Alex Blackwood: From Wall Street to Real Estate Pioneer with mogul
The Leap of Faith
Over three years ago, Alex Blackwood was knee-deep in the world of high finance. As a real estate investing associate at Goldman Sachs, he clocked in 100-hour weeks while earning a hefty $250,000 annually. However, the allure of a comfortable corporate lifestyle couldn’t compete with his entrepreneurial spirit. Driven by a vision to democratize real estate investment, Blackwood took a bold step and co-founded mogul, a fractional real estate investment startup, in September 2022 alongside fellow Goldman Sachs alum Joey Gumataotao.
The Concept Behind mogul
At the heart of mogul is a unique proposition: it enables users to buy shares in residential homes, allowing them to enjoy the direct benefits associated with real estate investment—including monthly dividends. With a minimum investment of just $250, investors can select individual properties and share in rental income generated by those assets. The company focuses exclusively on single-family homes, carefully curating top properties for its platform. Currently, mogul boasts over 13,000 investors with about $40 million in assets under management.
Financial Transition and Personal Rewards
Trading in his lucrative Goldman Sachs salary for a startup role, Blackwood now earns around $100,000 a year. The $150,000 pay cut hasn’t soured his perspective; rather, he finds deep personal satisfaction in his new role. “It’s funny; everyone at the time thought I was the stupidest person they knew,” he shared candidly. “To be honest, I didn’t really think twice about it. I jumped into it. It’s exactly what I wanted to do.” For Blackwood, the intrinsic rewards of building something from scratch significantly outweigh the financial sacrifices.
Startup Journey and Fundraising Success
Blackwood and Gumataotao each invested $50,000 in their venture’s early days and garnered additional backing from Tim Draper of Draper Associates, securing $350,000 in their pre-seed round. In late 2023, mogul raised approximately $3.6 million in its seed round and recently completed a $4 million seed extension round, culminating in total funding of about $8 million. Blackwood’s future ambitions for mogul are nothing short of monumental: “I want to build this company to be bigger than Amazon,” he declares.
Competing in the Market
As Blackwood positions mogul against competitors like Arrived and Yieldstreet, he emphasizes higher annual returns as a key differentiator. While competitors report returns ranging from 6% to 12%, mogul offers 15% to 20% returns, aligning with Blackwood’s vision of providing more lucrative investment opportunities for everyday consumers. His experience and acumen from Goldman Sachs undoubtedly play a crucial role in crafting mogul’s competitive edge.
Discovering Market Gaps
The journey to founding mogul was sparked by Blackwood’s own challenges in purchasing his first property. He was astounded by the numerous fees involved; upon reviewing closing costs, it dawned on him how capital and time-intensive home buying could be. “I realized that there was something to be done in the real estate space,” he noted. This experience fueled his desire to simplify the process and make real estate investment accessible to everyone.
Impressive Growth Trajectory
With revenues projected to reach $3 million to $4 million by the end of the fiscal year, mogul is on a stellar trajectory. Blackwood anticipates a fourfold increase in revenue year-over-year, with plans for additional growth in the following year. The startup operates on a fee structure, charging a 5% onboarding fee for new properties and taking a 2.5% cut from rental income generated.
Multifaceted Leadership
In his capacity as CEO, Blackwood wears multiple hats, acting as a lawyer, accountant, investor, and marketer. His tenacity is exemplified by a grassroots marketing campaign he initiated, in which he sent 400 postcards to tenants in his apartment building, promoting mogul and inviting them to invest. Although the plan nearly got him evicted, it proved to be one of his most successful campaigns, leading to 200 site visits and 50 new sign-ups.
High Retention and Continuous Improvement
The success and growth of mogul hinge on its high-quality portfolio of properties and a customer retention rate exceeding 90%. Blackwood acknowledges that continual product improvement—be it tweaking messaging on the website or expanding the team—is critical to building momentum. “We’re starting to hit our stride, and it’s getting really fun to do so,” he says, reflecting the excitement and challenges of entrepreneurship.
The Bigger Picture
As Blackwood embarks on his journey to reshape the landscape of real estate investment, he remains deeply committed to his mission. While reflecting on the comfort of the Goldman Sachs path, he acknowledges the weight of regret he would have felt if he hadn’t chased his entrepreneurial dreams. For Blackwood, the struggles and victories of startup life have become an integral and exhilarating part of his identity, leaving a lasting impact on both him and the investors who believe in mogul.
