Groundfloor Alternatives

Groundfloor has established itself as a prominent real estate debt platform, offering investors access to short-term fix-and-flip loans with minimums as low as $10. With over $2.2 billion funded and 250,000+ investors, the platform pioneered accessible real estate debt investing for non-accredited investors. However, Groundfloor's debt-based model means investors function as lenders rather than property owners, missing out on property appreciation and real estate tax benefits. For those seeking fractional real estate investing with direct equity ownership, several alternatives offer compelling options. This guide examines seven platforms that provide different approaches to real estate investment in 2025, starting with mogul, a fractional ownership platform delivering institutional-grade property selection and target annual returns of 15-20% IRR.

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

• Equity ownership unlocks appreciation and tax benefits: Unlike Groundfloor's debt model, equity platforms like mogul provide direct property ownership through LLC structures, enabling investors to benefit from property appreciation and depreciation deductions

• Institutional-grade vetting improves investment quality: mogul reviews thousands of properties with less than 1% passing their Goldman Sachs-caliber due diligence process

• Fee structures significantly impact long-term returns: mogul does not charge a traditional annual AUM fee, instead using a one-time 3% platform fee (plus a 2% setup fee where applicable) and an ongoing 2.5% fee on rental income, offering a transparent and distinctive fee structure

• Blockchain technology adds ownership verification: mogul uses Avalanche blockchain with Fireblocks for permanent, verifiable ownership records, with legal ownership documentation uploaded after each investment

• Loss protection reduces new investor risk: mogul covers up to $10,000 in losses for new members' investments made in their first 7 days, a feature unique among fractional real estate platforms

1. mogul

mogul delivers a fractional real estate investment platform founded by Goldman Sachs real estate alumni with over $10 billion in collective deal experience. The platform enables investors to own shares of income-generating single-family rental properties through direct LLC ownership, providing monthly rental distributions, yearly tax benefits, and property appreciation upside. With $40M+ in assets and 13,000+ investors on the platform, mogul has positioned itself as a leading alternative for those seeking true property ownership rather than debt-based returns.

How Does mogul Work?

mogul's platform transforms real estate investing by making institutional-quality properties accessible to everyday investors. Here's how it works:

• Property Selection: mogul's acquisitions team sources properties nationwide, with less than 1% passing their rigorous underwriting process

• Fractional Ownership: Each property is placed into a state-registered LLC, with shares available to investors

• Monthly Income: Investors receive proportional rental distributions from actual tenant payments

• Tax Benefits: Direct LLC ownership enables depreciation deductions and other real estate tax advantages

• Governance Rights: Investors vote on major property decisions proportional to their ownership stake

Performance and Returns

mogul has delivered strong results for investors:

• 18.8% average annual IRR historically

• Target returns of 15-20% IRR across properties

• Year 1 yields ranging from 2.3% to 13.1% depending on property type, based on current homepage examples

• Example: The Roman property returned 10% in May-September, annualized to 24%

Unique Features

• $10,000 Loss Protection: mogul covers up to $10,000 in losses for new members' investments made in their first 7 days

• Blockchain Ownership: mogul uses Avalanche blockchain for permanent ownership verification, with Fireblocks for secure digital wallet and custody infrastructure

• Free Investment Tools: Four property calculators analyze any U.S. address using institutional-grade data

• No Traditional Annual AUM Fee: mogul does not charge a recurring annual asset-management fee; its disclosed fees include a one-time 3% platform fee, a one-time 2% setup fee where applicable, and an ongoing 2.5% fee on rental income

Best For: Investors seeking institutional-grade property selection, direct equity ownership with governance rights, and higher return potential than debt-based platforms like Groundfloor.

2. Fundrise

Fundrise operates as one of the largest private real estate platforms, with 385,000+ investors and says it deployed more than $1 billion annually in 2021 and 2022. Founded in 2012, the platform offers diversified eREIT funds spanning residential, commercial, and industrial properties.

Key Features

• $10 minimum investment for pooled funds ($1,000 for IRA accounts)

• Diversified portfolio approach across multiple property types

• Quarterly dividend distributions

• Proprietary Cornice™ and Basis™ software for fund management

• 13-year operational track record

Performance Considerations

Fundrise's official client-returns page reports 5.75% for 2024 and 6.24% for 2025 advisory-client annual returns. The platform charges approximately 1% in annual fees (0.15% advisory fee plus 0.85% real estate fund management fee).

Best For: Beginning investors seeking a diversified approach across property types with a low entry point.

3. Arrived Homes

Arrived Homes focuses on single-family and vacation rental properties, enabling investors to select specific homes for their portfolio. The platform reports 965K registered investors, $414M total invested, $77M distributed, 562+ properties funded, and 66+ active markets.

Key Features

• $100 minimum per property

• Individual property selection for single-family and vacation rentals

• Third-party coverage reports an average 18.60% total return (not annualized) on exited properties; Arrived's own returns page highlights The Centennial as its first sold property with a 34.7% total return

• Arrived introduced its secondary market in February 2025

• 5-7 year typical hold periods

Fee Structure

Arrived discloses product-specific AUM fees of 0.1%-0.30% per quarter, plus offering-level and property-level expenses including sourcing, closing, escrow, repairs, and property-management costs. Q1 2026 individual single-family residential properties averaged 3.6% annualized dividends, the SFR Fund averaged 4.2%, and the Private Credit Fund produced 8.1%-8.6% monthly annualized yields.

Best For: Investors who want to select specific properties and are comfortable with multi-year hold periods for potential appreciation gains.

4. Ark7

Ark7 offers fractional ownership in rental homes with a focus on secondary-market access. The platform reports 230K+ active investors and $23MM+ in property value funded, as of March 2025.

Key Features

• $20 per share minimum investment

• PPEX ATS secondary marketplace (an SEC-registered alternative trading system); secondary trading is available after applicable holding periods, subject to market availability

• 0% ongoing AUM fees

• Monthly dividend distributions

• Ark7 states that approximately 70% of its properties are available for trading, subject to secondary-market availability

Performance

Ark7 reports a 4.36% dividend yield with additional appreciation potential. The platform reports properties across 10 markets and $23MM+ in property value funded.

Best For: Investors seeking secondary trading access through the PPEX ATS marketplace, subject to secondary-market availability.

5. Willow Wealth (formerly Yieldstreet)

Willow Wealth, formerly Yieldstreet, provides access to private-market investments across real estate, private credit, private equity, art, legal finance, and other asset classes. With $6 billion+ invested across all assets, the platform offers diversification beyond traditional real estate.

Key Features

• Minimums vary by offering; current direct evergreen funds shown publicly list $10K minimums, while individual private placements may vary

• Multi-asset diversification (real estate, private credit, private equity, art, legal finance)

• The Yieldstreet Alternative Income Fund, formerly the Prism Fund, reported a 6.0% annualized total return since inception as of December 31, 2025; new share offerings were suspended as of March 19, 2026 in connection with a proposed asset acquisition

• Access to select private-market funds managed by institutional firms including StepStone, Goldman Sachs, and Carlyle

Investment Structure

Willow Wealth fees vary by offering. The Yieldstreet Alternative Income Fund disclosed a 1.0% management fee and a 2.8% adjusted annual expense ratio. Most opportunities are structured as fund investments.

Best For: Investors seeking portfolio diversification beyond real estate into alternative asset classes with access to institutional private-market fund managers.

6. EquityMultiple

EquityMultiple targets accredited investors with commercial real estate opportunities, including office, industrial, and retail properties. According to the platform, its investors have participated in over $4 billion in commercial real estate transactions.

Key Features

• $5,000 minimum investment

• Commercial real estate focus

• Target returns vary by strategy: 8-12% for senior debt, 10-14% preferred returns for preferred equity, and 18%+ target net IRRs for value-add/opportunistic equity

• Around 5% deal acceptance rate

• Equity, preferred equity, and debt options

Accreditation Requirements

EquityMultiple is available to accredited investors who meet specific income or net worth thresholds.

Best For: Accredited investors seeking commercial real estate exposure with rigorous deal vetting and multiple investment structures.

7. RealtyMogul

RealtyMogul offers both REIT funds and private placements, having served investors across REITs, 1031 exchange properties, and commercial real estate properties since 2012.

Key Features

• $5,000 minimum for REITs; $25,000+ for private placements

• Dual structure: public REITs and private equity deals

• The Income REIT currently lists a 3.0% annualized distribution rate; private placements and completed deals may have different target or realized returns. Investors should check current offering availability for the Income REIT

• Quarterly distributions

• 13-year operational track record

Fee Considerations

RealtyMogul's Income REIT discloses a 1% annualized asset-management fee based on total equity value, plus potential operating-expense reimbursements and other fees that vary by offering.

Best For: Investors wanting flexibility to choose between REIT diversification and individual private equity deals, subject to current product availability.

Why mogul Stands Out as a Groundfloor Alternative

Equity Ownership vs. Debt Lending

The fundamental difference between mogul and Groundfloor lies in the investment structure. Groundfloor makes investors lenders earning fixed interest, with Notes currently advertising returns of up to 8.25% depending on term and Flywheel structured as a diversified real estate-credit portfolio with weekly payouts and a 36-month reinvestment strategy, while mogul makes investors property owners. This distinction matters because:

• Appreciation Upside: mogul investors benefit when property values increase; Groundfloor investors earn their contracted interest rate, with returns determined by the loan terms

• Tax Advantages: Direct LLC ownership through mogul enables depreciation deductions that can offset rental income for tax purposes, with tax treatment varying by investment structure

• Risk Profile: mogul's equity model with institutional vetting pursues risk management through rigorous asset selection and proprietary underwriting, offering a differentiated approach to real estate risk

Institutional-Grade Property Selection

mogul's founding team brings Goldman Sachs real estate experience to every acquisition. The platform applies proprietary underwriting, less than 1% property selection, and a 12%+ projected IRR hurdle before approving properties. mogul reports an 18.8% average annual IRR historically.

Technology-Enabled Transparency

mogul uses blockchain technology for ownership verification. Built on Avalanche with Fireblocks secure infrastructure, mogul says its blockchain backbone provides:

 

• Permanent, verifiable ownership records that exist independently of the platform itself

• Legal ownership documentation uploaded after each investment

• Asset separation and blockchain-backed transparency

Comprehensive Investor Support

Beyond the investment platform, mogul provides free investment calculators that analyze any U.S. property address. These tools, including rental property, Airbnb, and real estate calculators, use institutional-grade data to help investors evaluate opportunities both on and off the platform.

For investors seeking an alternative to Groundfloor's debt-based approach, mogul offers direct property ownership, institutional vetting, blockchain security, and current property-level projections. Explore current investment opportunities to see how fractional real estate ownership can fit your portfolio.

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 Groundfloor and equity-based alternatives like mogul?

Groundfloor operates as a debt platform where investors fund short-term loans to real estate developers, earning fixed interest rates. Notes currently advertise returns up to 8.25% depending on term, while Flywheel is designed as a 36-month diversified real estate-credit portfolio. Equity platforms like mogul provide direct fractional ownership in properties, enabling investors to benefit from rental income, property appreciation, and real estate tax benefits like depreciation. While Groundfloor and mogul serve different investor objectives, equity investments typically offer longer horizons alongside greater upside potential.

Can non-accredited investors use these Groundfloor alternatives?

Yes, most platforms listed here accept non-accredited investors. mogul, Fundrise, Arrived, Ark7, and RealtyMogul (for REITs, subject to current product availability) all welcome non-accredited investors. EquityMultiple and Willow Wealth, formerly Yieldstreet, (for most offerings) are available to accredited investors. mogul specifically targets first-time real estate investors alongside experienced portfolio builders, offering accessible entry points without accreditation requirements.

What are the typical returns offered by fractional real estate investment platforms?

Returns vary significantly by platform and investment type. mogul reports an 18.8% historical average IRR with target returns of 15-20%. Fundrise's official client-returns page reports 5.75% for 2024 and 6.24% for 2025 advisory-client annual returns. Third-party coverage reports Arrived achieved an average 18.60% total return (not annualized) on exited properties. Groundfloor's Notes currently advertise returns up to 8.25% depending on term, while Flywheel is designed as a 36-month diversified real estate-credit portfolio. Past performance does not guarantee future results, and all investments carry risk.

How does fractional real estate investing compare to traditional real estate ownership?

Fractional investing eliminates many barriers to traditional ownership: no large down payments required, no tenant calls at 3am, and no property management responsibilities. Platforms like mogul handle acquisitions, property management, and tenant coordination while distributing proportional rental income to investors. Traditional ownership offers more control but requires significant capital, time, and expertise.

What are the liquidity options for investments on Groundfloor alternative platforms?

Liquidity varies by platform. Groundfloor offers 1-, 3-, and 12-month Notes, as well as individual real estate loans and a Flywheel product designed around a 36-month reinvestment strategy. Ark7 offers secondary trading through PPEX ATS after applicable holding periods, subject to market availability. Arrived introduced its secondary market in February 2025. mogul properties are typically held for 3-10 years. Fundrise offers quarterly redemption windows subject to applicable terms. Investors should align platform choice with their liquidity needs.