RealtyMogul vs Lofty Comparison

Assess their risks, liquidity, returns, and timeframes

Invest in individual commercial real estate properties or REITs

Invest in rental properties through a fractional real estate marketplace


Investments
$25,000

The minimum investment on RealtyMogul typically ranges from $25,000 to $35,000, depending on the specific investment offering.

Investments
$50

The minimum investment with Lofty is $50.


Moderate Risk
3/5

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.

Moderate Risk
3/5

Investing with Lofty carries typical real estate investment risks, including market volatility, economic changes, and property management challenges. Additionally, the use of cryptocurrency and tokenization presents legal and regulatory uncertainties.


Minimum Liquidity
1/5

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.

Moderate Liquidity
2/5

Lofty provides liquidity by allowing investors to list their property tokens for sale on the marketplace at any time, with a 2.5% transaction fee. Orders are held in escrow and have a 30-day expiration.

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High Return
15.0 %

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.

Low Return
5 %

Lofty offers a 5% cash on cash return, with token values updating monthly based on HouseCanary's Automated Valuation Model (AVM).


Long-term Investment
3-10 years

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.

Short-term Investment
1 year

Investment time horizon on Lofty is not fixed and is determined by property owners' collective decision on when to sell through the governance system.


Who can invest
United States

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.

Who can invest
International

Investors from the US and abroad can invest with Lofty, excluding those from OFAC-sanctioned countries.


Moderate Volatility
3/5

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.

Moderate Volatility
3/5

The value of assets on Lofty's platform can be volatile, influenced by economic trends, interest rates, and real estate market conditions, potentially leading to variable financial outcomes for investors.


Regulation and audits
SEC Regulated

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.

Regulation and audits
Audited

Lofty's marketplace transactions are executed using a smart contract on the Algorand blockchain, which has been audited by CertiK for security.


Insurance
Yes

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.

Insurance
No

Lofty's specific insurance details are not provided, but properties on investment platforms are usually insured against physical damage.


Payouts
Dividends

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.

Payouts
Rental Income

Lofty provides daily rental income to investors, which can be withdrawn at any time through various methods including ACH, PayPal, and cryptocurrency options.


Extra Fees
Yes

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.

Extra Fees
Yes

Lofty charges a 2.5% fee on both buy and sell orders on its marketplace.


Taxes
Tax Form

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.

Taxes
Tax Form

Lofty provides US residents with pre-filled 1099 tax forms for income and capital gains reporting. Non-US residents may reduce withholding taxes with forms W-8BEN or W-8BEN-E if they have a US SSN or ITIN.

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