Realty Mogul has recently announced the launch of a brand new commercial real estate lending division. Serving as an expansion of the firm's existing crowdfunding platform, the new division will focus on providing funding for office, multifamily, retail, and industrial commercial properties. Loans will range between $1 million and $10 million. Funding for the loans will come from a combination of permanent financing, bridge financing, and private money.
According to the CEO of Realty Mogul, the new division fills a need for space in the small commercial lending range. Due to the difficulty in scaling a transaction of such small sizes, it has been difficult in the past to create a national platform that would make such commercial loans available. Realty Mogul, which has previously achieved significant success in the crowdfunding arena, is now relying technology to handle scaling challenges. Through the deployment of that technology, Realty Mogul will be better able to serve clients and investors.
Philip Block has been hired by Realty Mogul to serve as the SVP of commercial lending, while Megan Goodfellow has been hired to head up commercial real estate credit. The main goal of the new platform will be to streamline the entire lending process. Currently, there are numerous lenders in the commercial lending market, but they all tend to approach lending differently.
Taking a Different Approach to Lending in the Commercial Real Estate Sector
Realty Mogul is working to differentiate themselves in the market by making the underwriting process as speed as possible. Additionally, the new division reports it is able to obtain quotes quickly. The presence of a large spectrum of investors has also made it much easier for borrowers to leverage the funding they need to close deals.
Of late, Realty Mogul has been experiencing a significant amount of growth, having opened its second office. By opening a second office in Irvine, California, Realty Mogul has been able to dedicate an entire office to the residential lending sector. In that regard, the firm works toward making connections between financing and distressed properties in need of rehab that typically would not be able to qualify for FHA or conventional financing. Realty Mogul is now focusing on such investment opportunities at the ground level to connect with investors seeking specific returns.
Realty Mogul Continues Path Toward Expansion
Earlier in the year, the firm celebrated having reached the $50 million milestone in terms of investments. Those investments were used for funding nearly 180 properties dispersed across 30 states. The properties have a cumulative value of $360 million.
Through the launch of the new commercial lending platform, Realty Mogul believes it will be able to round out its investment product offerings. The firm was launched in the spring of 2013. Since then, Realty Mogul has continued to lead the crowdfunding industry, racking up an impressive number of milestones in the process, including selling out the first hotel to be crowdfunded in just a matter of months.