The RealtyMogul online marketplace connects real estate companies to capital from individual real estate investors, and its been a busy place.
The Los Angeles-based company says it has had more than 200,000 members since inception who have invested more than $700million in more than $3.5 billion in posted deals for private placement and RealtyMogul-operated real estate investment trusts (REITs).
Valuable insight on market sentiment can be captured from such an active group of crowdfunding investors who are plunking money down directly into deals rather than passively (and often profitably, of course) through REITs and other real estate stocks.
And that’s what can be gleaned from the 2021 RealtyMogul Investor Survey, a set of 16 questions that got results from about 900 respondents on topics that CEO Jilliene Helman said were intended to determine how its member community felt about the market.
Bullish sentiments 'are very much being borne out' this year
The survey was done in the first quarter and Helman said, "Their bullish sentiments on the real estate sector and their pulse on the market are very much being borne out this year."
She added, "More than three quarters of the Members mentioned that they planned to invest more in real estate in 2021, and we’re seeing much more activity on the Platform."
She pointed to an example, Haven at Charlotte in Nashville, Tennessee, that was also recommended by Millionacres and was fully subscribed for a record $17 million in less than three days on the platform.
"Members also anticipated rising house prices, are on board with the trends towards sustainability, and are most interested in markets where populations are growing," Helman said.
Check out the full survey results here. Below are some highlights.
Multifamily and SFR lead in investor interest. Retail, office, hotels … not so much.
RealtyMogul said its membership has ownership stakes in more than 18,000 multifamily units and a range of other commercial real estate types through the platform. Their predilection for rental properties shows in the survey results.
Asked to rank sectors by the strongest opportunity presented on a scale of 1-10, multifamily scored 6.82, followed at 6.05 by the single-family rentals (SFR) niche, itself a magnet for serious institutional investor money this year, including some prominent REITs.
Bringing up the rear were retail real estate at 3.29, office at 3.47, and hotels/hospitality at 3.81.