Crowdfunding platform RealtyMogul has surpassed 300 projects funded. This is another significant milestone for the firm as well as the growing crowdfunding market. Since its inception in 2013, RealtyMogul has built a network of 175,000 investors and has distributed $100 million in returns. Surpassing 300 projects funded is another illustration that crowdfunding has become a quality capital source for real estate transactions.
“We are incredibly proud to share that we have now used crowdfunding to finance over 300 properties,” Jilliene Helman, CEO at RealtyMogul, tells GlobeSt.com. “When I started RealtyMogul six years ago, there was a lot of questioning in the general real estate market about the potential impact of crowdfunding. I think this milestone proves that crowdfunding has become a viable source of funding transactions and also that digital investing is here to stay.”
While this is a significant milestone for the crowdfunding market, it is also an impressive achievement for a private equity firm in general. “There are very few private equity firms in real estate that have financed 300 assets,” says Helman. “While our transaction sizes are smaller than most private equity firms, the fact that we now have operating data on over 300 properties gives us a true competitive advantage with data. This is very much in line with our growth expectations.”
RealtyMogul has focused on value-add multifamily deals and will continue to target these assets in its investment strategy. Of the 300 assets funded, 60% were value-add multifamily deals. “While there is a risk in every real estate investment, we have found value-add multifamily transactions to be quite attractive as they mix current cash flow from existing tenants with the opportunity for appreciation from value-add renovations and increasing rental rates over time,” says Helman. “I am also a big believer in diversification and the majority of the investments we make in multifamily are 100-plus units so if one tenant moves out, the property as a whole can still perform.”
Looking ahead, RealtyMogul plans to execute a similar strategy to grow the platform. “Our goal is to continue to grow assets under management by investing in high quality commercial real estate where we like the risk-reward calculation,” says Helman. “To date, we have distributed over $100 million back to our investors and we strive to help investors build wealth through commercial real estate.”
Want to learn more? View a breakdown of our portfolio statistics in our latest infographic.