About Alex Blackwood, the CEO of mogul
Alex Blackwood, a 29-year-old entrepreneur, has taken an unconventional path to success. He went from a high-paying job at Goldman Sachs to co-founding and leading a startup. Blackwood’s story offers insight into the risks and rewards of entrepreneurship, showing us that success isn’t just about money. It’s about following your passion, even when it means making difficult choices. Source
From Goldman Sachs to Startup Founder
Three years ago, Blackwood was working as a real estate investing associate at Goldman Sachs. He was pulling in a hefty annual salary of $250,000 while working 100-hour weeks. However, he left this lucrative position to co-found mogul, a startup that revolutionizes real estate investment by allowing fractional ownership.
Together with fellow Goldman Sachs alum Joey Gumataotao, Blackwood launched mogul in September 2022. The platform enables users to buy shares in individual homes and earn dividends from the underlying real estate. The minimum investment is set at a relatively low $250, making it accessible for a wider range of investors.
The Growth of mogul
Blackwood and his team at mogul are selective in the properties they offer, focusing exclusively on single-family homes. They purchase these properties, fractionalize the ownership, and distribute monthly dividends to investors based on their level of ownership. Since its inception, mogul has attracted over 13,000 investors and boasts $40 million invested assets.
Personal Rewards of Entrepreneurship
Despite a significant pay cut and the continued long work hours, Blackwood finds being a startup founder more personally rewarding. His passion for the venture and its potential impact on the real estate investment industry outweighed the monetary considerations. He shared that even though people around him thought he was making a mistake, he didn’t hesitate in making the leap.
Mogul’s Journey to Success
Initial funding for mogul came from the co-founders themselves, each investing $50,000. They also received a $350,000 pre-seed round from Tim Draper of Draper Associates. Subsequent funding rounds raised about $3.6 million in late 2023 and a further $4 million earlier this year, bringing mogul’s total funding to around $8 million.
Despite the potential for a comfortable career at Goldman Sachs, Blackwood knew that he would regret not pursuing mogul. He sees the company becoming “bigger than Amazon” in the long term.
Mogul’s Competitive Advantage
Blackwood differentiates mogul from competitors like Arrived and Yieldstreet by claiming that mogul offers significantly higher returns, between 15% to 20% annually. In contrast, Arrived and Yieldstreet report annual returns of 6% to 12% and 6.6% respectively.
Looking to the Future
With a projected revenue of $3 million to $4 million by year-end, mogul is set for continued growth. The startup plans to triple or quadruple revenue again next year. It earns money by charging a flat 5% onboarding fee when a property is added to the platform and a 2.5% fee on rental income generated by the invested properties.
Entrepreneurial Hustle
As CEO of mogul, Blackwood wears many hats, including those of a lawyer, an accountant, an investor, and a marketer. One of his unconventional marketing strategies involved sending postcards to every tenant in his apartment building, explaining mogul’s concept and offering a promotional incentive. This nearly got him evicted but ended up being one of their highest-yielding marketing campaigns.
Mogul’s Success Factors
Blackwood attributes mogul’s growth to its high-quality property supply, constant product iteration, and a committed team. With a retention rate of over 90%, the startup is hitting its stride and making real estate investment more accessible.
Blackwood’s story is a testament to the power of passion and perseverance in entrepreneurship. It shows that success is not merely about the financial gains, but also about the joy of creating something impactful and personally rewarding.
