In competing with Fundrise‘s eREITs, RealtyMogul introduced its first REIT in 2016. Called The Income REIT, the benefits are that accreditation is needed, more asset diversification investing in individual properties, and much lower minimum investment requirement than with a private placement. The minimum amount to invest is $5,000, plus a fee of up to 3% of Equity Contribution and a 1% annual asset management fee.
According to their website, “Income REIT can invest in a variety of property types, including but not limited to, multi-family, office, industrial, self-storage, retail and medical office. The fund can invest in various commercial real estate-related equity and debt securities across these different property types.” So it will be a pool of various property types and not just one section or location around the country.
Unlike other private REITs that have long investment periods without redemptions, RealtyMogul states it will allow redemptions every quarter. But also noted in the offering circular, there are limits on the total amount of redemptions per year.