Elizabeth is Senior Managing Director for the real estate crowdfunding company RealityMogul. They match active real estate investors with passive investors who are looking for opportunities. RealityMogul has grown having raised significant venture capital, and they now have 85 employees. Everything they do is done online through their website because it’s easier and cheaper. Plus investors get to monitor their investments and get access to new opportunities. They only work with real estate deals and are not involved in any other market. Their primary investment areas are office, retail, industrial and multi-family real estate.
She discusses two types of accredited investments they offer. These are Private Placements and 1031 Exchange offerings for those investors that want access to deal flows. 1031 Exchange Offerings take advantage of the IRS tax code which permits real estate investors to avoid tax hits at the time of sale. Essentially you can postpone your tax liability.
They also offer Real Estate Investment Trusts which are available for everyone. They have income-based REIT’s which focus on cash flow and another that is centered around long-term growth.
There is substantial rental growth with both baby boomers and millennials over the past several years. People are still very positive about renting instead of owning. They don’t get involved in development or hospitality. They realize that they are near the end of a cycle due to a significant amount of recent growth.
They discuss market patterns internally, and they have spent upwards of a million dollars a year on data. They consider markets based on the trends and they look for opportunities.
They also work with sophisticated real estate companies that require investment. They like to see companies that have multiple principals and employees and that have a good track record.
Talking Points from this Weeks Episode
• Strong growth exists in multi-family and rental real estate.
• Diversification is important; you should work with people you trust and like.
• They offer Private Placements and 1031 Exchange Offerings for Accredited Investors.
• They also offer REITs for smaller investors.
About Our Guest
Elizabeth Braman is Senior Managing Director responsible for business development. She sits on the Investment Committee of MogulREIT I and is also a Senior Managing Director of RM Adviser, LLC., a SEC-registered investment adviser and a wholly-owned subsidiary of Realty Mogul, Co.