Best Real Estate Investments That Outperform the S&P 500

Any claim that a real estate investment beats the stock market has to be measured against what the index actually returned over a defined period. As of August 16, 2026, S&P Dow Jones Indices reported the S&P 500 Total Return Index at 21.81% annualized over one year, 21.75% over three years, 13.36% over five years, and 15.46% over ten years, with dividends reinvested. That source updates daily, so the figures above reflect the reporting date shown.

Against long-run equity performance, mogul's analysis of Federal Reserve and Case-Shiller Home Index data finds that single-family rentals delivered a 13.8% IRR from 1993 to 2023 versus 9.8% for the S&P 500 over that same window, roughly a 41% higher annual return. For investors seeking to build long-term wealth, understanding how to access this asset class through a fractional real estate platform can unlock institutional-grade opportunities without requiring hundreds of thousands in capital.

This guide examines seven platforms that provide access to income-producing real estate, reporting each platform's performance exactly as that platform currently defines and discloses it. It begins with mogul, a fractional real estate platform club founded by former Goldman Sachs executives that reports 18.8% average annual returns through property-specific ownership in income-producing homes.

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

• Single-family rentals have historically outpaced stocks in mogul's analysis: From 1993 to 2023, single-family rentals returned 13.8% IRR compared to 9.8% for the S&P 500, representing roughly a 41% higher annual return according to mogul's review of Federal Reserve and Case-Shiller data

• Monthly distributions create more frequent reinvestment opportunities: Platforms offering monthly rental income provide three payment windows per quarter versus one for quarterly schedules, which may improve compounding when distributions are promptly reinvested at comparable returns

• Pass-through structures can allocate property-level tax items: LLC-based fractional ownership generally provides Schedule K-1 reporting and may allocate depreciation and other property-level items under applicable IRS rules. REIT investments have different tax treatment and can also carry federal benefits, including the treatment of qualified REIT dividends under Section 199A

• Selective underwriting supports disciplined investing: Platforms with rigorous property selection processes, such as mogul's less than 1% acceptance rate, help identify and mitigate investment risks before capital is committed

• Non-accredited investor access has expanded: Several platforms now offer real estate investments without requiring accredited investor status, though minimum investments, product availability, and return profiles vary significantly

• Loss protection programs provide downside coverage: Some platforms offer unique protections, and mogul covers up to $10,000 in losses for investments made during your first seven days

1. mogul

mogul delivers institutional-grade single-family rental investments to individual investors through property-specific fractional ownership. Founded by Goldman Sachs alumni with over $10 billion in collective deal experience, the platform reports $90 million in assets and 40K+ users as of June 1, 2026, with its current How It Works page describing a community of 40,000+ investors in properties that generate monthly rental income.

How Does mogul Work?

mogul acquires high-performing single-family properties, places each into a state-registered LLC, and offers fractional ownership to investors. This structure provides:

• Property-specific ownership: Investors purchase membership interests in a property-specific investment-club LLC tied to an identifiable home, providing property-level economic exposure and governance rights rather than an interest in a blind pooled fund

• Monthly distributions: Once a property is operational, mogul generally distributes each investor's proportional share of available net rental income monthly, with amounts reflecting occupancy, rent collection, expenses, reserves, and overall property performance

• Tax reporting and potential pass-through items: The pass-through LLC structure generally provides Schedule K-1 reporting and may allocate depreciation and other property-level tax items, with individual outcomes shaped by each investor's own circumstances

• Appreciation upside: Investors participate in proportional sale proceeds over a 3-10 year hold period

• Full management: mogul handles property management, tenant coordination, and operational responsibilities through licensed or contracted managers, which makes real estate investing more accessible and headache-free

Key Performance Metrics

mogul's 18.8% average annual IRR places it among the highest-performing platforms in the fractional real estate space. Additional performance indicators include:

• Property acceptance rate: Less than 1% of reviewed properties pass mogul's institutional-grade diligence process, reflecting highly selective underwriting that delivers professionally vetted and managed properties

• Repeat-investment rate: mogul reports that 90% of investors make a second investment, and that second investment is approximately 3X the first

• Target returns: mogul currently publishes a roughly 15-20% target weighted-average levered return across its blended mid-term and short-term rental strategies, with projected yields and returns set property by property

Unique Investor Protections

mogul is the only major platform offering loss protection for new members. The platform covers up to $10,000 in losses on investments made during your first seven days if those investments show a loss after one year. Members can also refer a friend and get $50 when that friend invests, subject to the referral program terms.

Free Investment Tools

mogul provides four free calculators to analyze any U.S. address:

• Investment Property Calculator: Full ROI, IRR, and cash-on-cash projections

• Rental Property Calculator: Rental income estimation and return analysis

• Airbnb Calculator: Short-term rental potential using data from millions of U.S. Airbnb listings

• Real Estate Calculator: Levered vs. unlevered return comparisons

Best For: Investors seeking institutional-quality real estate exposure with monthly cash flow, property-specific ownership, and downside protection, without requiring accredited investor status or large capital commitments.

2. EquityMultiple

EquityMultiple provides accredited investors access to commercial real estate through debt, preferred equity, and common equity positions. The platform has facilitated over $500 million in investments across more than 185 projects since 2015.

Core Capabilities

• Investment structures: Debt products, preferred equity, and common equity positions. Alpine Notes currently offer 3-month, 6-month, and 9-month terms at 6.0%, 7.0%, and 7.35% APYs and are fee-free

• Commercial focus: Office, retail, multifamily, and industrial property types

• Target returns by structure: EquityMultiple's live guidance is structure-specific rather than a single blanket band. It identifies roughly 7-12% annual rates for debt and 7-12% current preferred returns, with total preferred returns in the low-to-mid teens and common-equity net IRR targets in the mid-teens. A separate current FAQ describes total preferred returns as 10-18%

• Institutional partnerships: Access to deals from established sponsors and fund managers

Investment Requirements

• Minimum investment: Minimums vary by product. A $1,000 Traverse Alpine Note is available to first-time investors, while project minimums can start at $5,000 and typically range from $10,000 to $30,000. Current Grow offerings include $20,000 and $25,000 minimums

• Accreditation: Accredited-investor status is currently required to invest through EquityMultiple

• Fee structure: Fees are product-specific. Common-equity investments carry monitoring and reporting fees of roughly 0.5-1.5%, debt and preferred-equity investments typically carry a servicing fee around 1%, funds can carry origination fees, and administrative expenses can also apply. Short-term Alpine Notes are fee-free

• Distribution timing: Varies by deal structure

Platform Characteristics

EquityMultiple offers flexibility across risk profiles, from short-term debt products to longer-term equity positions. The platform reports a 14.95% net return for fully realized investments since the formation of its investment committee in 2019. That figure is presented as a platform-reported realized result over its own reporting window rather than a period-matched S&P 500 Total Return comparison.

Best For: Accredited investors seeking diversified commercial real estate exposure across debt and equity positions with varying risk-return profiles.

3. CrowdStreet

CrowdStreet operates one of the largest commercial real estate marketplaces, launched in 2013. As of August 2026, the firm reports having deployed nearly $4.5 billion of equity across roughly 800 individual transactions and grown to more than 300,000 members. The platform connects accredited investors directly with commercial real estate sponsors.

Platform Overview

• Deal volume: Roughly 800 individual transactions and nearly $4.5 billion of equity deployed as of August 2026

• Realized performance: CrowdStreet's official realized Marketplace track record dated January 24, 2025 reports $769.8 million across realized Marketplace investments, an 11.2% aggregate realized IRR, a 1.33x equity multiple, and a 3.5-year average hold period. Note that an aggregate realized IRR is not the same statistic as a simple average IRR

• Property types: Office, retail, multifamily, industrial, and hospitality

• Sponsor network: Extensive relationships with vetted commercial real estate developers, with CrowdStreet reporting that only about 5% of reviewed deals reach the platform

Investment Structure

• Minimum investment: Minimums generally start at $25,000 and can be higher depending on the offering

• Accreditation: Required for all investments

• Fee structure: Sponsor-based fees vary by deal

• Hold periods: Sponsors commonly target approximately 3-5 years, although some offerings can extend to 10 years or longer, with exit-driven distributions

Platform Focus

CrowdStreet continues to offer individual sponsor-led investments, allowing investors to choose specific commercial properties, while also providing diversified funds across real estate and other private-market asset classes. Individual deal selection allows granular control, with capital commitments set per investment. CrowdStreet's realized figure is an XIRR based on the timing of investor contributions and distributions, which is a different calculation from a generic index CAGR.

Best For: Accredited investors with $25,000+ to deploy who want direct selection of commercial real estate deals and sponsor relationships, or diversified access through the platform's newer private-market funds.

4. Willow Wealth

Willow Wealth (formerly Yieldstreet, renamed in November 2025) is a private-markets platform for individual accredited investors, launched in 2015 and reporting more than 500,000 members. Within the scope of this guide, the relevant offering is its real estate exposure.

Platform Scope

• Real estate focus: Willow's current description emphasizes real estate, private credit, private equity, and other private-market strategies, alongside specialized strategies such as art and legal finance

• Scale: More than 500,000 members

• Institutional partnerships: Current institutional partners include Goldman Sachs, Carlyle, and StepStone

• Investment options: Individual deals and diversified fund products

Investment Parameters

• Minimum investment: Minimums vary by offering and typically begin at $5,000; Willow 360 Managed Portfolios require $25,000

• Accreditation: Willow Wealth primarily serves individual accredited investors, with eligibility requirements that are product-specific

• Fee structure: Fees are product-specific. Evergreen-fund fee schedules are set by the underlying manager and vary by share class, with one-time commitment fees possible, while Willow 360 currently states a 1.25% advisory fee plus approximately 0.175% of expenses

• Distribution frequency: Varies by investment type

Considerations

Willow Wealth provides broad alternative investment exposure, of which real estate is one component. The platform reports overall scale and institutional partnerships rather than a real-estate-specific realized total-return series over defined dates. Willow itself notes that diversification does not ensure a profit or protect against loss.

Best For: Accredited investors seeking exposure to multiple alternative asset classes through a single platform, including but not limited to real estate.

5. RealtyMogul

RealtyMogul was founded in 2012 and offers both non-traded REIT products structurally available to eligible non-accredited investors and private placements for accredited investors. The platform focuses on commercial real estate.

Product Offerings

• REIT products: The Income REIT and Apartment Growth REIT have historically been accessible to eligible non-accredited investors, but both are currently paused for new investors while their offering circulars are refreshed

• Private placements: Individual deals for accredited investors

• Property focus: Commercial real estate across apartments, office, retail, industrial, mixed-use, self-storage, cold storage, development, and other property types depending on the offering. The Apartment Growth REIT specifically identifies multifamily and industrial assets

• Performance reporting: RealtyMogul publishes product-specific REIT information and individual-offering results rather than a single platform-wide average annual return

Investment Details

• Minimum investment: $5,000 for the REITs when subscriptions are open; individual private-placement minimums vary and are typically $25,000 or $35,000

• Accreditation: Not required for the REIT products by structure; required for private placements

• Fee structure: Product-specific. The Income REIT lists up to 3% of gross offering proceeds for organization and offering expenses, a 1% annualized asset-management fee, variable operating expenses, and certain loan and preferred-equity servicing fees. The Apartment Growth REIT lists up to 3% organization and offering reimbursement, a 1.25% annualized asset-management fee, variable expenses, and applicable servicing fees. These fees are not all charged on the same base or at the same time

• Distribution timing: REIT distributions are generally expected quarterly, though amounts and timing depend on the offering and investment performance

Platform Characteristics

RealtyMogul's hybrid model offers flexibility for investors at different accreditation levels and capital amounts. The REIT products are structured for non-accredited investor access, while private placements offer accredited investors individual deal selection.

Best For: Investors seeking REIT-based commercial real estate exposure once subscriptions reopen, with the option to access individual deals as accredited investors.

6. Fundrise Flagship

Fundrise offers a low entry minimum, with taxable accounts starting at $10. The Fundrise Flagship Fund is the marketing name for the Fundrise Real Estate Interval Fund, a registered '40 Act fund through which investors obtain diversified real estate exposure rather than direct title to individual properties.

Platform Structure

• Investment vehicle: A registered interval fund, not an eREIT or eFund

• Fund scale: The Flagship Fund currently reports approximately $1.1 billion of net assets and more than 4,700 single-family homes

• Performance: For Fundrise Advisors client accounts invested in the Flagship Fund, the average annual total return net of fees was 6.39% for the 12 months ended June 30, 2026, 0.93% annualized over five years, and 1.23% annualized since inception. Fundrise also reported approximately 6.18% average net return for the first half of 2026

Investment Approach

• Minimum investment: $10 standard, $1,000 for IRA accounts

• Accreditation: Not required for ordinary accessible products

• Fee structure: 0.85% fund management fee plus 0.15% advisory fee annually

• Distribution and liquidity: Quarterly distributions, with quarterly penalty-free withdrawal opportunities subject to fund terms

Key Considerations

Fundrise's fund-based structure differs from property-specific ownership models. Investors own shares in a diversified interval fund rather than interests tied to a specific home, which affects both tax treatment and investment control. Any comparison to the S&P 500 requires calculating index total return over the same dates as the Fundrise reporting window rather than against a generic long-run average.

Best For: First-time investors prioritizing the lowest possible entry point and hands-off fund management over property-specific ownership.

7. Arrived

Arrived provides individual rental-property investments plus diversified residential and real-estate-credit funds, including a Single Family Residential Fund, a Real Estate Income Fund, and City Funds, with fractional ownership starting at $100. Arrived reported surpassing $170 million in total property value during 2025.

Platform Features

• Product focus: Individual single-family rentals and vacation rentals alongside diversified residential and real-estate-income funds

• Portfolio scale: More than $170 million in total property value reported during 2025

• Secondary market: Eligible individual-property shares may be listed on Arrived's secondary market after the property is fully funded and held for at least six months, during a one-week trading window each month, subject to buyer demand and applicable rules

• Reported returns: Metrics are product-specific. The Real Estate Income Fund reports a last-12-month annualized dividend yield of 8.47% as of June 2026 and separately describes a target yield relative to short-term Treasury rates. A dividend yield is not equivalent to a total return

Investment Structure

• Minimum investment: $100 across offerings

• Accreditation: Not required for individual properties and major funds

• Fee structure: Product-specific. Arrived's current fee disclosure states AUM fees ranging from roughly 0.10% to 0.30% per quarter: 0.15% of asset purchase price per quarter for individual single-family rentals, 0.25% of NAV per quarter for the SFR Fund, and 0.30% per quarter for the Real Estate Income Fund. A sourcing fee can apply as a one-time offering-specific cost rather than a universal platform charge

• Distribution timing: Schedules are product-specific, but major current products including the Single Family Residential Fund and the Real Estate Income Fund use monthly distributions

Platform Approach

Arrived offers low-barrier entry to residential real estate with a secondary market feature for liquidity after a six-month holding period. Its published figures are yields and product-level guidance rather than a realized total-return series over defined dates.

Best For: Investors seeking low-cost entry into residential real estate with potential secondary market liquidity.

Why mogul Stands Out for Real Estate Investment

Institutional-Grade Returns Without Institutional Barriers

mogul's 18.8% average annual IRR reflects the same rigorous underwriting standards the founders applied to billion-dollar deals at Goldman Sachs, now accessible to individual investors. The platform's less than 1% property acceptance rate reflects a highly selective diligence process built on institutional standards.

Monthly Cash Flow Advantage

mogul delivers monthly dividends, real-time appreciation, and tax benefits on property-specific investments. Monthly schedules provide three payment and reinvestment opportunities per quarter versus one for quarterly schedules, and may improve compounding when distributions are promptly reinvested at comparable returns. mogul's differentiation is the combination of monthly distribution scheduling with its property-specific LLC structure and underwriting model.

Property-Specific Ownership with Pass-Through Tax Reporting

Each mogul property sits in a state-registered LLC, providing investors with Schedule K-1 reporting that may allocate depreciation and other property-level tax items. In mogul's own homepage illustration, an 8% REIT dividend is reduced to roughly 5% after taxes, while an 8% mogul property distribution remains 8% under the same illustration. Actual outcomes depend on each investor's circumstances, and professional tax guidance is recommended.

Unique Investor Protection

No other major platform offers mogul's $10,000 loss protection for new investors. This first $10k protection for new members, covering investments made during your first seven days, demonstrates the platform's confidence in its underwriting process and commitment to investor success.

Blockchain-Backed Transparency

mogul uses Avalanche-based infrastructure to maintain independently verifiable records of tokenized LLC ownership interests and transaction data, delivering immutable transaction records and 24/7 visibility into ownership. These records work alongside the LLC operating agreement, offering documents, company records, deed, and title records that establish legal ownership.

Expert-Backed Investment Intelligence

mogul's team includes former Goldman Sachs investment professionals and acquisitions experts, supported by an investment committee with decades of real estate experience. The platform's free investment calculators and free professional underwriting of an outside U.S. property, with no obligation to buy, help investors make informed decisions whether investing through mogul or evaluating outside opportunities.

For investors seeking to build wealth through real estate, mogul combines property-specific LLC exposure, monthly distribution scheduling, selective institutional-style underwriting, access for non-accredited investors, free institutional-grade property analysis, community features like mogul Clubs that distribute up to 2% in rewards to members, and blockchain-supported ownership records in a differentiated offering. Explore available properties to see current investment opportunities.

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

How do real estate investments compare to the S&P 500?

Real estate total return comes primarily from property income and changes in asset value. Financing can amplify equity gains or losses, and tax treatment affects after-tax results rather than acting as a separate source of property return. mogul's analysis of Federal Reserve and Case-Shiller data finds single-family rentals returned 13.8% IRR compared to 9.8% for the S&P 500 from 1993 to 2023. A current comparison would measure a realized total return over specified dates against the S&P 500 Total Return Index over those identical dates, which stood at 21.81% annualized over one year, 21.75% over three years, 13.36% over five years, and 15.46% over ten years as of August 16, 2026.

What are the main benefits of fractional real estate investing?

Fractional real estate can lower the capital required to own shares in income-producing properties. Depending on the offering, it may provide professional management, diversification when multiple assets are owned, periodic income distributions, and structure-dependent tax treatment. Note that fractional ownership of a single property does not by itself provide diversification across multiple properties, and distribution frequency and legal structure vary by platform.

Do I need to be an accredited investor to use these platforms?

Several platforms accept non-accredited investors, including mogul, Fundrise, Arrived, and RealtyMogul's REIT products by structure, though those REITs are currently paused for new investors. Platforms requiring accreditation include EquityMultiple, CrowdStreet, and Willow Wealth. Accreditation status is an eligibility requirement, not by itself a measure of an investment's expected return: mogul's 18.8% IRR is available to non-accredited investors.

What returns can I expect from real estate investment platforms?

Returns vary significantly by platform, metric, and reporting period. mogul reports an 18.8% average annual IRR; CrowdStreet's January 24, 2025 realized Marketplace track record reports an 11.2% aggregate realized IRR; EquityMultiple reports a 14.95% net return on fully realized investments since 2019; Arrived's Real Estate Income Fund reports an 8.47% last-12-month annualized dividend yield as of June 2026; and Fundrise reported a 6.39% average annual total return for Flagship client accounts for the 12 months ended June 30, 2026, with 1.23% annualized since inception. Platform structure, property selection criteria, fee levels, and the specific metric reported all affect what these numbers mean.

Is there a secondary market for selling fractional real estate shares?

Liquidity varies materially by product. Arrived allows eligible individual-property shares to be listed on its secondary market after the property is fully funded and held at least six months, during monthly trading windows and subject to buyer demand. Fundrise's Flagship Fund advertises quarterly penalty-free withdrawal opportunities. Many private real estate offerings remain illiquid for several years, with sponsors commonly targeting roughly 3-5 year holds and liquidity provided at exit. mogul investors participate in proportional sale proceeds over a 3-10 year hold period, with the platform monitoring several exit avenues at the property level.

How does the property selection process work on these platforms?

Selection rigor varies. mogul applies institutional-grade underwriting with a less than 1% acceptance rate, meaning more than 99% of reviewed properties do not pass its diligence process, which is how the platform delivers professionally vetted and managed properties. CrowdStreet reports that about 5% of reviewed deals reach its platform. Rigorous underwriting helps identify and mitigate investment risks before capital is committed. Vetting processes, sponsor relationships, and disclosed performance methodology differ meaningfully from platform to platform.