BEVERLY HILLS, CA-At year’s end, Los Angeles-based Realty Mogul has acquired 27 properties totaling $10 million through crowdfunding efforts. Launched in March 2013, the platform allows accredited investors to pool capital though crowdfunding techniques, making commercial real estate a more accessible investment option. Each of the company’s acquisitions is valued at $1 million or greater.
“Our early success confirms that people are frustrated with the low returns offered by banks and are looking for alternative ways to invest,” says Realty Mogul co-founder and CEO Jilliene Helman. The company has invested in multifamily properties, retail centers and storage facilities with cash flow, offering investors a quick return on their investment.
The web-based platform simplifies the investment process. Participants can do everything through the website from browsing opportunities to viewing transaction details and signing legal documents. “We’ve made it easy to participate in real estate investing via the Internet by creating a fantastic user experience,” says Helman. “Crowdfunding is going to revolutionize capital formation in real estate. It is here to stay.”
These thoughts are echoed by the SEC who unanimously voted in October to approve Title III crowdfunding proposed rules that allow businesses or investor groups to participate in securities-based crowdfunding. That means that unaccredited investors could make private investments, something that has been banned for 80 years.