Realty Mogul Expands, Launches Commercial Lending Division

Two years after its formation, online real estate crowdfunding marketplace Realty Mogul is branching out.
Jilliene Helman, Realty Mogul

Jilliene Helman, Realty Mogul

Two years after its formation, online real estate crowdfunding marketplace Realty Mogul has branched out with the introduction of a commercial lending division. The move will allow the company to build on its previous achievements in the commercial equity and residential lending sectors.

Realty Mogul saw a gap in the financing arena and, further encouraged by the desires of its larger institutional capital partners, endeavored to help fill it.

“There has been a continued decline of banks in the small balance commercial real estate sector and we see a market opportunity where we can use technology to scale originations,” Jilliene Helman, CEO of Realty Mogul, told Commercial Property Executive. “Capital partners are excited about the potential returns from small balance commercial real estate transactions but historically have lacked a scalable solution to get exposure to that piece of the debt markets. As an online marketplace for real estate investing, is that solution.”

Private money, bridge financing, permanent financing–it will all be available in loans ranging from $1 million to $10 million. “Commercial lending, by its nature, involves larger dollar amounts than loans on single-family residences, and many of our institutional investors prefer the larger loan balances,” Helman added.

Of course, competition abounds, but Helman asserts that Realty Mogul will be able to offer certain advantages in this particular commercial lending space.

“We’re perhaps the only small balance commercial lender who has a national reach and who offers a bridge and permanent product, with private money loans also thrown into the mix,” she noted. “In addition to our financial wherewithal–which offers ‘certainty of close’ to borrowers–we use technology to efficiently originate, underwrite and process transactions in a way that our competitors cannot.  The result is a smoother process for borrowers.”

For Realty Mogul, the new division marks a significant step toward achieving its overall goal, which, according to Helman, “is ultimately to be the fastest commercial lender available.”