In just one year since it has launched, property-focused crowdfunding startup Realty Mogul said its investors have poured $14.6 million of equity in real estate with a total value of over $100 million, TechCrunch reported.
The investments came from its 6,000 members who are accredited investors spread out in 58 properties in 14 states. According to an infographic which the startup prepared on the matter, 67% of the investments done on the platform came from repeat investors while 55% of their investors invest in different properties. Thirty-five percent of the investments were made in retail properties while 22% were for residential properties. Multi-family properties comprised 20% of the investments while 23% were made in other types of properties, the infographic revealed.
TechCrunch quoted the company as saying, "The broader story is that real estate crowdfunding has quickly become the fastest growing segment of the crowdfunding market and the dust is starting to settle in our space." According to Realty Mogul, their investments rose nearly 400% in just six months beginning in July.
Realty Mogul allows members to look at possible real estate investments in the marketplace. After screening the investments and reviewing its particulars, members can then sign the legal papers online. It is only when the project get successfully funded that the investors will be updated about it regularly, TechCrunch reported. According to the infographic, the investors will also start receiving passive income on the investment they have made as soon as the month or quarter that follows. Investors can make as low as a $5,000 investment.
The infographic also revealed that their investors have an average age of 43 years old, with the youngest being 24 years old and the oldest 75 years old. The backers usually work in the technology, financial and health industries. Most of the investors came from California, Illinois, New York, Texas and Washington.
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