Choosing the right fractional real estate platform directly impacts your wealth-building potential over time. mogul and Roots represent two fundamentally different approaches to real estate investing: mogul offers fractional ownership in individual single-family rentals through property-specific LLC structures, while Roots operates as a Reg A+ REIT with a pooled portfolio of primarily workforce-oriented residential properties. Understanding these structural differences, between property-level LLC ownership and pooled fund investing, helps investors determine which model aligns with their capital, income objectives, and desired level of control over their real estate investments. For background on the broader category, see fractional real estate investing.
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 team of former Goldman Sachs executives brings $10 billion in collective deal experience, with less than 1% of reviewed properties passing their institutional-grade underwriting process
- mogul distributes proportional net rental income monthly once a property is operational, compared to Roots' quarterly, manager-discretion distribution schedule, providing twelve potential distribution events per year versus four
- 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 standout risk mitigation feature in the fractional real estate space
- mogul's property-specific LLC structure is designed to issue K-1s and may allocate depreciation to investors, while Roots' REIT structure provides Form 1099-DIV reporting
- mogul's blockchain integration on the Avalanche network delivers near-instant verification of ownership records and enables a planned secondary market for share trading
- mogul's fee structure includes a one-time 3% platform fee, a conditional 2% setup fee where rent-ready preparation is required, and an ongoing 2.5% fee on collected rental income, while avoiding a traditional annual AUM fee on invested equity
- mogul allows individual property selection, underwriting properties nationwide with current investable inventory across selected U.S. markets, while Roots invests through a pooled REIT concentrated in Southern U.S. residential housing
When evaluating fractional real estate platforms, the comparison between mogul and Roots highlights two distinct investment philosophies. Roots reports investment-performance history beginning July 1, 2021 and states more than 29,500 investors, with a focus on social impact through its Live In It Like You Own It® rewards program. mogul, meanwhile, brings institutional-grade expertise from Goldman Sachs to deliver property-level LLC ownership, monthly income potential, and potential depreciation-related tax treatment for investors seeking control over their real estate portfolio.
Understanding Each Platform's Core Positioning
Roots positions itself as an accessible real estate investment platform operating as a Reg A+ REIT. The legal issuer, Roots Real Estate Investment Community I, LLC, was formed in December 2020 and commenced operations in the second quarter of 2021; Roots reports investment-performance history beginning July 1, 2021, and its initial Regulation A offering was qualified in June 2022 (SEC offering circular). Roots reported 563 properties with 698 doors as of April 10, 2026 (Q1 2026 update), and a subsequent SEC offering circular reported 581 properties as of April 30, 2026. Its holdings are concentrated in Southern U.S. residential markets across Georgia, Tennessee, and Oklahoma, including Oklahoma City, Nashville, Atlanta, Augusta, and Jackson, Georgia, with the Atlanta metropolitan area identified in its disclosures as a principal target. Roots currently markets its portfolio around workforce-oriented residential housing and features a "Live In It Like You Own It®" program that lets qualifying residents earn rewards they can invest in the Roots REIT for actions such as paying rent on time, caring for the property, and renewing their lease.
mogul takes a fundamentally different approach to fractional real estate. Founded by former Goldman Sachs real estate executives with $10 billion in deal experience, mogul specializes in single-family residential rentals including short-term, mid-term, and long-term strategies. Rather than pooling investments into a REIT, mogul offers fractional membership interests in property-specific LLCs, each of which owns an identifiable home, giving investors property-level economic and governance rights in specific homes they can identify by address.
The fundamental difference: Roots provides pooled REIT exposure to primarily workforce-oriented residential housing, while mogul delivers property-specific LLC interests in residential properties you select.
Investment Options Reflect Different Strategic Approaches
Roots' investment structure includes:
- Single REIT product currently focused on workforce-oriented residential housing, with a broader authorized residential mandate spanning single-family, multifamily, development, and other real-estate-related investments
- Pooled portfolio reported at 563 properties across 698 doors as of April 10, 2026 (581 properties as of April 30, 2026 per a later SEC filing)
- Geographic concentration in Southern U.S. markets
- "Live In It Like You Own It®" rewards program (rewards investable in the Roots REIT)
- $100 minimum investment
- Quarterly distributions at the manager's discretion
This structure suits investors seeking simple, hands-off exposure to real estate without property selection responsibilities.
mogul's investment offerings focus on:
- Short-term rentals (Airbnb-style properties with potential for higher gross revenue or yields in suitable markets)
- Mid-term rentals (30+ day stays addressing workforce housing demand)
- Long-term residential rentals with stable tenant relationships
- Sale-leaseback arrangements
- Fractional membership interests in property-specific LLCs that own individual properties
- Potential tax advantages including depreciation pass-through, subject to investor circumstances
mogul's model enables investors to select specific properties rather than investing in pooled funds, providing property-level transparency into exactly where capital is deployed.
For example, while Roots spreads investor capital across its entire portfolio, mogul 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 run your own analysis.
Pricing Structures Show Distinct Value Propositions
The pricing models reflect each platform's approach to fees and long-term value creation.
Roots' pricing structure:
- Minimum investment: $100
- A small per-transaction fee on one-time and recurring investments, waived for Roots+ members
- Early redemption before one year generally executed at 92% of the latest NAV
- Fund-level fees and expenses borne economically through the REIT's results and NAV
mogul's pricing structure:
- Average investment of ~$10k
- One-time 3% onboarding/platform fee
- Conditional 2% setup fee where rent-ready preparation is required
- Ongoing 2.5% fee on collected rental income
- No traditional annual AUM fee on invested equity
- All property management included
- A secondary market for share trading is planned
mogul's fee structure is built around the value it delivers: institutional-grade underwriting, professional property management, and property-level ownership, all without a traditional annual AUM fee on invested equity. Because mogul charges its ongoing fee on collected rental income rather than on invested equity, the platform is compensated in line with the income properties actually generate for investors. mogul does not advertise an early-redemption reduction, and its planned secondary market is designed to add flexibility for investors over the typical 3 to 10 year investment horizon.
Target Investors Align with Different Objectives
Roots may appeal to:
- Newer or smaller investors, given the published $100 minimum investment
- Social impact-focused investors supporting renter wealth-building
- Those preferring hands-off portfolio delegation
- Investors comfortable with quarterly distributions
- Those focused on Southern U.S. markets
mogul targets:
- First-time real estate investors ready for meaningful allocations
- Existing property owners evaluating portfolio performance
- Control-oriented investors who want to select specific properties
- Tax-focused investors seeking potential depreciation benefits
- Those prioritizing monthly income
- Tech-forward investors valuing blockchain transparency
- Investors seeking geographic diversification across mogul's available markets
This distinction matters fundamentally. Investors seeking property-level control and monthly cash flow benefit from mogul's property-specific LLC model. The platform enables portfolio building one property at a time, with property-level visibility into each investment property's performance.
Performance and Return Profiles
Both platforms report performance metrics, though return calculation methodologies differ.
Roots' performance data:
- Target annual returns: 12-15%
- Reported 81.57% cumulative total return from July 1, 2021 to April 10, 2026, which Roots presents as a 17.17% average annual return (Q1 2026 update)
- Reported trailing 12-month return of 12.02% (April 2025 to April 2026)
- Performance history reported since July 1, 2021, with operations having commenced in the second quarter of 2021
- Returns incorporate Roots' quarterly, manager-determined NAV calculations and distributions
mogul's performance data:
- 18.8% average annual returns (IRR) reported across platform properties
- Target annual returns: 15-20% IRR
- Monthly distributions of proportional net rental income 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
The $10,000 loss protection represents a standout 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 their own balance sheet.
mogul reports that its analysis of Federal Reserve and Case-Shiller data found single-family rentals delivered higher historical annual returns than the S\&P 500 from 1993 through 2023, with single-family rentals returning approximately 13.8% versus 9.8% for the S\&P 500 over that period. mogul also reports that, over a 30-year hold, single-family rentals returned on average 190% higher with 45% less volatility than the S\&P 500 (why real estate).
Technology and Transparency Approaches
Roots' technology:
- Web-based investor portal
- Property-level information and an interactive portfolio map available in the investor portal
- Quarterly, manager-determined NAV updates
- BitGo Stakeholder Services LLC engaged as transfer agent
mogul's technology infrastructure:
- Avalanche blockchain integration for ownership records
- Fireblocks digital-wallet infrastructure holding tokens that represent property-LLC interests
- Property-level performance tracking
- Investment execution in under 30 seconds
- Monthly property valuations via third-party appraisal-level data
- Planned secondary market for share trading
mogul's blockchain backbone provides verifiable ownership records that exist independently of the platform itself, with ownership verifiable through Snowtrace. This infrastructure enables the planned secondary market for share trading, addressing the liquidity challenges inherent in real estate investing. By comparison, Roots offers a quarterly redemption program, with units held less than one year generally redeemed at 92% of the latest NAV.
Property Selection and Due Diligence
Roots' approach:
- Portfolio managed by platform team
- Currently focused on workforce-oriented residential housing, with a broader authorized mandate
- Southern U.S. geographic focus (Oklahoma City, Nashville, Atlanta, Augusta, Jackson)
- No individual property selection, though property information and an interactive map are available in the portal
mogul's selection methodology:
- Less than 1% of reviewed properties pass mogul's diligence process
- Proprietary underwriting models combining AVMs and CMAs
- Goldman Sachs-level institutional analysis
- mogul states it co-invests in every property offered
- Research analysts and institutional partners identify maximum upside potential
- Nationwide underwriting with current investable inventory across selected U.S. markets
The alignment of interests matters: mogul states its capital sits alongside investor capital in every property, ensuring management incentives match investor returns. Investors also receive super-majority voting rights on major property decisions, a level of control unavailable in pooled REIT structures.
mogul's free investment property calculator and rental property calculator enable investors to analyze any U.S. address using the same data and tools employed 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 and reinvestment opportunities.
Roots distributions:
- Quarterly distributions at the manager's discretion
- Pooled REIT distributions rather than property-specific income
- No individual-property investment election, though property-level information is available in the portal
mogul distributions:
- Monthly distributions of proportional net rental income once a property is operational
- Actual rental revenue (not projected estimates)
- Potential yearly tax items including depreciation pass-through via K-1, subject to investor circumstances
- Proceeds from eventual property sales after 3 to 10 year holds
mogul's monthly distribution model provides twelve potential distribution events per year versus four under a quarterly schedule. This may allow more frequent reinvestment, though the actual compounding benefit depends on distribution size, reinvestment timing, available properties, and investment performance.
Tax Treatment Comparison
The ownership structure creates meaningful differences in tax treatment between platforms.
Roots' tax structure:
- REIT distributions
- Form 1099-DIV reporting when required
- Distributions may fall into different tax categories, including ordinary REIT dividends, capital-gain distributions, Section 199A dividends, or nondividend return-of-capital distributions; tax consequences vary by investor
mogul's tax structure:
- Property-specific LLC interest per property
- K-1 reporting with potential depreciation pass-through
- Potential depreciation allocation proportional to ownership, subject to investor circumstances
- Potential for tax-advantaged income
mogul's property-specific LLC structure is designed to allocate depreciation and other property-level tax items to investors via K-1, which may offset rental income depending on the offering and the investor's tax situation. Roots investors generally do not receive a direct pass-through allocation of property depreciation; instead, entity-level depreciation affects the REIT's taxable income and may influence the amount or tax character of distributions reported on Form 1099-DIV. Investors should consult a qualified tax professional regarding their individual circumstances.
Backing and Market Credibility
Roots' credentials:
- Formed December 2020; operations commenced in the second quarter of 2021; performance history reported since July 1, 2021
- Reports more than 29,500 investors
- Manager-determined NAV of $116.6M+ as of April 10, 2026
- 563 properties and 698 doors as of April 10, 2026 (581 properties as of April 30, 2026 per a later SEC filing)
- "Live In It Like You Own It®" social impact program
mogul's credentials:
- Founded by former Goldman Sachs real estate executives
- $10 billion in collective deal experience
- Pre-seed round led by Tim Draper (early Robinhood, SpaceX, Tesla backer); $3.6M seed round led by AY Ventures, with participation from Tim Draper & Associates
- Investors include Chris Larsen (Ripple co-founder), Rosa Rios (43rd U.S. Treasurer)
- Featured in TechCrunch, Forbes, Wired, Fox Business, and Fortune
Tim Draper stated his confidence in mogul's founding team's ability to reshape real estate investing and provide long-term wealth generation for users. Rosa Rios praised the pedigree of founders Alex Blackwood and Joey Gumataotao, stating that she could not imagine a better team to design and execute the mogul strategy.
Geographic Diversification and Risk Management
Roots' geographic approach:
- Concentrated in Southern U.S. markets
- Markets including Oklahoma City, Nashville, Atlanta, Augusta, and Jackson, Georgia; Atlanta metropolitan area identified as a principal target
- Currently workforce-oriented residential focus, with a broader authorized mandate
- Regional economic exposure
mogul's geographic approach:
- Nationwide underwriting with investable inventory across selected U.S. markets
- Recent examples in Texas, Arizona, and the Southeast; availability changes as new properties are added
- Multiple rental strategies (short-term, mid-term, long-term)
- Investor-controlled diversification across properties
mogul's approach allows investors to build diversified portfolios across mogul's available markets and property types.
Why mogul Delivers Strong Value for Real Estate Investors
Investors seeking meaningful real estate exposure face a clear choice between pooled REIT structures and property-specific LLC ownership. For investors who prioritize individual property selection, property-level LLC interests, monthly distributions, and potential K-1 depreciation allocations, and who are investing with a multi-year horizon, mogul offers a compelling structure.
Key advantages of mogul's approach:
-
Property-level LLC interests: Invest in specific properties through property-specific LLCs rather than pooled funds. Know exactly which homes your capital supports, with property-level visibility into each property's performance metrics.
-
Monthly income: Once a property is operational, receive monthly distributions of proportional net rental income, providing twelve potential distribution events per year versus four under a quarterly schedule. Actual cash flow and compounding depend on distribution size, timing, and performance.
-
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, a standout protection feature in the fractional real estate space.
-
Potential tax advantages: The property-specific LLC structure is designed to allocate depreciation via K-1, which may offset rental income depending on the offering and the investor's tax situation, treatment not available to REIT investors as a direct pass-through.
-
Property-level control: Select individual properties and receive super-majority voting rights on major decisions, a level of control not available in pooled REIT structures.
-
Institutional expertise: Former Goldman Sachs executives apply the same rigorous underwriting used for billion-dollar institutional deals, with less than 1% of reviewed properties passing muster.
-
Blockchain transparency: Avalanche network integration provides near-instant verifiable ownership records and enables future secondary market liquidity.
-
Aligned interests: mogul states it co-invests in every property alongside platform investors, ensuring management prioritizes returns.
-
No advertised early-redemption reduction: mogul does not advertise an early-redemption reduction, and its planned secondary market is designed to add flexibility for investors over the typical 3 to 10 year investment horizon.
-
Geographic flexibility: Build diversified portfolios across mogul's available markets rather than concentrating in a single region.
For investors seeking headache-free fractional real estate with monthly income potential, institutional-grade property selection, and property-specific LLC interests in single-family rentals, mogul represents a strong approach to building a real estate portfolio. The combination of accessibility, transparency, potential tax advantages, and Goldman Sachs-level expertise creates compelling value for investors whose objectives and risk tolerance fit this model.
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 difference between mogul's LLC interests and Roots' REIT structure?
mogul provides fractional membership interests in property-specific LLCs. You hold a proportional interest in the LLC that owns a specific home at an identifiable address, with proportional voting rights and potential tax items, rather than individually deeded title to a fraction of the home. Roots operates as a Reg A+ REIT where investor capital pools into a fund that owns multiple properties, providing diversified exposure without individual property selection. mogul's model offers property-level transparency into where your capital is deployed and is designed to allocate depreciation via K-1, while REIT structures provide simpler diversification, with distributions reported on Form 1099-DIV that may fall into different tax categories. For investors who value knowing their specific investments and optimizing tax treatment, membership interests through mogul's platform provide those characteristics.
How does mogul select properties for investment?
mogul applies institutional-grade underwriting with less than 1% of reviewed properties passing their selection process. The platform's research analysts and institutional partners use proprietary models combining automated valuation models (AVMs) and comparative market analysis (CMA) tools to identify properties with maximum upside potential. mogul states it co-invests in every property offered on the platform, aligning management interests with investor returns. This Goldman Sachs-level rigor is intended to ensure only carefully vetted single-family rentals reach investors. You can preview this analytical approach using mogul's free investment property calculator on any U.S. address.
How do distribution schedules compare between mogul and Roots?
mogul distributes proportional net rental income monthly once a property is operational, while Roots distributes quarterly at the manager's discretion. This means mogul investors can receive twelve potential distribution events per year versus four, which may enable more frequent reinvestment for compounding returns. Actual compounding depends on distribution size, reinvestment timing, available properties, and performance. Roots distributes on a quarterly schedule at the manager's discretion.
What kind of returns can I expect from investing with mogul?
mogul reports 18.8% average annual returns (IRR) across platform properties, with target returns of 15-20% annually. The platform focuses on single-family rentals; mogul reports its own analysis of Federal Reserve and Case-Shiller data found higher historical annual returns for single-family rentals than the S\&P 500 from 1993 through 2023, at approximately 13.8% versus 9.8% over that period. Returns vary by property, market conditions, and hold period. mogul provides detailed underwriting for each property including projected yields, annual revenue, 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, providing standout downside protection.
What are the tax considerations of investing through mogul versus Roots?
mogul's property-specific LLC structure is designed to allocate proportional depreciation and other property-level tax items via K-1. Depreciation may reduce the current taxable income associated with rental distributions, but the resulting after-tax yield varies by investor and cannot be expressed as a universal before-tax to after-tax relationship; consult a qualified tax professional. Roots' REIT structure provides Form 1099-DIV reporting, where distributions may fall into different tax categories, and entity-level depreciation affects the REIT's taxable income rather than passing through directly to individual investors.
How does mogul address liquidity compared to Roots?
Real estate is a long-term asset class, and mogul is built around that horizon. Properties are generally held for 3 to 10 years with investors receiving monthly income distributions once properties are operational. mogul provides monthly property valuations via third-party appraisal-level data, and it is developing a secondary market designed to let eligible investors list shares using monthly fair-market-value estimates, adding flexibility over the investment horizon. Roots offers a quarterly redemption program, with units held less than one year generally redeemed at 92% of the latest NAV.