RealtyMogul Review 2023

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RealtyMogul is one of the best real estate investing apps for investors who want to put money in REITs along with other assets. Jennifer Streaks, Senior Personal Finance Reporter & Spokesperson

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About RealtyMogul

RealtyMogul is a real estate investing platform that connects investors to institutional-level real estate investments. In addition to providing secure access to real estate due diligence materials and legal documents, RealtyMogul also offers a wide range of real estate investment options.

Your options — which vary depending on whether you’re an accredited or non-accredited investor — include real estate investment trusts (REITs) and individual properties. 

RealtyMogul conducts research into each investment opportunity that a real estate company lists. When evaluating the opportunity, RealtyMogul says it reviews the reputation and background of the company, as well as property, market, and target returns.

Is RealtyMogul Right for You? 

RealtyMogul is available to both accredited and nonaccredited investors looking to invest in REITs and individual properties. The platform is best suited for active investors wanting to invest in either an Income REIT or Growth REIT for long-term value and have at least $5,000 to invest. 

Real estate investments are generally illiquid. So only folks who are in it for the long run and can afford to lose invested funds should use RealtyMogul. It’s not an ideal investing platform for beginners or nonaccredited, passive investors. 

RealtyMogul: Overall Rating

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Is RealtyMogul Trustworthy?

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.

But since its ratings don’t guarantee whether a company will be reliable or perform well, it’s equally important to conduct your own research before making a final decision. You can talk with friends and family that have used RealtyMogul or read customer reviews about the business. 

Ways to Invest with RealtyMogul

Like many of the other real estate investing platforms, RealtyMogul doesn’t offer many account options. RealtyMogul currently offers a regular individual investing account, as well the ability to invest in real estate through a self-directed IRA. 

RealtyMogul does also offer automated account features for REITs. Its website doesn’t go into detail on what the Auto Invest feature actually offers, but it does provide contact information for the Investor Relation team if you have any questions. 

Here’s a breakdown of RealtyMogul’s investment options.

REITs

Real estate investment trusts (REITs) are one of RealtyMogul‘s key commercial real estate investments. The platform offers two funds:

• Income REITs: Non-traded and diverse REITs of varying property types, investment types, and locations. This fund is focused on meeting the REIT’s distribution target and earning investors monthly income. It is distributed monthly and the 80-month annualized cash distribution is between 6% and 8%. 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 equal to 4.5% annualized based on the original purchase price. This fund focuses on the investment’s long-term value through renovation and stability. Cash flow is earned by tenants’ rent payments.

Both investments have a $5,000 minimum, but their objectives, distribution rates, and distribution frequencies vary.

Income REITs aim to diversify your investment portfolio across multiple property types and locations in order to reduce overall risk. It currently has $380 million in total asset value across 7,500 investors.

On other other hand, Growth REITs strive to pay stable and attractive cash distributions. It also solely invests in multi-family properties. The fund currently has $270 million in total asset value, with 3,500 investors.

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 properties

You can also make single investments into specific properties, but there’s a catch. You have to be an accredited investor.

As for property types, if you meet the accredited investor requirement, 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.

Retirement Savings Account

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, RealtyMogul states on its site that the actual minimum needed to purchase an investment is typically around $25,000 or $35,000 depending on the property/relevant real estate company. 

The platform also doesn’t charge fees, but you may be charged fees for specific investments by individual real estate companies. You can access a transparent fee structure for each real estate investment on the RealtyMogul platform.

RealtyMogul Frequently Asked Questions (FAQs)

Compare RealtyMogul

RealtyMogul vs. DiversyFund

RealtyMogul and DiversyFund are both real estate investment platforms available for non-accredited investors. But the two platforms differ when it comes to fees, minimums, and investment options.

RealtyMogul is a great option for accredited investors who are interested in investing in REITs and want to utilize the auto investing features. It also offers individual properties.

But DiversyFund could be a better option for those who want lower fees as it only requires a $500 minimum. Also, DiversyFund only offers REITs. 

Read our DiversyFund review.

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 beginners, whereas Roofstock may be better for experienced real estate investors looking to invest in single-family rental homes. It does not offer REITs. 

Read our Roofstock review.

Why You Should Trust Us: Our Methodology for Reviewing RealtyMogul

RealtyMogul real-estate investing app was reviewed using Personal Finance Insider’s rating methodology for investing platforms to compare account features, pricing, ethics, security, and overall customer experience. Platforms are given a rating between 0 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.