Assess their risks, liquidity, returns, and timeframes
The minimum investment on RealtyMogul typically ranges from $25,000 to $35,000, depending on the specific investment offering.
The minimum investment amount on HoneyBricks typically starts at $5,000, although some specific projects may require higher minimums.
Investing through RealtyMogul entails risks like market volatility, economic shifts, and property-specific issues. Investments are illiquid and there's potential for loss of capital.
Investing in HoneyBricks involves various risks inherent to real estate and investment platforms, including market volatility, liquidity challenges, regulatory changes, operational uncertainties, economic fluctuations, and technology-related vulnerabilities.
Investments through RealtyMogul are illiquid, as they are private real estate transactions not traded on public exchanges, and therefore cannot be easily sold or traded. Investors should have a long-term commitment and not expect to resell quickly.
HoneyBricks offers a Secondary Market for liquidity, allowing investors to buy and sell assets after a 12-month hold via SPVs and blockchain technology.
Investors on RealtyMogul can expect an overall realized IRR of 20.8% and an overall target IRR of 15.0%. Cash-on-cash returns, IRR, and equity multiples are key metrics provided for each deal.
HoneyBricks targets over 15% annual returns and aims for a cash-on-cash return of over 5% from its real estate investments. These returns are projections based on conservative reviews and are derived from property appreciation and reliable cash flows from high-occupancy assets.
Investments on RealtyMogul generally have a hold period ranging from 3 to 10 years, depending on the individual property's business plan and associated financing.
The investment time horizon on HoneyBricks is inherently long-term, with the expectation that investors may hold their investments for several years to fully realize the potential appreciation and sustained cash flows from multifamily real estate assets. While a secondary market exists to provide liquidity after a 12-month holding period, immediate or short-term exit opportunities may be limited.
RealtyMogul allows both accredited and non-accredited investors to use its platform. However, only accredited investors can participate in private placement offerings, while both categories of investors may invest in RealtyMogul's managed REITs, subject to certain legal limitations.
HoneyBricks is available to accredited US investors and to non-US investors without accreditation requirements.
Commercial real estate assets on RealtyMogul can be volatile, with values affected by economic shifts, interest rates, and market trends. This can lead to fluctuations in investment value and potential financial losses.
The assets on HoneyBricks, like any real estate investments, are subject to market volatility influenced by economic conditions, interest rates, and local market trends. These fluctuations can impact property valuations, posing risks particularly for those seeking short-term gains.
RealtyMogul is regulated by the SEC and must adhere to strict disclosure and filing requirements. The platform's offerings are subject to regular audits to ensure compliance with financial reporting and regulatory standards.
HoneyBricks adheres to regulations set by the SEC and undergoes necessary audits to ensure transparency and investor protection. Its investment offerings require SEC filings and provide detailed offering circulars to investors.
RealtyMogul's properties are insured against physical damage and loss, but insurance might not cover all risks, such as market volatility or economic downturns. Insurance is a risk mitigation tool, not a guarantee against all potential losses.
HoneyBricks ensures its properties are insured against physical damages and losses, offering a layer of protection for investments. However, this insurance does not cover market volatility, economic downturns, or fraudulent activities that might affect property values. Additionally, coverage limits may not fully reflect current market valuations.
Investors may receive quarterly distributions, which are not guaranteed in timing or amount and depend on the performance of the investment and terms set by the managing real estate company.
HoneyBricks investors receive dividends from the net rental income of properties after expenses and reserves. These regular cash distributions aim to provide a predictable passive income stream from high-occupancy multifamily real estate investments. The exact amount of dividends may vary with the performance of the assets.
Investors indirectly pay fees for each investment, which vary by the offering and cover administrative, legal, and management costs. Fee details are disclosed for each opportunity on the platform.
HoneyBricks charges no fees for initial investments or for transfers on the Secondary Market. Investors may only incur blockchain network fees for transactions executed on the platform.
RealtyMogul issues Schedule K-1 forms for individual deals and Form 1099s for REIT investments, made accessible via the investor's dashboard. Dividends from REITs historically have not been qualified for preferential tax rates.
HoneyBricks offers tax-advantaged investing and provides necessary tax documentation to support investors in reporting their investment income.