For private real estate transactions actively raising capital, investors are being offered an average preferred return of 8.5%
LOS ANGELES, Aug. 28, 2013 /PRNewswire-iReach/ -- Realty Mogul released survey data today indicating that the average preferred return being offered to investors in private real estate transactions over the last 11 months was 8.5%.
In the data surveyed, these preferred returns ranged from 5.0% on the low end to 12.0% on the high end. These results are taken from an analysis of over $375 million worth of investment properties submitted by privately owned real estate investment companies who have requested financing through www.realtymogul.com.
"These statistics are surprising when you consider the alternatives investors have, namely placing money in a bank account and earning less than 1%," says Jilliene Helman, CEO and Founder of Realty Mogul, a marketplace that provides crowdfunding for real estate. "We are also surprised by the immense ranges in our data – namely around fees being charged by privately owned real estate investment companies for things like acquisitions, dispositions and asset management that are also included in the survey."
Helman points out that until now, this data has not been aggregated or provided publicly and that one new benefit the "crowdfunding for real estate" market offers is tremendous transparency, including analyses like this.
The survey also includes a discussion on the aggregate size of private real estate transactions, including those aggregated by the Securities and Exchange Commission through Regulation D filings. "This market continues to grow, and as the capital markets become more efficient and more real estate companies have the ability to use the internet as a distribution vehicle, I predict this market will grow larger than it has ever been in 2013 and 2014", says Helman.
The full survey can be downloaded here.
About Realty Mogul
Realty Mogul is crowdfunding for real estate, a marketplace for accredited investors to pool money online and buy shares of real property like office buildings, apartment buildings and retail centers. Realty Mogul gives investors tools to browse investments, do due diligence, invest online and have 24/7 access to an investor dashboard to watch how their investments are performing. Realty Mogul partners with private real estate companies to source quality deal flow and curates all the investments. For these real estate companies, they have access to a broader capital pool and tools to do investor reporting, investor communication and distributions.
Media Contact: Justin Hughes, Realty Mogul, 877-977-2776, firstname.lastname@example.org
News distributed by PR Newswire iReach: https://ireach.prnewswire.com
SOURCE Realty Mogul