Realty Mogul is one of the leading online platforms for real estate crowdfunding where investors pool money and buy shares of pre-vetted real estate investment opportunities. The firm has announced today it raised a $9 million Series A, led by Canaan Partners. Realty Mogul, which recently celebrated its first anniversary of raising capital and investing in different real estate projects has funded investment opportunities totaling to over $100 million through its crowdfunding platform.
According to Jilliene Helman, CEO of Realty Mogul, the company aims to bring the $11 trillion commercial real estate market into the 21st century. Jilliene said the capital would help Realty Mogul become a household name, allowing investors to build diversified real estate portfolios directly online.
At Realty Mogul there are sufficient tools that enable investors to browse through various investments, carry out due diligence analysis, make investment online, and be able to track the investments’ performance via an investor dashboard at all times. Currently, Realty Mogul is open to accredited investors. To be an accredited investor, investors must have a net worth of $1 million, or an annual income of at least $200,000.
Once verified as an accredited investor, investors access the various real estate investment opportunities on the Realty Mogul platform. They then select the investment they are interested in and submit the amount of money they would like to invest. Investors are then notified once the required amount of capital for the investment is fulfilled and given updates on the project’s progress monthly or quarterly. The investor will also be notified on any distributions concerning the project and how returns are shared among investors.
Hrach Simonian who is a principal at Canaan Partners and the newest board member at Realty Mogul said, “Realty Mogul will be the next disruption in a massive asset class just like LendingClub has been for the consumer credit market.”
Up until now, individual investors on the Realty Mogul platform have invested more than $14.6 million in 58 different real estate properties. These investments have been made in 14 states, an indicator on how diversified the company is in its investment activities. According to the statistics on the total number of states, properties, and total capital raised by Realty Mogul, the firm is the biggest online crowdfunding platform in commercial real estate. In the past year alone, Realty Mogul underwrote more than $1.5 billion in real estate.
Realty Mogul will be one of the featured real estate crowdfunding platforms to speak at the April 24 Global Real Estate Crowdfunding Conference in New York.
David Drake is an early-stage equity expert and the founder and chairman of LDJ Capital, a New York City private equity advisory firm, and The Soho Loft– The Voice of Capital Formation – a global financial media company with divisions in Corporate Communications, Publishing and Expos & Events. You can reach him directly at [email protected]