Country: United States
Non-Accredited Investors: No
Business Selective: Yes
Investor Selective: Yes
Notable Alumni: AH Capital, Arenda Capital
Another example of the rare but emerging breed of specialized equity crowdfunding portals, Jilliene Helman and Justin Hughes’ Realty Mogul is among the first websites to bring the power of ECF to the real estate market. Despite only being a year old, the portal has an impressive resume.
Realty Mogul investors, who currently must be accredited, can invest as little as $5,000 in a real estate project, about ten times less than the traditional lower bound for investments in that market. They then become regular shareholders if the project meets its fundraising goal; otherwise their investment is returned to them in full. The company currently has over 1,000 investors and has pulled off some impressive fundraising stunts, such as fully funding a $600,000 project in Kansas in less than 4 hours.
In an interview with TechCrunch, co-founder Helman stated that the company is “interested in opening this model to a wider audience” as soon as they can. Realty Mogul is definitely a portal to keep an eye on when the SEC gets around to implementing the JOBS Act.