The Past, Present & Future of Real Estate Crowdfunding with RealtyMogul Founder Jilliene Helman
Mar 6, 2024
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Jilliene Helman, founder of RealtyMogul, discusses the success of real estate crowdfunding, reaching $1 billion in investments, educating new customers, unique landscape of real estate investing, and the importance of individual investors. The conversation explores strategic decisions, challenges in serving retail vs institutional investors, recent acquisitions in the industry, and the impact of AI in real estate investment. They also touch upon the Crowd Street Nightingale fiasco, entrepreneur advice, future of AI, rent control impact, and city investment preferences.
Real estate crowdfunding democratizes investing for individuals, challenging traditional big players.
Trustworthiness and transparency are crucial in real estate crowdfunding to maintain credibility.
Artificial intelligence is poised to revolutionize the real estate industry by 2030, bringing transformative changes.
Deep dives
Real Estate Crowdfunding and Its Evolution Over the Past Decade
Real estate crowdfunding has evolved significantly over the past decade, providing small retail investors access to private real estate deals historically exclusive to large institutions. Platforms like Realty Mogul have facilitated over a billion dollars in transactions through crowdfunding, challenging the traditional dominance of big private equity firms.
Challenges Faced by Real Estate Crowdfunding Platforms in Recent Years
The real estate crowdfunding space has faced challenges in recent years, including macroeconomic conditions like rapid interest rate increases impacting project financing. Incidents like the Crowd Street Nightingale fiasco have raised concerns about fraud and trustworthiness in the industry, prompting platforms to reassess their internal controls.
Realty Mogul's Approach to Building Trust and Protecting Investors
Realty Mogul emphasizes thorough vetting of sponsors, including background checks, criminal checks, and credit checks. Site visits to properties, third-party escrow services, and minimum qualifications for transactions are part of their quality control processes. Maintaining trustworthiness and transparency is a priority for Realty Mogul.
The Future of Real Estate Crowdfunding and Education of Retail Investors
The future of real estate crowdfunding holds growth potential as more investors become educated about alternative investments and online access to real estate opportunities. Platforms aim to educate investors through various channels like online forums, wealth managers, publications, and even university courses.
The Role of Artificial Intelligence in Real Estate and Future Implications
Artificial intelligence is expected to play a significant role in the real estate industry by 2030, with implications across various sectors. AI applications like chat GPT are already being used to analyze industry reports and provide insights, hinting at the transformative potential AI holds for the future.
Insights on Market Trends and Challenges in Real Estate Investing
Insights from real estate market reports and analysis are critical for investors to make informed decisions. Understanding trends like interest rate fluctuations and property performance helps investors navigate challenges and make strategic investment choices. Keeping an eye on market shifts and opportunities is essential to success in real estate investing.
A pioneer in the world of real estate crowdfunding, Jilliene Helman joins Brad on the Thesis Driven Leader Series this week. She’s the founder of RealtyMogul, an online investment platform that gives members access to real estate deals traditionally reserved for larger investors. Late last year, RealityMogul announced that more than $1 billion has been invested on their platform. Through her platform, Jillian has made real estate investing more accessible to individuals who want to diversify their portfolios.
This episode explores Jilliene’s experience innovating in the real estate investing world and the key lessons she’s learned as a successful proptech entrepreneur. The conversation kicks off with her insights from the 10 years of work behind the first $1 billion, including how her team won over raving fans, designed product and UX for retail investors, and found investors who were a great fit.
Jilliene and Brad go on to discuss how Jilliene plans to achieve the next $1 billion and why educating new customers about the space and building trustworthiness are essential parts of those operations. They also talk extensively about the unique landscape of real estate investing, the rise and fall of their competitors and why RealtyMogul’s focus on individual investors has been critical to their success.
This is a great conversation for anyone working at the intersection of real estate, investment and innovation. But it’s a must-listen for proptech entrepreneurs. Jilliene shares invaluable insights that will help them immensely on their journey. Enjoy!
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