Addy's 2026 restructuring is a useful case study for investors evaluating fractional real estate platforms. The Canadian platform had facilitated more than 60 issuances involving approximately 10,628 investors before Addy Technology Corp. filed a Notice of Intention to Make a Proposal in April 2026, roughly a year after settling a securities-registration matter with the British Columbia Securities Commission. That figure is cumulative platform participation: public records do not establish how many of those investors still held active investments in 2026, how many were retail investors, or the amount exposed in each separate issuer or property entity.
Precision about entities matters here. Addy Technology's court-approved transaction closed on June 11, 2026, and its proposal proceeding terminated, while two legally separate companies, Addy Dealer Corp. and residual-liabilities entity 1591725 B.C. Ltd., entered bankruptcy. Management advised the insolvency trustee that increased regulatory, compliance, operating, and financial costs, together with declining investment activity and adverse real estate conditions, made the prior business model unsustainable by late 2025.
For investors whose capital remains tied to Addy-related entities, and for those watching from the sidelines, the episode underscores a practical point: fractional real estate platforms are not all structured the same way. How a platform is built comes down to registration status, disclosure quality, management expertise, and business durability. This guide breaks down what the public record establishes about Addy, the structural features investors should examine, and what to look for when choosing where to deploy capital.
Disclaimer: The information provided in this guide is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult with a licensed professional before making any financial or investment decisions.
Key Takeaways
- Addy engaged in registrable dealer activity without registration for roughly six years and seven months. From July 9, 2018 through February 14, 2025, Addy facilitated approximately $26 million in securities transactions while it was not registered and no registration exemption was available. Addy agreed to pay $100,000 to the BC Securities Commission under a settlement.
- Addy Technology filed a Notice of Intention, not a bankruptcy petition, in April 2026. Addy Technology Corp. filed a Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act on April 16, 2026. Separate entities entered bankruptcy: Addy Dealer Corp. on March 9, 2026, and residual-liabilities company 1591725 B.C. Ltd. on June 15, 2026.
- Per-property investment limits changed over time and by membership tier. An earlier structure used a $1,500 ceiling, while later Addy materials described a $3,000 Believer-member limit and, for certain paid members and approved transactions, as much as $10,000 per property, with amounts above $2,500 subject to dealer review and possible reduction or rejection.
- Addy was predominantly, but not exclusively, Canadian. The platform announced its first U.S. property in April 2024, a student-housing investment in Stillwater, Oklahoma.
- Registration status separates platforms, but the label matters. There is no single universal "SEC registration" category for fractional real estate platforms. Investors should identify the specific issuer, the offering exemption or registration regime, and any registered broker-dealer or funding portal involved.
- Fractional real estate continues to attract capital, according to market-research estimates. DataIntelo estimates the global fractional real estate platform market at $4.2 billion in 2025, reaching $14.8 billion by 2034, implying a 15.1% compound annual growth rate. These are market-research estimates.
Understanding Fractional Real Estate Investing
Before examining Addy specifically, it helps to understand what fractional ownership offers and why the model has attracted investor interest.
Fractional real estate investing allows individuals to purchase securities representing interests in income-producing properties without the capital requirements of traditional ownership. Instead of a six-figure down payment, investors can gain exposure to property income and appreciation through smaller allocations. Returns are not guaranteed, and tax treatment depends on the offering structure and the investor's own circumstances.
The appeal of fractional investing:
- Lower barriers to entry: Investors can participate in professionally underwritten properties without large capital outlays
- Diversification: Capital can be spread across multiple properties and markets
- Administrative coordination: Platforms may coordinate administration, reporting, and investor servicing, while property-level leasing, maintenance, and operations are generally handled by the issuer, sponsor, or property manager identified in each offering
- Headache-free exposure: Investors may receive distributions without direct landlord responsibilities
DataIntelo estimates the market at $4.2 billion in 2025, growing to $14.8 billion by 2034, and puts North America's 2025 revenue share at approximately 38.6%, with the United States identified as a major market. These are market-research estimates. The forecast suggests expected growth in platform activity, but it does not, on its own, quantify institutional versus retail demand, and "leading adoption" would require a stated metric such as revenue, users, transaction count, or assets.
The model's benefits depend on platform execution. Registration status, disclosure discipline, and business durability shape investor outcomes independently of the underlying real estate.
Addy's restructuring illustrates how platform-level factors can affect investors even when individual properties are held in separate legal entities.
Addy's Restructuring: Timeline of Events
Understanding the actual sequence of events, and which legal entity did what, helps investors recognize comparable considerations elsewhere. Addy Technology Corp., Addy Dealer Corp., and 1591725 B.C. Ltd. are legally separate entities with separate proceedings.
Key events by entity and date:
| Date | Event | Detail |
|---|---|---|
| July 9, 2018 to Feb 14, 2025 | Registrable dealer activity without registration | Approximately $26 million in securities transactions facilitated while Addy was not registered and no exemption was available |
| March 17, 2025 | BCSC settlement announced | Addy agreed to pay $100,000 and admitted the registration breach |
| March 24, 2025 | Dealer subsidiary registered | Addy Dealer Corp. became a registered exempt-market dealer in British Columbia and passport jurisdictions; Ontario registration was initially pending, with registration across all Canadian jurisdictions announced later |
| December 31, 2025 | EMD operations reportedly suspended | According to an Addy investor communication reported by BetaKit, Addy Dealer Corp. suspended its operations as a registered exempt-market dealer |
| March 9, 2026 | Dealer subsidiary bankruptcy | Addy Dealer Corp. entered bankruptcy |
| April 16, 2026 | Notice of Intention filed | Addy Technology Corp. filed a Notice of Intention to Make a Proposal under the Bankruptcy and Insolvency Act. This is an insolvency proceeding, not a bankruptcy filing |
| April 29, 2026 | Court approval | The court approved the sale process and reverse vesting transaction |
| June 11, 2026 | Transaction closed | Addy Technology's court-approved transaction closed and its proposal proceeding terminated |
| June 15, 2026 | Residual entity bankruptcy | 1591725 B.C. Ltd., the residual-liabilities company that received specified liabilities and excluded assets, entered bankruptcy |
Management attributed the deterioration to a combination of higher regulatory and compliance costs after bringing registration in-house, declining investment activity, operating costs, and adverse real estate conditions. The trustee's first report notes that it relied on unaudited management information and had not independently verified all of it. The public record does not isolate any one factor as the definitive cause, and neither the regulator nor the trustee concluded that the business was inherently flawed.
Regulatory Matters: What the BC Securities Commission Found
Registration status goes to whether investors receive the protections that accompany registrant conduct.
The core finding: Addy engaged in the business of trading securities while unregistered from July 9, 2018 through February 14, 2025, with no registration exemption available. The BCSC determined that Addy's activities triggered dealer-registration requirements because the platform:
- Solicited investments through its online platform, email, and social media
- Intermediated trades between property issuers and investors
- Received compensation through membership fees and software-licensing fees charged to issuers
Exemption analysis:
Addy argued it qualified for exemptions from registration. The BCSC rejected those arguments:
- Crowdfunding exemption: Unavailable for certain transactions because some property issuers had principals in common with Addy itself
- Reliance on registered EMDs: Insufficient, because Addy continued direct solicitation activity
The $100,000 amount was a settlement payment undertaking rather than an administrative penalty order. The BCSC news release states that Addy pays $100,000, and the settlement records an undertaking to pay. The Executive Director considered it not in the public interest to issue an order under section 161. The settlement was not a finding of fraud, and the BCSC noted Addy's cooperation, admissions, and absence of prior securities-regulatory misconduct.
Why this matters for investors:
Registration is investor protection, not paperwork. Registered dealers must:
- Meet capital and financial-condition requirements
- Submit to regulatory oversight
- Maintain proper disclosure and record-keeping practices
- Follow know-your-client, suitability, and conduct standards
Because Addy was not registered for the dealer activity it conducted during that period, investors did not receive the full set of protections that accompany registrant conduct. That is different from saying investors had no securities-law protections at all: issuer obligations, prospectus-exemption conditions, contractual rights, anti-fraud provisions, and in some transactions the involvement of registered third-party dealers could still apply.
Platform Features Investors Should Examine
Beyond registration status, Addy's platform structure had characteristics worth understanding.
Investment Limits
Addy's per-property limits changed over time and by membership tier and offering. An earlier structure used a $1,500 ceiling. Later materials described a $3,000 Believer-member limit and, for certain paid members and approved transactions, limits as high as $10,000 per property, with investments above $2,500 subject to dealer review and possible reduction or rejection. Actual limits also depended on the specific offering and applicable securities-law requirements, so any single figure is a snapshot rather than a permanent platform rule.
What per-property caps actually do:
- Capital deployment: Caps shape how much capital an investor can place in a single property, while also reducing single-property concentration
- Dollar-volume effect, not rate effect: A cap restricts the total dollars deployed in a specific property. It does not, by itself, change the percentage rate at which invested capital compounds. Aggregate compounding is affected only if the cap prevents the investor from deploying remaining capital into comparable investments
- Portfolio management complexity: Building meaningful exposure required spreading capital across many smaller positions and tracking each separately
Platforms without per-property caps allow investors to size allocations based on their own analysis and risk tolerance, which supports deliberate portfolio building while also placing concentration decisions with the investor.
Geographic Concentration
Addy's offerings were predominantly Canadian, but the platform was not Canada-only. Addy announced its first U.S. property in April 2024, a student-housing investment in Stillwater, Oklahoma, and subsequent materials discussed U.S.-dollar investment and distribution mechanics along with member-facing details for that offering.
Concentration still mattered:
- Predominantly single-country exposure: Most investor returns depended on Canadian real estate conditions
- Market selection: A narrower market set offers fewer opportunities to identify relatively undervalued properties across diverse geographies
Management told the trustee that adverse real estate conditions were one contributor to Addy's difficulties. Canadian national housing activity weakened in parts of 2025, particularly in Ontario and British Columbia, though conditions varied materially by province, and national sales had improved by mid-2026 from March levels while the national benchmark price remained lower year over year. Neither Canada nor any U.S. region should be treated as a single uniform market, and broad comparisons between them require a stated market, property type, metric, and period.
Fee Structure
Addy offered optional paid memberships. The BCSC settlement states that Addy offered a $25 annual membership or a $500 lifetime membership from 2018 through October 2022, and charged $50 annually thereafter. The settlement also states that payment of a membership fee was not required to invest at any point during the relevant period.
What that means in practice:
- Proportional cost depends on usage: For an investor who voluntarily paid $50 and invested only $500 during that membership year, the fee would equal 10% of that year's invested amount. That is not a mandatory transaction-level charge, and the membership could apply across multiple investments
- Recurring cost regardless of performance: Annual membership fees, when purchased, recur across multi-year holding periods
- Different alignment profile: Because membership revenue was not directly tied to individual property performance, it did not create the same form of performance alignment as a return-based fee. The available evidence does not establish that Addy prioritized investor count over investment outcomes
Alternative fee structures, such as fees calculated on the deal or on realized rental income, can tie platform revenue more closely to property-level activity.
Distribution Frequency
Addy's issuer documentation allowed estimated distribution schedules to be configured as monthly, quarterly, or annual, and distribution timing was offering-specific.
More frequent distributions can offer:
- Better cash flow predictability: Monthly income supports more precise financial planning
- Earlier reinvestment opportunity: Monthly distributions can permit earlier reinvestment than quarterly distributions, but the actual compounding benefit depends on reinvestment availability, yields, timing, and costs. Distribution frequency does not automatically equal compounding frequency
- Earlier access to returns: Investors receive their proportional share of net rental income sooner
Liquidity Considerations: Secondary Market Access
Addy's structure did not include a secondary market, so investors seeking an earlier exit had a narrower set of options.
Why secondary markets matter:
Real estate is inherently illiquid relative to listed securities. Property sales take months, and fractional offerings typically contemplate multi-year holds. Without a functioning secondary market, exits depend on the offering's own timeline.
Effects of constrained liquidity:
- Limited exit for changing circumstances: Addy stated that investments were intended to be held for their full term. A private transfer could sometimes be possible, but was constrained by securities law, offering documents, and issuer approval, and Addy noted that legal fees could exceed $500, which could make a small transfer economically impractical
- Limited price discovery: Without regular trading, investors could not readily gauge the market value of their holdings
- Platform and issuer dependency: Exits generally depended on issuer-initiated events or property sales
When Addy Technology entered restructuring, that consideration became more consequential. Importantly, the reverse vesting order transferred specified Addy Technology debts, obligations, and excluded assets into 1591725 B.C. Ltd. Public trustee materials do not establish that separate property issuers or SPVs, and the real estate they held, were themselves transferred into that bankruptcy estate. The trustee's letter to investors states that Crowe had conduct over Addy Dealer Corp. and the residual company, but not over other related parties, and noted that investors in separate issuers would look to those entities' own directors, general partners, or representatives.
A media report, using information assembled by an investor group covering 47 investments, estimated that more than $11 million could be in limbo. The underlying report indicated the exact total was unclear. It is an estimate, not a trustee-verified exposure figure or confirmed loss amount.
Outcomes will vary by legal entity. Creditors of the bankrupt entities are subject to those bankruptcy estates, while investors in separate property issuers or SPVs are governed by the documents and financial condition of the particular entity.
Risk Mitigation: What the Record Shows
Comparing Addy's disclosed features against common industry practices highlights where investors should focus their analysis.
Risk mitigation comparison:
| Feature | Addy, per the public record | What to look for |
|---|---|---|
| Registration status | Unregistered dealer activity from July 9, 2018 to February 14, 2025; dealer subsidiary registered as an EMD in March 2025 | The specific entity, its registration or exemption, and any registered intermediary involved |
| Loss protection | None identified | Whether the platform offers loss coverage for new members, and on what stated terms |
| Platform co-investment | Occasional and disclosed. Addy's help materials stated it sometimes invested through Addy Real Estate Holdings without committing to invest in every deal | Whether co-investment is committed, occasional, or absent, and on what share terms |
| Blockchain ownership records | None identified | An additional, independently viewable record of the represented interest, understanding that legal rights are governed by the offering documents |
| Property vetting standards | Addy disclosed an issuer and dealer due-diligence process | Documented underwriting process, stated hurdles, and disclosure of methodology |
| Business model | The trustee described Addy Technology as a technology, distribution, and administrative-services provider rather than a property owner or developer | The credentials of management, investment reviewers, issuers, and property operators |
What Investors Should Look For in a Platform
Addy's experience provides a practical checklist for evaluating fractional real estate platforms.
Regulatory Standing
Non-negotiable: Understand exactly which entity is doing what, under which authority.
Questions to consider:
- Which entity is the issuer, and which entity is soliciting or intermediating the investment?
- Is the offering made under a registration statement or an exemption such as Regulation Crowdfunding or Regulation A?
- Is a registered broker-dealer or funding portal involved, and is that status identified?
- In Canada, is the dealer entity registered in the relevant jurisdictions?
Avoid accepting a general label. "SEC-compliant" or "SEC-registered" means little without specifying which entity and which registration regime.
Management Expertise
Look for: Leadership with documented real estate investing experience alongside technology capability.
Institutional real estate professionals typically bring:
- Established underwriting methodologies
- Experience navigating market cycles
- Relationships with property managers, lenders, and service providers
- Track records of acquisitions and dispositions
Assess credentials directly rather than inferring capability from a founder's background category.
Transparent Ownership Structure
What to examine: Whether investors hold membership interests in a property-specific LLC, units in a limited partnership, or another security, and what rights attach to that interest.
A well-documented structure should clarify:
- The legal form of the interest and the governing documents
- Whether investors receive economic and governance rights, and on what voting thresholds
- Tax reporting, including whether K-1s are issued and how property-level items are allocated
- How the property entity is governed over the life of the investment
Note that a separately incorporated issuer or SPV does not automatically enter a platform operator's insolvency proceeding merely because it is affiliated. Whether it is affected depends on ownership, guarantees, intercompany claims, contractual arrangements, substantive-consolidation rules, and court orders.
Aligned Financial Interests
Key indicator: Does the platform commit its own capital alongside investors, and is that commitment for every property or occasional?
When management invests on the same terms:
- Their outcomes track investor outcomes
- Property selection reflects conviction rather than deal flow alone
- Interests remain aligned through the holding period
Sustainable Business Model
Points to examine:
- Revenue models dependent on constant new investor acquisition
- Fee structures and how clearly they are disclosed
- Expansion paired with corresponding compliance and operational infrastructure
- Reliance on exemptions whose conditions may not actually be satisfied
How mogul Approaches These Considerations
mogul is a fractional real estate platform club founded by former Goldman Sachs executives, with more than $10 billion in combined institutional real estate transaction volume. Before founding mogul, Joey Gumataotao built Goldman Sachs' single-family rental platform from scratch to over $1 billion in assets under management in under 12 months. mogul's public materials describe a proprietary, institutionally informed underwriting process involving market analysis, inspections, partner-sourced inventory, and investment-committee review, in which fewer than 1% of reviewed properties pass diligence.
Underwriting and property selection:
mogul invests across single-family rental verticals, spanning mid-term and short-term rental strategies, and targets high-growth secondary markets with strong price-to-rent dislocation. mogul states that prospective properties must meet a minimum projected IRR hurdle, with some of its materials describing a 12% threshold under bear-case underwriting inclusive of one-time fees. mogul also describes selecting markets using population, employment, migration, and price-to-rent data, and publishes its property selection criteria. These figures are targets and projections rather than guaranteed returns, and investors can review each property's assumptions, fees, risks, and governing documents. This selectivity, combined with proprietary underwriting informed by the founders' prior Goldman Sachs real estate experience, is designed to identify properties with attractive risk-adjusted upside.
Monthly income distributions once operational:
Once a property is operational and generating distributable net rental income, mogul states that investors receive proportional net rental-income distributions monthly. Payments are based on actual rental revenue, so timing and amount depend on leasing status, vacancy, expenses, and property performance. Monthly payments can permit more frequent reinvestment than quarterly payments, though actual compounding depends on distribution size, timing, available investments, and subsequent performance.
Property-specific LLC membership interests:
mogul forms a property-owning LLC for each property and offers ownership through an investment-club structure. Investors purchase fractional membership interests in the property-specific investment-club LLC that owns the underlying property, rather than receiving individually deeded title to a physical portion of the home. Investors receive proportional economic and governance rights under the applicable LLC documents, with mogul stating that major decisions are subject to supermajority voting while smaller decisions may be handled by licensed property managers.
Blockchain ownership records:
mogul states that each property is tokenized and ownership records are placed on the Avalanche Network, that tokens represent interests in the property-company LLC, that entries are linked to operating agreements, and that investors can view records through Snowtrace independently of mogul's platform interface. Those records provide an additional, independently viewable verification layer, and mogul notes that using blockchain reduces operational costs and lowers fees, which supports higher returns to investors. The governing LLC documents and applicable law determine investors' legal rights.
Exit avenues:
mogul continuously monitors several exit routes for each asset, including a traditional marketed sale, a private sale to inventory partners, a cash-out refinance, a bulk sale at a premium to an institution, and a platform sale that syndicates equity in the property at market value to platform members with little-to-no closing costs. Assets are exited according to the highest-returning avenue.
Co-investment:
mogul states that it invests its own capital in every property offered on the platform.
Risk management at the property level:
mogul capitalizes reserves at the property level, including future maintenance, vacancies, insurance payments, and closing costs, and carries property and business interruption insurance so that rent continues to be received while a property is being repaired. It also creates economies of scale with its inventory partners, obtaining wholesale discounts from property management companies.
U.S. market access:
mogul provides access to selected U.S. markets, including properties in Texas, Georgia, Arizona, and other locations, with available inventory changing over time.
Fee structure:
mogul's public materials state that it does not charge a traditional recurring annual AUM fee on invested equity. Its materials describe a one-time fee of up to 5% capitalized into the deal and calculated from the property purchase price, including a one-time 3% platform fee and a conditional one-time 2% setup fee, along with a 2.5% fee on rental income. The applicable property page and offering documents set out the fees that apply to each specific offering.
Regulatory status disclosure:
mogul states that compliance is built into its investment process. mogul Technologies Inc. also discloses that it is not a registered broker-dealer or investment adviser, and points investors to offering documents and risk disclosures. Investors can review the legal structure, applicable securities-law framework, risk disclosures, and governing documents for each offering.
Loss protection offer:
mogul offers first $10k protection for new members: for investments made within the first seven days of membership, mogul covers up to $10,000 in losses if the investment shows a loss after year one. This is a platform promotion governed by its own stated terms and conditions.
Member referrals:
mogul also runs a give $50, get $50 referral offer, under which a member receives $50 when a referred friend invests.
Property-level transparency:
mogul states that investors can review property rationale, market information, capital structure, projected returns, and legal documents for individual offerings. mogul's available properties pages illustrate the platform's property-specific LLC model, underwriting assumptions, projected returns, and rental strategies.
Platform metrics:
mogul reports an 18.8% average annual IRR across platform properties, compared with 9.8% for the S\&P 500 over the same benchmark comparison. It also reports that 90% of its investors invest a second time and that, when they do, the second investment is three times the first. mogul has more than 13,000 investors on the platform and over $40 million in assets invested through it.
Disclaimer: The information provided in this guide is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult with a licensed professional before making any financial or investment decisions.
Frequently Asked Questions
What happens to investor capital when a fractional real estate platform becomes insolvent?
It depends on which legal entity fails and what the investor actually holds. Investor securities are often issued by separate property entities or SPVs, and those entities do not automatically enter the platform operator's insolvency proceeding merely because they are affiliated. Whether they are affected depends on ownership, guarantees, intercompany claims, contractual arrangements, substantive-consolidation rules, and court orders. In Addy's case, the trustee expressly stated that it did not have conduct over other related parties, and investors in separate issuers were pointed to those entities' own representatives. Timing and outcome remain uncertain and depend on the investor's specific issuer, contractual rights, and any claim against an insolvent entity. No uniform Addy investor-recovery rate or timeline has been established. Service disruptions, intercompany claims, governance gaps, or contractual dependencies can still affect otherwise separate entities.
How can I verify a fractional real estate platform's regulatory standing before investing?
In the United States, use EDGAR to review issuer filings. Separately search SEC enforcement records, litigation releases, and administrative proceedings, since EDGAR is principally a filing database rather than a complete enforcement record. Review broker-dealer or funding-portal status through the relevant SEC and FINRA resources, and check your state securities regulator for state-level registration. In Canada, provincial securities commission websites and the Canadian Securities Administrators registration resources maintain searchable information on registered firms and enforcement actions. The BC Securities Commission, for example, publishes settlement agreements and orders. A platform that clearly identifies the specific registered entity, exemption, or intermediary involved gives investors a much stronger basis for evaluation.
What's the difference between REIT investing and direct fractional property ownership?
REITs pool investor capital into diversified property portfolios managed by the trust, and investors own shares in the trust rather than in specific properties. Fractional platforms such as mogul instead offer membership interests in a property-specific LLC that owns an individual property, rather than individually deeded title to a fraction of the home. Differences include tax reporting (K-1s for LLC interests, with property-level items such as depreciation potentially allocated to investors, versus 1099-DIV for REITs), governance rights (LLC members may have defined voting rights on major decisions), and transparency (knowing which specific property you have exposure to versus pooled portfolio exposure). mogul states its structure is designed to provide K-1 reporting and may pass through depreciation and other property-level items. This can produce different, and in some circumstances advantageous, tax treatment compared with a REIT, but the result depends on the offering and on factors including loss-limitation rules, basis, at-risk rules, depreciation recapture, state filings, holding period, and income level. mogul qualifies these outcomes and suggests consulting a tax professional.
How do I evaluate whether a platform's reported returns are realistic?
Compare reported returns against published benchmarks and look for stated methodology. mogul's analysis of Federal Reserve and Case-Shiller data reports that single-family rentals have historically returned approximately 13.8% annually over a 30-year period, against 9.8% for the S\&P 500, with materially lower volatility. Returns that differ materially from a benchmark warrant an explanation of the drivers, whether market selection, value-add strategy, or leverage. Also examine whether reported returns are projected or realized, whether they are IRR or simple yield, and whether they are net of fees.
What due diligence should I conduct on specific properties offered through fractional platforms?
Even with platform-level vetting, evaluate location fundamentals (employment growth, population trends, neighborhood trajectory), property financials (projected rental income against comparable properties, operating expense estimates, reserve allocations), management track record (who operates the property and their historical performance), and exit assumptions (projected hold period, expected appreciation, sale timeline). Read the operating agreement or partnership agreement to understand what rights you receive and how the entity is governed. Tools such as mogul's rental property calculator and investment property calculator can model base, bear, and bull cases, different hold periods, financing, and rental strategies for a specific U.S. address, producing estimates of rental income, ROI, IRR, cash flow, MOIC, and cash-on-cash yield. These remain projections that depend on assumptions and data inputs. mogul also publishes guidance on how to perform due diligence on a rental property and on broader real estate investing risks.
How do property taxes and insurance costs vary across fractional real estate platforms?
These costs depend on the property's specific location, taxing jurisdiction, and assessment, not on the platform. Texas properties, for example, generally carry higher property tax rates but no state income tax on rental income, while California properties face different assessment rules and insurance considerations, including earthquake and wildfire coverage in certain areas. Effective rates vary by county, municipality, and year. What matters for evaluation is whether the platform accurately accounts for those costs in underwriting. Look for platforms that disclose property-level operating expenses, including location-specific property tax and insurance estimates. Underwriting that uses generic national averages instead of parcel-level costs may overstate projected returns.