360° Coverage : Real Estate Investing Is No Longer A Private Club

2 Updates
Real Estate Investing Is No Longer A Private Club
Photo Credit: Forbes Business

Real Estate Investing Is No Longer A Private Club

Apr 2 2014, 10:52am CDT | by

Jilliene Helman had a track record in real estate. She had underwritten more than $1 billion and was a vice president in wealth management at Union Bank. She knew what to invest in and what not to....

Filed under: news

 
 
 

24 weeks ago

Real Estate Investing Is No Longer A Private Club

Apr 2 2014, 10:52am CDT | by

Jilliene Helman had a track record in real estate. She had underwritten more than $1 billion and was a vice president in wealth management at Union Bank. She knew what to invest in and what not to. A friend asked if he could invest alongside her when she made real estate investments. Then another friend asked, and another, and another. You get the picture.

The global real estate market is estimated at more than $5 trillion, according to IBISWorld. When the JOBS Act passed in April 2012, it gave Helman the ability to formalize the friend-to-friend process online and tap into this huge market. She started Realty Mogul in March 2013, but was only able to offer investment opportunities to people she knew or were referred to her who were accredited investors. Accredited investors have a net worth, excluding their homes, of at least $1 million or an annual salary of at least $200,000 if single and $300,000 if a couple.

“I realized that the highest net-worth clients had made their money in real estate, and it’s still an old boys’ club,” said Helman. “It’s a hard asset class to get into in a way that’s simple.” In Sept 2013, when Title II of the Act passed, it cleared the way for Realty Mogul to promote property investments to any accredited investors. Within its first year, Realty Mogul has attracted 7,000 clients in 14 states who have invested $15 million in 58 properties, including a shopping center, a self-storage facility, apartment buildings and single-family homes, which are value at more than $100 million.

Helman is part of an impressive group of women who are using crowdfinancing to redefine Wall Street. Crowdfinancing pools money from a group of investors via the internet and social media. It provides access to money beyond the traditional debt and equity products that are funded primarily by institutions.

Realty Mogul provides like-minded accredited investors with the ability to pool their money to make pre-vetted real estate investments for as little as $5,000 without the headache of managing the property. Unlike equity investments that may pay off five or 10 years down the road, real estate generates a steady income stream almost immediately. Realty Mogul does an analysis of the real estate company, properties, and the principals using proprietary due-diligence methodology but, like any investment, the chance of losing your money is still a reality. Investors should always do their own due diligence.

As soon as the SEC implements its proposed Title III rules, unaccredited investors will also be able to invest in real estate deals on Realty Mogul. The company has raised $9 million in Series A funding, led by Canaan Partners, bringing its total funding to $10 million. The money will be used to increase deal flow and operations. Both the technology platform and excellent client service are key. Some investors want to talk to someone knowledgeable and well-trained. Others will do everything online and need no in-person support.

Canaan Principal Hrach Simonian — whose firm also backed Lending Club, which matches investors with loan applicants — said in The Wall Street Journal that he looked at several crowdfunding startups for real estate, and found that Realty Mogul was the largest and farthest along. He said the key to success is not just the technology platform. Its having a two-sided marketplace that attracts both investors and places to invest. Simonian predicts that Realty Mogul will be the next disruption in a massive asset class just like Lending Club has been for the consumer credit market

Many entrepreneurs complain that being head of a company is a very lonely job. Not so for Helman. She finds support in many ways. She has an incredible advisory board, is mentored by three CEOs, and was part of Techstars, a three month accelerator program. She also has an extraordinary network that she has no qualms about tapping when she needs help. But, truth be told, she is more likely to be helping than asking. She’s a busy woman. Her commute in L.A. traffic has become her time to contemplate Realty Mogul’s big picture and to map out what looks to be a promising future.

What’s your dream for disrupting the status quo?

Source: Forbes Business

 
Update
2

3 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new co ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

3 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of the double tragedies of MH370 and MH17" hit ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

NASA spacecraft enters Mars' orbit to explore atmosphere
Washington, Sep 22 (IANS) After 10-month journey of 442 million mile, NASA's Mars Atmosphere and Volatile Evolution (MAVEN) mission entered into Mars orbit, the US space agency has said.
 
 
Israel approves rebuilding plan for communities near Gaza
Jerusalem, Sep 21 (IANS) The Israeli cabinet Sunday approved a $360 million development initiative for the communities in the country's south, near the Gaza border, who were hit hard in the recent bloody conflict between Israel and the Hamas.
 
 
High-level Indian ministerial visits to London next month
London, Sep 21 (IANS/RAY) India's Finance and Defence Minister Arun Jaitley is scheduled to visit London Oct 13-14 for an interface with financial institutions to persuade them to invest in India.
 
 
Expressway to link Vietnam and China opens
Hanoi, Sep 21 (IANS) Vietnam's longest expressway connecting Noi Bai in capital Hanoi and the north-western Lao Cai province, bordering China, with a total length of 245 km, officially opened to traffic Sunday.
 
 
 

Latest from the Network

Russia hopes dialogue continues in Ukraine
Moscow, Sep 22 (IANS) Russia said that the laws adopted by Ukraine last week would give impetus to the further development of peaceful dialogue in that country. "An entire package of laws has been passed in Ukraine...
Read more on Politics Balla
 
Kerry meets Iranian foreign minister over n-issue
New York, Sep 22 (IANS) US Secretary of State John Kerry met his Iranian counterpart Mohammad Javad Zarif in New York over the current round of nuclear talks. Kerry Sunday said that the resumption of talks between...
Read more on Politics Balla
 
Asian Games: Indian women win 25m pistol bronze
Incheon, Sep 22 (IANS) The Indian women's team won the bronze medal in the 25 metre pistol shooting event of the 17th Asian Games at the Ongnyeon International Shooting Range here Monday. The gold was clinched by...
Read more on Sport Balla
 
Italian Serie A standings
Rome, Sep 22 (IANS) Following are the Italian Serie A standings after matches Sunday (tabulated under games played, won, drawn, lost, goals for, goals against, points), according to Xinhua. 1. Roma 3 3 0 0 5...
Read more on Sport Balla
 
Asian Games: Nair fails to qualify for 50m backstroke final
Incheon, Sep 22 (IANS) Indian swimmer Prathapan Nair Monday failed to reach the final of the 50-metre backstroke competition in the 17th Asian Games at the Park Tae-hwan Aquatics Centre here. Competing in heat 3 of...
Read more on Sport Balla
 
NASA spacecraft enters Mars' orbit to explore atmosphere
Washington, Sep 22 (IANS) After 10-month journey of 442 million mile, NASA's Mars Atmosphere and Volatile Evolution (MAVEN) mission entered into Mars orbit, the US space agency has said. After a 33-minute engine...
Read more on Business Balla
 
Asian Games: Chinese team stripped of gold, Ayonika in final
Incheon, Sep 22 (IANS) India Monday finished sixth in the women's 10-metre air rifle event that saw the Chinese team being stripped of the world record and the gold medal after the disqualification of one of its...
Read more on Sport Balla
 
English Premier League standings
London, Sep 22 (IANS) Following are the English Premier League standings after Sunday's matches (tabulated under matches played, won, drawn, lost, goals for, goals against, points), according to Xinhua. 1. Chelsea...
Read more on Sport Balla
 
Jennifer Connelly shed 25 for husband's 'Shelter'
Los Angeles, Sep 22 (IANS) Actress Jennifer Connelly lost 25 pounds to play a homeless woman in her husband Paul Bettany's directorial debut "Shelter". The "Noah" star not only researched to look convincing as Hannah...
Read more on Celebrity Balla