Savvy investors know that commercial real estate can potentially make for an incredible investment, generally offering higher rental income, lower ownership costs, and longer leases than residential real estate.
And as a long-term investment, it can generate a steady cash flow, increase in value, and diversify a traditional portfolio. In fact, most asset allocation models suggest that people should invest a part of their portfolio in real estate. That said, investing in real estate can be risky and there is no guarantee of a return so it’s equally important for investors to stay well informed and conduct their own due diligence.
Historically, commercial property has been dominated by pension funds, insurance companies, and other institutional investors; average investors just haven't had the same type of access.
But now, RealtyMogul.com is cracking the market open. It's giving everyone the opportunity to get into the real-estate investing game — and it's all being done online.
In the past three years, the fast-growing real-estate crowdfunding marketplace has originated, underwritten, and financed more than $215 million in properties. And with the introduction of its new product — MogulREIT I— RealtyMogul.com is making the traditionally high barrier to entry for commercial real estate a possible thing of the past.
Simplifying real-estate investment
Since its launch, RealtyMogul.com has set out to change the way real-estate investing and financing is viewed by connecting real-estate entrepreneurs and investors through technology.
Traditionally, investors had three options when it came to REITs: Invest in a REIT that is traded like a stock and therefore exposed to market volatility, one that is not traded but charges high up-front fees, or one that requires a massive minimum investment.
MogulREIT I lets people invest in private, low-cost options with an initial investment requirement of just $2,500. This investment sector that was once closed to most is now not only attainable, but realistic.
Getting more for your money
As a nontraded REIT, MogulREIT I isn't potentially subject to unpredictable market conditions.
Compared with publicly traded REITs, which generally have yields of 3%, nontraded REITs have yields closer to 6% and offer direct exposure to portfolio-diversifying real-estate assets with much lower volatility.
What's more, traditional nontraded REITs typically charge 10 to 15% in up-front costs and fees. MogulREIT I's fees are much lower, meaning more of your money goes into the investment from the start.
By working with professionals who have deep experience in their fields, RealtyMogul.com is able to "examine the local real-estate market, business plan, and demographic trends, and study each investment thoroughly," CEO Jilliene Helman says.
This attention to detail, and deep knowledge of a property and its surrounding area sets RealtyMogul.com apart, and it allows investors to track the REIT's operational and financial performance with full transparency while providing a steady stream of quarterly dividends.
"Our overall goal is to select investments at a good value, work with strong management teams, and deliver positive long-term performance," Helman says. "We're excited about MogulREIT I because it opens the door for more individual investors to become owners of valuable commercial real-estate assets."
This post is sponsored by RealtyMogul.com.
Disclaimer: Not an offering of securities. All investment involves risk of loss and past performance is not indicative of future results. Securities are available to qualified investors only through North Capital Private Securities, member FINRA, and SIPC.