RealtyMogul Income REIT, LLC

Verdict

• ALIGNMENT: Below Average

  • Managers have minimal skin in the game with less than 1% ownership and no performance fees, creating little incentive to outperform targets or protect investor capital. This misalignment becomes more concerning when you consider that most of your returns come from their decisions, not market forces. Without real financial stakes or bonus structures tied to beating benchmarks, there’s limited motivation to go above and beyond for shareholders. Your interests and theirs simply aren’t aligned.

• Performance: Below Average

  • NAV declined 17.4% from approximately $10.00 to $8.26 while paying distributions primarily from sources other than operational cash flow. The fund’s 2.5% estimated return significantly trails major asset classes, and with only 60% of 2024 distributions coming from actual operations, you’re essentially getting some of your own money back. This return of capital structure means the fund isn’t generating enough income to sustain its distribution rate, raising serious questions about long-term sustainability.

• Market Risk: Above Average

  • Heavy concentration in multifamily real estate creates sector-specific vulnerability with limited diversification across property types or geographic markets. The fund’s exposure to just 16 properties means a single vacancy or local economic downturn can significantly impact your investment. With 72% of assets in multifamily properties, you’re betting heavily on one segment of real estate. This concentration amplifies both potential gains and losses, making the fund more volatile than diversified alternatives.

• Business Risk: Above Average

  • The voluntary withdrawal of the fund’s offering statement in July 2025 suggests operational challenges and uncertainty about future capital raising. Internal NAV calculations lack third-party verification, creating transparency concerns about actual asset values. Management’s decision to stop actively seeking new investors raises questions about the fund’s strategic direction and growth prospects. Combined with minimal manager investment and concentrated holdings, these factors create elevated business risk that could impact future performance and liquidity.

• Liquidity Risk: Average

  • Quarterly redemptions are capped at 5% annually, and recent NAV declines may trigger additional redemption restrictions during market stress periods. Your money could be locked up for extended periods, especially if other investors also want to exit. The fund’s quarterly redemption schedule means you can only access your money four times per year, and even then, you’re not guaranteed full liquidity. This structure makes the investment unsuitable for anyone who might need quick access to their capital.

• Debt Risk: Above Average

  • RealtyMogul Income REIT is carrying 67% leverage, which is above its typical target range and creates elevated financial risk. While most loans are fixed-rate, providing some protection from interest rate swings, the high debt load means less financial flexibility during market downturns. The fund’s small size and concentrated portfolio of just 16 properties amplifies this risk—if a few properties underperform, debt service payments could strain cash flow and potentially impact distributions to investors.

• Transparency: Below Average

  • No independent third-party NAV verification means you’re relying on the fund’s internal calculations of what your investment is worth. Limited property-level disclosure makes it difficult to assess individual asset performance or quality. The recent offering withdrawal raises questions about operational transparency and management’s willingness to share information with potential investors. Without regular independent valuations or detailed asset-level reporting, you’re investing somewhat blindly in a fund that controls its own scorecard.

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  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.