$73 million of institutional capital has been committed to residential rehab loans through the Realty Mogul platform.
Direct Lending LLC has supplied the capital, joining forces with Realty Mogul in what becomes the platform’s first institutional partnership. Realty Mogul connects accredited investors with commercial real estate investment opportunities, via both debt and equity products. It provides investors with the tools to browse commercial real estate opportunities, to do their own due diligence, invest online and with access to an investor dashboard to trace how their investments are performing. Realty Mogul partners with sponsors to source deal flow and curates all of its deals.
According to CEO and founder Jilliene Helman, the monster investment marks a “tipping point” in the lending industry and she hopes that it will herald a tide of further institutional partnerships. The Direct Lending capital will sit alongside the funds contributed by a “crowd of more than 12,000 accredited investors”. The platform raised $9 million of venture funding back in March.
Brendan Ross, president and portfolio manager of Direct Lending Investments, commented:
"Investing in Realty Mogul's real estate loans is a natural expansion for our fund, which has purchased more than $100 million worth of online small business loans since inception. Continuing our tradition of working with only the best online lending platforms, we're excited to expand the fund's repertoire of peer-to-peer loans to include high-yield real estate assets."
The deal will provide institutional scale funding for professional rehab developers with a taste for an alternative source of capital. From an investor standpoint, the fund will provide access to short-term real estate loans, capable of yielding strong returns. Realty Mogul is now accepting applications for rehab capital via its website.