March 10, 2013
Buying property: A smart long term way to diversify your portfolio, or an investment too risky to consider? There are myriad reasons why people don’t invest in property. Time, financial risk and limited networking are some factors, just to name a few. Realty Mogul is trying to change this roadblock. By offering a marketplace for accredited investors to pool money online, it eliminates these barriers to investing in real estate with a new model of fundraising for the modern day property buyer. Investors can now use the beauty of crowdsourcing to buy shares of offices, apartments, and shopping centers. Things are really shaking up in the realm of property investment.
With Realty Mogul, accredited investors get inside access to pre-vetted opportunities in the DC, California, and Seattle markets. After browsing and screening a list of various real estate opportunities, investors can view details of an investment, sign, and purchase shares online. Following the initial transaction, customers are invited to log into the dashboard system to see how their properties are doing as frequently as they would like.
“Our biggest differentiator is our focus on cash flow and seeing your property investments pay off,” explains Jilliene Helman, CEO and founder. The firm partners with real estate companies that are experts in specific geographies and property types in order to bring focused industry knowledge to its customers. The struggle for financial return and political change is what drove the idea and the business.
But why real estate? Why now? Helman explains that a distinct feature of this industry, unlike other forms of investment, is the fact that “the shopper holds a sense of ownership and pride knowing that real estate is tangible to them.” That said, it is increasingly important to offer a way to empower people to make these decisions by simplifying the process to own property share.
With offices in Seattle and LA, Realty Mogul is still in beta, but is working with over a thousand online investors. In the future, Realty Mogul looks to expand eastward as the market expands. These locations will be completely driven by the feedback from their investors in the meantime. “We are constantly talking, reaching out, and asking what they would like to see next,” says Helman, who explains that the best way for them to grow is to keep close tabs with the direction of the marketplace.
Although the real estate investing business model has existed for over a century, Realty Mogul uses technology to bring it online, giving access to thousands of investors, and ultimately impacting businesses from coast to coast. “We’re building upon the experience and real-time feedback of thousands of people, and that’s really exciting,” says Helman.
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