We’ve all heard it many times before: diversify, diversify, diversify – “it’s key to your financial success!”. Frankly, the word is so often used in discourses on investing that it’s almost become emptied of meaning. The Cambridge Dictionary tells us that “diversify” simply means “to start to include more or different types of things”, “to become varied or different, or to make something varied or different”.
As an investor, you can diversify in a variety of ways. You basically want to spread your investments around so that you gain exposure to many different types of assets, that way you protect yourself against the ups and downs of an ever turbulent market. You can do this by investing in a range of stocks and bonds, virtual assets spread across different markets, or even regions.
Another way is by investing in real assets, physical goods which have intrinsic rather than symbolic worth. Real assets include natural resources, precious metals, commodities, and real estate.
Real estate is a historically underappreciated sector. With trading apps like Robinhood, Betterment, and M1 Finance dominating the investing scene, it’s only natural that all eyes are on common stocks, bonds, and cryptocurrencies. But there’s a reason why Gallup’s 2020 Economy and Personal Finance survey found real estate to be the most popular investment choice for Americans as of 2013. Real estate is an incredibly strong asset type made for long term investing, as it gives you steady performance which typically outpaces the rate of inflation.
Modest Money has targeted RealtyMogul as an outstanding real estate venture. RealtyMogul is a crowdfunding platform for real estate investors who are looking to diversify their portfolio. According to the company website, investors have already seen more than $172 million in profits. The company boasts 200,000 members, and continues to grow. RealtyMogul focuses on commercial real estate, and is the perfect investing option for certain kinds of investors who are looking to branch out.
Let’s take a closer look at what makes RealtyMogul unique in a market flooded with investment apps. In this RealtyMogul review, we’ll dive into the particulars.
RealtyMogul Review – Commercial Real Estate Made Simple
Started back in 2012 by current CEO duo Jilliene Helman and Justin Hughes, RealtyMogul is a FinTech company that focuses on commercial real estate options across the United States.
Commercial real estate has been notoriously difficult to get into, but RealtyMogul changes this by facilitating all investments through their intuitive online dashboard. Gone are the days of becoming a landlord, and all the pesky details the come with such an enterprise. RealtyMogul makes investing in commercial real estate as easy as purchasing common stocks through a robo-advisor.
Realty Mogul Features
- RealtyMogul Fees: Luckily, RealtyMogul has no account fees or minimums, but you do need at least $5,000 to begin investing. Every asset class comes with its own fees, and you are charged based on the kinds and number of investments you hold. For example, Private Placement entails an average of 1%, MogulREIT1 around 1% as well, and MogulREITII comes out to around 1.25% of your total equity value.
- RealtyMogul REITs: REIT is short for real estate investment trust. Like mutual funds, REITs combine the capital of numerous investors. MogulREIT1 is a public nontraded REIT which invests in commercial real estate equity and debt assets. MogulREIT1 provides investors with a monthly dividend. The MogulREITII focuses on multifamily apartments, and pays a quarterly dividend instead.
- Investor Types: One of the great things about RealtyMogul is that it is open to both accredited and non-accredit investors. Though non-accredited investors are limited as far as investing options, they have access to the full range of REITs. A lot of real estate investment platforms are only available to accredit investors.
- RealtyMogul Sources: RealtyMogul works directly with developers to ensure investors of profitable returns. The folks at RealtyMogul have discerning eyes, and according to statistics, only about 1% of submitted property deals are accepted each year. This assures you only invest in quality commercial real estate.
RealtyMogul – Lowering Investment Thresholds
As previously mentioned, investors only need $5,000 to start investing in real estate. This applies to REITs, but if you wish to invest in private placements, minimums can be as high as $30,000.
Another thing that is novel about RealtyMogul is that when you buy into a property or REIT, it’s in your name, rather than RealtyMogul’s. This gives one a sense of security as well as pride.
RealtyMogul – The Bottom Line
Do you want to diversify but don’t know how or where? A platform like RealtyMogul could very well be the ticket, as it facilitates commercial investment opportunities for the uninitiated.
The only real downside is the high minimum investment for private placements. Otherwise, the $5,000 minimum for REITs is about average for crowdsourced real estate platforms.
Our RealtyMogul review determines one thing: this is an excellent and easy-to-use platform for those wanting to test the waters of commercial real estate.
Get RealtyMogul today and start earning towards a better future.