Roofstock has built a significant presence in the single-family rental investment space, reporting $10B transacted, 400K users, and 20K homes under management since launching in 2015. The platform connects investors with tenant-occupied rental homes and offers property management services. However, Roofstock's marketplace model typically requires substantial capital for whole-property purchases, and its fractional offering (Roofstock One) is limited to accredited investors with a $5,000 minimum. For investors seeking more accessible entry points into fractional real estate investing, several alternatives offer different approaches to property ownership, fee structures, and return profiles. This guide examines seven alternatives that serve different real estate investment needs in 2026, starting with mogul, a fractional real estate platform founded by Goldman Sachs alumni that delivers institutional-quality properties with 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
- Fractional ownership expands access to real estate: Platforms like mogul enable investors to build diversified property portfolios without the six-figure down payments required for whole-property ownership through traditional marketplaces
- Fee structures significantly impact long-term returns: mogul charges a one-time 3% platform fee (plus a possible one-time 2% setup fee if required to make a property rent-ready) and an ongoing 2.5% fee on collected rental income, with no traditional annual AUM fee, compared to platforms charging approximately 1% annually in flat AUM fees
- Distribution frequency affects cash flow planning: Monthly distributions (mogul, Ark7) enable faster reinvestment compounding versus quarterly distributions offered by Fundrise, while Arrived's distribution frequency varies by product offering
- Property selection varies by platform: Some platforms like mogul let investors choose specific properties, while Fundrise primarily offers pooled fund-style exposure for most retail real estate investors rather than an individual-property selection model
- Professional expertise influences property quality: Platforms led by institutional real estate professionals apply rigorous underwriting standards; mogul accepts less than 1% of properties reviewed
- Investor protections differ across platforms: mogul offers up to $10,000 in loss protection for new members, a feature uncommon among competitors
1. mogul
mogul delivers a fractional real estate platform built by former Goldman Sachs investment professionals with over $10 billion in collective deal experience. The platform enables investors to build property portfolios through fractional ownership in income-generating single-family rentals, including short-term rentals (Airbnb-style), long-term rentals, and mid-term rental properties.
How Does mogul Work?
mogul's platform allows investors to purchase fractional ownership in professionally vetted residential properties. Each property is placed into a state-registered LLC, and investors receive proportional ownership stakes. Key highlights:
- Property Selection: Browse available properties with detailed underwriting for each listing, including projected returns, rental income, and market analysis
- Monthly Distributions: Receive actual rental income payments monthly
- Tax Benefits: Investors may receive proportionate real estate tax benefits, including depreciation-related deductions, depending on the offering terms and each investor's individual tax circumstances
- Professional Management: mogul handles all property management, tenant coordination, and operational responsibilities
Documented Results
mogul's institutional-grade approach has delivered consistent performance:
- 18.8% average annual returns (IRR) as of April 2025
- Record monthly yield of 2.6% achieved on platform properties
- 90% of investors invest a second time, with their follow-on investment averaging 3x their initial amount
- $40M+ in assets across the platform with 13,000+ investors
Rigorous Property Selection
mogul's research analysts and institutional partners use proprietary underwriting models to identify properties with maximum upside potential:
- Less than 1% of properties reviewed pass mogul's diligence process
- 12% minimum IRR hurdle rate ensures quality threshold for all listings
- mogul personally invests in every property offered, aligning management interests with investor returns
Investor Protection
mogul offers unique risk mitigation for new members:
- Up to $10,000 in loss protection for new members
- Blockchain-backed transparency for ownership tracking
- Governance rights proportional to ownership stake
Best For: Investors seeking institutional-quality single-family rental investments with strong historical returns, monthly income distributions, and professional management from Goldman Sachs alumni, all without the six-figure capital requirements of whole-property ownership.
2. Ark7
Ark7 provides fractional real estate investing with one of the lowest minimums for individual fractional property shares at $20 per property. The platform reports 300K+ active investors, $30MM+ in property value funded, and $4MM+ in cash dividends paid as of May 2026.
Key Features
- $20 minimum investment: One of the lowest entry points for individual fractional property shares among competing platforms
- Monthly distributions: Matches mogul's distribution frequency
- Secondary market: PPEX ATS trading available for eligible shares, generally after a required holding period
- Simplified taxes: Issues 1099s instead of K-1s for easier tax reporting
- Mobile app: 4.7/5 rating on Apple App Store
Fee Structure
- 3% one-time acquisition fee
- No ongoing AUM fees
- 8-15% property management fee deducted from rental income
Performance
A third-party SparkRental roundup estimates Ark7's average total return at approximately 8%, though Ark7's current homepage emphasizes funded property value, active investors, and cash dividends rather than a single current portfolio-wide return figure.
Best For: Investors seeking one of the lowest possible entry points into individual fractional property shares with existing secondary market access and simplified tax reporting.
3. Fundrise
Fundrise says it is trusted by more than 2 million people and describes itself as America's largest direct-to-consumer private markets manager. Having launched its online real estate investing platform in 2012, it offers one of the longest operational track records among real estate crowdfunding platforms.
Key Features
- $10 minimum: Lowest absolute minimum investment
- REIT/eFund structure: Pooled investments across multiple property types
- Maximum diversification: Broad exposure to residential and commercial properties
- Hands-off investing: No individual property selection required
Fee Structure
- Approximately 0.15% advisory fee annually
- Approximately 0.85% management fee annually
- Total annual fees around 1%
Performance
Fundrise's Income Fund currently lists a 7.5% current distribution rate and 8.3% trailing 12-month cumulative returns, with performance varying by fund strategy and market conditions.
Considerations
- Quarterly distributions: Less frequent than monthly options
- Limited property selection: Fundrise primarily offers pooled fund-style exposure for most retail real estate investors, without an individual-property selection model
- Limited liquidity: Redemption restrictions and potential penalties for early withdrawal
Best For: Investors wanting broad diversification across property types without the responsibility of selecting individual properties, willing to accept lower returns for maximum hands-off simplicity.
4. Arrived Homes
Arrived Homes reports 971K registered investors and roughly $418M to $419M in total invested across 565+ properties funded. The platform offers both individual property selection and a pooled Single Family Residential Fund.
Key Features
- $100 minimum: Accessible entry point for individual properties
- Property selection: Choose specific homes or invest in diversified fund
- Vacation rental access: Short-term rental properties available
- Secondary market: Arrived announced a secondary market in November 2025 for share liquidity
Fee Structure
- AUM fees vary by product, currently listed at 0.1%-0.30% per quarter (individual SFR homes are listed at 0.15% per quarter, which annualizes to approximately 0.60%)
- Offering, sourcing, closing, and property-management costs vary by product and offering
Performance
Arrived's performance varies by property and fund, with the platform emphasizing total invested, distributions, and properties funded rather than a single current portfolio-wide return figure.
Considerations
- Variable distribution frequency: Distribution timing varies by Arrived product and offering, with some paying monthly and others quarterly
- Higher total fees: Combined upfront and ongoing fees add up over holding periods
- 5-7 year typical hold: Long-term commitment expected
Best For: Investors interested in vacation rental exposure and the flexibility to choose between individual properties or diversified funds, with access to a secondary market announced in November 2025.
5. RealtyMogul
RealtyMogul has operated since 2012, focusing on commercial real estate investments including office buildings, retail centers, and multifamily properties. The platform has historically served both accredited and non-accredited investors through different product tiers, but its public REIT pages currently state that those offerings are paused for new investors while offering circulars are refreshed.
Key Features
- Commercial focus: Specialized in commercial and multifamily properties
- Multiple investment types: Private placements, REITs, and 1031 exchanges
- Accredited and non-accredited options: Different products for different investor qualifications (note: REIT offerings are currently paused for new investors)
- 1031 exchange services: Tax-advantaged property exchanges
Fee Structure
- 1-1.25% annual management fees on REIT investments
- Additional fees vary by private placement offering
- REIT minimums are typically $5,000, while individual property and 1031 exchange offerings often require $25,000 to $35,000 or more
Investment Options
- RealtyMogul Income REIT: Income-focused real estate (currently paused for new investors; share repurchase program suspended as of April 2026)
- RealtyMogul Apartment Growth REIT: Growth-oriented apartment investments (currently paused for new investors)
- Private placements: Individual commercial property investments (accredited investors only)
Best For: Investors seeking commercial real estate exposure beyond single-family residential, particularly those interested in office, retail, or larger multifamily properties, subject to current availability constraints.
6. Lofty.ai
Lofty.ai uses blockchain technology to tokenize real estate investments, offering fractional ownership with daily rental income distributions and secondary-market access.
Key Features
- Blockchain tokenization: Property ownership represented as digital tokens
- Daily distributions: Most frequent payout option in the market
- Secondary market access: Lofty offers secondary-market functionality that may allow investors to list shares for sale without a long holding period, though liquidity is not guaranteed and depends on buyer demand
- Low minimum: Start investing with small amounts per property
Performance
Lofty returns vary by property; third-party sources describe typical or target annualized return ranges that vary significantly by listing.
Considerations
- Newer platform: Smaller track record compared to established alternatives
- Technology focus: May appeal more to crypto-familiar investors
- Return considerations: Reported or target returns may vary; property-level yield, fees, and resale-market depth differ across individual listings
Best For: Investors prioritizing secondary-market access and daily income distributions, particularly those comfortable with blockchain-based ownership structures.
7. Constitution Lending
Constitution Lending takes a different approach, offering real estate debt investments rather than equity ownership. Investors fund loans secured by real estate, earning interest income rather than rental income and appreciation. Note: Constitution Lending is available to accredited investors only.
Key Features
- Debt-focused: Invest in real estate loans rather than property ownership
- Fixed income targets: Targets fixed monthly interest payments from real estate-secured loans, though actual returns depend on borrower performance and collateral recovery
- Shorter terms: Loans typically mature faster than equity hold periods
- Collateral security: Loans secured by underlying real estate
Investment Model
- Investors provide capital for real estate loans
- Returns come from interest payments rather than rental income
- Principal returned at loan maturity
- Different risk profile than equity ownership
Considerations
- Accredited investors only: Constitution Lending's investment products are available to accredited investors only
- No appreciation upside: Returns limited to stated interest rate
- No tax benefits of ownership: Miss depreciation and other ownership deductions
- Credit and collateral risk: Actual returns depend on borrower performance and collateral recovery, not just the stated rate
Best For: Accredited investors seeking fixed-income exposure to real estate through debt investments, willing to accept credit and collateral risk in exchange for targeted fixed returns.
Why mogul Stands Out for Fractional Real Estate Investing
Institutional-Grade Returns with Accessible Entry
mogul delivers 18.8% average annual returns (IRR) by applying the same rigorous underwriting standards used at major investment banks. The platform was founded by Goldman Sachs real estate alumni with $10 billion in collective deal experience, bringing institutional expertise to individual investors.
Monthly Cash Flow Distribution
While many platforms distribute income quarterly, mogul provides monthly rental income distributions. This frequency enables faster reinvestment and compounds returns more effectively over time. Investors receive actual rental payments, not projected estimates.
Rigorous Property Selection Process
mogul's research analysts accept less than 1% of properties reviewed, applying a 12% minimum IRR hurdle rate to every listing. The team personally invests in every property offered on the platform, aligning management interests directly with investor outcomes.
Unique Investor Protection
mogul covers up to $10,000 in losses for new members during their first year, a risk mitigation feature uncommon among competing platforms. This protection demonstrates confidence in the platform's property selection and management approach.
Direct Ownership Benefits
Unlike REITs that pool investments into diversified funds, mogul provides direct fractional ownership in individual properties via LLC structures. Investors receive:
- Monthly rental income proportional to ownership stake
- Proportionate real estate tax benefits, including depreciation-related deductions, depending on offering terms and the investor's individual tax circumstances
- Governance rights on property decisions proportional to ownership stake
- Proceeds from eventual property sales after 3-10 year hold periods
Comprehensive Investment Tools
mogul offers free investment property calculators that analyze potential returns for any U.S. address. The Airbnb calculator analyzes data from millions of Airbnb listings, and the rental property calculator helps estimate potential profit, rental income, and returns across base, bear, and bull scenarios. Investors can also request free professional underwriting from mogul's team for any property they're considering.
Proven Track Record and Recognition
mogul has been featured in TechCrunch, Forbes, Wired, Fox Business, Fortune, Business Insider, and Axios. The platform raised $3.6 million in seed funding; AY Ventures led the round, with participation from Tim Draper and Associates, Draper B1, InterVest, Draper Dragon, Blizzard Fund, and angel investors including Rosa Rios, the 43rd Treasurer of the United States. mogul's investors include backers of companies like Robinhood, SpaceX, Tesla, and Skype. Chris Larsen, Co-Founder of Ripple, is listed among mogul's investors and advisors on the About page.
For investors seeking an alternative to Roofstock's marketplace model, mogul's combination of institutional-quality property selection, strong historical returns, monthly distributions, and unique loss protection makes it a compelling choice. Explore how mogul works to learn more about building a real estate portfolio through fractional ownership.
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 main advantages of fractional real estate investing compared to full property ownership?
Fractional ownership eliminates the traditional barriers to real estate investing: six-figure down payments, mortgage qualification requirements, and hands-on management responsibilities. Investors can build diversified portfolios across multiple properties and markets without the tenant calls at 3am or maintenance coordination. Platforms like mogul handle all property management while investors receive monthly distributions and proportionate tax benefits depending on offering terms and individual tax circumstances.
How do platforms like mogul ensure the quality and potential returns of their listed properties?
mogul applies institutional underwriting standards, accepting less than 1% of properties reviewed. Every property must meet a 12% minimum IRR hurdle rate, and the team personally invests in every property offered on the platform. This alignment of interests, combined with the founders' Goldman Sachs background and $10 billion in deal experience, creates a quality filter that individual investors typically cannot replicate when purchasing properties directly.
Can international investors participate in these real estate investment platforms?
International investor eligibility varies by platform and offering, with residency, tax treaty, KYC/AML, and accreditation requirements differing across providers.
What role does blockchain technology play in modern real estate investment platforms?
mogul leverages blockchain technology for real estate tokenization, providing enhanced transparency and security for ownership tracking. This technology creates an immutable record of ownership and enables more efficient secondary market trading. mogul states that a secondary market feature is coming soon; if launched as described, investors would be able to sell shares at fair market value calculated monthly through third-party appraisal-level data.
How does a secondary market improve liquidity for fractional real estate investments?
Secondary markets allow investors to sell their fractional shares before the typical 3-10 year hold period ends, providing an exit option that direct property ownership lacks. Ark7 supports secondary-market trading through PPEX ATS for eligible shares, generally after a required holding period. Arrived announced a secondary market in November 2025, and mogul has a secondary market feature coming soon. When available, such features represent a significant advantage over traditional real estate investments, which can take months to sell.