New Kid On the Block: Tellus Investing Superapp Joins the Ranks of Real Estate Investment Crowdfunding Companies like RealtyMogul
Though many crowdfunding investing companies can have many complicated steps and barriers that prevent regular, normal people from investing, a new investing app called Tellus has stepped up to the plate to take on larger competitors like RealtyMogul to simplify the process. It allows people to invest with as little as $200, whereas RealtyMogul requires its users to invest, at the very minimum, $5,000.
So, let’s take a look at a comparison between the two investing companies and see what each company has to offer.
RealtyMogul claims: “We are here to simplify real estate investing through using technology.” Investors can access two tiers of investing, MogulREIT I and MogulREIT II. The two tiers are divided based on income, with the first tier for accredited investors making over $200,000 a year ($300,000 for couples). The second tier is for nonaccredited investors whose investments are limited based on their income and/or net worth.
REITs, or real estate investment trusts, are companies that own properties. Within a REIT, investors can buy and sell portions of properties.
“MogulREIT I is a limited liability company formed to invest in and manage a diversified portfolio of commercial real estate investments,” while “MogulREIT II is a Maryland-based corporation formed to invest in both preferred and common equity of multifamily apartment buildings throughout the United States,” according to the RealtyMogul FAQ.
Once you create an account, you are allowed to select which investments you would like to invest in. There are several types of property types you can choose from. The entire process takes place online and you can track your investment using the dashboard and analytical tools provided by RealtyMogul.
Real estate companies can also seek equity capital that the RealtyMogul team will look over and approve or reject.
Tellus, on the other hand, is open to anyone. Aside from offering investments, the company (deemed a “superapp”) offers several other services, such as online rental collection and an extensive wealth of information on its blog. There are no restrictions or limitations to who can access and use Tellus’ investment services.
Additionally, $200 is the minimum you need to invest, making the platform accessible to anyone. Interest is paid out daily and your name will be recorded on the actual title of the home.
Investment properties are specifically selected by the user, unlike the REIT-based approach RealtyMogul takes. A REIT limits the properties to just the ones owned by the trust. Since Tellus does not operate as a REIT, an investor is free to invest in any home they please.
Similar toRealtyMogul, Tellus also offers detailed insights about the property. Where RealtyMogul differs from Tellus is based on the features of the analytic tool that Tellus offers such as an economic downside simulation as well as stats on other properties within the same neighborhood. Investors are also further protected as all Tellus investments are backed by the collateral of real property.
“Tellus gives you the loan to value (LTV) ratio to show you how cushioned your investment will be by the owner’s equity,” according to the Tellus website.
If you are a real estate expert, RealtyMogul might be the right option for you. However, the high entry point based on salary and net worth can serve as a huge barrier to most people. Additionally, its minimum initial investment of $5,000 can also be a deterrent. But, if you can afford it, this might be a good company to check out.
Tellus was designed for both beginners as well as experienced investors who will also find its tools and features beneficial. It provides everything that is needed for anyone to succeed and find success in property investing. $200 is a much lower minimum entry, plus it is guaranteed to yield returns between 3% and 12%.
Tellus is also a superapp, meaning it can handle other tasks like rent collection and home maintenance. Investing is just one side of its potential to make you money if you are interested or involved in other aspects of real estate.