RealtyMogul’s two nontraded, public real estate investment trusts have invested over $50M in properties valued at over $297M.
While crowdfunding platforms started as a place for single-asset real estate investments, they have grown to include REITs and other diversified financing options based on client demands. Other platforms such as stREITwise and Fundrise are among those also offering online REITs. On Wednesday, stREITwise launched a crowdfunded nontraded public REIT option.
“This is the new area and the second iteration of the crowdfunding concept,” RealtyMogul CEO Jilliene Helman said.
RealtyMogul created two REITs following demand from clients to have more diversified products, Helman said.
Many investors wanted to save time and just have RealtyMogul do the groundwork and investment analysis. RealtyMogul works with an investment adviser to actively manage investments. The company also maintains its single-asset investment platform.
MogulREIT I, a diversified fund launched in 2016, has invested over $40M in properties worth about $206M. This REIT has 15 diversified funds and over 4,000 investors and invests in debt and debt-like instruments across different property types of multifamily, office, retail and industrial. It has an 8% annualized distribution rate paid monthly.
MogulREIT II, which focuses on multifamily assets, has invested over $10M in properties worth about $91M across six diversified investments. It launched in 2017. This REIT has over 1,000 investors and has a 4.5% annualized distribution rate, paid quarterly. It invests in preferred and joint venture equity in multifamily properties.
The REITs are open to any investors who can meet the minimum investment amount of $1K. Investors can sign up through the online platform and then receive quarterly or monthly distributions.
RealtyMogul’s vision is to see billions of dollars of capital invested in commercial real estate through the internet, Helman said.
“This brings us one step closer to that milestone,” she said.
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