Realty Mogul Real Estate Investment Trusts Review

We've all heard stories of ordinary people—and may have even known some personally—who have made a lot of money by investing in real estate. Most of us purchase our own homes at least hoping that they will increase in value. But investing in real estate on your own can require a large sum of money to get started. Then there's the time you have to invest in managing and maintaining the properties you purchase. Investing in real estate through a real estate investment trust or similar vehicle can help solve those problems and give you access to the profits to be made by buying, holding, and selling real estate.

Realty Mogul affords customers the chance to profit from real estate with a minimum investment of just $5000. Once you invest, there's no, painting, plumbing, or rent collecting required. The income you receive is truly "passive." Receiving passive income gives you more time to focus on the other things that matter to you, whether that's your career, your family, or your online Scrabble habit. 

The company offers four different ways to invest, including two REITs. MOGULREIT1 makes debt and equity investments in commercial real estate properties. It's designed to generate consistent income distributions while also increasing your initial capital investment. MOGULREIT 1 makes distributions monthly. MOGULREIT 2 focuses on multi-family residential properties that Mogul Realty company believes have the potential to appreciate significantly in the medium- or long-term. The company makes capital improvements on the properties in the trust in order to command higher rents. Customers receive quarterly distributions that may derive from rents received or the sale or similar transfer of the property. 

Screenshot from realtymogul.com 7/24/2020

Accredited investors—those who meet a high-net-worth threshold and/or demonstrate considerable expertise in investing—may also invest in individual properties or small groups of properties. These transactions are known as private placements. Private placement investments are generally considered more risky than other types of investment, in part because, by definition, they are not diversified. Realty Mogul sets a minimum investment of $15,000 for its private placement opportunities.

Realty Mogul also offers investors the opportunity to participate in 1031 exchanges. 1031 exchanges are often used as part of a tax-saving investment strategy. Under Section 1031 of the U.S. Internal Revenue Code, investors can avoid paying capital gains taxes when they sell an investment property, then reinvest the proceeds from the sale in a like property of equal or greater value within a certain amount of time. Through 1031 exchanges, Realty Mogul takes both the work out of reinvesting capital gains by performing due diligence on all properties offered and facilitating the investment with no lengthy escrow period. 

Realty Mogul's website is very well-organized and informative. It presents investors' various options clearly and is very transparent about the risks associated with each one. The company's FAQ section is one of the most detailed we have seen, with questions segregated into sensible categories. If you open a no-obligation account through their site, you gain access to detailed profiles of individual properties available for investment. 

Realty Mogul earns high marks in the financial press. The Motley Fool gives the company 4 out of 5 stars and praises its track record (only one of its deals actually lost investors money), its extensive property vetting process, and its relatively low cost of entry. US News & World Report names the company one of the 10 best real estate crowdfunding platforms. Realty Mogul receives an A+ rating from the BBB. Investors exploring opportunities in real estate would be well-served by including Realty Mogul in their research.