mogul vs 1031 Crowdfunding

Choosing the right real estate investment platform depends heavily on your financial situation, investment goals, and whether you have property sale proceeds requiring tax-deferred treatment. mogul and 1031 Crowdfunding serve fundamentally different investor needs: mogul delivers accessible fractional ownership in single-family rentals through blockchain-backed technology, while 1031 Crowdfunding is best known for Delaware Statutory Trust (DST) investments used by accredited investors executing 1031 exchanges, alongside a broader set of alternative investments. Understanding these distinctions, between growth-oriented fractional investing and tax-deferred exchange structures, helps investors select the approach that aligns with their capital, accreditation status, and income objectives.

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

• mogul is a fractional real estate platform club founded by former Goldman Sachs professionals who report more than $10 billion in collective real estate deal experience, applying institutional-quality underwriting under which less than 1% of reviewed properties pass diligence
• mogul is open to both accredited and non-accredited U.S. investors, subject to onboarding and KYC verification and offering-specific eligibility, while 1031 Crowdfunding's DST offerings are limited to accredited investors
• mogul covers up to $10,000 in losses on investments made within a new member's first 7 days if those investments show a loss after year one, a risk mitigation feature that is uncommon in the fractional real estate space
• Certain mogul offerings list projected or target annual IRRs of 15% to 20%, above the platform's 12% minimum projected IRR hurdle; these are underwriting projections rather than promised returns, and they measure something different from the current cash-flow rates advertised on 1031 Crowdfunding DSTs
• mogul's blockchain integration on the Avalanche network delivers independently verifiable, near-real-time proof of ownership, with monthly dividends, real-time appreciation updates, and tax benefits surfaced through the dashboard
• mogul enables diversified portfolio building one property at a time, with an average investment of about $10,000 per member, while 1031 Crowdfunding's publicly displayed DST minimums currently range from approximately $25,000 to $250,000

When investors evaluate fractional real estate platforms, the choice between mogul and 1031 Crowdfunding represents two distinct philosophies toward property investment. 1031 Crowdfunding has built a substantial platform over 10+ years and reports more than $2.8 billion in equity raised, while mogul brings a technology-forward approach and former Goldman Sachs real estate expertise to the single-family rental market. This comparison reveals why mogul's combination of accessibility, transparency, and institutional rigor delivers compelling value for investors seeking property-level fractional ownership with growth potential.

Understanding Each Platform's Core Positioning

1031 Crowdfunding is best known for helping accredited investors access DST replacement properties for tax-deferred exchanges, offering commercial properties through DST structures designed for investors selling appreciated property. Founded in 2014 by Edward E. Fernandez, the platform reports more than 2,800 completed exchange transactions and lists DSTs across multifamily, industrial, medical office, retail and NNN, senior housing, land lease, and self-storage sectors. It is no longer DST-only: the company now also offers other alternative investments, including REITs, Qualified Opportunity Funds, bridge or private-credit products, notes, and 721/UPREIT-related opportunities. Its own educational materials also note that a DST may be purchased by an investor who is not conducting a 1031 exchange.

mogul takes a focused approach to fractional real estate. Founded by former Goldman Sachs professionals who report more than $10 billion in collective deal experience, mogul specializes in single-family residential rentals, with primary operating models across short-term and mid-term rental strategies, alongside long-term and sale-leaseback approaches. Rather than structuring investments for tax-deferred exchanges, mogul offers fractional ownership through property-specific investment-club LLC structures, giving investors economic and governance rights tied to one identified home.

The fundamental difference: 1031 Crowdfunding is centered on accredited investors seeking qualified replacement assets for tax deferral, while mogul delivers property-level fractional ownership in residential real estate for investors deploying new capital seeking growth.

Investment Options Reflect Different Strategic Approaches

1031 Crowdfunding's investment platform includes:

• Delaware Statutory Trust (DST) interests, most commonly used by 1031 exchange participants
• Tenant-in-Common (TIC) structures, in which owners generally receive undivided fractional interests and separate deeds
• Accredited-investor DST placements with offering-specific minimums currently ranging from approximately $25,000 to $250,000
• Commercial property focus across multifamily, industrial, medical office, retail and NNN, senior housing, and land lease
• Additional vehicles including REITs, Qualified Opportunity Funds, notes, and bridge or private-credit products, with the Covenant Housing REIT carrying a $5,000 minimum and generally limited to accredited investors
• IRA investment compatibility for retirement accounts, subject to custodian and offering requirements

This structure suits investors with significant property sale proceeds requiring tax-deferred treatment within strict IRS timelines, which generally require replacement property to be identified within 45 days and received within 180 days or by the applicable tax-return due date, whichever is earlier.

mogul's investment offerings focus on:

• Short-term rentals, Airbnb-style stays of fewer than 30 days at high-end homes, targeting higher yields than traditional long-term rentals
• Mid-term rentals, with leases longer than 30 days and shorter than one year, answering workforce housing demand while operating at roughly 94% occupancy
• Long-term residential rentals with stable tenant relationships
• Potential tax benefits passed through on Schedule K-1, including depreciation allocations subject to each investor's circumstances
• Membership interests in a property-specific investment-club LLC associated with a PropCo LLC that owns one identified property

mogul's model enables investors to select specific properties one at a time rather than committing to a blind pooled vehicle, providing transparency into exactly where capital is deployed.

For example, 1031 Crowdfunding lets investors select individual DST offerings, and depending on the offering a DST may hold one property or a portfolio of properties, with investors free to allocate across multiple DSTs for diversification. mogul, by comparison, allows investors to review property-level underwriting, including projected revenue, returns, and scenario analysis, before committing capital to a specific home. Try mogul's free real estate calculator to run your own analysis.

Pricing Structures Show Distinct Value Propositions

The pricing models reveal each platform's target market and accessibility philosophy.

1031 Crowdfunding's pricing structure:

• DST minimums vary by offering; publicly displayed opportunities currently range from approximately $25,000 to $250,000, with $100,000 common for some 1031-exchange DSTs
• Some REIT options available at a $5,000 minimum
• DSTs may include acquisition, financing, selling, organizational, asset-management, and disposition fees, and total costs vary by offering
• DST interests are generally held for the longer term, with typical holding periods commonly described as approximately 5-10 years, and longer-horizon exit guidance citing 7-10 years

mogul's pricing structure:

• A fee-efficient structure with an average member investment of about $10,000, making diversified entry into institutional-quality real estate straightforward
• A one-time platform fee capitalized into the deal, described on mogul's How It Works page as 5%, and on newer pages as a 3% platform fee plus a conditional 2% property setup fee
• An ongoing fee equal to 2.5% of rental income
• No traditional recurring annual AUM fee
• Professionally vetted and managed properties, with boots-on-the-ground property management teams and in-house brokerage coordinated through the platform
• Property-specific holding periods, generally targeted at five to seven years, with certain offerings contemplating a broader three-to-ten-year range

mogul's largely capitalized fee structure, blockchain-driven back-office savings, and shorter typical target holds create meaningful advantages for investors seeking accessible entry into real estate.

Target Investors Align with Different Objectives

1031 Crowdfunding primarily serves:

• Accredited investors accessing DST replacement property for 1031 exchanges
• Property sellers needing qualified replacement assets within IRS deadlines
• Investors able to meet offering-specific minimums that currently extend as high as $250,000
• Those prioritizing capital gains tax deferral
• Retirement account holders seeking IRA-compatible investments
• Investors exploring the platform's broader alternative investment menu, including REITs, Qualified Opportunity Funds, and private-credit products

mogul targets:

• First-time real estate investors entering the asset class
• Existing property owners evaluating portfolio performance
• Accredited and non-accredited investors alike, subject to onboarding, KYC, and eligibility requirements
• Tech-forward investors valuing blockchain-verified ownership records
• Those seeking rental income distributions with growth potential

This distinction matters fundamentally. Investors deploying new capital seeking growth rather than executing tax-deferred exchanges benefit from mogul's accessible entry points and property-level ownership model. The platform enables portfolio building one property at a time, with visibility into each investment property's underwriting and performance.

Performance and Return Profiles

Both platforms publish performance-related figures, though they measure different things and are not directly comparable.

1031 Crowdfunding's advertised figures:

• Publicly displayed DSTs currently advertise current cash-flow rates of approximately 5.25% to 7.00%, depending on the offering
• These rates reflect current occupancy and operating history, are not assured, and may change; they are a different measure from total return, IRR, or realized historical performance
• Many DSTs are income-oriented commercial real estate investments, though strategy varies by offering: a current land-lease DST involves raw land intended for future development and a multifamily DST advertises meaningful operational upside, while certain senior housing offerings combine stabilized assets with value-add components
• DST offerings vary by sponsor, structure, leverage, and property mix
• Potential tax deferral benefits for qualifying 1031 exchanges

mogul's stated targets:

• Certain offerings list projected or target annual IRRs in the 15% to 20% range, net of the capitalized deal fees identified in the underwriting
• A minimum 12% projected IRR hurdle, inclusive of mogul's identified one-time fees, is required for a property to be listed
• Across the platform's assets to date, mogul reports an average IRR of approximately 18.8% and an average annualized cash-on-cash yield of roughly 10%
• Distributions of an investor's share of net rental income, generally monthly once a property is operational
• mogul covers up to $10,000 in losses on investments made within a new member's first 7 days if those investments show a loss after year one

Targets vary by property and are underwriting projections rather than promised or uniform platform returns. Past performance does not indicate future results.

The $10,000 loss protection is an uncommon feature in fractional real estate: if your total return on investments made within your first 7 days results in a loss during year one, mogul covers up to $10,000 from its own balance sheet, subject to the applicable promotion terms.

mogul's focus on single-family rentals positions investors in an asset class that, according to mogul's analysis of real estate using NAREIT, Federal Reserve, Case-Shiller Home Index, and Bloomberg data, delivered a 13.8% IRR from 1993 through 2023 compared with 9.8% for the S\&P 500. Over a 30-year hold, single-family rentals have on average returned 190% higher than the S\&P 500 with 45% less volatility.

Technology and Transparency Approaches

1031 Crowdfunding's technology:

• An online investor marketplace with offering and due-diligence materials
• Multiple calculators, including capital gains, loan-to-value, replacement property, and 45-day/180-day deadline tools
• Online account management
• Offering memoranda documentation

mogul's technology infrastructure:

• Avalanche blockchain integration recording tokenized ownership information, allowing independently verifiable, near-real-time proof of ownership
• Fireblocks digital-wallet infrastructure used to create and secure investor wallets holding tokens that represent interests in property-owning LLC structures
• A more efficient back office that lowers operational costs, with the savings passed on to members in the form of higher returns
• Property valuations and operating-performance updates delivered through the mogul dashboard, generally on a monthly basis using third-party appraisal or comparable-market data
• Investment execution in under 30 seconds

mogul's blockchain backbone provides permanent, verifiable ownership records that exist independently of the platform itself. Legal ownership documentation is also uploaded to your account after each investment. This infrastructure is intended to support a planned secondary market for share trading, addressing the liquidity characteristics inherent in real estate investing.

Property Selection and Due Diligence

1031 Crowdfunding's stated vetting process:

• The company says it reviews offerings and includes opportunities from several nationally recognized DST sponsors
• It provides PPMs, property details, market information, and other due-diligence materials through its portal
• Multiple asset classes across commercial real estate

mogul's selection methodology:

• Less than 1% of reviewed properties pass mogul's diligence process
• Proprietary underwriting models combining AVMs and CMAs
• Institutional-quality onboarding and underwriting, built by former Goldman Sachs real estate professionals
• A buy box focused on off-market and pre-market homes acquired roughly 8% to 10% below market value, in high-growth secondary markets with strong price-to-rent dislocation
• mogul invests alongside investors in every property offered
• 12% minimum projected IRR hurdle required for listings

The alignment of interests matters: mogul's capital sits alongside investor capital in every property, so management incentives track investor returns.

mogul's free investment property calculator and rental property calculator enable investors to analyze any U.S. address using data and tools mogul describes as similar to those used by top real estate firms, projecting rental income, ROI, IRR, and cash-on-cash yields across multiple scenarios.

Distribution Frequency and Cash Flow

For investors prioritizing regular income, distribution schedules significantly impact cash flow management.

1031 Crowdfunding distributions:

• Frequency varies by offering
• Many DSTs target monthly distributions, and the company's exit guidance identifies potential monthly income
• Individual property pages state that certain offerings seek monthly cash distributions
• The Covenant Housing REIT also expects monthly distributions, subject to board discretion
• Distributions are not assured

mogul distributions:

• Monthly dividends from net rental income proportional to ownership, beginning once a property is operational
• Real-time appreciation tracking alongside monthly income
• Schedule K-1 reporting, with possible allocations of depreciation and other property-level tax items
• Proceeds from eventual property sales at the end of the applicable holding period

mogul's monthly distribution model enables frequent reinvestment opportunities, supporting potential compound growth when distributions are available. It is one reason 90% of mogul investors invest a second time, typically at about three times the size of their first investment.

Liquidity Considerations

DST and other private-placement interests are generally illiquid. 1031 Crowdfunding states that there is no public exchange on which DST interests can readily be sold.

mogul is building on a different foundation. The platform is developing a secondary market intended to support share sales using monthly third-party valuation data, enabled by its blockchain infrastructure on the Avalanche network. Until that market launches, mogul investments are designed to be held for the applicable property holding period, which is generally targeted at five to seven years. mogul also monitors several exit avenues at the asset level, including traditional sale, private sale to inventory partners, cash-out refinancing, and bulk sale, and pursues the highest-returning path.

Backing and Market Credibility

1031 Crowdfunding's credentials:

• Founded in 2014 by Edward E. Fernandez, with more than ten years of operating history as of July 2026
• The company reports more than $2.8 billion in equity raised through investments
• Its management team reports participation in more than $8.1 billion of real estate transactions across their careers
• More than 2,800 completed exchange transactions, as reported by the company
• Listed as BBB-accredited with an A+ BBB rating when reviewed, and a 4.9/5 Google rating based on more than 150 reviews as of July 2026

mogul's credentials:

• Founded by former Goldman Sachs professionals reporting more than $10 billion in collective deal experience, including co-founder and COO Joey Gumataotao, who grew Goldman Sachs' single-family rental platform from $0 to $1 billion of AUM in under 12 months
• More than 65 properties under management and roughly $50 million in AUM, with 13,000+ investors on the platform
• $3.6 million seed round led by AY Ventures, with participation from Draper Associates, Draper B1, Draper Dragon, InterVest, and the Blizzard Avalanche Ecosystem Fund; mogul's broader backers include Ava Labs and angel investors from J.P. Morgan, Goldman Sachs, and Carlyle
• Advisors and investors include Rosa Rios, the 43rd Treasurer of the United States, and Chris Larsen, co-founder and executive chairman of Ripple
• Featured in TechCrunch, Forbes, Wired, Axios, Bloomberg, Fox Business, and Fortune

Tim Draper, founding partner of Draper Associates, said the mogul team's experience and ambition drove his firm's investment, and pointed to mogul's ability to unlock equity for investment property owners and take the work out of ownership.

Why mogul Delivers Superior Value for Real Estate Investors

Investors seeking accessible entry into real estate face a clear choice between tax-deferred exchange platforms and property-level residential ownership with growth potential.

Key advantages of mogul's approach:

• Property-level ownership: Purchase membership interests in a property-specific investment-club LLC associated with a PropCo LLC that owns one identified property, rather than a pooled commercial DST. You receive proportional economic rights, governance rights, rental income, appreciation exposure, and applicable tax items tied to that property, rather than direct name-on-deed ownership.

• Open to accredited and non-accredited investors: mogul is available to accredited and non-accredited U.S. investors, subject to onboarding, KYC verification, applicable legal requirements, and offering-specific eligibility.

• Monthly income potential: Once a property is operational and generates distributable net rental income, mogul generally makes monthly distributions proportional to ownership, supporting cash flow management and reinvestment.

• Risk mitigation: mogul covers up to $10,000 in losses on investments made within a new member's first 7 days if those investments show a loss after year one. At the asset level, mogul capitalizes 12 months of operating reserves per property and carries property and business interruption insurance.

• Higher return targets: Certain mogul offerings list projected or target annual IRRs of 15% to 20%, above its 12% minimum projected IRR hurdle. Targets vary by property.

• Institutional expertise: Former Goldman Sachs professionals reporting more than $10 billion in collective deal experience lead the underwriting, with less than 1% of reviewed properties passing diligence.

• Blockchain transparency: Avalanche network integration provides verifiable ownership records, lowers back-office costs, and is intended to support a future secondary market.

• Community and rewards: mogul Clubs distribute up to 2% in rewards to members, and members who refer a friend receive $50 when that friend invests.

• Aligned interests: mogul invests alongside platform investors in every property offered.

For investors seeking headache-free fractional real estate with monthly income potential, rigorous property selection, and property-level ownership in single-family rentals, mogul represents the superior approach to building a real estate portfolio. The combination of accessibility, transparency, and institutional experience creates compelling value for investors deploying new capital seeking growth in the world's largest wealth generator.

Ready to explore fractional real estate? Analyze potential investments with mogul's free Airbnb calculator or schedule a call to discuss your investment objectives.

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 is the primary difference between mogul and 1031 Crowdfunding?

mogul and 1031 Crowdfunding serve fundamentally different investor needs. mogul offers fractional ownership in single-family residential rentals for investors deploying new capital seeking growth. 1031 Crowdfunding is best known for Delaware Statutory Trust (DST) investments used by accredited investors executing 1031 exchanges to defer capital gains taxes, though it now also offers REITs, Qualified Opportunity Funds, notes, bridge or private-credit products, and 721/UPREIT-related opportunities. If you are selling appreciated property and need a qualified replacement asset within IRS deadlines, 1031 Crowdfunding addresses that specific need. If you are investing new capital and want accessible entry into residential real estate with higher growth targets, mogul's platform provides that opportunity.

Does mogul offer a 1031 exchange option for investors?

mogul's offerings are structured as fractional ownership in single-family rentals through property-specific investment-club LLC structures rather than as 1031 exchange replacement property, with certain offerings listing projected or target annual IRRs of 15% to 20%. mogul investors generally receive Schedule K-1 reporting and may be allocated depreciation and other property-level tax items, though availability and usefulness depend on the offering, the investor's basis, applicable IRS limitations, and individual tax circumstances. mogul does not provide tax or legal advice.

What returns does mogul target?

Certain mogul offerings list projected or target annual IRRs in the 15% to 20% range, net of the capitalized deal fees identified in the underwriting, and every listing must clear a 12% minimum projected IRR hurdle. Across platform assets to date, mogul reports an average IRR of approximately 18.8%. These are underwriting projections that vary by property, market conditions, and holding period. The platform focuses on single-family rentals, an asset class that, according to mogul's analysis of NAREIT, Federal Reserve, Case-Shiller Home Index, and Bloomberg data, delivered a 13.8% IRR from 1993 through 2023 compared with 9.8% for the S\&P 500. mogul provides property-level underwriting including projected revenue, returns, and scenario analysis. For new members, mogul covers up to $10,000 in losses on investments made within the first 7 days if those investments show a loss after year one.

Is a secondary market available for selling investments on either platform?

Not yet on either platform. mogul is developing a secondary market intended to support share sales at values calculated monthly using third-party appraisal-level data, enabled by its blockchain infrastructure on the Avalanche network. Until it launches, mogul investments are designed to be held for the applicable property holding period. 1031 Crowdfunding states there is no public exchange for DST interests, with typical DST holding periods described as approximately 5-10 years. mogul's typical target hold of five to seven years, with certain offerings contemplating a three-to-ten-year range, is generally shorter, and mogul actively monitors multiple exit avenues at the asset level.

Who is the target audience for mogul versus 1031 Crowdfunding?

1031 Crowdfunding primarily serves accredited investors executing 1031 exchanges, meaning those selling appreciated property who need qualified replacement assets within IRS deadlines. Its publicly displayed DST minimums currently range from approximately $25,000 to $250,000. mogul targets a broader audience including first-time real estate investors, both accredited and non-accredited investors subject to onboarding and KYC requirements, those seeking rental income with growth potential, and tech-forward investors valuing blockchain-verified ownership. With an average member investment of about $10,000, mogul makes diversified portfolio building across multiple properties straightforward.

How does mogul's risk mitigation compare to traditional real estate investing?

mogul offers several risk mitigation features that are uncommon in fractional real estate. The platform covers up to $10,000 in losses on investments made within a new member's first 7 days if those investments show a loss after year one. Additionally, less than 1% of properties reviewed pass mogul's diligence process, and every listing must clear a 12% minimum projected IRR hurdle. mogul capitalizes 12 months of operating reserves per asset, carries property and business interruption insurance, and invests alongside investors in every property offered, aligning management interests with investor returns. The platform also enables diversification across multiple properties, reducing concentration risk compared with traditional single-property ownership.