- Hello once again guys.
Welcome back to the channel.
Hope you're havin' a great day so far.
So in this video today we are going to be talking about
two different crowdfunded real estate investing platforms
out there known as Fundrise and Reality Mogul.
Now Fundrise is by far the most popular one out there
but Reality Mogul just recently opened up
a number of offerings for non-accredited investors
which has made this an interesting pick here
for crowdfunded real estate investing platforms.
So now Fundrise definitely has some competition.
Personally I have some of my money invested with Fundrise
but I have been also looking at Reality Mogul
and down the road I may also throw some money in there
just to test it out and see what kind of returns
I am getting with Reality Mogul
versus my Fundrise portfolio.
So if you're looking at
these different crowdfunded platforms out there
and you're trying to determine the differences
between Fundrise versus Reality Mogul,
that's exactly what I'm gonna show you in this video today.
And essentially I'm just going to be sharing
you guys information off of my blog.
This is investingsimple.blog
if you wanna read along with me as we're going.
I'm not gonna read you the whole article.
We're just gonna highlight some of the key differences,
but that's gonna be linked up in the description below.
And at the end of this video
if you do decide that you want to sign up
for either Fundrise or Reality Mogul
I do have affiliate links in the description below.
You certainly don't have to use them if you don't want to
but it does help me up, it supports my channel
and allows me to put together more videos just like this.
So if you did find this information to be helpful
I certainly would appreciate that,
but again it is not required.
So if you're not familiar with what these platforms are,
essentially Fundrise and Reality Mogul
are these crowdfunded real estate investing platforms.
So essentially you are pooling your money together
with people from all over the United States
and purchasing private real estate investments.
Now in the past this was an investment that was reserved
for high net worth, accredited investors
and these were those quote unquote "backdoor deals"
that you just wouldn't have access to.
Due to some changes in legislation
it allowed for every day average investors
to now have access to these deals
through something called crowdfunding.
That's essentially people pooling together
small amounts of money and then collectively purchasing
real estate investments.
Now the one thing you have to understand
about buying into any crowdfunded real estate platform
is that this is not a highly liquid investment.
So liquidity is a measurement of how easily
an investment can be converted into cash.
So something like stocks, bonds, that has high liquidity
because that's very easy to sell.
Real estate on the other hand has low liquidity
because it's not as easy to go out there
and sell a piece of real estate.
So it's important to understand
before you invest in these platforms,
understand what the liquidity of these is like
and I'll you about both Fundrise
and Reality Mogul in a little bit.
But also understand that you should have
a minimum time horizon here of at least five years
before you put money into these platforms.
If this is money you're going to want to have access to
in the next six months or a year or so
do not invest it in crowdfunded real estate.
You're better off just throwing it into a CD
or a high-yield checking account if you can find that
or a savings account, something of that nature.
But crowdfunded real estate is not the option
that you wanna go with for your short-term cash
that you're going to need in the near term.
So that being said, let's talk about
some of the biggest differences
between Reality Mogul and Fundrise.
Well first of all the biggest one
is the minimum amount needed to start out with them.
So Fundrise offers basically four different portfolios.
Number one they have their beginning portfolio
or their starter portfolio which has
a minimum investment of just $500
and then their three advanced portfolios
have a minimum investment of $1,000.
Reality Mogul is a little bit different.
They essentially only offer two different portfolios.
The Reality Mogul REIT I and Reality Mogul REIT II.
And both of those have a minimum investment of $1,000
to gain exposure to those REITs.
As far as the accredited
versus non-accredited investor status,
all of those options we just discussed
for both Fundrise and Reality Mogul
are open to non-accredited investors.
If you don't know what that means,
accredited investors are high net worth
or high income investors who are allowed to invest
in unregulated investments,
but these investments are open to anybody
who is legally allowed to invest in the United States.
The other difference here is the fee structure.
So Reality Mogul has a variable fee
based on what portfolio that you are investing in
and that ranges from 0.3 to 0.5%.
Now Fundrise does have a slightly higher fee at 1%,
but it is transparent and flat across the board
regardless of what portfolio you are investing in.
Now another key difference between these two platforms
is that the dividends or distributions
are paid monthly with Reality Mogul
based on which portfolio you pick
and then with Fundrise they are paid quarterly.
So if you want monthly dividends or distributions
Reality Mogul is going to be your better option here,
but if you're fine with those quarterly payments
that is what you are going to receive with Fundrise.
So those are the basic differences.
We'll get into a little bit more detail here
on both platforms but the key differences
are that minimum account balance,
the fee structure and the dividend,
and then in a little bit here we'll look at
what you're actually investing in
with these different portfolios
and the differences between the Reality Mogul REITs
and the Fundrise portfolios that are available to you.
So these are the portfolios available to you
when you invest with Fundrise.
Like I said, the starter portfolio
has a minimum balance of just $500 to open it
and the other three have a minimum of 1,000.
And the good thing is if you start
with the starter portfolio
and then decide you want to upgrade,
you can upgrade to an advanced portfolio
at any point in time
and the starter portfolio is basically identical
to the balanced investing plan
because it's just a 50% growth,
50% income oriented portfolio.
These supplemental income portfolio on the other hand
that's pretty much self-explanatory.
It mostly holds income producing real estate
and this is for investors who are prioritizing cash flow
and they would rather have more dividend income
and less growth potential.
The balance investing plan is a mixture
of both growth and income and then finally
the long term growth plan here
that is primarily focused on asset appreciation
with less of a priority on income from dividends.
So if you're a high growth investor
the growth portfolio is more towards
what you're looking for.
If you like the consistent cash flow in dividends
the supplemental income portfolio
is definitely going to be something
you're going to want to look at.
So now let's take a look at the Reality Mogul investments
and see what those portfolios are looking like.
So currently Reality Mogul offers
three different investment options.
The Mogul REIT I, the Mogul REIT II
and then private placement.
Now these private placements
are reserved for accredited investors only.
Most of us are not accredited investors
so we're not really going to focus on that.
Those are essentially private curated deals
that Reality Mogul puts together
for certain high net worth investors.
But Mogul REIT I and Mogul REIT II as of recently
are now open to any investors
including non-accredited investors.
So I'm just gonna read these ones to you guys
so you have a general idea:
The Mogul REIT I is a public non traded REIT
that holds commercial, debt and equity investments.
The goal of the Mogul REIT I is generating income
and providing diversification through a mixture
of different real estate investments.
So essentially the Mogul REIT I is the income portfolio
where you're focused more on generating income
and now we'll go into some details
on the Mogul REIT II portfolio:
Mogul REIT II is a public non traded REIT
focused on the growth of capital over the long term.
The REIT has the goal of paying out
quarterly cash distributions to investors.
So remember when I said earlier
depending on which REIT you pick,
Mogul REIT II is not focused on income.
As a result they're only paying those distributions
on a quarterly basis whereas with the Mogul REIT I
they are going to be paying those dividends
every single month because of the emphasis on the income.
So overall those are the differences
between investing in Fundrise and Reality Mogul.
They both offer a solid platform
but again you really do wanna understand
what it is that you're investing in
before you make a decision to invest in either platform.
There's nothing wrong with investing
in crowdfunded real estate.
I'm a big fan of it because it is access
to a private investment,
it's less correlated with the stock market,
and you have the potential to have higher returns
than you would with a publicly traded REIT,
but you definitely wanna understand that liquidity
is a lot lower with this type of investment
and you wanna have the goal of seeing it through
'til the end with your investment
and having a minimum time horizon of at least five years.
If you wanna do some more research,
like I said this article on my blog
is in the description below
and if you are ready to get started with Fundrise
or Reality Mogul I have provided links
in the description below.
They are affiliate links and I certainly do appreciate it
if you use them because at no additional cost
it is a way to give back to me
for putting this video together.
But thank you guys so much for watching.
I hope this helped you out
and I will see you in the next video.