Lofty Alternatives

Lofty has carved out a unique position in the fractional real estate investing space by using blockchain technology to tokenize rental properties on the Algorand network. The platform offers daily rental income distributions and a secondary marketplace for trading shares. However, investors seeking direct property ownership, stronger tax benefits, or higher historical returns may find better options elsewhere. This guide examines seven alternatives that serve different investment goals in 2026, starting with mogul, a fractional real estate platform founded by former Goldman Sachs executives that has delivered 18.8% average annual returns through institutional-grade property selection.

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

• LLC ownership may provide significant tax benefits: Platforms like mogul structure properties through property-level LLCs taxed as partnerships, potentially allowing investors to access proportionate real estate tax benefits including depreciation, subject to individual tax circumstances. Lofty investors receive 1099 reporting rather than partnership tax forms, though Lofty says token holders may benefit from depreciation. REIT-based platforms generally provide 1099-DIV reporting without direct depreciation pass-throughs, though qualified REIT dividends may qualify for the federal 20% QBI deduction.

• One-time fees may reduce long-term fee drag: mogul charges a one-time 3% platform/onboarding fee, plus a conditional 2% setup fee when a property requires preparation to become rent-ready, versus competitors charging 1–1.5% annually

• Goldman Sachs pedigree brings institutional-grade underwriting: mogul's founding team brings $10 billion in combined deal experience, applying a Goldman Sachs-style diligence process to every property offering

• Return profiles vary significantly across platforms: Reported returns differ widely by platform and structure, with mogul reporting 18.8% average annual returns (IRR), making platform and product selection critical for wealth building

• Minimum investments vary widely: Fundrise and certain Groundfloor individual opportunities offer entry points from $10, while some EquityMultiple investments start around $5,000 and RealtyMogul private placements typically require $25,000–$50,000

• Monthly distributions beat quarterly for compounding: mogul and Arrived provide monthly income, compared to quarterly payouts from Fundrise and Willow Wealth's Alternative Income Fund

1. mogul

mogul delivers a fractional real estate platform that provides direct ownership in income-producing single-family rental properties. Founded by former Goldman Sachs executives, the platform has 65+ properties, $40M+ in assets, and a community of 13,000+ investors seeking institutional-quality returns without the headaches of traditional property ownership.

How Does mogul Work?

mogul acquires professionally vetted rental properties, places each into a state-registered LLC, and offers fractional shares to investors. This structure provides true ownership with voting rights, monthly rental income distributions, and proportionate real estate tax benefits. Key highlights:

• Property Selection - Less than 1% of reviewed properties pass mogul's institutional-grade diligence process

• LLC Ownership - Each property is held in a separate LLC taxed as a partnership, providing proportionate real estate tax benefits including potential depreciation-related benefits, subject to individual tax circumstances

• Monthly Income - Receive monthly income distributions in proportion to ownership; projected returns are not guaranteed

• Voting Rights - Super-majority voting on decisions exceeding $1,000; no single investor can override

Documented Performance

mogul's platform has delivered consistent results across its portfolio:

• 18.8% average annual returns (IRR) across platform properties

• mogul's How It Works page states a 12% minimum projected IRR hurdle rate; some properties display projected annual returns of 15–20% with varying Year 1 yields

• 90% of investors invest a second time, and when they do, it is 3x their first investment

Tax Advantage Structure

mogul's LLC structure may provide proportionate real estate tax benefits that are subject to individual investor circumstances. mogul says depreciation and expense pass-throughs may reduce taxable income; investors should consult a tax professional because treatment varies by individual. mogul offers an illustrative example that a property dividend may benefit from depreciation tax shielding relative to REIT dividends, but actual after-tax results depend on each investor's individual situation.

What Makes mogul Unique

• Highest Reported Returns: 18.8% average annual IRR versus 6–12% industry standard

• One-Time Fee Model: a one-time 3% platform/onboarding fee, plus a conditional 2% setup fee when a property requires preparation to become rent-ready, with zero ongoing annual fees

• Goldman Sachs Pedigree: Founding team brings $10B+ institutional deal experience and uses a Goldman Sachs-style diligence process

• $10k Loss Protection for New Members: mogul covers up to $10k in first-year losses with its own balance sheet capital

• Built-In Protection: 12 months of operating reserves capitalized upfront and property insurance that pays market rent in certain covered events

• mogul Clubs: Community features that distribute up to 2% in rewards to members

• Investor Alignment: mogul says it personally invests in every property category offered on the platform

Best For: Investors seeking the highest reported returns in fractional real estate, proportionate tax benefits through LLC ownership, and institutional-grade property selection, all with a one-time fee structure that eliminates ongoing annual costs.

2. Fundrise

Fundrise operates as a REIT-based real estate investment platform that was founded in 2012. The platform offers a diversified portfolio approach through various fund options rather than individual property selection.

Key Features

• $10 minimum investment, among the lowest in the industry

• REIT structure with automatic diversification across properties

• Fundrise publishes historical client returns on its official track record page; investors should review fund-specific performance, period, and methodology before investing

• 1% total annual fees (0.15% advisory + 0.85% management)

• Quarterly dividend distributions

Investment Structure

Fundrise pools investor capital into eREITs and eFunds that own portfolios of properties across residential, commercial, and industrial sectors. This approach provides automatic diversification but means investors cannot select specific properties.

Considerations

• Fundrise real estate investments are intended for long-term holding and are not exchange-traded; liquidity is generally quarterly and subject to limitations. Some legacy eREIT shares held under five years may carry an approximate 1% liquidity penalty, while the Flagship Fund and Income Fund currently do not.

• Quarterly distributions versus monthly alternatives

• REIT investors generally receive 1099-DIV reporting rather than direct property-level depreciation allocations; however, qualified REIT dividends may be eligible for the federal 20% QBI deduction

• No individual property selection or voting rights

Best For: Absolute beginners seeking the lowest possible entry point with automatic diversification and a long track record.

3. Arrived Homes

Arrived Homes focuses on individual rental property investments with a relatively low barrier to entry. The platform was founded in 2019 and began public fractional-property offering activity around 2021, allowing investors to choose specific properties for their portfolios.

Core Capabilities

• $100 minimum investment per property

• Direct selection of individual rental homes

• Monthly dividend distributions

• 6–10% target annual returns

• Professional property management included

Property Selection

Arrived enables investors to browse available properties and select specific homes to invest in. Each property listing includes financial projections, location details, and market analysis to inform investment decisions.

Considerations

• Six-month holding period before shares can be listed on the secondary market, subject to monthly trading windows, buyer demand, and market limitations

• Higher fees relative to some competitors

• Lower target returns compared to platforms like mogul

• Limited voting rights on property decisions

Best For: Investors who want to select specific rental properties with monthly distributions and a moderate entry point.

4. EquityMultiple

EquityMultiple provides access to institutional-grade commercial real estate investments. The platform serves accredited investors seeking diversification into commercial properties typically reserved for institutional buyers.

Key Features

• $5,000 minimum investment for some opportunities

• Commercial real estate focus including office, retail, and multifamily

• EquityMultiple gives accredited investors access to vetted commercial real estate opportunities alongside sponsors and lenders

• Only 5% of evaluated deals accepted onto platform

• Tax documentation for applicable investments varies by investment structure

Investment Approach

EquityMultiple emphasizes rigorous vetting, with its team reviewing hundreds of deals to select a small percentage for investor access. The platform offers both equity and debt investments across different risk profiles.

Considerations

• Accredited investors only, accredited investor status generally requires over $200,000 individual income, over $300,000 joint income with a spouse or spousal equivalent, or net worth over $1 million excluding primary residence, plus other SEC-recognized qualification paths

• 0.5–1.5% annual fees plus $30–70 annual administrative fees

• Limited liquidity with varying hold periods by deal

• No residential single-family rental options

Best For: Accredited investors seeking institutional-quality commercial real estate with rigorous vetting standards.

5. RealtyMogul

RealtyMogul offers both REIT products for non-accredited investors and private placements for accredited investors. The platform focuses primarily on commercial real estate opportunities.

Core Capabilities

• RealtyMogul REITs have lower minimums, commonly $5,000, while private placements typically require $25,000–$50,000

• Both accredited and non-accredited access options

• Commercial property specialization

• Returns vary by product; investors should review RealtyMogul's product-specific performance disclosures before investing

• Monthly and quarterly distribution options depending on investment type

Dual Access Model

RealtyMogul provides two pathways: MogulREIT products accessible to all investors, and private placement deals reserved for accredited investors seeking larger commercial opportunities.

Considerations

• 1–1.25% annual management fees across products

• RealtyMogul REITs may offer limited repurchase programs subject to restrictions, while private placements are generally illiquid and have multi-year horizons

• Commercial focus means no single-family rental exposure

• Higher minimums for private placements than residential-focused platforms

Best For: Investors seeking commercial real estate exposure with flexibility between REIT products and private placements.

6. Groundfloor

Groundfloor operates a real estate debt lending model rather than equity ownership. The platform funds loans for property developers and pays investors interest rates based on loan grade.

Key Features

• Individual Groundfloor opportunities can start at $10, though minimums vary by product

• Groundfloor charges no upfront investor fees for individual opportunities; certain products such as the Flywheel Portfolio carry a 1.0% management fee

• Returns vary by product and loan grade; investors should review Groundfloor's current official product disclosures for current rate ranges

• Investment terms vary by product, from short-term Notes to real estate loans that may run from several months to 18–24 months depending on the program

• Certain Groundfloor real estate loans are secured by first-lien positions; investors should verify lien position and collateral terms for each product or loan

Debt Model Approach

Rather than owning property equity, Groundfloor investors fund loans to developers. Investors select specific loans based on risk grade (A through G), with A-grade loans offering lower risk and lower returns.

Considerations

• Debt-only model provides no appreciation potential or property ownership

• Lower-rated, higher-yield loans, especially grades D through G, carry greater risk than A-grade loans

• Returns are fixed interest rather than variable based on property performance

• No tax benefits from depreciation since investors don't own property

Best For: Investors seeking zero-upfront-fee, fixed-income returns from real estate debt with defined loan terms.

7. Willow Wealth (formerly Yieldstreet)

Willow Wealth, formerly Yieldstreet, positions itself as a multi-asset alternative investment platform, offering real estate alongside art, private credit, legal finance, and other alternative asset classes.

Platform Scope

• Willow Wealth direct offerings commonly have higher minimums, often around $10,000, though RealtyMogul private placements may require $25,000–$50,000

• Diversification beyond real estate into multiple alternative asset classes

• The Alternative Income Fund is available to non-accredited investors and reports a 6.7% annualized distribution rate and 6.0% annualized total return since inception as of December 31, 2025; this is a multi-asset fund and not real-estate-specific performance

• The Alternative Income Fund targets quarterly income; distribution schedules for direct offerings vary by investment

Multi-Asset Approach

Willow Wealth's differentiation comes from offering access to alternative investments beyond real estate, including private equity, structured notes, and specialty finance opportunities.

Considerations

• Higher minimums for direct offerings compared to entry-level platforms

• Returns vary by product and asset class; investors should review official Willow Wealth disclosures for current figures

• Complex fee structures vary significantly by investment type

• Limited liquidity across most investment offerings

• Real estate is one component of a broader platform

Best For: High-net-worth investors seeking diversification across multiple alternative asset classes beyond just real estate.

Why mogul Stands Out for Fractional Real Estate Investing

Highest Reported Returns in the Industry

mogul's 18.8% average annual IRR significantly outperforms alternatives. While Fundrise publishes historical client returns on its official track record page, and Willow Wealth's (formerly Yieldstreet) multi-asset Alternative Income Fund reports a 6.7% annualized distribution rate and 6.0% annualized total return since inception as of December 31, 2025, mogul's institutional approach to property selection has generated returns well above the industry standard.

One-Time Fee Structure Reduces Long-Term Fee Drag

mogul's one-time fee model, a 3% platform/onboarding fee, plus a conditional 2% setup fee when a property requires preparation to become rent-ready, may reduce long-term platform-fee drag compared with platforms charging 1% annually, depending on hold period and portfolio growth. This fee structure aligns mogul's interests with long-term investor success rather than asset accumulation.

Tax Benefits Through LLC Ownership

mogul's LLC structure may improve after-tax outcomes relative to dividend-only structures, depending on each investor's circumstances. mogul says depreciation and property-level tax benefits may reduce taxable income through expense pass-throughs; investors should consult a tax professional because treatment varies by individual. REIT-based platforms like Fundrise generally deliver 1099-DIV reporting without direct property-level depreciation allocations, though qualified REIT dividends may qualify for the federal 20% QBI deduction.

Goldman Sachs Pedigree Brings Institutional Rigor

mogul was founded by former Goldman Sachs executives whose investment professionals have deployed $10B+ into real estate. mogul uses proprietary underwriting and a Goldman Sachs-style diligence process, less than 1% of properties reviewed pass due diligence.

Built-In Downside Protection

mogul capitalizes 12 months of operating reserves upfront and maintains property insurance that pays market rent in certain covered events. mogul says it adequately capitalizes properties and maintains insurance to mitigate against the need for future capital calls.

Direct Ownership with Voting Rights

Unlike REIT structures where investors have no say in property decisions, mogul provides super-majority voting rights on decisions exceeding $1,000. This governance structure gives investors direct input on capital improvements and operational changes.

For investors evaluating fractional real estate platforms, mogul's combination of highest reported returns, potential tax benefits, one-time fee structure, and institutional pedigree creates a compelling case. Explore available properties or use mogul's free rental property calculator to analyze potential investments.

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 advantages of fractional real estate investing compared to traditional property ownership?

Fractional real estate investing eliminates the typical barriers of direct ownership: large down payments, property management responsibilities, and concentration risk in a single asset. Platforms handle acquisition, tenant coordination, and ongoing operations while investors receive monthly income distributions. mogul's approach provides these benefits while offering proportionate real estate tax advantages through LLC ownership, subject to individual tax circumstances.

How do platforms like Lofty and its alternatives handle liquidity?

Liquidity varies significantly across platforms. Lofty allows investors to list holdings for sale once a property is funded with no lock-up, though actual liquidity depends on market demand. Arrived permits secondary-market sales after a six-month hold, subject to monthly trading windows, buyer demand, and market limitations. Fundrise investments are intended for long-term holding with quarterly liquidity subject to limitations; some legacy eREIT shares held under five years may carry an approximate 1% liquidity penalty, while the Flagship Fund and Income Fund currently do not. mogul holds properties for 3–10 years to capture full appreciation and monthly income potential, with a secondary market for share trading in development to provide investors with additional flexibility.

What kind of returns can I realistically expect from fractional real estate platforms?

Returns vary substantially by platform and investment strategy. mogul reports 18.8% average annual returns (IRR) across platform properties. Fundrise publishes historical client returns on its official track record page; investors should review fund-specific performance and methodology. Groundfloor returns vary by product and loan grade, as disclosed on its official product pages. Willow Wealth (formerly Yieldstreet) reports a 6.7% annualized distribution rate and 6.0% annualized total return since inception on its multi-asset Alternative Income Fund as of December 31, 2025. Historical performance varies, and future results depend on property selection, market conditions, and platform strategy.

Are there hidden fees associated with fractional real estate investments?

Fee structures differ significantly. mogul charges a one-time 3% platform/onboarding fee, plus a conditional 2% setup fee when a property requires preparation to become rent-ready, with no ongoing annual costs. Fundrise charges 1% annually (0.15% advisory plus 0.85% management). Lofty currently states a 3% buy fee and 3% sell fee on marketplace trades. Groundfloor charges no upfront investor fees for individual opportunities, but certain products such as the Flywheel Portfolio carry a 1.0% management fee. Always review the complete fee schedule before investing.

Is fractional real estate investing suitable for non-accredited investors?

Most platforms reviewed accept non-accredited investors. mogul, Fundrise, Arrived, Groundfloor, and Willow Wealth's Alternative Income Fund all welcome retail investors. EquityMultiple requires accredited investor status, generally meaning over $200,000 individual income, over $300,000 joint income with a spouse or spousal equivalent, or net worth over $1 million excluding primary residence, plus other SEC-recognized qualification paths. RealtyMogul offers both accredited and non-accredited options depending on the specific investment product.

How do fractional ownership platforms handle property management and tenant issues?

Property-management responsibilities are handled by the platform, sponsor, borrower, or property manager depending on the investment structure. Debt and multi-asset platforms do not provide property management to investors in the same way individual rental-property equity platforms do. For equity platforms like mogul, the platform handles all tenant coordination, maintenance, and operational responsibilities while distributing income monthly. This headache-free approach means investors receive income without 3 AM maintenance calls or tenant screening responsibilities. mogul additionally capitalizes 12 months of operating reserves per property and maintains property insurance that pays market rent in certain covered events; projected returns are not guaranteed.