Realty Mogul

realtymogul.com

How It Works

Real Estate Investing. Simplified. ^TM

We give you access to real estate investment opportunities that traditionally have only been accessible to very wealthy institutions and individuals.

1. Invest

Invest for as little as $5000 in commercial real estate opportunities that have been pre-vetted by our experts.

2. Relax

Your investment entitles you to potential income and appreciation without the hassles of direct property ownership.

3. Get paid

You reap the rewards through potential cash distributions generated from income and appreciation.

Why Real Estate Crowdfunding?

Over the last 15 years, real estate has outperformed the stock market nearly 2:1.

Why Realty Mogul

Investor Protection is Our Top Priority.

Our rigorous vetting process is costly and time-consuming, but in the long run is worth it. Protecting our investors is not just good business, it’s the right thing to do.

We Maintain High Standards

Our securities offerings are made exclusively by a FINRA registered Broker Dealer.

We only offer investments in well-leased properties with cash flow.

We never offer high-risk investments such as Ground Up Construction or Raw Land.

We Have the Experience

Our Investment Committee has over 200 years of collective experience.

Our team has transacted over $5B in real estate deals over the course of their careers.

Veterans of JP Morgan Chase, Union Bank and ReadyCap Commercial, LLC.

We Go the Extra Mile

We spend over $1M annually on data and technology to vet each deal for our platform.

Site visits to each property allow us to verify that our deals are accurately portrayed.

Our licensed investment specialists are standing by to answer any investor questions by phone.

What We Offer

Access Through Innovation.

Review pre-vetted investment opportunities with full transparency.
Invest in commercial real estate properties that were previously hard to find and even more challenging to access.
Create a diverse real estate portfolio of properties across the U.S. with ease.
Avoid the potential hassles of being a landlord and let us handle the paperwork.
Save time with convenient 24/7, online investing on our platform.

Commercial Loans

RealtyMogul.com is your source for Commercial Loans. As a direct, non-bank lender, we fund in our own name, nationwide.

Mezzanine

$1MM – $5MM

TERM:	1 – 10 Years
MEZZANINE CONTRIBUTION	Up to 80%
TIMING	35 – 45 Days
RATE:	10 – 12%
STRUCTURE:	Equity Pledge with Intercreditor Agreement

Equity Capital

RealtyMogul is your source for joint venture equity and preferred equity, up to $7 million per transaction. RealtyMogul pools all of our investors into a single entity so we provide real estate companies with the power of One: one K1, one distribution, one quarterly report – we take care of the rest. With a network of 150,000 investor members, RealtyMogul.com offers a fast and simple solution for sponsors nationwide.

Joint Venture Equity

$1MM – $7MM

INVESTMENT STRATEGY:	Value-add, Core-plus, Opportunistic
EQUITY CONTRIBUTION:	Up to 90%
PROPERTY TYPES:	Multifamily Student Housing Senior Housing Retail (Anchored and Unanchored) Multi-Tenant Office Industrial Warehouse Flex Properties Self-Storage Facilities Manufactured Home Communities Semi Blind Funds
HOLD PERIOD:	1 – 10 years
SPONSOR CO-INVEST:	Minimum 10% of JV equity
LEVERAGE:	Maximum 80%
OCCUPANCY:	Minimum 70%
INCOME:	Existing and cash-flowing assets only
TARGET INVESTOR RETURNS:	Minimum 13% IRR Minimum 7% Cash-on-Cash
MARKET POPULATION:	Greater than 30,000 people within 5-mile radius
SPONSOR EXPERIENCE:	Sponsors with greater than $25 million in acquisitions experience. (However, Sponsors are e v a luated on a case-by-case basis.)
EXCLUDED PROPERTIES:	Development or Ground Up Construction Land Plays Blind Funds (Semi-Blind Funds OK) Properties Located on Indian Reservations Properties that are Utilized as a Place of Worship Single Family Residential Special Purpose
TIMING:	35 – 45 days
STRUCTURE:	Single consolidate entity: one K-1, one distribution, one report

Preferred Equity

$1MM – $7MM

INVESTMENT STRATEGY:	Value-add, Core-plus, Opportunistic
PREF. EQUITY CONTRIBUTION:	Up to 85% of cost
PROPERTY TYPES:	Multifamily Student Housing Senior Housing Retail (Anchored and Unanchored) Multi-Tenant Office Industrial Warehouse Flex Properties Self-Storage Facilities Manufactured Home Communities Build-to-Suite NNN
HOLD PERIOD:	1 – 7 years
SPONSOR CO-INVEST:	Minimum 10% of JV equity
LEVERAGE:	Maximum 80%
RATE:	11% – 13%
MARKET POPULATION:	Greater than 30,000 people within 5-mile radius
SPONSOR EXPERIENCE:	Sponsors with greater than $25 million in acquisitions experience. (However, Sponsors are e v a luated on a case-by-case basis.)
EXCLUDED PROPERTIES:	Development or Ground Up Construction (Build-to-Suite NNN considered on a case-by-case basis) Land Properties Located on Indian Reservations Properties that are Utilized as a Place of Worship Single Family Residential Special Purpose
TIMING:	35 – 45 days
STRUCTURE:	Single consolidate entity: one K-1, one distribution, one report

5 Ways to e v a luate an Online Real Estate Investment Platform

The good news for average real estate investors today is that thanks to changes in regulation by the SEC, individuals with only a small amount of capital to invest can now participate directly in million-dollar deals — even multi-million dollar deals — that were once available only to financial institutions and the very affluent.

But the tremendous success of online real estate investing has brought out a vast crop of new platforms in recent years. With so many companies vying for attention and investors’ money, how can you determine which platform is the right one to protect and grow your investment?

Here are five ways to help identify the best one for you.

1. Learn about the team behind the platform.

Every business is built on the strength of its leadership team. Real estate is no exception to this statement. Successful operation in the real estate industry depends largely on having expertise in the fundamentals of real estate, underwriting, finance, and business strategy.

While online real estate marketplaces are a relatively new format for connecting investors and real estate owners, these platforms should be analyzed in the same way you would look at any other real estate company. You want to know that the one you choose is run by a team of experts who apply a strict vetting process to every deal. You want to know they e v a luate not only a deal’s financial projections but factors beyond investment returns, such as the underlying value of the real estate, the operator’s business strategy, and the quality of the market and submarket. It is imperative that online real estate investment platforms demand that all deals meet a high threshold of quality before making them available.

Your first step in researching an online platform for real estate investing should be to learn about its leadership team. You’re looking for a strong mix of experience and expertise in all of these areas: real estate, underwriting, finance, and business strategy. Ideally, the team will bring decades of years of combined experience in these and related fields.

2. Study the quality of their real estate companies.

The more sophisticated online real estate investing platforms are highly selective with their partnerships.

In this stage of your research, you should be looking for those that limit the real estate companies they work with to strong operators who have large portfolios, considerable transaction experience in whatever category of real estate they are attempting to fund, that hold up to aggressive background checks and reporting requirements, and that they have adequate ‘skin in the game’.

Although no real estate investment — or any investment in any asset class — can be entirely secure and safe, investing with a company that demands strict criteria from all of its prospective business partners is one potential way to limit your downside risk. Real estate investing will always carry certain risks including illiquidity and the possible loss of principal.

3. Examine the platform for any evidence of ‘rubber-stamping.’

Another way to investigate the first two clues suggested here — that the real estate investment platform is run by a team of bona fide experts, and that they’re selective with the companies they partner with — is to monitor the platform itself and check on the volume and quality of deals it offers over time.

If the company is listing new investment opportunities at a pace that seems too frequent for the team to be able to conduct sufficient due diligence or the quality of deals are not quite up to par, then you might deduct that the platform may be ‘rubber-stamping’ – approving deals without sufficient analysis or underwriting. This means, of course, that you’ll have less confidence in any new real estate opportunity listed on the platform.

One way of determining whether or not you should be comfortable with a platform’s pace and quality of new deals is to look at the size and experience of its underwriting staff. If that team is larger and with more experience then a greater number of new investment opportunities might be less of a concern — because the company has more resources to vet them properly. But if the company still appears to be in startup mode, with just a small number of junior underwriters, then be wary if new deals appear on the platform too often.

4. Look at how the underwriting team beats up the numbers.

Here you are looking for the online real estate investment platforms that have their own formula for vetting deals — and do not simply accept the numbers reported by their potential business partners.

When you investigate these deals, you should be looking for several criteria from each of them. They represent some of the clues that the underwriting team has done an appropriate job of vetting opportunities before making them available to investors.

Some of the questions you should be asking are:

What is the real estate investment platform’s process for underwriting deals?

Are the deal’s projected expenses consistent with historical expenses? (If these numbers are not consistent, does the deal itself offer a sound explanation?)

Are the property’s rental rate assumptions supported by market research?

Are the property’s vacancy rate assumptions supported by market research?

Are assumptions backed up by market research from trusted third party data sources, such as Axiometrics, Costar, or Real Capital Analytics?

Does the real estate company’s exit cap rate line up logically with the going-in and market cap rates for the deal?

If the deal is offering a debt-based investment, what are the loan-to-cost, loan-to-value rates? Are these in line with current market rates?

Do you see any red flags in the deal’s assumptions that might suggest its estimated value has been inflated — either by the investment platform itself or due to the real estate company presenting overly optimistic numbers and the platform’s team failing to catch them?

5. Review the client service team.

Finally, assuming you’ve found an online real estate investing marketplace that meets all of the criteria above, you might also want to check in with the company’s client service team to find out how knowledgeable they are and how easy they are to work with.

These support team members, after all, will be your first contact with the business when you become an investor on their platform and have a question or need help.

RealtyMogul.com has earned positive reviews and accolades from dozens of widely read publications for meeting all of these criteria — an industry-leading management team, high-quality real estate companies on the platform, a well-disciplined underwriting process, and outstanding service. These are just some of the reasons why RealtyMogul.com is now a premier online marketplace for commercial real estate investing.

As always, investors should understand the risks associated with real estate investing and that nothing is guaranteed.

TERM:	12 – 36 Months
LOAN TO COST:	Up to 85%
LOAN TO VALUE:	Up to 75%
RATE:	5 – 10%
TYPE:	Recourse and Non-Recourse