RealtyMogul enables investors to participate in a wide range of commercial real estate investments. Some examples include multi-family dwellings, office buildings, industrial sites, self-storage, retail and medical buildings.
When you invest, you typically do so by purchasing shares in a RealtyMogul limited liability company (LLC) that, in turn, invests into an LLC or Limited Partnership (LP) that holds title to the real property. Investing in this way minimizes overhead for the investment sponsors and provides access to more investment opportunities, as well as streamlined reporting of distributions and tax information through the platform.
RM Manager, LLC, which is a wholly-owned subsidiary of RealtyMogul, serves as manager of the RealtyMogul LLCs.
The term of specific investments depends on the investment. Equity investments typically range from three years up to 10 years. Equity investments generally pay distributions on a quarterly or semi-annual basis. These are just general rules, and it’s important to understand the distributions on any investment are never guaranteed.
For income tax purposes, an IRS form K-1 will be provided annually for each equity investment, reporting the results of that particular investment. Distributions from RealtyMogul’s two REITs are reported on IRS form 1099.
RealtyMogul benefits:
- Ease of investment selection
- Quick and easy funding
- 24/7 investment monitoring
- Documents can be executed online
- Quarterly or semi-annual distributions for equity investments; monthly or quarterly distributions for REIT investments
- RealtyMogul provides more investment flexibility than real estate investment trusts (REITs)
- Investments typically do not require capital calls, which are requests for additional capital beyond the initial investment
- Individual investments are “pre-vetted,” which means the platform provides thorough underwriting to determine the viability of each investment
- Invest in both investments (accredited investors only) or two different REITs (all investors)