RealtyMogul 2024 Comprehensive Review and Ranking

What is RealtyMogul?

 

To avoid the financial conflicts-of-interests that are rampant on virtually every other review site, I DON'T accept any money from any outside sponsor or platform for ANYTHING (including but not limited to affiliate ads, advertising etc.). See code of ethics  for more.

Note: This is a review of Review of Realty Mogul's accredited investor options only. Please click here for an in-depth review of their nonaccredited investor options, including their REITs).

Realty Mogul specializes in a variety of investments ranging from residential to commercial and debt to equity. 

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They boast one of the larger VC fundings, at $45.1 million.

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What's the latest feedback on RealtyMogul?
 

Yearly Investor Survey (updated August 18, 2023): In the last update, Realty Mogul was listed under "on probation" (due to a 54.5% negative rating by previous investors). And a new investor survey was just done to see what the current investor sentiment is.
 

Survey takers alleged they currently have anywhere from $10,000 to more than $1,200,000 invested on the platform. And when asked the question "Would you recommend that your friend or family member invest with them?" the answers were:
 

• Yes: 33.33% 

• No: 41.67% 

• Not sure: 25% 
   

On the plus side, their negative rating improved by 13 points (from 54.5% last year). On the negative side, they still are upside-down on their investor approval rating (with more previous investors disapproving than approving).

Investor reviews were mixed.

Multiple investors said they felt the due diligence is strong versus other platforms. " I appreciate their boots on the ground approach to vetting deals versus only looking at them on paper". "Best due diligence in the business. I simply trust them more than CrowdStreet and Equity Multiple who I also have investments with."

Most complaints were about deals that went bad. "I invested in <redacted>. It’s been a complete disaster. They stopped giving updates on the project over a year ago and this year didn’t even bother to send a K-1. This project has been dead money and a 100% loss." "Three deals with them and only one performing as projected. One has had no return (underperforming) and the last one went south completely."
 

Some investors complained of processing related problems "too many errors made on distributions and redemptions that I had to reach out to them correct."
 

And multiple people claimed the returns have not been worth it: "The returns are meager. Process to liquidate is extremely slow. Poor dashboard makes performance tracking hard." "REIT income pays under 6% monthly. I can get 5 to 6% in a CD or money market these days. Why bother with all the risk, illiquidity and another tax form. Not worth it."
 

As a result of the negative approval rating (more disapproving than approving) and mixed reviews, Realty Mogul will be keeping it's "on probation" status. And we hope they'll improve in the next survey.

What are Realty Mogul Pros and Cons?

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• Advantages: $45.1 million in venture capital funding.
   

• Disadvantages: Some investments require up to a $50,000 minimum, which is far above the industry average. Investor fees are on the high side, at 1 to 2% ( is 1%). 
   

• Accolades: None
   

• Alleged problematic investments: (as reported by investors)​

  • Joplin Full-Service Hotel Equity: never paid a preferred return even though it was supposed to stay open during the remodel instead of completely closing as it did. Sponsor has missed payments to lender. Still has not opened 2 years later and little  communication.
    
    Update 9/23/2017: Sponsor now has to raise more equity or debt to avoid the project going bust. If they raise equity, then existing investors will be diluted.
    
    Update 10/19/2017: construction has paused until/unless sponsor can raise more money.
    
    Update 7/20/2018: sponsor is trying to get a construction loan. A break-in at the property resulted in stolen copper wires.
     

  • Memphis Courtyard: stopped paying as the business they were supposed to be transitioning to never materialized. Update September 2017: distribution to be given out, but under proforma.
     

8/18/2021: Adam Beverage has been removed, from "Alleged problematic investments" investments, per the following info from Realty Mogul: 

"Adams Beverage

As investors are already aware, the Borrower has been on a 36-month payment plan to pay the loan deficiency. After multiple meetings with the Borrower, the RM asset management team has successfully negotiated an early payoff to repay the loan. Though the early payoff incentive was contemplated when finalizing the deficiency payment plan, the Borrower was attempting to negotiate further concessions. In exchange for repaying the entire outstanding principal balance, the remaining deficiency (unpaid interest, exit fee, legal fees) has been forgiven.

 

Your final distribution has been processed and should be received within the next 3-5 business days. The final distribution is broken down as follows:

 

Credit:   Borrower Payment -                     $243,552.48

Credit:   Previous Holdback -                      $15,000.00

Debit:    Incurred Legal Fees -                     ($633.52)

Debit:    Incurred Servicing Fees -              ($2,333.30)

Debit:    Final Entity Holdback -                  ($2,500.00)

Final Net Distribution:                                 $253,085.66

 

As a result of this distribution, investors have realized a final net IRR of 8.7%. Furthermore, investors have received $2,393,558 in total distributions on a $2,000,000 investment. Regarding the early payoff, there was no guarantee that the Borrower was going to make all future deficiency payments on time nor make the final balloon payment in April 2021. While we remain disappointed that the investment did not perform as projected, we believe that considering the situation and options, the best possible outcome was achieved. Thank you for participating in this investment with RealtyMogul."

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*Starred sites are tied and are shown in alphabetical order.

 

For more raw data on the site (including investor and sponsor fees, legal structure etc.), or to easily compare it with the data of competitors, see the feature by feature comparison matrix.​
 

Where can I discuss other Realty Mogul deals?

You can do this with thousands of other investors in the private investor club. While the club is free, membership is restricted to investors who have no business connections to sponsors or platforms. Also, all members must agree to keep all club info confidential by signing a nondisclosure agreement. Click here to join or get more info.

 

Who are Realty Mogul Competitors?

Here are the reviews and rankings for other similar sites.

 

• CrowdStreet

• 1031 Crowdfunding

• Real Crowd

• ArborCrowd

• Carlton Crowdfund

• Share States

• Roofstock

• Roofstock One

• SBRE Funds

• First Real Fund

• Realty Shares

• Equity Multiple

• Realty Mogul

• C.K. Mack

• Lending Home

• Holdfolio

• CityVest

• Prodigy Network

• Instalend

• Cadre

• All other sites (ranked and reviewed)

How to pick?
 

Check out our step-by-step guide.
 

• The quick guide to picking conservative real-estate deals (for accredited investors)
   

Real Estate Tutorials:
 

Looking to learn more about real-estate investing?

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• What are the 4 investment strategies? (Part 1: core and core+)

  • What are the 4 investment strategies? (Part 2: value-added and opportunistic)

• Should I invest in residential or commercial real estate? (Part 1: residential)

  • Should I invest in residential or commercial real estate? (Part 2: commerical)

• What is the difference between equity and debt?