LOS ANGELES—RealtyMogul.com has launched MogulREIT I, its first commercial real estate fund. The fund is structured as a non-traded REIT and is available to all investors—including unaccredited investors, per the SEC's regulation A+—and has a minimum buy-in of $2,500 to boost accessibility. With an aim at diversification, the fund will invest in a wide range of commercial assets, focusing on multifamily, retail, self-storage and office.
“One of the core pieces of our business is this idea of access through innovation. We have acquired more than 85,000 investors on the RealtyMogul.com platform and some of those investors were not eligible for our old transactions because they were non-accredited investors that couldn't invest with us or otherwise transact with us,” Jilliene Helman, CEO of RealtyMogul.com, tells GlobeSt.com. We have always thought about how to use innovation, which is both technology and investment product innovation to provide access to commercial real estate to a wider scope of investors or a wider scope of borrowers. This is the culmination of our idea that we want to have broader access for investors in commercial real estate transactions.”
The fund will be available online through RealtyMogul's established crowdfunding platform, which is a notable innovation in the non-traded REIT market. As a result, MogulREIT I is able to curb costs, offering no sales commission fee and capping expenses at 3%. “What makes this unique is the fact that we are going directly to the investor,” adds Helman. “Typically in the non-traded REIT market, you can have up to 15% operating expenses because they hire broker dealers who hire broker dealers to distribute the product. Where our innovation and disruption comes in is that we are going direct to the investor online, and we are reducing the fee load on non-traded REITs tremendously because of that distribution.”
Helman chose a non-traded REIT structure for the fund because of the firm's primary goal of increasing access to investment opportunities for investors. Although the firm has planned to launch a fund since inception, this specific structure was chosen as a result of demand from investors of all classes. “We always knew that we were going to launch a fund, and the question came down to how to structure the fund,” says Helman. “We knew that we wanted to do a pooled vehicle and we knew that we wanted it to be diversified, because we are big believers in diversification. Then we went back to our core mission of access, which is really why we started the company, and it became clear that the structure we were going to use was a non-traded REIT.”
MogulREIT I will cap the fund at $50 million, and has an open ended term.
LOS ANGELES—RealtyMogul.com has launched MogulREIT I, its first commercial real estate fund. The fund is structured as a non-traded REIT and is available to all investors—including unaccredited investors, per the SEC's regulation A+—and has a minimum buy-in of $2,500 to boost accessibility. With an aim at diversification, the fund will invest in a wide range of commercial assets, focusing on multifamily, retail, self-storage and office.
“One of the core pieces of our business is this idea of access through innovation. We have acquired more than 85,000 investors on the RealtyMogul.com platform and some of those investors were not eligible for our old transactions because they were non-accredited investors that couldn't invest with us or otherwise transact with us,” Jilliene Helman, CEO of RealtyMogul.com, tells GlobeSt.com. We have always thought about how to use innovation, which is both technology and investment product innovation to provide access to commercial real estate to a wider scope of investors or a wider scope of borrowers. This is the culmination of our idea that we want to have broader access for investors in commercial real estate transactions.”
The fund will be available online through RealtyMogul's established crowdfunding platform, which is a notable innovation in the non-traded REIT market. As a result, MogulREIT I is able to curb costs, offering no sales commission fee and capping expenses at 3%. “What makes this unique is the fact that we are going directly to the investor,” adds Helman. “Typically in the non-traded REIT market, you can have up to 15% operating expenses because they hire broker dealers who hire broker dealers to distribute the product. Where our innovation and disruption comes in is that we are going direct to the investor online, and we are reducing the fee load on non-traded REITs tremendously because of that distribution.”
Helman chose a non-traded REIT structure for the fund because of the firm's primary goal of increasing access to investment opportunities for investors. Although the firm has planned to launch a fund since inception, this specific structure was chosen as a result of demand from investors of all classes. “We always knew that we were going to launch a fund, and the question came down to how to structure the fund,” says Helman. “We knew that we wanted to do a pooled vehicle and we knew that we wanted it to be diversified, because we are big believers in diversification. Then we went back to our core mission of access, which is really why we started the company, and it became clear that the structure we were going to use was a non-traded REIT.”
MogulREIT I will cap the fund at $50 million, and has an open ended term.
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Kelsi Maree Borland
