RealtyMogul Apartment Growth REIT

Verdict

• ALIGNMENT: Below Average

  • Managers have invested less than 1% of their own money in the fund—so they’re not truly “in it” with you.
  • There’s no performance fee, which means managers don’t get rewarded for beating targets, but also have little incentive to go above and beyond.
    With minimal skin in the game and no upside for outperformance, it’s hard to feel confident that your interests are fully aligned with theirs.

• Performance: Low

  • Since launch, RealtyMogul Growth REIT has delivered just 2.6% annual returns—less than bonds, gold, or even a basic savings account.
  • Of the $2.3 million paid out in distributions last year, only $400,000 came from actual property cash flow; the rest was from selling assets or new investor money.
  • For a fund labeled “growth,” these results are underwhelming and don’t build real wealth over time.

• Market Risk: Above Average

  • The fund is all-in on value-add apartments—properties that need renovations or repositioning to (hopefully) boost value.
  • This strategy can pay off, but it’s risky: if the market turns or renovations go sideways, losses can pile up fast.
  • With only 10 assets, the portfolio isn’t diversified—a single vacancy or local downturn can hit your investment hard.

• Business Risk: Above Average

  • RealtyMogul often acts as a junior investor, meaning they have less control over property decisions and rely on others to execute well.
  • Their main approach is to buy, fix, and flip properties within 2–5 years, rather than holding for long-term stability.
  • This “flipper” mentality can mean bigger wins in hot markets, but also bigger losses if things cool off mid-project.

• Liquidity Risk: Above Average

  • You can only cash out once per quarter, and even then, the fund limits total redemptions to just 5% of shares per year.
  • If you try to redeem early, you’ll face a penalty.
  • This fund isn’t built for short-term flexibility—be prepared to stay invested for years, even if your plans change.

• Debt Risk: Above Average

  • The fund is highly leveraged, with a 75% loan-to-value ratio—about double the industry’s safe zone.
  • High debt can boost returns in good times, but it also means bigger losses if property values drop or interest rates rise.
  • This level of leverage makes the fund much more vulnerable in a downturn.

• Transparency: Average

  • The website is polished and provides basic info on properties and past deals.
  • But if you want to dig deeper—like how they actually value the fund or set NAV—you’ll hit a wall.
  • For investors used to instant, clear answers, the info is there, but it’s not always easy to find or fully transparent. Better than some, but not as open as it should be for a private investment.

• Disclaimer

  All Rights Reserved. The data and analyses contained herein are the property of Noyack and are protected by copyright and other intellectual property laws. The information provided is intended solely for informational purposes and should not be construed as investment advice. It is not an offer to buy or sell a security, and it is not intended to be used as the sole basis for any investment decision. The information contained in this document is believed to be accurate and reliable based on sources believed to be reliable, but Noyack makes no representation or warranty, express or implied, as to its completeness, accuracy, or timeliness. The data and analyses are subject to change without notice and Noyack is not obligated to update this information. The use of the information contained in this document is at the sole risk of the reader, and Noyack shall not be responsible for any losses, damages, or expenses incurred by any person as a result of reliance on the information contained herein. Noyack does not endorse or approve any investment or trading strategy and does not guarantee any specific outcome or profit. The reader should always conduct their own independent analysis and consult with a qualified financial advisor before making any investment decisions. This document may contain forward-looking statements and projections which are subject to risks and uncertainties, and actual results may differ materially. Past performance is not indicative of future results. This document is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Noyack reserves the right to modify or discontinue the provision of the information contained in this document, in whole or in part, at any time and without notice. The information contained in this document is provided “as is” and Noyack makes no representation or warranty of any kind, express or implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of the information contained in this document. Noyack shall not be liable for any errors or omissions contained in this document or for any damages whatsoever arising out of or in connection with the use of this document.