Frequently Asked Questions
ABOUT REALTYMOGUL

What is RealtyMogul?

RealtyMogul empowers members to build a diversified real estate portfolio by providing a secure website and online tools to evaluate potential commercial real estate transactions offered by various real estate companies. Members can assess whether investment opportunities meet their investing goals and risk profile, and then sign legal documents securely online.

Deals only make it onto the platform after a formalized process to evaluate both the sponsor and the deal is performed by our affiliated broker-dealer, RM Securities.

After a member makes an investment, they have access to a member dashboard, that provides 24/7 access to their investments along with regular reporting provided by the real estate companies on the performance of these investments. Please note, RealtyMogul and its affiliates do not provide investment advice to members, and members must conduct their own evaluation and due diligence of prospective real estate investments. We strongly advise that you seek advice from an investment professional.

What are the benefits of using the RealtyMogul platform?

RealtyMogul’s platform provides the software, tools and information that empower members to independently invest in commercial real estate. The platform provides the tools for accredited investors to independently diversify their portfolio with a variety of commercial debt and equity investments offered by numerous real estate companies. The platform enables members to build their own personal real estate portfolio. Members can sort through opportunities presented on the platform, review detailed information provided by the real estate companies and review the performance of past investments.

Our affiliated broker-dealer, RM Securities performs extensive due diligence on the sponsor, the business plan and the property before a deal is offered on the platform.

The RealtyMogul platform’s technology and software make the process frictionless, allowing you to screen investments online, sign legal documents online, and have access to all of your documents in one place on your member dashboard.

Please note, RealtyMogul and its affiliates do not provide investment advice to members, and members must conduct their own evaluation and due diligence of prospective real estate investments. We strongly advise that you seek advice from an investment professional.

What types of investment opportunities do real estate companies offer using the RealtyMogul platform?

RealtyMogul’s platform is utilized by a wide variety of real estate companies (also known as “Sponsors”) that offer commercial real estate projects throughout the United States.

Individual deals that have been presented on the platform by Sponsors include:

· Apartment buildings

· Office

· Retail

· Industrial

· Mixed-use

· Ground-up development

· Self-storage

· Cold storage

· Mobile home parks

RealtyMogul members can also invest in two non-traded Real Estate Investment Trusts (REITs) that give them access to a portfolio of properties that have the potential to pay passive income.

To find out more about the RealtyMogul REITs, please click here

How long has RealtyMogul been in business?

RealtyMogul was founded in 2012.

What’s RealtyMogul’s track record?

To see the track record of investments made on the RealtyMogul platform, please click here
To see a list of individual past investments, please click here

Please note that past performance is not indicative of future results and should not be used as a basis for an investor’s decision to invest. Investments made on the Realty Mogul platform prior to 4/17/2024 were not offered by RM Securities, LLC and should not be viewed as indicative of or attributable to any performance related to the investment products or services offered by RM Securities, LLC, nor should you assume that any products or services offered by RM Securities, LLC will in the future will be profitable or equal to any performance of cumulative or specific past investments made on the Realty Mogul platform.

Who is your CEO? And what’s his or her background?

Jilliene Helman is the founder and CEO of RealtyMogul.

After graduating from Georgetown University with a degree in International Business and Management, Jilliene worked extensively in the wealth management sector in the United States and in Asia, eventually becoming a Vice President at Union Bank in Los Angeles.

Jilliene is a Certified Wealth Strategist and has been featured as an expert on startups and real estate investing on Bloomberg, CNBC, The New York Times, Yahoo! Finance and Entrepreneur.

In addition to real estate ventures, Jilliene sits on the Board of Directors of NextHealth, a health optimization center in Los Angeles providing IV therapy, cryotherapy, hormone therapy, stem cells treatments, and state of the art testing and monitoring.

How do I speak to a registered representative about investments?

At RealtyMogul, all members are assigned to a dedicated licensed investors relations representative. This investor relations representative is available to answer any questions on how the platform works and about specific offerings on the platform.

Please note that representatives do not provide recommendations or investment advice to members.

To schedule a meeting, click here

How much have RealtyMogul members invested on the platform to date?

To date, over $${totalAmountFinanced} of capital has been invested in real estate projects on the RealtyMogul platform and real estate companies have raised capital to finance ${totalPropertiesFinanced}+ properties valued at over $${totalPropertyValueFinanced}.1,2

To view the performance of individual deals that have gone full cycle (in other words, the investments have been completed and all distributions have been paid to members), please see the Past Investments section of our website.

As for RealtyMogul’s two Real Estate Investment Trusts (REITs):

To view the performance of the Income REIT, click here.

To view the performance of the Apartment Growth REIT, click here.

Please note, RealtyMogul does not provide investment advice to members, and members must conduct their own evaluation and due diligence of prospective real estate investments.

Additionally, investments in real estate are speculative, highly illiquid, and involve substantial risk. You should not invest unless you can sustain the risk of loss of capital, including the risk of total loss of capital. Please carefully review the general platform Disclosures and the specific offering documents for each investment product which contain important information about the fees you will pay, conflicts of interest, and relevant specific and general risks.

Who makes up the RealtyMogul team?

RealtyMogul is a team of professionals with experience in real estate, technology, and finance. To learn more about our executive team, click here

Where is the company located?

RealtyMogul is headquartered in Los Angeles, California

GENERAL INVESTING QUESTIONS

Are there any minimum qualifications I need to meet to be able to invest?

Investment opportunities on the RealtyMogul platform are offered to both accredited and non-accredited members, depending on the investment.

Per SEC regulations, only accredited members can invest in private placement offerings by real estate companies (also known as “Sponsors”) on the platform which are offered based on the exemption from registration under Rule 506(c).

What is an accredited investor?

The SEC regulations provide a number of categories of “accredited investors

Most members qualify as an accredit investor based on one of the following:

· Net worth over $1 million, excluding primary residence (individually or with spouse or partner) or

Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year.

How does the platform work? How do I invest?

For a step-by-step walkthrough of how to invest in an individual deal offered by a real estate company (also known as “Sponsor”) on the RealtyMogul platform, or how to invest in the two RealtyMogul REITs, please click here

What type of reporting will I receive after I invest?

Members will be able to view updates regarding their investments when they log in to the RealtyMogul platform and view their member dashboard. This is their hub of information, providing comprehensive metrics about their distributions to date, upcoming milestones, and overall return on investment. Members are notified by email when distributions are sent to their bank account.

RealtyMogul provides a conduit for all members to receive timely updates from real estate companies at least quarterly. Updates will be provided via email and via the RealtyMogul member dashboard. In addition, members will receive tax documents every year that they have a distribution from a particular real estate investment. All information provided to members will be provided by and approved by the related real estate company.

Please note that the information provided with respect to a particular private placement is provided by the sponsor of that deal.

Are investment returns guaranteed?

No. As with any investment opportunity, returns are never guaranteed, and members bear the risk of loss, including, without limitation, a total loss of invested capital. Members must conduct their own evaluation and due diligence of prospective real estate investments. We strongly advise that you seek advice from an investment professional.2

Can I use a self-directed IRA account or other type of retirement account for my investments?

Some offerings on the RealtyMogul platform, including RealtyMogul’s REITs, do accept investments from self-directed IRA accounts but it will depend on your custodian’s processes/procedures. If the transaction permits self-directed IRA account investments, there are two requirements that must be satisfied to permit members to use a self-directed IRA account or other type of retirement account: (1) the custodian must be able to process documents via electronic signatures, and (2) it must be able to process contributions and distributions via ACH transfer payments.

Unfortunately, some custodians have difficulty meeting these conditions. Please inquire with your current custodian whether they can work with these requirements, and if not, we can refer you to other providers who can meet these guidelines.

Does RealtyMogul offer 1031 exchanges4?

Yes.

INDIVIDUAL DEALS

How does an investment opportunity get presented on RealtyMogul platform?

Real estate companies (also known as “Sponsors”) may present their investment opportunities using the RealtyMogul platform after a formalized due diligence review by our affiliated broker-dealer, RM Securities. This review includes RM Securities’ evaluation of the market, the property and the reasonableness of the sponsor’s assumptions regarding the investment.

RM Securities also reviews the sponsor’s business plan and reviews the key business assumptions for reasonableness based on years of experience and 3rd party data sources. The team also reviews the overall market assumptions including population and rent growth along with an evaluation of the sources and uses of capital, with a review of the debt terms and proof of debt commitment.

Additionally, after the Sponsor’s offering is live on the platform and prior to the closing of a transaction and the release of investor funds from third-party escrow, the RM Securities team engages in additional due diligence that may include personally visiting the property or a representative property (in the case of a fund or portfolio) and the review of qualified third party reports with respect to the property condition for 1031 DST offerings.

Please note, RealtyMogul does not provide investment advice to members. Investors should conduct their own evaluation and diligence of any prospective investment. We strongly advise that you seek advice from an investment professional.

What types of properties can I invest in?

RealtyMogul’s platform is utilized by a wide variety of real estate companies (also known as “Sponsors”) that offer commercial real estate projects throughout the United States.

Individual deals that have been listed on the platform by Sponsors include:

· Apartment buildings

· Office

· Retail

· Industrial

· Mixed-use

· Ground-up development

· Self-storage

· Cold storage

· Mobile home parks

What’s the minimum investment amount?

The minimum investment is different for each investment but is typically $25,000 or $35,000.

How does the investing process work?

After you have created an account on the RealtyMogul platform and determined that you want to invest in a particular opportunity, our online software will automate and guide you through the subscription process. You will be able to sign legal documents online and select a bank account to fund your investment with. The investment is not final until all legal documents are signed, and funding has been contributed and cleared.

When a member makes their investment, the money is held securely by an unaffiliated third-party escrow agent. In order for investor funds to be released from this third-party escrow account to the issuer’s bank account, RM Securities will confirm that certain conditions have been satisfied that typically include, to the extent applicable, (a) confirmation of lender proceeds and loan terms; (b) RM Securities’ satisfactory completion of its due diligence of the sponsor, the deal and the offering, including the receipt and review of certain third-party reports, including, without limitation, environmental reports, appraisals (if applicable), zoning reports (if applicable); proof of adequate insurance relevant to the project and the title policy.

For a step-by-step walkthrough of how to invest in individual deals offered by a real estate company (also known as “Sponsors”) on the RealtyMogul platform, please click here

What is a pledge?

Pledging is a process whereby real estate companies take indications of interest from prospective investors in an investment prior to the prospective investor actually funding that transaction. The pledge is non-binding, meaning there is no commitment to invest by creating a pledge.

Real estate companies using the RealtyMogul platform will notify pledged prospective investors first when a transaction opens for funding. In the event capacity exists after being offered to pledged investors, the real estate company will open the offering to all members.

What is a waitlist?

If an investment reaches full capacity or is otherwise unavailable for investment at that time, the real estate company will move its offering to the Waitlist stage to prevent further pledges or investments. You are welcome to place yourself on the waitlist and should any investment capacity become available in the offering, you will be notified by the real estate company. There is no obligation to invest once notified.

For a step-by-step walkthrough of how to invest on the RealtyMogul platform, please click here

How do I transfer funds into an investment?

Standard ACH transfers can be made from a member’s bank account for amounts up to $100,000 can be made through the platform’s online software. Amounts larger than $100,000 are made using a wire transfer directly to the relevant third-party escrow account.

How will my investment cash flow allocations be distributed?

For all individual deals offered by real estate companies on the platform, please review the description of that individual investment as provided by the relevant real estate company.

Distributions are typically sent to the same bank account that was used for your original investment. However, we can accommodate changing a distribution bank account by request. Any changes to a distribution account will require you to prove valid ownership of the new account for compliance purposes. Distributions are never guaranteed in amount or timing, and you should carefully read the offering documents on the specific deal you are interested in to fully understand the projected distributions and what risks are involved.

How often should distributions be expected?

The timing of distributions are governed by the deal documents for the specific investment and are typically at the discretion of the manager of the real estate company. Often, the documents provide that distributions will be made by the sponsor to equity investors each quarter for deals that are cash flowing.

Please review the expected distribution schedule in the relevant operating agreement and offering documents for each investment before making an investment.

No distributions are guaranteed as to amount or timing.

How liquid are these investments?

The real estate investments offered by real estate companies on the RealtyMogul are always private transactions in physical properties around the United States and are not traded on public stock exchanges and cannot be easily sold or traded. You should not invest with the expectation of reselling your investment, and we strongly advise that you seek advice from an investment professional, including concerning illiquid investments.

What if I invested in equity and more money is needed for the property in the future? Am I obligated to invest more as an equity owner?

RealtyMogul investments typically do not have mandatory capital calls.

A capital call is where the investor is required to commit more money to the property, beyond the initial investment. In the event that the sponsor requests additional capital contributions investors will be asked to contribute and if they choose not to for any reason, it is possible that investors will be diluted if more money needs to be raised.

Please check the offering materials for each investment to fully understand your liabilities as an investor.

What are the general timelines for investment?

Different real estate investments will have different expected hold periods.

A hold period is the anticipated time investors will be involved with the investment until the underlying property is sold or recapitalized to liquidate investors. Hold periods are typically associated with the underlying business plan of the specific property as well as any associated debt financing for the project. It is important to read the offering documents provided by the relevant real estate company for each investment opportunity for a deeper understanding of the hold period for each investment.

What are the fees to invest?

Joining RealtyMogul and using the platform is free and members who choose to invest with a real estate company will not be required to directly pay any fee. However, there are fees that members directly or indirectly pay in connection with each investment. The fees are determined by each real estate company offering an investment, and typically depend on the type of investment (investing in a loan or investing in equity) and the nature of the transaction. RealtyMogul also charges the sponsor a fee for the use of the platform. In addition to administrative and legal expenses, the fees typically cover the ongoing reporting and communications for the investments. As we are big believers in transparency, you can find the specific fee structure for each real estate investment opportunity as a standard disclosure by real estate companies on the RealtyMogul platform (Form CRS , Terms of Service).

Why am I being asked to supply additional information for accreditation verification?

Individual deals on the RealtyMogul platform are offered under Rule 506(c) of Regulation D (Reg D) of the Securities and Exchange Commission (SEC) which requires verification of each member’s accredited investor status.

Additionally, non-accredited members in RealtyMogul’s two REITS will be required to provide certain financial information to ensure that they meet the requirements for investment under Regulation A+.

As a member, do I have to go through a due diligence process? 

Prior to making an investment with a real estate company utilizing the RealtyMogul platform, prospective investors are required to answer certain questions and complete know your customer (“KYC”) and anti-money (“AML”) requirements. Our technology will guide you through this process. We do not run credit checks on prospective investors.

How are legal documents handled on the RealtyMogul platform?

For many transactions, the legal documents can be sent and signed electronically through our platform software. This allows for more efficient and seamless transfer of documents between you and the real estate company offering the investment, while maintaining the authenticity and security of your information. Additionally, some sponsors and transactions require that the legal documents be executed using DocuSign. If this occurs, RealtyMogul will do everything possible to make it an efficient process.

Investments are finalized once proper legal documentation is accepted, funds are confirmed received, RM Securities has completed its diligence review and you are provided with completed countersignatures.

REITS

What is a REIT?

A Real Estate Investment Trust (REIT) is a single investment into a portfolio of real estate properties, which are often diversified by property type, geography, or multiple categories to potentially achieve strategic objectives.

REITs are legally required to distribute 90% of all taxable income to investors annually.

Generally, REITs have historically outperformed the broad stock market more often than not when returns are measured in years.3 REITs have also historically been positively correlated with inflation, which may make them a possible hedge for inflation.4

3. https://www.reit.com/news/blog/market-commentary/reit-average--historical-returns-vs-us-stocks

4. https://www.reit.com/news/blog/market-commentary/how-reits-provide-protection-against-inflation

What’s the difference between the two RealtyMogul REITs?

The main differences are their respective investment strategies. The RealtyMogul Apartment Growth REIT targets investments in multifamily properties that offer value-add opportunities with the potential for value appreciation, while the RealtyMogul Income REIT targets investments in properties of all asset types with the goal of generating consistent cash distributions.

In short, the RealtyMogul Apartment Growth REIT is focused on growth investments while the RealtyMogul Income REIT is more focused on income-producing investments.

To learn more about the RealtyMogul REITs click here

What’s the minimum investment amount?

The minimum investment is $5,000 and investors may invest additional capital at a minimum of $1,000 directly or through a Self-Directed IRA (“SDIRA”)3 or with a Registered Investment Advisor.

How have the REITs performed historically?

To view the performance of the Income REIT, click here

To view the performance of the Apartment Growth REIT, click here

How liquid are these investments?

Non-traded REITs, such as the RealtyMogul REITs, are not liquid investments, which means you may think of an investment in the REITs as a long-term investment into real estate. Each REIT has, however, adopted a Share Repurchase Program whereby each REIT alone may purchase shares back from investors. The Share Repurchase Program is designed to provide the REITs’ shareholders with limited liquidity for their investment in REIT shares, subject to availability of capital.

As is more thoroughly discussed in the Share Repurchase Program section of each REIT’s Offering Circular, after 12 months of ownership, your shares may be repurchased at the most recently announced NAV per share multiplied by the Effective Repurchase Rate, which may discount the amount you receive for your repurchased shares based on how long the shares have been held.

The Effective Repurchase Rate is based on the stock purchase anniversary as follows:

Share Repurchase Anniversary (Year)Effective Repurchase Rate(1)
Less than 1 year(Lock-up) 0%
1 year until 2 years98%
2 years until 3 years99%
3 or more years100%
Death (Exception Repurchases)100%

(1) As a percentage of the Repurchase Base Price per share. The repurchase price will be rounded down to the nearest $0.01.

For additional details regarding the Repurchase Program, please see each REITs’ respective Offering Circular.

You should not invest with the expectation of reselling your investment.

What are the fees to invest?

Joining RealtyMogul and using the platform is free and members who choose to invest with the RealtyMogul REITs will not be required to directly pay any fee. However, there are fees that investors directly or indirectly pay in connection with each investment. As we are big believers in transparency, you can find the specific fee structure for each real estate investment opportunity as a standard disclosure on the RealtyMogul platform. Please see the Offering Circulars for all fees related to investments in the REITs.

Who manages the two RealtyMogul REITs?

The RealtyMogul Income REIT and the RealtyMogul Apartment Growth REIT are managed by RM Adviser, LLC, a SEC-registered investment adviser and wholly owned subsidiary of Realty Mogul, Co.

RM Adviser, which manages both of the REITs’ day-to-day operations, has access to the experienced team of real estate finance professionals employed by Realty Mogul, Co., including Jilliene Helman, its Chief Executive Officer.

As the Manager, RM Adviser, LLC performs the following services for the Income REIT: investment advisory and acquisition services (including performing due diligence on the RealtyMogul Income REIT’s investments), offering services, asset management services, accounting and other administrative services, shareholder services, financing services, and disposition services.

Although the Manager, RM Adviser, LLC, manages the day-to-day operations, the Apartment Growth REIT operates under the direction of its Board of Directors, a majority of whom are independent directors. Flynann Janisse has served as an independent director of the Apartment Growth REIT since July 2017. She has several decades of experience in asset management with an emphasis on the development and implementation of social services programs for service-enriched affordable housing. She currently serves as Executive Director of Rainbow Housing Assistance Corporation, President and Executive Director of Equality Community Housing Corporation, and President and Chairman of the Board of Rainbow Housing Texas, Inc.

Louis S Weeks III has served as an independent director of the Apartment Growth REIT since July 2017. He has been involved in commercial real estate and finance for more than 35 years, most recently as Founder and Principal of SeaburyCoxe Advisors, LLC, which consults in financing and investing for commercial real estate projects nationwide.

TAXES

What type of tax documentation will I get for each investment?

The real estate companies, also known as “Sponsors,” that offer individual deals on the RealtyMogul platform issue K-1s to their investors. We highly encourage Sponsors to deliver K-1s in time for a standard April 15th tax filing deadline. These K-1s will be posted to your RealtyMogul dashboard.

Investors in the two RealtyMogul Real Estate Investment Trusts will be issued 1099s. 1099s arrive at the end of January for the previous tax year. 1099s will also be posted to your RealtyMogul dashboard.

Please note that RealtyMogul does not provide tax advice. We strongly encourage you to seek advice from a tax professional.

What is Form 1099-DIV?

The form IRS Form 1099-DIV: Dividends and Distributions is sent to Real Estate Investment Trust (REIT) investors annually and used to report dividends earned and capital gains distributions paid during the tax year. The RealtyMogul REIT that sent you a distribution will be identified in the top-left box of the form.

Please note that RealtyMogul does not provide tax advice. We strongly encourage you to seek advice from a tax professional.

Why have I received a Form 1099-DIV?

You received a Form 1099-DIV because you were paid dividends from one or more of your investments in the RealtyMogul Income REIT or the RealtyMogul Apartment Growth REIT. For you to properly report these distributions to the IRS, Form 1099-DIV shows the type of income from distributions you received. The RealtyMogul REIT that sent you a distribution will be identified in the top-left box of the form.

Please note that RealtyMogul does not provide tax advice. We strongly encourage you to seek advice from a tax professional.

What is the difference between the distributions shown in Boxes 1a, and Box 3 in Form 1099-DIV?

Form 1099-DIV shows your ordinary dividends in Box 1a and non-dividend distributions in box 3.

Each year, we are required to report to you the type of income for distributions paid to you, which is determined by comparing the amount of distributions paid by each Real Estate Investment Trust (REIT) with the REIT’s earnings and profits for a given year. The REIT’s calculated current and accumulated earnings and profits is the result of a tax calculation, which often differs from the REIT’s profits calculated in accordance with generally accepted accounting principles and presented to you in such REIT’s Annual Report on Form 1-K each year.

In the event that any portion of distributions paid to you exceeds earnings and profits in a given year for the Income REIT or the Apartment Growth REIT, it is treated as a non-dividend distribution, also referred to as a return of capital. Distributions that do not exceed the calculated current and accumulated earnings and profits are reflected as ordinary dividends.

In general, ordinary distributions (Box 1a) are taxed currently; non-dividend distributions (Box 3), or returns of capital, reduce cost basis or the original purchase value of your shares. In the event aggregate returns of capital received exceeds your original cost basis, then the excess is recognized as a capital gain for the year in which it is received. Therefore, you can adjust the cost basis of your investment each year based on the amount shown in Box 3 “non-dividend distributions” on your Form 1099-DIV. By tracking adjustments to your cost basis each year, you can properly report any gain or loss you experience on the disposition or redemption of your shares.

When you sell your shares, the difference between your adjusted cost basis and final net sale price will be taxable as a capital gain or loss on your tax return. Keeping track of your adjusted cost basis each year can be helpful when you finally sell your investment. Please consult your tax advisor if you need assistance with the calculation of your cost basis or if you have other questions regarding the reporting of distributions that you received.

Please note that RealtyMogul does not provide tax advice. We strongly encourage you to seek advice from a tax professional.

What is Box 5 Section 199A in Form 1099-DIV, and why is it the same as Box 1a?

If you received any dividends from the REITs, this will be reflected in Box 5 Section 199A dividends. This reports your qualified REIT income and allows a 20% deduction for pass-through businesses and was created by the 2017 Tax Cuts and Jobs Act. All of the Income REIT’s dividends were categorized as qualified REIT dividends, which is why Box 5 and Box 1a are the same.

If your taxable income exceeds $315,000 as a married couple filing a joint return, or $157,000 as any other type of taxpayer, the deduction can be subject to additional limitations. Please consult your tax advisor for more information about these limitations.

Please note that RealtyMogul does not provide tax advice. We strongly encourage you to seek advice from a tax professional.

What is Form 8937 and where can I obtain a copy of the most recent one?

Any corporation (or entity that is taxed like a corporation, including our REITs), that undergoes a stock split or a merger, pays a stock dividend, pays a return of capital distribution, or otherwise undertakes an “organizational action” is required to either (i) file Form 8937 with the IRS and send copies to its shareholders or (ii) make the required information publicly available on its website. To the extent none of the above-described organizational actions are taken, no Form 8937 is required. This form, prepared by our REITs, will be available by March 1 on the RealtyMogul website.

Please note that RealtyMogul does not provide tax advice. We strongly encourage you to seek advice from a tax professional.

What is a qualified dividend, and will my dividends be qualified?

A qualified dividend is a type of dividend which may be subject to preferential tax rates, which are typically lower than regular income tax rates. Non-qualified, ordinary dividends are taxed at the normal rate based on your ordinary income. Based on the historical operations of our REITs, all dividends issued by our REITs are not qualified. If the REITs pay qualified dividends, we will report them in Box 1b.

Please note that RealtyMogul does not provide tax advice. We strongly encourage you to seek advice from a tax professional. A qualified dividend is a type of dividend which may be subject to preferential tax rates, which are typically lower than regular income tax rates. Non-qualified, ordinary dividends are taxed at the normal rate based on your ordinary income. Based on the historical operations of our REITs, all dividends issued by our REITs are not qualified. If the REITs pay qualified dividends, we will report them in Box 1b.

Please note that RealtyMogul does not provide tax advice. We strongly encourage you to seek advice from a tax professional.

What is Form 1099-INT?

Form 1099-INT is used to report income from interest above $10 during the tax year.

Please note that RealtyMogul does not provide tax advice. We strongly encourage you to seek advice from a tax professional.

Why have I received Form 1099-INT for my RealtyMogul investment?

If you have invested in any individual deals that were structured as debt investments, you are considered a lender. The dividends that you received due to the debt investments included interest payments, which are considered taxable income. RealtyMogul is required to file Form 1099-INT on interest over $10 paid during the tax year.

Please note that RealtyMogul does not provide tax advice. We strongly encourage you to seek advice from a tax professional.

What is a K-1?

A K-1 is a tax form used by companies taxed as partnerships to provide investors with detailed information on their share of a partnership’s taxable income. Partnerships (and LLCs that elect to be taxed as a partnership) are generally not subject to federal or state income tax, but instead issue a K-1 to each investor to report his or her share of the partnership’s income, gains, losses, deductions and credits. The K-1s are provided by sponsors to investors on an annual basis so that each investor can include K-1 amounts on his or her tax return.

Please note that RealtyMogul does not provide tax advice. We strongly encourage you to seek advice from a tax professional.

Will I receive a K-1 for my investment?

If you invested in Private Offerings or individual deals, you would receive a Schedule K-1, K-1 information, or substitute K-1 (collectively referred to as a K-1).

Please note that RealtyMogul does not provide tax advice. We strongly encourage you to seek advice from a tax professional.

When will K-1s be available to members?

The real estate company or “Sponsor” of each individual deal is responsible for preparing K-1s for investors. Generally, we recommend that all K-1s are sent to investors by March 15 of each year, however, you may be required to obtain one or more extensions for filing federal, state and local tax returns if the Sponsor is unable to produce the K-1 in time.

Please note that RealtyMogul does not provide tax advice. We strongly encourage you to seek advice from a tax professional.

Should I request an extension for filing my tax returns if I have invested in a Private Offering?

While we recommend each real estate company or “Sponsor” send out K-1s by March 15 of each year, due to the complexity of these forms, we cannot guarantee that all K-1s will be received prior to tax deadlines. We do recommend that you discuss filing tax extensions with your tax advisor.

Please note that RealtyMogul does not provide tax advice. We strongly encourage you to seek advice from a tax professional.

Where do I report the information contained in my K-1?

The information provided to each investor on his or her K-1 is included on the investor’s federal tax return. Typically, an investor must also file state tax returns in the states in which the Private Offering owns property. In some cases, a composite tax filing may eliminate the need for an investor to file at the state level. Please consult with your tax advisor for more information.

Please note that RealtyMogul does not provide tax advice. We strongly encourage you to seek advice from a tax professional.

How does a K-1 differ from a Form 1099-DIV?

Form 1099-DIV recognizes dividend income equal to cash distributions received. These ordinary dividends are typically treated as ordinary income for tax purposes. For Schedule K-1, investors will recognize their portion of the taxable income from the partnership. The taxable income allocated to each investor may include ordinary income, dividend income, interest income, rental real estate income, or otherwise. This income retains the same tax character as it had in the partnership and should be reported on each investor’s federal tax return. Please consult your tax advisor for more information.

Please note that RealtyMogul does not provide tax advice. We strongly encourage you to seek advice from a tax professional.

Do I need to mail in my K-1 to the IRS?

No, the real estate company or “Sponsor” will submit a Form 1065 to the IRS that will include a copy of each individual investor’s K-1.

Please note that RealtyMogul does not provide tax advice. We strongly encourage you to seek advice from a tax professional.

If a Private Offering suffers a loss, can I claim that loss as a deduction on my individual tax return?

Yes, you may report your allocable share of any net losses reported by the Private Offering on your individual tax return (Form 1040 or other applicable tax form). The amount that you are entitled to claim as a deduction on your tax return may be less than the total loss amount reported on your K-1. Limitations that apply to deductions include IRS basis rules, at-risk limitations, and passive loss limitations. Generally, you are not allowed to claim your share of the Private Offering’s loss if it exceeds your adjusted basis in the Private Offering for the applicable tax year. Please consult the IRS or your tax advisor for more information.

Please note that RealtyMogul does not provide tax advice. We strongly encourage you to seek advice from a tax professional.

What is my tax basis in my investment in the Private Offering?

The capital account reflected on your K-1 should generally approximate your tax basis in your investment. Your capital account is calculated based on your initial investment(s) in a Private Offering plus any allocable net income, less any net losses and/or cash distributions as reflected on your K-1. We strongly recommend that you keep your own running record of your cost basis in each Private Offering for tax purposes because there are certain instances where your tax basis may differ from your capital account balance. For additional details on how to calculate your basis, please ask your tax advisor.

Please note that RealtyMogul does not provide tax advice. We strongly encourage you to seek advice from a tax professional.

Do I need to file in each individual state in which I have an investment?

This depends on your state of residence.

Circumstances may vary if you have additional partnership income, expect to receive other K-1s, or in other circumstances. Please consult your tax advisor, CPA, or financial planner for specific guidance.

Please note that RealtyMogul does not provide tax advice. We strongly encourage you to seek advice from a tax professional.

Disclaimers
1 Past performance is not indicative of future results and should not be used as a basis for an investor’s decision to invest. Investments made on the Realty Mogul platform prior to ${brokerDealerLaunchDate} were not offered by RM Securities, LLC and should not be viewed as indicative of or attributable to any performance related to the investment products or services offered by RM Securities, LLC, nor should you assume that any products or services offered by RM Securities, LLC will in the future will be profitable or equal to any performance of cumulative or specific past investments made on the Realty Mogul platform. All information and any calculations used herein is based on information from inception through ${brokerDealerLaunchDate} and subject to the Disclaimers and Defined Terms located on the Track Record Page.

2 Capital invested includes: (i) common equity investments in real estate companies and funds; (ii) fixed income investments including preferred equity, senior debt, and mezzanine debt in connection with the acquisition or refinance of commercial real estate; (iii) residential debt investments in connection with financing the acquisition, improvement/renovation, and sale of single family homes; and (iii) loans originated for sale which include non-fractionalized loans sold to institutional buyers. Includes capital that has been deployed by, as well as material amounts of committed but undeployed cash held by, affiliated and unaffiliated real estate companies and funds, including cash in real estate funds that has been returned from completed investments. Certain investments are made by Realty Mogul, Co. or its affiliates. This information should not be used as a basis for an investor’s decision to invest. Investment opportunities on the RealtyMogul Platform are speculative and involve substantial risk.

3 Responses provided herein relating to SDIRA, rollovers or the use of retirement funds from an IRA, is for informational purposes only and should not be misconstrued as a recommendation or advice. RealtyMogul nor any of its affiliates or professionals are considered investment advisory fiduciaries under Title I of the Employee Retirement Income Security Act of 1974 (ERISA). You should consult with your financial advisor(s) and tax professional(s) to obtain specific information regarding costs, fees and other factors to consider in deciding to use or rollover retirement funds.
JOIN REALTYMOGUL
Create an account or sign in.
Are you an Accredited Investor?
Must be 8 characters or more with an uppercase and lowercase character, a number, and a symbol.
By clicking "JOIN REALTYMOGUL" you are agreeing to our Terms of Service and Privacy Policy, and that you've had an opportunity to review RM Securities, LLC's Form Customer Relationship Summary.
SIGN IN
Don’t have an account yet? Join RealtyMogul.
Forgot Password?
Questions? Our Investor Relations team is available to help 9 AM - 8 PM ET Monday to Friday. Contact us at (877) 977-2776.
Forgot Password
Enter your email address to receive a code to reset your password.
Enter the code sent to your email address below and your new password.

Resend Code

WELCOME
Welcome,

Welcome to RealtyMogul! We need to ask a few additional questions to get to know you.

Your Net Worth
Are you interested in 1031 exchanges?
Thank you!

We’ve received your information and updated your Investor Profile.

Welcome to RealtyMogul

As part of RealtyMogul's commitment to transparency, we want to inform you that you have been directed to our website from an unaffiliated third-party marketing company who is compensated up to $250 for each investor who registers on our site. RealtyMogul and its affiliates have no relationship with the marketing company other than this compensation arrangement. RealtyMogul and its affiliates are not responsible for the preparation or accuracy of, and do not explicitly or implicitly adopt or endorse, any content provided by the unaffiliated marketing company.