By Dees Stribling, Contributing Editor
Los Angeles—Realty Mogul has completed crowdfunding a group of multifamily properties in Los Angeles. The buildings total 141 apartment units in the Baldwin Hills neighborhood, where a number of redevelopment projects are currently planned or under construction.
As a crowdfunding site for real estate, Realty Mogul offers a marketplace for accredited investors to pool money online and buy shares of real estate investments through a private website. At the site, investors can browse investments, review legal documents and due diligence materials, and sign legal documents online, as well as have access to an investor dashboard that tracks their investment.
The funds raised for the Baldwin Hills properties, whose total wasn’t specified, will assist the buyer, a consortium led by principals of Crawford Park Financial and Apts Mgmt L.L.C., in making improvements to the properties. According to Realty Mogul, all of the properties represent value-add opportunities. These apartments now join the $85 million worth of properties the company has helped to fund nationwide thus far.
“Realty Mogul got started due to an economic opportunity and a political opportunity,” CEO Jilliene Helman tells MHN. “From an economic perspective, investors are looking for investments to generate income and banks are paying less than 1 percent. Real estate is a great asset class to generate passive income.”
From a political perspective, the passage of the JOBS act is the first change to securities laws in 80 years, she says, and the changing political landscape was “an opportunity too good to pass up.” Helman explains she came up with the idea for Realty Mogul after realizing that such a crowdfunding site could provide unprecedented access to direct investments over the web.