DiversyFund historically offered non-accredited investors access to multifamily real estate through REIT products. For investors seeking monthly rental income, direct property selection, or more transparent ownership structures, exploring fractional real estate investing alternatives can open doors to opportunities better aligned with specific financial goals. This guide examines seven platforms that serve different investor needs in 2026, starting with mogul, a fractional real estate platform founded by Goldman Sachs alumni that delivers institutional-quality single-family rental investments with monthly distributions.
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
- Monthly income vs. reinvestment matters for cash flow goals: DiversyFund has historically reinvested all dividends until property sales, while platforms like mogul and Arrived distribute rental income monthly, giving investors regular cash flow
- Different tax treatment for different ownership structures: LLC-structured fractional investments like mogul's may provide pass-through real estate tax items, including depreciation deductions, but usable benefits depend on the offering structure, applicable loss-limitation rules, and each investor's tax situation; investors should consult a tax professional
- Property selection control varies significantly: Some platforms let you choose specific properties to invest in, while others operate as blind pools where managers select assets without investor input
- Fee structures impact long-term returns: Compared with a 1% annual management fee, a 0% ongoing management-fee model can save $500+ over five years on a $10,000 investment, before considering compounding and other platform-specific fees
- Risk mitigation features differentiate platforms: mogul offers up to $10,000 in loss protection for new members, a feature not commonly found among competitors
- Accreditation requirements limit access: CrowdStreet requires accredited investor status with $25,000+ minimums, while platforms like mogul and Fundrise welcome non-accredited investors
1. mogul
mogul delivers a fractional real estate platform built by Goldman Sachs alumni, offering fractional ownership through LLC interests tied to income-producing single-family rentals. The platform manages $40 million+ in assets and serves 13,000+ investors seeking institutional-quality real estate without the traditional barriers of down payments, tenant management, or property selection burden.
How Does mogul Work?
mogul acquires professionally vetted properties, places each into a state-registered LLC, and fractionalizes ownership into shares investors can purchase. Here's how it works:
- Property Selection: Less than 1% of reviewed properties pass mogul's institutional-grade diligence process
- Ownership Structure: Fractional ownership through LLC interests tied to specific properties, providing proportional rights to income, appreciation, tax benefits, and major-decision governance
- Monthly Income: Rental payments distributed monthly from property cash flow, subject to property operations, expenses, reserves, and offering terms
- Tax Advantages: LLC partnership-style ownership may provide pass-through tax reporting and depreciation-related tax benefits, depending on the offering and investor circumstances; investors should consult a tax professional
- Hold Period: Properties held 3-10 years, with investors receiving appreciation proceeds at sale
Key Features
- Average Returns: 18% average annual return compared to the S\&P 500's long-run historical annualized return, often cited around 10% before inflation, depending on period and methodology
- Loss Protection: mogul covers up to $10,000 in losses for new members during their first year
- Professional Management: All property management, tenant coordination, and operational responsibilities handled by mogul
- Investor Governance: Super-majority voting rights on major property decisions
- Investment Tools: Free rental property calculator and Airbnb calculator to analyze any U.S. address
Repeat Investment Behavior
mogul reports strong repeat-investment behavior:
- 90% of investors invest a second time
- Average second investment is 3x the first investment amount
- Average investment of around $10,000
- Properties span short-term rental and mid-term rental strategies
What Makes mogul Unique
- Goldman Sachs Pedigree: Founded by real estate professionals with $10 billion in collective deal experience
- Institutional Selection Process: Proprietary underwriting models identify properties with maximum upside potential, with less than 1% of reviewed properties passing mogul's selection process
- Aligned Interests: mogul personally invests in every property offered on the platform
- Blockchain Integration: Platform leverages blockchain technology for real estate tokenization
Best For: Investors seeking monthly rental income, fractional ownership through LLC interests with governance rights, and institutional-quality underwriting backed by loss protection for new members.
2. Fundrise
Fundrise operates as one of the largest real estate crowdfunding platforms, offering diversified exposure to real estate and private credit through managed eREIT funds. The platform welcomes non-accredited investors with a $10 minimum investment.
Key Features
- Low Entry Point: $10 minimum makes it one of the most accessible platforms
- Diversification: Investments spread across multiple properties and asset types automatically
- Liquidity Options: Quarterly redemption program available (fees may apply)
- Multiple Strategies: Choose between income, growth, or balanced portfolio approaches
- Private Credit: Expanded beyond real estate to include private credit investments
Fee Structure
Fundrise charges approximately 1% annually (0.15% advisory fee plus 0.85% management fee), which compounds over time but remains competitive for a managed fund approach.
Investment Approach
Fundrise manages portfolio allocation for investors, selecting properties and adjusting holdings based on market conditions. This hands-off approach suits investors who prefer automated diversification over individual property selection.
Best For: Beginners with limited capital seeking broad real estate exposure through a managed portfolio approach with relative liquidity through quarterly redemptions.
3. Arrived
Arrived focuses on single-family rental properties and vacation rentals, allowing investors to select specific homes with a $100 minimum investment. The platform currently pays eligible rental-property dividends monthly.
Key Features
- Property Selection: Browse and choose individual rental properties to invest in
- Vacation Rentals: Offers short-term rental properties alongside traditional long-term rentals
- Low Minimum: $100 entry point provides accessible fractional ownership
- Monthly Dividends: Eligible rental income is currently distributed monthly
- Tax Documentation: Arrived generally provides Form 1099-DIV tax documents for its investments
Investment Focus
Arrived concentrates on residential properties in growing markets, emphasizing both appreciation potential and rental yield. Each property listing includes detailed financials, photos, and market analysis for investor review.
Hold Periods
Arrived generally targets 5-7 years for long-term rentals and 5-15 years for vacation rentals, with investors receiving their share of sale proceeds upon disposition.
Best For: Investors who want to select specific single-family rental properties with a low minimum investment and monthly income distributions.
4. RealtyMogul
RealtyMogul provides access to commercial real estate through both REIT products and individual deals. The platform offers the RealtyMogul Income REIT for income-focused investors and the RealtyMogul Apartment Growth REIT for growth-oriented strategies.
Key Features
- REIT Options: Two REIT products with different investment objectives
- Individual Deals: Accredited investors can access specific commercial properties
- Commercial Focus: Concentrates on apartment buildings, office properties, and retail centers
- $5,000 REIT Minimum: Higher entry point than some competitors for REIT investments
- $25,000+ Deal Minimums: Individual property investments require accredited status and higher capital
Fee Structure
Management fees typically range from 1-2% depending on the investment vehicle, with additional fees possible on individual deals.
Investor Access
Non-accredited investors can access the REIT products, while individual commercial deals require accredited investor verification and substantially higher minimums.
Best For: Investors seeking commercial real estate exposure through REITs or accredited investors wanting access to individual commercial property deals.
5. CrowdStreet
CrowdStreet is a marketplace for accredited investors seeking private-market real estate and alternative investment opportunities, including commercial real estate deals from sponsors reviewed by the platform.
Key Features
- Deal Marketplace: Browse individual commercial real estate opportunities
- Sponsor Vetting: Platform reviews deal sponsors for track record and capability
- Detailed Due Diligence: Extensive documentation provided for each investment opportunity
- $25,000+ Minimums: Higher capital requirements align with institutional deal structures
- Direct Investment: Invest directly with sponsors through the platform
Investment Types
CrowdStreet features office buildings, multifamily developments, industrial properties, and hospitality projects from sponsors across the country.
Accreditation Requirement
The platform requires accredited investor status, limiting access to individuals meeting SEC income or net worth thresholds.
Best For: Accredited investors with $25,000+ seeking direct access to commercial real estate deals with detailed sponsor information.
6. Groundfloor
Groundfloor offers a different approach by providing access to real estate debt investments rather than equity ownership. Investors fund short-term loans to real estate developers and receive principal and interest according to the terms of the specific loan or note.
Key Features
- Debt Investments: Fund loans secured by real estate rather than owning property directly
- Short Durations: Groundfloor's short-term real estate debt products often target months rather than years; terms vary by product and may range from roughly 6-12 months for many crowdfunding investments to 6-18 months for certain fix-and-flip loans
- Low Minimums: LRO investments from $10, with other options starting around $100 depending on product
- Principal and Interest Payments: Investors receive principal and interest according to the terms of the specific loan or note; some Groundfloor products pay at maturity
- Non-Accredited Access: Open to all investors regardless of accreditation status
Risk Profile
Debt investments carry different risks than equity. Investors buy debt instruments tied to real estate loans; the underlying loan may be collateralized, with the specific nature and priority of the position varying by product. Returns are capped at the stated interest rate rather than participating in property appreciation.
Investment Selection
Investors can review individual loan opportunities with property details, borrower information, and risk grades assigned by Groundfloor's underwriting team.
Best For: Investors seeking shorter investment durations and fixed-income style returns through real estate-backed loans rather than property ownership.
7. Roofstock
Roofstock operates as a marketplace for buying and selling single-family rental properties. Roofstock's primary focus is on whole-property SFR transactions and related investment services; Roofstock One, its fractional offering, has been structured as a private accredited-investor offering and should not be compared directly with non-accredited fractional platforms.
Key Features
- Whole Property Marketplace: Buy entire rental properties with tenants already in place
- Roofstock One: Fractional ownership in single-family rentals for accredited investors
- Tenant-Occupied: Many properties come with existing tenants and lease agreements
- Property Management: Optional property management services available
- Market Analysis: Detailed neighborhood and property analytics for each listing
Investment Options
Investors can purchase entire properties for direct ownership, or accredited investors may explore Roofstock One for fractional exposure to single-family rentals.
Due Diligence Tools
The platform provides inspection reports, rent estimates, and neighborhood data to help investors evaluate opportunities.
Best For: Investors interested in purchasing whole rental properties or accredited investors seeking fractional exposure to single-family rentals through the Roofstock One program.
Why mogul Stands Out for Real Estate Investors
Institutional-Grade Selection with Retail Accessibility
mogul's team of former Goldman Sachs real estate professionals applies institutional-style underwriting to individual investors, with less than 1% of reviewed properties passing its selection process. This selectivity, combined with accessible minimums, bridges the gap between institutional and retail real estate investing.
Ownership Structure with Potential Tax Advantages
Unlike REIT structures, mogul's LLC model offers fractional ownership through LLC interests tied to specific properties, providing proportional rights to income, appreciation, and major-decision governance. REIT investors generally do not select individual properties or vote on property-level decisions, though they may have shareholder voting rights depending on the vehicle. LLC partnership-style ownership may provide pass-through tax reporting and depreciation-related tax benefits, but the usable benefit depends on the offering structure, applicable loss-limitation rules, at-risk limits, and each investor's tax situation; investors should consult a tax professional. Understanding tax benefits of real estate investing can help quantify the potential advantages of different ownership structures.
Monthly Income from Property Cash Flow
DiversyFund has historically reinvested dividends until properties sell rather than distributing them during the hold period. mogul distributes actual rental income monthly from property cash flow, subject to property operations, expenses, reserves, and offering terms, providing regular income for investors seeking cash flow during the hold period rather than waiting for a liquidation event.
Aligned Interests Through Co-Investment
mogul invests alongside members in every property, creating direct alignment between platform performance and investor outcomes. This co-investment model differs from platforms that earn management fees regardless of property performance.
Risk Mitigation for New Investors
The $10,000 loss protection for new members provides a safety net rarely seen in real estate investing platforms. For investors concerned about their first foray into fractional real estate, this protection reduces downside risk during the initial learning period.
Governance Rights for True Ownership
mogul investors receive proportional governance rights, including voting on major property decisions. This ownership control distinguishes the platform from REITs and pooled funds where investors generally have no say in property-level decisions.
Comprehensive Investment Tools
Free access to professional-grade calculators, including the investment property calculator and real estate calculator, empowers investors to analyze any U.S. address before investing. mogul's team also offers free professional underwriting for properties investors want analyzed.
For investors evaluating alternatives to DiversyFund's historical multifamily REIT approach, mogul's combination of fractional ownership through LLC interests, monthly income distributions from property cash flow, potential tax advantages from LLC-structured ownership, and loss protection creates a compelling option for building a real estate portfolio with institutional quality and retail accessibility.
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 are the main differences between fractional ownership and REITs?
Fractional ownership through LLC structures (like mogul uses) provides ownership through LLC interests tied to specific properties, with governance rights and potential pass-through tax reporting including depreciation-related deductions, depending on the offering structure and investor circumstances. REIT investors generally do not select individual properties or vote on property-level decisions, though they may have shareholder voting rights depending on the vehicle; REITs generally report dividends on Form 1099-DIV rather than a partnership return. The potential tax advantages of LLC-structured ownership can be meaningful but depend heavily on the offering structure and individual investor circumstances; investors should consult a tax professional.
Can I receive monthly income from fractional real estate investments?
Yes, platforms like mogul distribute actual rental income monthly from property cash flow, subject to property operations, expenses, reserves, and offering terms. DiversyFund, by contrast, has historically reinvested all dividends automatically until properties sell rather than distributing them during the hold period.
What kind of returns can I expect from fractional real estate investments?
Returns vary by platform, property type, and market conditions. mogul reports an 18% average annual return, while the S\&P 500's long-run historical annualized return is often cited around 10% before inflation, depending on the period and methodology. Individual property performance depends on rental income, appreciation, and hold period. Understanding metrics like IRR and cash-on-cash yield helps evaluate projected returns across platforms.
Do I need to be an accredited investor to use these platforms?
Most platforms in this guide accept non-accredited investors for their primary products. mogul, Fundrise, Arrived, Groundfloor, and DiversyFund all welcome non-accredited investors. CrowdStreet requires accredited status, and RealtyMogul's individual deals (not REITs) require accreditation. Accredited investor thresholds include $200,000+ individual annual income (or $300,000+ jointly with a spouse or spousal equivalent) in each of the two most recent years with an expectation of the same for the current year, or $1 million+ net worth individually or jointly excluding primary residence, among other criteria.
How liquid are fractional real estate investments?
Liquidity varies materially across the platforms discussed. Some real estate debt products, like those offered by Groundfloor, may run for months, while equity and fractional-property platforms often target multi-year holds, including up to 5-15 years for some vacation-rental offerings. Fundrise offers quarterly redemption options with potential fees, while DiversyFund investments have historically locked capital for 5-7 years. mogul's platform is built to provide exit opportunities, including platform sales that allow members to access equity at market value.
What unique risk protection does mogul offer new investors?
mogul provides up to $10,000 in loss protection for investments made within a new member's first seven days. If the total return on those investments shows a loss after one year, mogul covers that loss up to $10,000 from its own balance sheet. This risk mitigation feature is unique among fractional real estate platforms and provides meaningful downside protection for first-time investors