RealtyMogul.com
RealtyMogul.com is a real estate crowdfunding platform for accredited and institutional investors. Since its inception in 2013, over $150 million has been invested by investors in debt and equity products, financing more than 265 residential and commercial properties valued at over $600m.
History
2013
RealtyMogul.com was founded in 2013 by Jilliene Helman and Justin Hughes. They began as a participant in the 2012 Microsoft Accelerator for Windows Azure program, a mentoring opportunity powered by Techstars for startups. After raising $1 million in seed funding, the company officially launched in March 2013, offering both commercial equity and residential debt products. With 200 beta users and investors and over 1,000 applicants on its waitlist, RealtyMogul.com’s first deal helped AH Capital raise $110,000 to purchase and refurbish a Los Angeles duplex.
2014
In March 2014, RealtyMogul.com raised $9 million in a round of Series A funding, led by Canaan Partners, increasing its overall funding to $10 million. The company grew to $14.6 million in total investments in 58 properties across 14 states. RealtyMogul.com’s next major milestone came in September of the same year, when it reached $30 million in funding from 12,000 active investors. This achievement came after closing a deal with Brennan Investment Group with most investors contributing between $50k and $100k.
Less than two weeks later, RealtyMogul.com announced an agreement with investment firm Direct Lending Investments which committed to $73 million in the company’s projects. By the end of 2014, the company saw its first equity deal completely pay back investors from a class B retail center in San Antonio.
The Hard Rock Hotel in Palm Springs was the first ever crowdfunded hotel transaction, completed on RealtyMogul.com in 2014. In December 2014, RealtyMogul.com opened its SF office.
2015
CEO Jilliene Helman was selected as one of Forbes’ 2015 30 Under 30 Rising Stars of Enterprise Technology and RealtyMogul.com ranked 18th among the top 100 start-ups in Los Angeles in the same year.
In July 2015, RealtyMogul.com engaged in a round of Series B funding led by Sorenson Capital, resulting in $35 million raised. The company reported that the 265 properties in which it facilitated the raise of equity or debt were valued at more than $600 million and investors have received over $6 million in returns. The company opened its Atlanta office in August 2015. In September 2015 the company launched its first commercial debt product.
On November 18, 2015, RealtyMogul.com announced the financing of a $49 million bridge loan to acquire an apartment complex in the suburbs of Atlanta. To date, this was the largest loan via an online platform.
Shortly thereafter, on November 23, 2015, RealtyMogul.com announced it had completed a debt and equity combo transaction with a full capital stack transaction through the purchase of a 112-unit apartment community in Fayetteville, NC. RealtyMogul.com funded $7.59 million in bridge financing and raised $1.5 million in joint venture equity for a total of 90 percent of the $10.12 million purchase price though both debt and equity.
Platform
RealtyMogul.com connects borrowers and sponsors to capital from accredited and institutional investors through an online capital marketplace. Borrowers access debt capital through an online platform, while sponsors access equity capital. RealtyMogul.com's products include bridge and permanent loans and joint venture equity.
Investors access real estate opportunities through the platform with a minimum investment of $5,000. Loans fund professional contractors and developers with interest rates averaging between 5 and 20%.
See also
- Crowdsourcing
- Disruptive innovation
- Peer-to-peer lending
- Real estate crowdfunding
- Real estate investing
- Commercial real estate
- Real estate syndication
- Passive income
- Passive investor
- Passive investment