, which is typical among
different platforms out there.
This is definitely an option you should consider
if you're looking for a passive way
to invest in real estate
because it's one of those investments
where they do all the work for you.
They vet the properties,
they build the portfolios,
handle all the documentation,
and you simply invest your money
and pay them a small fee for taking care
of all of that leg work for you.
And the other good thing here
is that they do offer two different portfolios,
one being growth oriented
and one being income oriented.
It would be nice if down the road
they offered more of a blended portfolio
that had both growth and income potential.
And my other complaint with them
is that that minimum balance
of $5,000 is a little bit high
and out of reach for many investors.
Now it's important to remember
with any crowd-funded real estate platform
that this is a long term investment
and you should not be investing in these platforms
if you don't have a minimum time horizon
of five years or more.
So if you're looking to invest your money
for one year or two years
or something like that,
this is not going to be the investment for you.
But if you are somebody who's looking to invest
in private real estate deals for the long term
in a passive way,
Realty Mogul is definitely a platform you should consider.
But anyways guys that's gonna wrap up this review.
I hope this helped you out
in terms of making your decision.
If you wanna learn more about this platform
or sign up, there is a link down in the description below.
But thanks so much for watching guys,
and I will see you in the next video.
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