Adam Torres and Mor Milo discuss real estate.
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Show Notes:
What makes Relli different from other fractionalized real estate companies? In this episode, Adam Torres and Mor Milo, Founder & CEO of Relli, explore Relli and how it plans to democratize real estate investing.
About Mor Milo
Mor Milo is the CEO and Founder of Relli, a pioneering platform known as “The Stock Market of Real Estate.” Relli enables retail investors to engage in real estate investments with as little as $100. By empowering SMB Developers to scale their business through REG A and REG CF public offerings, Developers can grow their business and increase their profit margin all while offering excellent investments to average Americans. Mor brings extensive expertise in payment processing, HR, business administration, operations, leadership, sales strategy, revenue strategy, negotiation, strategic partnerships, finance, and startup development to his role.
Outside of Relli, Mor dedicates his time to various philanthropic efforts. He leads a men’s group, volunteers as a coach with a transformational personal development training school, and supports non-profits such as Elephant Cooperation, Fish for Life, and many more.
About Relli
Imagine connecting to the world’s leading property investments from the comfort of your home. Relli is your gateway to building lasting wealth, offering a platform where anyone, from seasoned investors to beginners, can gradually acquire shares in diverse properties, enhancing their portfolio and passive income.
Full Unedited Transcript
Hey, I’d like to welcome you to another episode of mission matters. My name is Adam Torres. And if you’d like to apply to be a guest in the show, just head on over to mission matters. com and click on be our guest to apply.
All right. So did I have more Milo on the line and he’s a founder and CEO over at Reli. More welcome to the show. Thank you so much for having me excited to be here. Adam. All right, more. So rally is a position in itself as the stock market of real estate. So I’m excited to get into that and learn more about rally.
But I guess just to get us kicked off. We’ll start this episode the way that we start them all with what we like to call our mission matters minute. So more at Mission Matters. Our aim and our goal is to amplify stories for entrepreneurs, executives, and experts. And that’s what we’re doing day in and day out.
More what mission matters to you? Our mission, my mission, the mission that matters to me is finding ways to level the playing field for average Joes. As an immigrant in this country, someone who came to this country at four months old from a completely different country and watched my parents grow and start to understand what the American dream looks like.
It’s always been part of my mission to find ways where I can give back to average Joe’s and help. Level that playing field so that we can keep that American dream alive, man. That’s awesome I love bringing mission based individuals on the show to share You know why they do what they do how they’re doing it and what we can all learn so that we can all grow together So great great to have you on and I guess just to get us kicked off here.
You know, we’re talking about real estate today Where did you before rally before all of that? Like when did you get into real estate like when’d you catch the bug? So, you know, interestingly enough, I’ve I’ve Been part of a family that has dabbled in real estate and long term investing and watching my parents growing up.
They bought a couple of properties here and there again, immigrants doing it the immigrant way, coming into the country, working their butts off, putting some money in their savings, living a frugal life, and then taking those dollars and investing them into real estate assets that they can turn into passive income.
And I watched my parents growing up just how they did it and how they grew into a few properties. And then a few more. And funny enough, the biggest reason why we’re here is because of that story. We, we got an opportunity to see how difficult it was to be a landlord, to, to deal with just building real estate, managing real estate, managing tenant, and that was part of the journey to, to get to where we are, to why we’ve decided to democratize this beautiful investment strategy that has become a little unattainable in today’s market.
Yeah When when did you when did like how did rally come about like was it a progression? Was it one of those aha moments like like how the concept for the platform come about? so I have one right hand business partner who’s been a my ride or die for the last seven years and we’ve Gone through a few different projects together and we’ve dealt with you know Projects that have failed projects that were semi successful And we got to a point where it was me me and him against the world and we said, you know what?
You What’s important to us? And for us, we looked at our financial planning and said, okay, what type of assets do we currently have? Between the two of us, we’d like to invest in stocks. We love cryptocurrencies. We love learning about finance, finding ways to become successful through investing. And the next step for us in our, in our, in our journey of becoming an investor was to go and purchase real estate.
And at the point in time that we were at in our lives, we said, okay, well, you know, we just came out of a failed business. We’re a little light on cash. How can we invest in real estate today? So we started doing some research, like, okay, well, where can someone like me and like an average Joe go in and put 500, whatever, into some form of real estate where they can get a piece of the action on the rental incomes and a piece of the action on the profit.
And there were a few options out there, but nothing that was really inclusive that could bring everyone across the country together to invest in real estate. So we said, you know what? Let’s build it ourselves. So we’ve now been in this game for give or take two years, and we’ve come to a wonderful crossroads where we’re about to launch our platform, where we’re going to have the ability for retail investors like Average Joe’s, me and you, can invest as little as 100 into a piece of real estate.
And what we’re building is the stock market of real estate. And so what makes this prep platform a little different than maybe some of the other fractionalized like programs out there? Like, what makes this unique? Yeah. So the, I think what really comes across in the stock market of real estate, like, let’s take a step back the stock market.
What is the stock market? The stock market is a place where companies from all over the country, maybe even all over the world offer shares in their business to average consumers so that they can participate in the growth of that business. So. Because we’re building a stock market of real estate, we want to find ways to fractionalize that real estate and create opportunities.
The way that we’ve chosen to go about finding opportunities for investors of a retail caliber to invest in different real estate is by going and finding the best developers across the country. The SMB guys, the small to medium sized businesses, the the mid market developers that maybe are a little further in their journey, but overall the ones that have a particular type of real estate that they’re really good at in a track record of success and delivering returns back to their investors or a good track record of building revenues through real estate investing.
And we help them focus their strategy so everybody can invest in their real estate. So, Our stocks are based off of SMB and mid market developers across the country that offer real estate opportunities to average Joe’s. And how are you choosing which which developers to work with or which projects?
Like, I’m just curious about how that piece of it works. Yeah, that’s the most important part, right? You want to make sure that you have the best possible deal on the platform. So our team, thankfully, we have a wonderful experience in, in dealing with underwriting and managing risk understanding how to look at different principles and ensure that.
We are only working with the cream of the crop, the top 1 percent of developers across the country. And the way that we do that is we do a deep dive, a deep due diligence dive into the principles that are running that business and their previous business endeavors. We only find the ones that have a track record of success that has been at least five years long.
Usually we don’t want to do anyone that is less than 10 years, because we want to ensure that we only bring the best, highest quality investment to our retail investors. The quality and caliber of what small family offices, private equity firms, and big massive conglomerates and hedge funds would invest in.
And so, you know, in the, in the normal stock market to take your analogy a little bit I’ll go a little bit deeper in the analogy. So normal stock market, you know, I might, they might say by like market cap for the different types of stock, whether it’s small cap, large cap, mid cap, like, how is this going to be?
How does somebody going to be able to to segment like investments on this particular platform? Yeah, that’s an awesome question. One of the biggest things that differentiates us is that we have a lot of different types of offerings that we can put on our platform. So we’ll have just like a stock market, we’ll have options in singular investments, singular properties.
We’ll have funds, which will be kind of a consolidated portfolio of real estate, right? That’s sponsored by a particular principal, a good developer. And we’ll also have opportunities for debt based investment, where you’re providing some form of debt to a developer and they’re paying you back a preferred return on a consistent basis.
So because of that layout, because of the ability for us to really develop, On our platform and offer different types of opportunities to the end retail investor. The investor has all the choice. They can choose to look at whatever property they’d like. They can invest in multiple different types of properties so that they can diversify their portfolio and we’ll have data from some of the leading data providers.
to support them in making their decisions with third party information that they can be a hundred percent confirmed in what they’re investing in. And so, and who, so who pays here? Is it like, so is it like a normal brokerage? Or maybe they’re paying for the trade or they’re paying for the like access?
Is it like a syndication? Like, like , how do the fees work out? Wow, amazing question. So basically the way that this works is we’re delivering an opportunity to retail investors that is commission free investing. So they, all they have to pay for is the cost of the transaction, right? There’s like a wire transfer, an ACH, and usually that’s a couple business basis points.
We’re talking about half a percent, three quarters of a percent, maybe a little bit more. But other than that, They have a commission free investing opportunity. The people that are paying for this solution are the developers that are looking to expand their market, expand their, their footprint in the market that they want to be in by offering new opportunities to get funding for the next deal.
So the beauty of this for the developers is they have an opportunity to collect green cash from investors that are looking to find ways to create returns, and they don’t necessarily have to take debt on a piece of property to build it, renovate it, and then turn it into a piece of profit. So the beauty of this whole thing is that we are supporting average consumers.
Every day, Joe’s and investing as little as 100 and the way that we’re doing that is by helping the small to medium sized developers by broadening their strategy and helping them make more money while building more real estate in this country to help solve one of the biggest problems that we’ve been faced in the last 10 years, which is the housing crisis.
Talk to me about your, your vision for like how to, how to expand this and how to continue and how to attract, I guess, two sides. You have two sides. You have to attract, you have to attract the individuals that want to list or that want to put their, you know, the, their, their properties or their, their developments.
And then you also have the the investors that you want at, you have to attract as well. So talk to me about your, your plans to kind of roll this out and to attract both parties. Absolutely. So we have a platform that we’ve built at rally. co and our investors can go onto this platform, check out available options for them to invest in all different types of real estate, manage all their investments in their dashboard.
And what we’re doing is we’re taking that dashboard and we are generating as much content around it that we can so that we can start posting on social media in the forums. Forms of value based content in the forms of fun, engaging content. We actually have a mascot that’s coming out very soon, so keep an eye out.
It’s really exciting. We’ll give you his name, a little sneak peek. His name is Klaus and he is a house. We’re very excited. So We’re very excited. It’s one of the coolest things that I think we’ve been able to build. We’re working with incredible people to put it together. And that’ll be coming out very, very soon with lots of very cool GIFs and pieces of content all about Klaus.
And what he’s what he’s going to do is he’s going to help guide people through the process of investing on our platform. He’s actually going to be like your little assistant to show you how to go from step A to step Z. So we’re really excited for Klaus. Klaus is coming. But we have In addition to Klaus, we also have some Facebook groups that we’re building.
We’re trying to get as many real estate professionals together so that we can make sure to have as many people as we possibly can that are professionals that are capable to deliver great opportunities to these investors. We’re generating an ecosystem with lots of different partners. As you may or may not know real estate requires a lot of different vendors, and if you want to go into a new market, sometimes you need to find a new vendor.
So we’re going to generate an opportunity where we’re going to bring all of these different vendors, like architects, lawyers, accountants, et cetera, et cetera, into one place where they can make new relationships with developers that are looking to expand their footprint. So those are just a few ways to bring people onto our platform.
That’ll allow us to generate more investors to fund the deals. And the nice thing about this is that this is the growing market. We’re not the only ones out there currently the investment, or excuse me, currently the crowdfunding real estate market is somewhere around 21 billion. Today in 2023 by the end of 2036, it’s spied to be somewhere in the 3 trillion dollar range.
So there’s a huge opportunity here. And really the, the name of the game is how can we provide the best investment platform for these retail investors to learn how to invest and to have the most opportunities to diversify their portfolio, right? So that’s what we’re doing on the platform side. Now on the developer side, there’s a lot of excellent developers out there.
They’re raising money from investors, they’re going to institutional capital, they’re getting hard money loans, they’re getting all sorts of things. What we want to do with them is we want to give them a new avenue to maximize their business. Never before have these developers been able to go and generate a brand for themselves and take their brand, let’s say on social media, let’s say you can get some followers, right?
Never have they ever been able to take those followers and turn them into investors in their business because normally in order to invest in a real estate property like this as a limited partner, as an investor, you need to come up with a big sum of cash. You’re talking 25, 50, 100, 000. That’s not attainable for most people.
So we’re going to give them the opportunity to open up that investment pool from the small percentage of accredited investors that we have in this country to 330 million Americans that can now participate in these new offerings. So we’re going to not only offer them an opportunity to get more funding for more projects so that they can enhance their footprint in the marketplace, but in addition to that, because of the method that we’re using, because of this raising model, we’re It actually comes out more affordable for the developers to build these projects.
So they usually are seeing a significant return on the investment with going with this strategy, because they can maximize the returns on the back end, because they’re paying less money to hard money lenders, or paying, paying less on loan origination costs, or dealing with paperwork and things of that nature.
So it’s a completely different strategy for these developers. It’s a new opportunity for them to grow massively. And you know, one of the biggest problems that some of these SMB developers are facing is they can’t get money fast enough. They have these deals, they have a great system, they have a lot of opportunities in front of them, and they just can’t get their hands on enough money quickly enough.
Whether it has to do with the fact of the debt to income ratio, whether it’s the fact that they maybe don’t have as big of a accredited investor footprint that they should have. So we’re now offering them a way to go and generate new opportunities with new investors to build more property and generate more revenue for them as developers and better relationships with their investors because they’re going to be updated more consistently on an automated solution.
That, that makes total sense and I get what you’re doing and it’s it’s really genius. And I was like, look at the platform. You mentioned content and content creation. Maybe go a little bit further into that because I’m interested in this this what was his name? A house is a Klaus. Klaus is a house.
Klaus is the house. Klaus, Klaus the house. Yes. Klaus, Klaus is our mascot. He’s coming out very soon. We, he’s currently, we’re, we’re building them, we’re making them beautiful and, and getting them ready to, for his, for his grand opening, his grand release. So we’re very excited for that. From a content perspective, it’s really important to us, as I mentioned at the beginning, our, my mission, my team’s mission, is to help level the playing field for average Joes in America, in the world, right?
How do we level the playing field? Knowledge is power. And most of this stuff just doesn’t exist. It’s just the knowledge that you need to be able to do this type of investing. It’s tribal knowledge. It’s passed down from one developer to another or from one lawyer to another. But it’s not available in an open space in a way that’s attainable and actually malleable.
Something that people can take in and understand. Right? It can start getting a little high level. It can start getting a little out of reach. So for us, it’s really important for us to build out our Relly Academy. So if you look at our website, you can look at our drop down on, on that at the top, you’ll see Relly Academy.
And within Relly Academy is the first 10 chapters of our Relly Academy Real Estate Investing 101. So it’s really important for us to be able to do the education piece for these retail investors, because our end goal is not only for these retail investors to invest with us, But hopefully they’ll be able to make so much money with, with rally investing in real estate that they can get to a place where they’re a limited partner and can put up 50, 000 in an opportunity that they choose.
Right? So if we can teach them up front, Hey, these are the basics. These are the things you need to know so that they can grow as investors. Then we did our job. You know, it’s a benefit that we made a couple dollars. That’s awesome. And we’re helping average Joe’s build wealth through real estate, which is our number one goal.
So really excited about the content that we’re putting out. It’s actually really funny. I stepped away from a content day. I have my entire team hanging out in a podcast studio, building out all the content for our first 10 chapters of rally Academy. So it’s wonderful that you brought it up and we’re really excited to go put Klaus out to the world and have him guide people through the basics of how to invest in property on rent.
Rally and we’re really excited to build out Rally Academy so that we can have people learning about the basics of real estate and where they should go from there once they get started. That’s amazing. It’s a, it’s a great story. One that I’m happy to bring to my audience and more if somebody wants to, you left a website earlier.
I want you to leave it again. Cause probably somebody was in the car, they’re driving. They’re just getting to their office. I don’t know where they’re at, but they definitely didn’t take it down. What’s the website. How do people get involved? Check us out. We’re on Instagram. We’re on LinkedIn. We’re on Tik TOK.
You can check us out at Relly. co at our URL, Relly is spelled R E L L I dot C O, not com, C O. Come join us on our URL. And then check us out on all of our social platforms. We’re going to start posting a lot of content and start really driving some of the educational pieces on TikTok. LinkedIn, YouTube Shorts as well as Instagram.
So we’re really excited to deliver all that. And you can find us at our handle, which is also Relly. co, R E L L I dot C O. Fantastic. And for everybody listening, we’ll put those links into the show notes so that you can just click on the link and head right on over. And speaking of the audience, if this is your first time with Mission Matters or engaging in an episode, we’re all about bringing on business owners, entrepreneurs, and executives.
This is a daily show. Each and every day, we’re bringing you new entrepreneurs and new stories. If you haven’t hit the subscribe button, this is your opportunity to hit that subscribe button. More episodes coming out shortly, and we definitely don’t want you to miss a thing. More it’s been an absolute pleasure, man.
I can’t wait to continue to watch the continued success of rally and to see where you take this thing. So thanks again for coming on the show. Thank you Adam. I really appreciate the time.