Why It Matters
Founded in 2012 and headquartered in Los Angeles, RealtyMogul operates two distinct tracks. The first is its non-traded REIT products — MogulREIT I (income-focused) and MogulREIT II (growth-focused) — which are open to any US investor with a $5,000 minimum. The second track is its private placement marketplace, which offers individual commercial real estate deals — multifamily, office, retail, and mixed-use — exclusively to accredited investors, typically at $35,000 minimums. The platform has funded over $1 billion in real estate transactions across thousands of investors and more than 30,000 properties. It sits in an interesting middle ground: more accessible than pure-accredited platforms like CrowdStreet due to its REIT products, but still reserving its highest-conviction individual deals for qualified investors.
At a Glance
- What it is: Online real estate crowdfunding platform offering REITs and individual deal investments
- Founded: 2012, headquartered in Los Angeles, CA
- REIT minimum: $5,000 (open to non-accredited investors)
- Private placement minimum: Typically $35,000 (accredited investors only)
- Deal types: Multifamily, office, retail, mixed-use, industrial
- REIT products: MogulREIT I (income) and MogulREIT II (appreciation)
- Total funded: Over $1 billion in real estate transactions
How It Works
Two investment tracks. RealtyMogul splits its offering cleanly. Track one is the non-traded REIT products — pooled funds that own a diversified portfolio of commercial properties. Any US investor over 18 can participate with $5,000. Returns come through quarterly distributions, and unlike direct property ownership, you receive no K-1 — distributions are reported on a 1099. Track two is private placements: individual commercial deals listed on the marketplace. Only accredited investors can access these, minimum investment is typically $35,000, and each deal involves a specific property with its own offering memorandum, financial projections, and sponsor track record.
How deals are sourced and vetted. RealtyMogul's investment team reviews each deal before listing. Sponsors — experienced commercial real estate operators — submit their deals, which go through underwriting that covers the sponsor's track record, the property's financials, market conditions, and deal structure. Only a fraction of submitted deals get listed. Once approved, the deal enters the marketplace with a target raise amount. Investors review the offering documents and commit capital; when the raise closes, the special purpose vehicle (SPV) is funded and the project proceeds.
The REIT structure in practice. MogulREIT I targets income through commercial real estate debt and equity investments, aiming for regular quarterly distributions. MogulREIT II targets appreciation through value-add multifamily properties. Neither is exchange-listed — they're non-traded structures with limited liquidity windows. Investors who need to exit early can request a redemption, but redemptions are subject to availability and the platform's discretion. This is not the same as selling a stock.
Tax treatment. Private placement investors receive K-1 tax documents and can benefit from pass-through depreciation deductions, which can offset the income received. REIT investors receive 1099 forms, and distributions may be partially classified as return of capital. Both structures are meaningfully different from holding a publicly traded REIT, and consulting a CPA before investing is advisable.
Real-World Example
Dominique had $20,000 to deploy into real estate but was not yet accredited and didn't want the responsibility of direct property ownership. She invested $10,000 in MogulREIT I and $10,000 in MogulREIT II, spreading between the income and appreciation mandates. Over three years, she received quarterly distributions from MogulREIT I averaging around 6% annualized and watched her MogulREIT II position grow modestly as the underlying multifamily assets appreciated. She didn't receive K-1 forms — just a 1099 each year — which simplified her taxes. When she eventually crossed the accredited investor threshold, she used the platform's private placement track for her first individual commercial deal, a 120-unit multifamily property in Texas with a projected 5-year IRR of 16%.
Pros & Cons
- Dual-track structure means non-accredited investors can participate through REITs — not just accredited-only platforms
- Lower REIT minimum ($5,000) makes diversified commercial real estate exposure accessible earlier in an investor's journey
- Established track record: over $1 billion funded since 2012 with a real institutional vetting process
- Private placements offer direct deal access with full offering documents and sponsor due diligence materials
- Non-traded REITs have limited liquidity — no exchange listing and redemption requests are subject to availability, not guaranteed
- Private placements require $35,000+ minimums and accredited investor status, creating a meaningful barrier for individual deals
- REIT returns have historically been in the 4–8% range — not the 12–20% IRR projections seen in individual deals
- Platform fees and management expenses on REIT products reduce net returns compared to direct ownership
Watch Out
Non-traded REIT illiquidity is real. Both MogulREIT I and MogulREIT II are not exchange-listed. If you need your capital back before the fund reaches a liquidity event (sale or listing), you can request a redemption — but the platform is under no obligation to honor it immediately. During market stress, redemption queues can extend significantly. Never allocate capital to non-traded REITs that you might need within 1–3 years.
Individual deal concentration risk. The $35,000 minimum for private placements means a $100,000 portfolio can access at most 2–3 deals. If one deal underperforms — due to sponsor execution issues, rising interest rates, or market softening — the impact on your portfolio is not marginal. Treat each private placement like a direct real estate acquisition: underwrite the downside case, not just the sponsor's base-case projections.
Accredited investor verification is required. RealtyMogul verifies accredited investor status before allowing access to private placements. Self-certification is not sufficient — expect documentation requests. The REIT products bypass this requirement entirely, but the private deal marketplace enforces compliance rigorously.
Ask an Investor
The Takeaway
RealtyMogul occupies a useful position in the real estate crowdfunding landscape: it's one of the few platforms that genuinely serves both non-accredited and accredited investors through different product tracks. For newer investors with $5,000–$25,000 to deploy, the REIT products offer diversified commercial exposure with reasonable simplicity. For accredited investors who want deal-level access to institutional commercial properties, the private placement track delivers — but requires the same diligence you'd apply to any direct investment. The platform itself does real vetting work; that does not mean investors can skip their own.