Are you thinking about investing in real estate? You might already know about buying houses or apartments. But what about bigger buildings like offices, stores, or warehouses? This type of real estate is called commercial property. How does the average Joe get to buy these types of buildings? In this article, well break down what RealtyMogul is all about, explore some of its investment options, and even introduce you to similar platforms. So, if youre curious about commercial real estate investing, keep reading to get some inside knowledge on RealtyMogul.
What Is RealtyMogul?
RealtyMogul is a website that lets people invest in commercial real estate. Typically, youd expect only the rich guys to buy this sort of real estate. But RealtyMogul makes it possible for many people to invest together. This is called crowdfunding.
Think of it like chipping in money with friends to buy something expensive. With RealtyMogul, people pool their money to purchase shares of commercial properties. With RealtyMogul, even people with less cash can invest in commercial real estate.
Many Ways To Invest With RealtyMogul
RealtyMogul offers a few different choices for how you can invest your money. Heres a breakdown of the two main ways:
Income REIT
This one aims to pay investors a steady monthly income stream, like clockwork. The target is between 6% and 8% per year, divided into monthly payments. They invest in various properties in different locations to spread out the risk.
Apartment Growth REIT
This option focuses on apartment buildings in good areas with high occupancy rates or room to grow. The goal is to hold onto the properties for longer and potentially increase their value. Investors get quarterly payouts of up to 4.5% per year based on the original investment amount.
Advantage Of Fractional Ownership: This lets you buy a small slice of a single commercial property along with other investors. So, instead of buying the entire thing yourself, you can buy a small portion, like a slice of the pie. This can be a practical way to invest in commercial real estate with less money.
Good Things About RealtyMogul
RealtyMogul has some advantages to consider if youre interested in investing in commercial real estate. Here are a few:
Reputation: RealtyMogul has a long history, which can give investors some peace of mind. Theyve been around since 2012 and have a history of completing deals.
Clear Information: RealtyMogul guys dont hide anything. They offer easy-to-understand information about each investment opportunity. This lets you see things like property details, how much money the property is making, and what kind of returns you might expect.
Spreading Out Risk: RealtyMogul lets you invest in many different properties simultaneously. This is called diversification. If one property doesnt perform well, you can move your investments around to reduce your risk.
More People Can Play: Unlike other investments, RealtyMogul allows regular investors and those with more money to participate. This opens up commercial real estate investing to a broader range of people.
Some Important Features of RealtyMogul
RealtyMogul offers a user-friendly website interface, meaning that even an 18-year-old can browse through investment opportunities. You can search through properties by type, location, and investment goals. This level of sorting allows you to find options that fit your interests.
Another feature is the ability to customize your investing portfolio. RealtyMogul allows you to choose from various investment options, including REITs, individual properties, and different property types. This lets you spread your money around and pick investments that align with your strategy.
Finally, RealtyMogul opens up commercial real estate investing to more people. Unlike traditional methods, RealtyMogul allows accredited and non-accredited investors to participate. This means more people can benefit from this asset class.
Things to Consider About RealtyMogul
RealtyMogul isnt perfect for everyone. Here are some things to keep in mind before you invest:
High Minimums
Getting started can be expensive. The minimum investment amount can be high, sometimes $5,000, sometimes $25000 (yes!) or even more for specific properties. This can make it challenging for people with less money to get involved.
Not Easy to Get Your Money Out
RealtyMogul investments are illiquid. This means your money is tied up for a while (think 5-15 years!), and you cant easily get it out if you need it quickly. Unlike selling your old Pokemon card collection, you cant just sell your shares right away.
Fees to Know About
There are different fees involved with RealtyMogul investments. Be sure to understand these fees before you invest. They charge fees for things like buying and selling the property and managing the investment.
Is RealtyMogul a Good Fit for You?
Is RealtyMogul the right place for you to invest your money? Here are some questions to ask yourself:
Do you have long-term goals? RealtyMogul investments typically lock your money up for several years. Make sure youre investing for the long haul.
Do you want to spread out your risk? If you like the idea of investing in a variety of commercial properties, RealtyMogul can help with that.
Do you have some extra cash? Think about the amount of cash you can invest. Remember, the minimum investment can be high.
There is more to crowdfunding than just RealtyMogul. Its a good idea to research and compare different platforms before making a decision.
Alternatives: Other Options Besides RealtyMogul
As with any other service, RealtyMogul isnt the only platform for commercial real estate crowdfunding. Here are a couple of alternatives to consider:
Fundrise: This platform lets you invest in commercial real estate with other people, similar to RealtyMogul. Fundrise might be good if youre looking for a lower minimum investment to get started.
HalalSky: This is another platform to explore. The thing about this one is that it follows Islamic religious principles for Sharia-compliant investing.
There are more than these two alternatives, but we could only list so many. Make sure you do your research online.
The Bottom Line
RealtyMogul is a well-known name in commercial real estate crowdfunding. They provide a range of options for investing in big buildings like offices, stores, and warehouses. However, keep in mind the high minimum investment and the fact that you cant easily get your money out quickly. If these things dont fit your needs, there are other platforms to explore. Consider your investment goals and how much you can afford to invest before deciding. You can even consider talking to a finance or a real estate expert. And whatever you choose to do, we wish for your money and investments well.
