While stocks and bonds dominate financial headlines, sophisticated investors are earning monthly distributions from alternative assets that are not traded on public stock exchanges. According to the Financial Stability Board, the global private credit market was estimated at approximately $1.5 trillion to $2.0 trillion in assets at the end of 2024, and fractional real estate platforms have opened institutional-grade investments to everyday investors seeking income streams. This guide examines seven alternatives delivering monthly distributions in 2026, starting with mogul, a fractional real estate platform club founded by former Goldman Sachs executives that delivers monthly dividends, real-time appreciation, and tax benefits, alongside 18.8% average annual returns.
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
Compare like with like, because these vehicles report different metrics: mogul publishes a 15%-20% target annual IRR alongside target levered yields of roughly 11% to 13% on a weighted-average basis across its current offerings, while the four private credit BDCs profiled here report Class I annualized distribution rates of roughly 9.0% to 9.6%. An IRR is a total-return measure and a distribution rate is a cash-payout measure, so the like-for-like comparisons are yield against distribution rate, and total return against total return.
Entry points vary widely by product and share class: Non-listed vehicles range from $2,500 for certain BCRED and ASIF share classes and for BREIT, up to $25,000 for certain OCIC and OTIC share classes, with Class I minimums commonly $1 million unless waived. Arrived sets a $100 entry point for its income fund, while mogul is open to both accredited and non-accredited investors, with an average investment of about $10k.
Monthly distributions are the current norm: All six non-mogul vehicles reviewed currently make, declare, or target monthly distributions, with the amount and continuation of those distributions determined by each fund's board or manager.
Private credit is predominantly floating rate, but payouts do not move mechanically with rates: The four featured BDCs each report more than 90% floating-rate debt exposure by their respective measures. Higher base rates can increase interest income on those assets, although financing costs, credit performance, expenses, and board policy also determine distributions.
Tax treatment differs by vehicle and by investor: BDC distributions may carry ordinary income, capital-gain, or return-of-capital character depending on the fund and the year, as described in IRS Publication 550. Property-level real estate ownership may generate depreciation deductions, with outcomes shaped by each investor's basis, income level, and individual circumstances.
Liquidity varies materially by structure: Several non-traded BDCs target quarterly repurchases of up to 5% of shares or NAV, and those programs operate at each board's discretion. Arrived's fund states there is no public market for its shares. mogul constantly monitors several exit avenues at the property level, including platform sales that syndicate equity in a property at market value to platform members with little-to-no closing costs.
1. mogul: Fractional Real Estate with Institutional-Grade Returns
mogul delivers property-level fractional LLC ownership in income-generating single-family rentals, providing monthly income from rental cash flow across short-term and mid-term rental strategies. Founded by former Goldman Sachs executives with over $10 billion in collective deal experience, the platform brings institutional rigor to individual investors.
How mogul Works
Each property is structured through a property-level LLC, referred to by mogul as a PropCo and taxed as a partnership, which serves as the acquisition and ownership vehicle. Interests in that LLC are then fractionalized into shares that members purchase, with a typical portfolio allocation of $17,321 per property and an average investment of about $10k. As mogul explains it, in legal terms an investor purchases ownership in the investment-club LLC that owns the individual property, and in practical terms the investor is purchasing part of an investment property. Members receive:
Monthly rental income: Distributions based on actual rental income rather than projected income, beginning once a property is operational
Yearly tax benefits: A depreciation tax shield may offset rental income and mitigate an investor's tax burden, with outcomes shaped by the investor's basis, income level, and other individual circumstances
Governance rights: A proportional ownership stake with voting rights on major property decisions. Operational decisions under $1,000 are handled by licensed property managers, while decisions above $1,000 go to a member vote subject to a super-majority, with a default vote applied toward management's recommended decision for members who do not vote
Appreciation upside: Proceeds from eventual property sales after mogul's stated 3-10 year hold periods, with offering-specific terms ultimately controlling
Performance and Protection
mogul reports an 18.8% average annual IRR as of April 2025, compared with roughly 9% for the S\&P 500. Across its single-family rental strategies, mogul targets NOI yields of roughly 9% to 11% and levered yields of roughly 11% to 13% on a weighted-average basis, with cash-on-cash returns generally in the 8% to 12% range. The platform's institutional vetting process means less than 1% of reviewed properties pass underwriting standards. More than $90mm of assets sit on the platform across 40,000+ investors, and mogul reports that 90% of investors invest a second time, and when they do it is 3x their first investment.
For new members, mogul provides $10k loss protection in year one. If the total return on a member's first seven days of investments is a loss of $10,000 in the first year, mogul pays that $10,000 back with its own balance sheet capital, truing the member up to their original amount. mogul also runs a Give $50, Get $50 offer: refer a friend and get $50 when they invest, subject to the referral program terms. The mogul team personally invests in every property offered, aligning management interests with investor returns.
Key Highlights
Structure: Property-level fractional LLC ownership through a mogul investment club, with professionally vetted and managed properties
Distribution frequency: Monthly dividends, once a property is operational
Target returns: 15%-20% target annual IRR, alongside an 18.8% average annual return to date
Investment size: An average investment of about $10k, with a typical portfolio allocation of $17,321 per property
Fee structure: A fee-efficient structure, with a 5% upfront fee capitalized into the deal, described in mogul's help center as a 3% onboarding and platform fee plus a 2% setup or rent-ready fee where applicable, together with an ongoing 2.5% fee on collected rent and no recurring AUM-based asset management fee
Investor behavior: 90% of investors invest a second time, at 3x their first investment
Community rewards: mogul Clubs distribute up to 2% in rewards to members
Accreditation required: No, as mogul is available to accredited and non-accredited investors
Best For: Investors seeking property-level real estate ownership with monthly rental distributions, potential depreciation benefits, and downside protection through mogul's loss coverage program. Browse available properties to see current offerings.
2. BCRED: Blackstone Private Credit Fund
BCRED is the largest nontraded business development company by assets, providing exposure to private corporate credit through senior secured loans. It describes itself as a non-exchange-traded BDC and does not expect a secondary market for its shares to develop.
Investment Strategy
The fund focuses on direct lending to upper-middle-market companies, with a portfolio composition emphasizing defensive positioning:
97% senior secured debt
96% floating-rate loans
41% average loan-to-value at underwriting
Diversified across hundreds of portfolio companies
Performance Metrics
As of June 30, 2026, BCRED reported $77.6 billion of total investments. Its Class I annualized distribution rate was 9.1% as of July 2026, while its Class I annualized inception-to-date total return was 9.0% from January 2021.
BCRED earned a Bronze Morningstar Medalist Rating on May 6, 2026. Its quarterly repurchase program is ordinarily limited to 5% of shares and operates at the board's discretion.
Key Highlights
Total investments: $77.6 billion as of June 30, 2026
Distribution rate: 9.1% annualized, Class I, as of July 2026
Distribution frequency: Monthly, as declared
Minimum investment: $2,500 for Classes S and D and $1 million for Class I, with intermediaries permitted to impose higher minimums
Liquidity: Quarterly repurchases ordinarily limited to 5%, subject to amendment at the board's discretion
Best For: Investors seeking large-scale private credit exposure with monthly distributions.
3. BREIT: Blackstone Real Estate Income Trust
BREIT is a non-listed, perpetual-life real estate investment trust, not a BDC, providing access to diversified commercial real estate and real estate debt investments.
Portfolio Composition
The fund manages $57 billion in net asset value across multiple property types, with positioning in high-growth sectors:
QTS represented 26.1% of BREIT's real estate value as of June 30, 2026, with BREIT owning approximately 35% of QTS
Approximately 65% concentration in Sunbelt regions across the South and West of the United States
Diversified across industrial, residential, and hospitality properties
Performance History
BREIT reports a 10.3% trailing twelve-month Class I net return and a 9.4% annualized Class I return since inception in January 2017. The fund delivered a 3.1% return in Q2 2026 alone.
Two distinct facts are worth separating, because they are frequently conflated. BREIT states that inception-to-date operating cash flows and realized investment gains funded 100% of its distributions through March 31, 2026. Separately, for tax purposes, 100% of BREIT's 2025 distributions were characterized as return of capital. Economic funding source and tax character are different concepts, and both statements can be true at the same time.
As of June 30, 2026, BREIT reported a 9.4% Class I annualized return since inception versus 6.9% for publicly traded REITs represented by the MSCI U.S. REIT Index.
Key Highlights
NAV: $57 billion
Distribution rate: 4.6% annualized, Class I
12-month return: 10.3%, Class I
Distribution frequency: Monthly, as declared
Minimum investment: $2,500, subject to share class and broker-dealer terms
Best For: Investors wanting diversified commercial real estate exposure with thematic positioning in data center growth.
4. Ares Strategic Income Fund: Private Credit with Defensive Positioning
Ares Strategic Income Fund (ASIF) is a non-traded BDC managed by Ares Credit Group, which states it has more than 20 years of investing history.
Investment Approach
The fund emphasizes capital preservation through sector selection:
79% senior secured debt
92% floating-rate loans
0.1% average position size across the portfolio
Focus on industries Ares characterizes as non-cyclical and defensive, including healthcare, consumer services, and software and services, while generally avoiding cyclical or capital-intensive sectors
Ares also states that ASIF seeks current income and potential capital appreciation, so the fund is income-oriented rather than income-only.
Distribution Performance
ASIF reports a 9.63% annualized distribution rate for Class I shares as of June 30, 2026, with $23.0 billion in total assets. The fund has maintained 100% of inception-to-date distributions funded from operating cash flow since inception in December 2022.
Key Highlights
Total assets: $23.0 billion
Distribution rate: 9.63% annualized, Class I
Distribution frequency: Monthly, as declared
Portfolio composition: 79% senior secured, 92% floating rate
Minimum investment: $2,500 for Classes S and D and $1 million for Class I under its prospectus terms
Liquidity: Quarterly tenders expected, and subject to amendment, suspension, or termination
Best For: Investors prioritizing capital preservation and defensive sector exposure within private credit.
5. OCIC: Blue Owl Credit Income Corp
OCIC is a diversified lending BDC targeting upper-middle-market companies with established cash flows and meaningful EBITDA.
Portfolio Characteristics
As of May 31, 2026, the fund held debt investments in 330 portfolio companies with an aggregate par value of $33.8 billion. Key portfolio metrics include:
87.3% first lien debt by par value
98.2% of debt investments floating rate by par value
Weighted-average portfolio company EBITDA of approximately $293 million, with weighted-average revenue of $1.2 billion, as of March 31, 2026
Approximately 27.7% across three healthcare categories, 13.9% internet software and services, and 8.1% insurance
Track Record
As of May 31, 2026, OCIC Class I reported an annualized distribution rate of approximately 9.2%, or 9.19% excluding special distributions, together with a 10.27% three-year annualized total return and a 9.23% annualized inception-to-date total return since launching in 2021. The comparable Class S figures are 9.38% and 8.31%, so share class matters when comparing performance.
On liquidity, OCIC conducts quarterly tender offers that are ordinarily limited to 5% of shares.
Key Highlights
Aggregate par value of debt investments: $33.8 billion
Distribution rate: Approximately 9.2% annualized, Class I
Distribution frequency: Monthly, as declared
Portfolio companies: 330
Sector focus: Healthcare, internet software and services, insurance
Minimum investment: $25,000 for Classes S and D and $1 million for Class I unless waived
Best For: Investors seeking exposure to established middle-market companies in defensive sectors.
6. OTIC: Blue Owl Technology Income Corp
OTIC is a technology-focused BDC that primarily makes debt investments while also holding equity and equity-linked investments in technology-related companies, particularly software businesses. Its investment objective includes current income from debt as well as capital appreciation from equity and equity-linked positions.
Technology Focus
As of April 30, 2026, OTIC reported $5.0 billion of debt investments by aggregate par value across 155 portfolio companies, with portfolio characteristics including:
86.6% first lien debt
98.0% of debt investments floating rate
91% senior secured loans per Blue Owl's July 2026 shareholder update
A mandate to invest at least 80% of total assets in technology-related companies, with software itself representing approximately 64% of the portfolio as of March 31, 2026
Diversified across more than 30 borrower industries and end markets
Weighted-average portfolio company EBITDA of approximately $356 million, with weighted-average revenue of $1.1 billion, as of March 31, 2026
Investment Philosophy
OTIC targets mission-critical software solutions with high recurring revenue and strong customer retention. Its current regulatory materials document debt, preferred equity, common equity, specialty-finance equity, and joint-venture investments rather than a single fixed allocation between financing and growth capital.
Performance Data
The fund reports a 9.0% annualized total distribution rate and a 9.20% Class I annualized inception-to-date total return as of May 31, 2026, since inception in May 2022, with monthly distributions declared payable through August 2026.
On liquidity, OTIC conducts quarterly tender offers that are ordinarily limited to 5% of shares.
Key Highlights
Aggregate par value of debt investments: $5.0 billion
Distribution rate: 9.0% annualized
Distribution frequency: Monthly, as declared
Technology concentration: At least 80% of total assets in technology-related companies, with software at roughly 64% of the portfolio
Industry diversification: More than 30 borrower industries and end markets
Minimum investment: $25,000 for Classes S and D and $1 million for Class I unless waived
Best For: Investors seeking technology sector exposure through private credit rather than public equities.
7. Arrived Real Estate Income Fund
Arrived's Real Estate Income Fund provides exposure to short-term, real estate-backed loans with a focus on accessibility for non-accredited investors.
Fund Structure
The fund invests primarily in short-term, asset-based loans secured by residential real estate, with substantially all proceeds expected to go toward non-traditional mortgage loans, primarily with terms no longer than 36 months. It also retains authority to invest in certain other real estate-related debt assets, including RMBS, CDOs, and REIT senior unsecured debt.
As displayed in August 2026, the fund had approximately $90 million in total net assets. Platform-level figures are dynamic counters and change over time.
Yield Performance
Arrived's site currently headlines an 8.5% historical yield, while its detailed table reports an 8.45% annualized dividend over the last 12 months and an 8.03% annualized dividend for July 2026. Monthly figures fluctuate, at 8.86% in May, 8.71% in June, and 8.03% in July 2026.
Arrived currently targets monthly distributions, although its offering circular notes that the manager may declare them more or less frequently and at its discretion. The fund also states that there is no public market for its common shares and that it has no current plans to list them, offering instead a redemption mechanism with stated limits.
Key Highlights
Total net assets: Approximately $90 million as displayed in August 2026
Historical yield: 8.5% headline, and 8.45% over the last 12 months
Distribution frequency: Monthly, targeted and discretionary
Minimum investment: $100
Accreditation required: No, although Regulation A investment limits generally cap a non-accredited natural person's aggregate purchase price at 10% of the greater of annual income or net worth, subject to applicable rules and exceptions
Best For: Investors seeking real estate-backed debt exposure with monthly distributions.
Why mogul Stands Out for Monthly Dividend Investors
Return Potential on an Apples-to-Apples Basis
mogul reports an 18.8% average annual IRR as of April 2025 and publishes a 15%-20% target annual IRR on current offerings. The comparable total-return figures for four of the featured non-listed vehicles are inception-to-date annualized Class I total returns of 9.0% for BCRED, 9.23% for OCIC, 9.20% for OTIC, and 9.4% for BREIT. Distribution rates are a separate measure and belong alongside mogul's target levered yields of roughly 11% to 13% rather than alongside its IRR.
That return profile stems in part from the asset class itself. According to mogul's analysis of Federal Reserve and Case-Shiller data, single-family rentals delivered a 13.8% IRR from 1993 to 2023 versus 9.8% for the S\&P 500, and an investor in single-family rentals over a 30-year hold would on average return 190% higher with 45% less volatility.
Tax Characteristics of Property-Level Ownership
Tax treatment differs by vehicle and by investor. BDC distributions may include ordinary income and other tax character depending on the fund and the year, as set out in IRS Publication 550, and BREIT reported that 100% of its 2025 distributions were characterized as return of capital. mogul's property-level LLC structure may generate depreciation deductions that reduce taxable rental income, although basis, at-risk and activity rules, state tax, and recapture rules shape the result. Outcomes depend on each investor's own circumstances rather than on a fixed after-tax rule of thumb.
Institutional-Style Vetting with Retail Accessibility
mogul applies institutional-style, proprietary underwriting informed by its founders' Goldman Sachs experience, with its investment professionals having deployed $10 billion in real estate and less than 1% of reviewed properties passing diligence. That process delivers professionally vetted and managed properties on a platform open to both accredited and non-accredited investors, where the average investment is about $10k.
Downside Protection for New Members
The $10k loss protection for new members is unmatched among the alternatives compared in this guide. Combined with the team's co-investment in every property, mogul creates alignment between platform success and investor outcomes.
Four Pillars of Real Estate Returns
mogul investors benefit from appreciation, monthly income, tax advantages, and accretive leverage, a combination that debt-oriented structures generally do not offer. Use mogul's investment property calculator, which supports base, bull, and bear scenario modeling, to model potential returns, or schedule a call with the mogul team.
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 benefits of investing outside the stock market for monthly income?
Alternatives such as fractional real estate and private credit can have different return drivers from publicly traded equities, including property-level rental cash flow and privately negotiated loan terms. Real estate offers additional potential benefits including appreciation, tax treatment tied to depreciation, and a built-in inflation hedge as rental rates adjust with market conditions. Private credit portfolios are predominantly floating rate, so higher base rates can increase interest income on those assets. These vehicles nevertheless remain exposed to shared macroeconomic, credit, financing, liquidity, and valuation risks, and the Financial Stability Board specifically identifies deepening interconnections among private credit funds, banks, insurers, and private equity firms.
How does fractional real estate investing work?
Fractional real estate platforms like mogul structure each income-generating property through a property-level investment-club LLC that serves as the acquisition and ownership vehicle, then sell fractional interests in that LLC to investors. Members receive monthly distributions from rental income proportional to their ownership stake, along with potential tax benefits and eventual proceeds from property sales. This structure provides economic exposure to a specific property without the substantial down payment, financing requirements, closing costs, and property-management responsibilities associated with purchasing a rental property outright. mogul's own materials note that some one-unit investment property purchases can begin around 15% down, so capital requirements for traditional rentals vary widely.
Are these alternative investments accessible to non-accredited investors?
Accessibility varies by platform. mogul is available to accredited and non-accredited investors, with an average investment of about $10k, and Arrived accepts non-accredited investors at a $100 minimum, subject to Regulation A investment limits. Non-listed vehicles such as BREIT, which is a REIT, and OCIC and OTIC, which are non-traded BDCs, are generally offered through broker-dealers at materially higher minimums: $2,500 for BREIT and $25,000 for OCIC and OTIC Classes S and D. BCRED and ASIF availability depends on the specific share class and distribution channel, with $2,500 minimums for Classes S and D.
What kind of returns can I expect from private credit compared to real estate?
The four private credit BDCs profiled here currently report Class I annualized distribution rates of roughly 9.0% to 9.6%, while mogul reports an 18.8% average annual IRR and targets 15%-20% annual IRR on current offerings. Return profiles also differ structurally. Private credit BDCs are generally income-oriented, but total return can also include changes in NAV, realized and unrealized gains or losses, and returns from equity or equity-linked positions. Property-level real estate combines income, appreciation, tax characteristics, and leverage. The cleanest comparison matches total return with total return, and cash yield with cash yield, rather than mixing the two.
How do these investments protect against market volatility?
These alternatives have different return drivers and less frequent pricing than public equities, but that does not make them independent of shared macroeconomic risks. The Financial Stability Board's 2026 private credit assessment identifies vulnerabilities from leverage, credit quality, valuation opacity, liquidity mismatches, and concentration. Liquidity mechanisms also vary materially by offering. Real estate values are tied primarily to local housing markets and rental demand, and according to mogul's analysis of Federal Reserve and Case-Shiller data, single-family rentals showed 45% less volatility than the S\&P 500 from 1993 to 2023 while delivering higher returns.