Choosing the right fractional real estate platform requires understanding the fundamental differences between equity ownership and debt-based investing. mogul, Arrived, and Groundfloor represent three distinct approaches to real estate investment: mogul delivers property-level fractional ownership in single-family rentals through institutional-style underwriting and blockchain technology, Arrived offers equity ownership alongside fund products, and Groundfloor is a private-markets platform rooted in short-term real estate credit that expanded into other private-market verticals during 2026. Understanding these structural differences helps investors select the approach that aligns with their income objectives, risk tolerance, and wealth-building timeline.
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's founding team of former Goldman Sachs real estate professionals applies institutional-style underwriting, with fewer than 1% of reviewed properties passing its selection process
mogul distributes monthly once a property is operational and generating distributable net rental income, and pairs that cadence with property-level equity ownership; Arrived also currently pays monthly dividends on income-producing individual properties, while Groundfloor's payment timing varies by product
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 protection feature that is unusual in fractional real estate
mogul's blockchain integration on the Avalanche network provides independently verifiable ownership records and near-instant ownership verification, with property valuations updated monthly using third-party appraisal-level data
mogul's fee structure with no recurring annual AUM charge produces an illustrative five-year saving of roughly $480 on a $10,000 stake compared with Arrived's individual-SFR fee structure, under the stated assumptions below
mogul's equity model gives investors exposure to potential property appreciation and Schedule K-1 reporting that may allocate depreciation and other property-level tax items, while Groundfloor's real estate debt products deliver fixed-rate exposure without participation in property appreciation
When investors evaluate fractional real estate platforms, the choice between mogul, Arrived, and Groundfloor represents fundamentally different philosophies toward property investment. While Arrived has built scale with roughly 992,000 registered investors and Groundfloor has funded more than $2.2 billion across its platform since 2013, mogul brings former Goldman Sachs real estate expertise and technology-forward infrastructure to the single-family rental market. This comparison reveals why mogul's combination of targeted return profile, monthly cash flow, and institutional rigor delivers compelling value for investors seeking property-level equity ownership.
Understanding Each Platform's Core Positioning
mogul takes a focused approach to fractional real estate, specializing in single-family residential rentals including short-term and mid-term strategies. Founded by former Goldman Sachs real estate professionals with $10 billion or more of investing experience, mogul offers fractional ownership through property-specific LLC structures. Rather than pooling investments into blind funds, mogul gives investors membership interests in property-specific investment-club LLCs tied to homes they can identify by address. This provides property-level economic and governance exposure with full visibility into where capital is deployed.
Arrived positions itself as a fractional rental property platform offering multiple investment products. Arrived reported approximately 992,000 registered investors and $458 million to $459 million invested as of August 2026, across 589 or more funded properties. Arrived provides equity ownership in single-family rentals, vacation rentals, City Funds, an SFR Fund, and the Real Estate Income Fund (formerly the Private Credit Fund), serving investors seeking diversified real estate exposure.
Groundfloor began as a debt-based real estate platform, offering short-term loans to real estate developers and flippers. Founded in 2013, the platform reported in April 2026 that more than 300,000 users had invested more than $2.2 billion. Investors in individual Groundfloor loans purchase Limited Recourse Obligations (LROs) tied to corresponding real estate loans. During 2026 Groundfloor extended past real estate credit alone: it launched consumer-credit investing in May 2026, an SMB Growth Fund using revenue-based agreements in June 2026, and a Music Royalties Portfolio in July 2026.
The fundamental distinction: mogul and Arrived offer equity-based ownership with exposure to potential appreciation, while Groundfloor's core retail real estate products provide fixed-rate debt exposure without participation in property appreciation.
Investment Options Reflect Different Strategic Approaches
mogul's investment offerings focus on:
Short-term rentals (Airbnb-style properties targeting higher yields)
Mid-term rentals (30-plus day stays addressing workforce housing demand)
Long-term residential rentals with stable tenant relationships
Membership interests in property-specific LLCs that own individual properties
Schedule K-1 reporting that may allocate depreciation and other property-level tax items
mogul's model enables investors to select specific, identified properties rather than investing in blind pooled funds, providing transparency into exactly where capital is deployed.
Arrived's investment portfolio includes:
Individual single-family rental properties (equity ownership through the relevant Series LLC)
An SFR Fund and City Funds, including the Seattle City Fund launched in 2025
Vacation rental properties, with Arrived focused on optimizing its existing vacation-rental portfolio
The Real Estate Income Fund, formerly the Private Credit Fund
A secondary market for share trading, launched in 2025
Groundfloor's investment structure includes:
Individual real estate Loans, in which investors hold Limited Recourse Obligations (LROs) tied to a specific underlying loan
Notes with 1-month, 3-month, and 12-month terms backed by diversified pools of residential real estate loans, plus an accredited six-month Bond Note
Newer private-market verticals including consumer credit, a four-to-five-year SMB Growth Fund, and a one-to-four-year Music Royalties Portfolio
IRA-compatible investment accounts
Loan grades ranging from A to G with corresponding risk and return profiles
The Flywheel auto-invest product, which is no longer open to new investments or automatic reinvestments as Groundfloor develops its next-generation Real Estate Credit Portfolio
For example, Groundfloor investors can select individual real estate Loans and LROs tied to a single underlying loan, or use Notes that are backed by diversified pools of loans. mogul, by contrast, allows investors to review individual property underwriting, including projected yields, annual revenue, and market comparisons, before committing capital to a specific home. Try mogul's free real estate calculator to analyze potential investments.
Pricing Structures Show Distinct Value Propositions
The pricing models reveal each platform's target market and cost structure over time.
mogul's pricing structure:
A 3% one-time platform and onboarding fee, plus a conditional 2% setup fee where a property requires rent-ready preparation; both are capitalized into the deal. mogul's homepage summarizes the combined upfront charge as 5% capitalized
No recurring annual AUM fee on invested equity
An ongoing fee equal to 2.5% of rental income. Third-party property-management costs are property-level operating expenses borne by the Property LLC and are separate from this 2.5% charge
Average investment of approximately $10,000
Arrived's pricing structure:
3.5% to 5% sourcing fee (one-time)
AUM fees of 0.10% to 0.30% per quarter, depending on product: individual SFRs at 0.15% of asset purchase price per quarter (0.60% annualized), the SFR Fund at 0.25% of net assets per quarter (1.0% annualized), and the Real Estate Income Fund at 0.30% of net assets per quarter (1.2% annualized), with vacation rentals using a variable formulation
8% of gross rental income for SFR property management and 15% to 20% for vacation rentals, plus possible one-time lease-up, renewal, rehab, or turn expenses
Up to 2.5% buyer and 2.5% seller fees on the secondary market
Arrived's return methodology assumes a 6% property disposition cost at exit
Groundfloor's pricing structure:
No investor fees on standard Loans or Notes
No property management fees on its real estate debt products
Alternative and accredited products can carry different economics. The Flywheel product's disclosed 2025 structure was a 1% fee applied to each disbursement, based on the full amount distributed, rather than a 1% annual AUM charge; Flywheel is no longer open to new investment as of July 2026
Illustrative 5-Year Platform Cost Comparison ($10,000 stake, individual single-family rental)
Stated assumptions: a $10,000 stake held for five years; a pro-rata share of gross rental income of roughly $1,200 per year, or $6,000 across five years; the full 5% mogul upfront charge applied, meaning the conditional 2% setup fee is assumed to apply; and Arrived's lowest 3.5% sourcing fee. Arrived's individual-SFR AUM fee is charged on the asset purchase price, so it is modelled here on the pro-rata share attributable to a $10,000 stake. Property-level disposition costs at exit, which Arrived models at 6% of property value, are excluded from both columns because both structures incur selling costs on sale. Actual costs vary with property value, rental income, ownership share, and exit price.
Cost ComponentmogulArrived (individual SFR)Groundfloor (Loans / standard Notes)One-Time Fees$500 (3% platform + conditional 2% setup)$350 (3.5% sourcing)$0Cumulative AUM (5 yrs)$0~$300 (0.60% annualized)$0Ongoing Fees Charged on Rental Income (5 yrs)~$150 (2.5% of rental income)~$480 (8% of gross rental income, paid to the property manager)N/ATotal 5-Year Platform Cost~$650~$1,130$0 investor fees; short-duration credit instruments rather than five-year holds
Under these assumptions, mogul's front-loaded fee structure creates a meaningful multi-year saving of roughly $480 compared with Arrived's individual-SFR approach. mogul's own materials describe a $650 five-year illustrative scenario and a broader estimated range of approximately $500 to $700, reflecting that the 2% setup fee is conditional and that rental-income charges depend on actual income. Groundfloor's standard Loans and Notes carry no investor fees, and they are short-duration credit instruments rather than five-year equity holds, so the columns are not directly comparable on hold period.
Target Investors Align with Different Objectives
mogul targets:
First-time real estate investors entering the asset class
Existing property owners evaluating portfolio performance
Seasoned investors seeking risk-adjusted returns outside volatile public markets
Tech-forward investors valuing blockchain-verifiable ownership records
Those seeking monthly income from property-level equity in identified homes
Arrived primarily serves:
Investors seeking diversified rental property exposure
Those prioritizing lower minimum entry points, with shares starting at $100
Investors interested in multiple product types within one platform
Users seeking periodic secondary market liquidity options
Groundfloor primarily serves:
Investors preferring short-duration credit exposure, with Notes at 1, 3, and 12 months and a six-month accredited Bond Note, alongside longer-dated alternatives such as the one-to-four-year music portfolio and four-to-five-year SMB fund
Those seeking fixed-rate income profiles over equity volatility
Investors comfortable with debt-based real estate exposure
Users wanting a low entry point, with individual Loans starting at $10
This distinction matters fundamentally. Investors seeking their first real estate position or building diversified property portfolios benefit from mogul's property-level ownership model. The platform enables portfolio building one property at a time, with visibility into each investment property's performance.
Performance and Return Profiles
Both equity and debt platforms report performance metrics, though the nature of returns differs significantly based on investment structure, and the underlying methodologies are not equivalent.
mogul's performance data:
18.8% average annual return (IRR) across platform properties as of June 1, 2026
Target annual returns of approximately 15% to 20% levered IRR, varying by property and strategy, as an underwriting target rather than a guaranteed outcome
Monthly distributions of distributable net rental income once a property is operational, after expenses, fees, and reserves, with amounts varying by property performance
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
Arrived's performance data:
An estimated historical return range of 6% to 10% on single-family rentals, which Arrived describes as a modelled estimate based on historical data and assumptions
A 3.5% average annualized dividend yield on individual SFRs in Q2 2026, following 3.6% in Q1 2026
An 8.45% last-12-month annualized dividend yield on the Real Estate Income Fund as of July 2026
An 18.6% average total return across 173 property exits as reported in 2025, which is a total return figure rather than an annualized return
Groundfloor's performance data:
A 9.91% overall historical rate of return reported in July 2025 across the platform
Individual Loans marketed at a 10% to 18% target IRR
Standard Notes at 5.0% for one month, 6.0% for three months, and 8.5% for the 12-month Signature Note, with rates locked at investment but subject to adjustment for newly issued Notes, plus an accredited six-month Bond Note at 9.5% annualized
A 0.94% overall historical loss rate as reported in a 2025 asset management update
The $10,000 loss protection represents an unusual 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.
mogul's focus on single-family rentals positions investors in an asset class that has historically outperformed the S\&P 500 on an annual basis from 1993 to 2023 (13.8% IRR vs. 9.8% IRR), according to Federal Reserve and Case-Shiller Home Index data. 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
mogul's technology infrastructure:
Avalanche blockchain integration for independently verifiable ownership records and near-instant ownership verification
Fireblocks enterprise digital-wallet and custody infrastructure
Property performance information available through the investor dashboard
Investment execution of up to $250,000 in 30 seconds or less
Monthly property valuations calculated using third-party appraisal-level data
Arrived's technology:
Web-based investor portal
Quarterly financial performance reporting alongside monthly dividends on income-producing individual properties
Mobile app rated 4.8 out of 5
A secondary market that moved to monthly one-week trading windows for eligible shares during Q1 2026, operated through a conventional broker and ATS process
Groundfloor's technology:
Web and mobile platforms
Loan-level performance tracking
IRA integration
Conventional securities, account, and loan infrastructure as documented in its SEC filings
mogul's blockchain backbone provides independently verifiable ownership records that exist alongside the platform itself. Arrived and Groundfloor publicly document conventional transfer-agent, broker, ATS, and loan-servicing infrastructure rather than blockchain-based investor ownership records. mogul's infrastructure is also designed to support share trading at fair market value, addressing the liquidity challenges inherent in real estate investing.
Property Selection and Due Diligence Standards
mogul's selection methodology:
Fewer than 1% of reviewed properties pass mogul's diligence process
Proprietary underwriting models combining AVMs and CMAs, inspections, appraisals, market screening, and investment-committee review
mogul's founding team of former Goldman Sachs real estate professionals applies institutional-style underwriting
mogul invests in every property it offers, alongside investor capital
Research analysts and institutional partners identify upside potential
Arrived's vetting process:
Standard property curation across markets
95.89% stabilized occupancy rate in 2025
589 or more properties funded to date
Multiple property types and vehicles (individual SFRs, SFR Fund, City Funds, vacation rentals)
Groundfloor's underwriting approach:
Loan-level underwriting and grading on an A to G scale
Underlying loans secured by real property, which may occupy a first-lien or senior position, with the retail investor holding a Limited Recourse Obligation whose payments depend on collections from that underlying loan
$2.2 billion or more originated across the platform since 2013, with Groundfloor Lending citing 10,000 or more successful projects
Developer and borrower screening process
The alignment of interests matters: mogul's capital sits alongside investor capital in every property, helping ensure management incentives match investor returns.
mogul's free investment property calculator and Airbnb calculator let investors analyze U.S. addresses using property, market, valuation, and scenario-analysis data similar to the inputs mogul uses in its underwriting.
Distribution Frequency and Cash Flow
For investors prioritizing regular income, distribution schedules and their underlying mechanics affect cash flow management.
mogul distributions:
Monthly distributions of distributable net rental income, proportional to ownership stake, once a property is operational and generating income after expenses, fees, and reserves
Amounts vary with actual property performance rather than projected estimates
Schedule K-1 reporting that may allocate depreciation and other property-level tax items
Pro-rata proceeds if a property is sold, with intended holding periods of roughly 3 to 10 years, and roughly 5 to 7 years typical
Arrived distributions:
Monthly dividends on individual properties once they are generating income; the SFR Fund and Real Estate Income Fund are also expected to distribute monthly
Quarterly and annual financial performance reporting
1099-DIV tax reporting for the relevant products documented in its Help Center
Groundfloor distributions:
Payment frequency varies by product: the 12-month Signature Note pays interest monthly, while the 1-month and 3-month Notes pay at maturity
The accredited six-month Bond Note pays principal and accrued interest at maturity
Legacy Flywheel repayments are distributed to investors' cash accounts monthly as underlying loans repay
1099-INT tax reporting on interest income
More frequent distributions can provide earlier reinvestment opportunities if an investor elects to reinvest the cash, which may support compounding over time. Frequency alone does not change a property's underlying economic return. mogul's differentiation on cash flow rests on the pairing of monthly net rental income with property-level equity in an identified home.
Backing and Market Credibility
mogul's credentials:
Founded by former Goldman Sachs real estate professionals, Alex Blackwood and Joey Gumataotao
A $3.6 million seed round led by Anitha Vadavatha of AY Ventures, with participation from Tim Draper & Associates, which had previously backed mogul at the pre-seed stage
Investors include Chris Larsen (Ripple co-founder) and Rosa Rios (43rd U.S. Treasurer)
Featured in TechCrunch, Forbes, Wired, Fox Business, and Fortune
$90 million-plus in assets invested through the platform
40,000-plus investors on mogul as of June 1, 2026
90% of mogul investors invest a second time, and when they do it is 3x their first investment
Arrived's credentials:
Founded in 2019, with a business start date of June 7, 2019
Approximately 992,000 registered investors
$458 million to $459 million total invested
BBB-accredited with an A- rating as of August 2026
Groundfloor's credentials:
Founded in 2013, giving it a 10-plus year track record
More than $2.2 billion invested across the platform
More than 300,000 users as of April 2026
Longest operating history among the three platforms
Tim Draper has said that the mogul team's experience and ambition drove Draper Associates' investment, recognizing the team's mission to democratize real estate investing through blockchain technology.
Why mogul Delivers Superior Value for Real Estate Investors
Investors comparing fractional real estate platforms face a fundamental choice between equity ownership with exposure to appreciation and debt-based fixed-rate returns. mogul stands apart through its combination of institutional expertise, technology infrastructure, and investor-aligned terms.
Key advantages of mogul's approach:
Clearly stated return targets: mogul reports 18.8% average annual IRR and currently targets approximately 15% to 20% levered IRR across its property underwriting, with targets varying by property and strategy. By comparison, Arrived's 6% to 10% figure is a modelled estimated historical range, and Groundfloor reported a 9.91% overall historical platform rate of return in July 2025
Property-level ownership: Invest in specific, identified properties through membership interests in property-specific LLCs rather than blind pooled funds. Know exactly which homes your capital supports, with visibility into each property's performance metrics
Monthly income from identified homes: Receive monthly distributions of distributable net rental income once a property is operational, supporting cash flow management and reinvestment planning
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, an unusual protection feature among fractional platforms
Community rewards: mogul Clubs distribute up to 2% in rewards to members
Lower long-term platform costs: No recurring annual AUM fee produces an illustrative five-year saving of roughly $480 on a $10,000 stake versus Arrived's individual-SFR fee structure under the assumptions stated above
Institutional expertise: mogul's former Goldman Sachs real estate professionals apply institutional-style underwriting, with fewer than 1% of reviewed properties passing selection
Blockchain verification: Avalanche network integration provides independently verifiable ownership records; Arrived and Groundfloor document conventional securities and loan-servicing infrastructure instead
Tax structure: Schedule K-1 reporting that may allocate depreciation and other property-level tax items, compared with 1099-DIV (Arrived) or 1099-INT (Groundfloor) reporting. Availability and usability of deductions depend on the offering and each investor's tax circumstances
Appreciation exposure: Unlike Groundfloor's real estate debt products, mogul's equity structure gives investors exposure to potential property value increases and pro-rata sale proceeds
Aligned interests: mogul invests in every property alongside platform investors, helping ensure management prioritizes returns
For investors seeking headache-free fractional real estate with monthly income potential, rigorous property selection, and property-level equity in single-family rentals, mogul represents a compelling approach to building a real estate portfolio. The combination of accessibility, transparency, and former Goldman Sachs expertise creates value that alternative platform structures do not replicate.
Ready to explore fractional real estate? Analyze potential investments with mogul's free rental property calculator or schedule a call to discuss your investment objectives. Members can also refer a friend and get $50 when they invest.
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 main difference between fractional equity and debt-based real estate investing?
Fractional equity investing through platforms like mogul means you hold membership interests in property-owning LLCs, giving you property-level exposure to rental income, potential appreciation, and Schedule K-1 reporting that may allocate depreciation and other property-level tax items. Debt-based investing through platforms like Groundfloor means capital is lent to real estate developers: the underlying loan is secured by real property and may occupy a first-lien or senior position, while the retail investor holds a Limited Recourse Obligation whose payments depend on collections from that loan and which does not participate in property appreciation. mogul's equity model provides both monthly cash flow, once a property is operational, and exposure to long-term property value changes.
How does mogul's $10,000 loss protection work for new members?
mogul covers up to $10,000 in losses on investments made within your first 7 days if those investments show a loss after year one. For example, if you invest $100,000 across several properties in your first week and that portfolio value decreases to $90,000 after one year, mogul will "true you up" to your original $100,000 using its own balance sheet capital. This protection feature is unusual among fractional real estate platforms and demonstrates mogul's confidence in its property selection process.
Can international investors use these platforms to invest in U.S. real estate?
Eligibility differs by platform, so the answer is platform-specific. Eligible non-U.S. residents may participate with mogul, except residents of countries under U.S. embargo, subject to KYC, sanctions, jurisdictional, tax, legal, and onboarding requirements; mogul notes that cross-border tax implications may apply for non-U.S. residents, and mogul's help center covers onboarding guidance. Tax treatment for a non-U.S. investor may differ from that of a U.S. investor. Arrived states that its offerings are currently open to a U.S. citizen or green-card holder residing in one of the 50 states. Groundfloor's Reg A disclosures describe offerings to U.S. residents in jurisdictions where the issuer has made the required filings. Learn more about how mogul works.
What kind of liquidity options are available on mogul, Arrived, and Groundfloor?
Real estate and private-market investments are inherently less liquid than public stocks. Arrived's secondary market moved to monthly one-week trading windows for eligible shares during Q1 2026, with executing-broker fees of up to 2.5% on each side; secondary-market transactions generally require a willing counterparty, and pricing can vary. Groundfloor's debt products have short terms, with Notes at 1, 3, and 12 months and a six-month accredited Bond Note, providing faster capital recycling, while its newer alternatives run considerably longer. mogul provides monthly property valuations calculated using third-party appraisal-level data, with blockchain infrastructure on the Avalanche network designed to support share trading at fair market value.
Are the projected returns on these platforms guaranteed?
No platform can guarantee returns. mogul reports 18.8% average annual IRR historically and targets approximately 15% to 20% levered IRR as an underwriting target, though actual performance varies by property, market conditions, and hold period. Arrived's 6% to 10% figure is an estimated historical return range based on a model, and its individual SFRs averaged a 3.5% annualized dividend yield in Q2 2026. Groundfloor reported a 9.91% overall historical platform rate of return in July 2025, markets individual Loans at a 10% to 18% target IRR, and offers standard Notes at 5.0% to 8.5% fixed APR depending on term. mogul provides detailed underwriting for each property including projected yields, annual revenue, and scenario analysis: use the free investment property calculator to run your own projections.
How do management fees compare across mogul, Arrived, and Groundfloor?
mogul charges a 3% one-time platform and onboarding fee plus a conditional 2% setup fee where a property requires rent-ready preparation, summarized on its homepage as a 5% capitalized upfront charge, with no recurring annual AUM fee and an ongoing fee equal to 2.5% of rental income; third-party property-management costs sit at the property level. Arrived charges 3.5% to 5% upfront plus AUM fees of 0.10% to 0.30% per quarter depending on product (individual SFRs at 0.15% per quarter, or 0.60% annualized), and property management of 8% of gross rental income for SFRs and 15% to 20% for vacation rentals. Groundfloor charges no investor fees on standard Loans or Notes. Under the assumptions stated in the cost table above, a five-year hold on a $10,000 individual-SFR stake carries an illustrative platform cost of approximately $650 with mogul versus approximately $1,130 with Arrived, making mogul's structure more cost-effective for longer-term equity investors.