Real Estate Crowdfunding Platform Realty Mogul Receives Whopping $73 Million Commitment from Institutional Investor.
Direct Lending Investments, described as the general partner of oldest and largest short term, high yield, small business loans fund has formed a new partnership with Really Mogul, a real estate crowdfunding platform that offers both debt and equity investments in property. Direct Lending will commit $73 million to fund residential rehab loans that will funnel through the Realty Mogul platform. Realty Mogul states this is their first institutional partnership. This may be indicative of future relationships with other institutional investors as they seek higher risk adjusted returns delivered by Realty Mogul.
“Investing in Realty Mogul’s real estate loans is a natural expansion for our fund, which has purchased more than $100 million worth of online small business loans since inception. Continuing our tradition of working with only the best online lending platforms, we’re excited to expand the fund’s repertoire of peer-to-peer loans to include high-yield real estate assets,” said Brendan Ross, president and portfolio manager of Direct Lending Investments. “We look forward to working with Realty Mogul and providing access to its deal flow for our investors.”
For Direct Lending Investments this is a shift from short term business notes. This aids Realty Mogul growth and boosts the fund’s expansion into residential rehab loans. The arrangement is said to provide institutional-level funding for professional rehab investors seeking an alternative source of capital while providing the fund’s investors access to potentially strong returns from short-term, high-yield real estate loans.
“We are thrilled that Direct Lending has chosen to place capital on our platform and we look forward to accelerating the growth of our online lending business with such a strong institutional capital commitment. This partnership marks a tipping point in the lending industry as Realty Mogul’s online crowdfunding platform is now attracting institutional level investors seeking opportunities to invest alongside our crowd of more than 12,000 accredited investors,” said Jilliene Helman, CEO and founder of Realty Mogul.
Realty Mogul stated they were accepting applicants now for borrowers seeking rehab capital.
Realty Mogul recently announced passing $30 million in loans through their online platform. The crowdfunding platform is an early entrant in the fast growing sector of online real estate investing. Earlier this year Canaan Partners invested $9 million in Realty Mogul. Canaan was an early investor in leading P2P platform Lending Club. Realty Mogul connects accredited investors with diverse opportunities for real estate across the United States.