Technology

Crowdfunding could bring more transparency to real estate investing

Realty Mogul study finds 'immense ranges' in acquisition, property management fees

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Real estate crowdfunding has opened up property investment to a larger pool of investors, enabling individuals to buy stakes in rental properties and share in the revenue that those properties generate without having to help manage the properties. At least two of these services are also eyeing the possibility of enabling investors to buy stakes in owner-occupied homes. In those cases, investors would share in the appreciation or depreciation of home values. Now, one crowdfunder, Realty Mogul, says that it has demonstrated another benefit that its burgeoning business offers: increased transparency. Because the company oversees the flow of money involved in deals that it arranges, the startup was able to gauge the range of fees and returns associated with investments in “real estate syndication” deals -- deals that involve pooling capital to purchase property, the specialty of crowdfunders. According to Realty Mogul CEO Jilliene Helman, her company's analysis exposes a ...