Roots has built a following among investors drawn to its social impact model, which allows renters to build wealth alongside property investors. The platform has attracted 29,500+ investors and deployed over $102M into residential real estate. For investors seeking fractional real estate opportunities with different features (individual property selection, monthly distributions, or institutional-grade underwriting), several platforms offer compelling alternatives. This guide examines seven options that serve different investor needs, starting with mogul, a fractional real estate platform founded by Goldman Sachs alumni that delivers property-level control and monthly income distributions.
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
- Property-level selection provides more control: Platforms like mogul and Arrived allow investors to choose specific properties rather than investing in a pooled fund, offering transparency into exactly where capital is deployed
- Monthly distributions improve cash flow timing: mogul provides monthly income distributions versus quarterly payments from several competitors, giving investors more frequent access to rental income
- Institutional expertise matters for underwriting quality: mogul's Goldman Sachs-trained team brings $10 billion in collective experience to property selection, applying institutional-grade analysis to every deal
- Accreditation requirements vary significantly: Platforms like CrowdStreet and EquityMultiple require accredited investor status, while mogul, Fundrise, and Arrived welcome non-accredited investors
- Minimum investments range from $10 to $25,000: Entry points vary dramatically across platforms. Fundrise starts at $10 while CrowdStreet requires $25,000 minimum per investment
- Target returns differ based on strategy: mogul has an 18.8% average annual return (IRR), while more conservative platforms like Fundrise report results that vary by fund and investment objective, with the Income Fund showing recent annual returns in the mid-to-high single digits
1. mogul
mogul delivers a fractional real estate investment platform founded by Goldman Sachs real estate alumni. The platform enables investors to build diversified property portfolios through direct ownership in individual income-generating properties, with each property held in a separate LLC structure.
How Does mogul Work?
mogul acquires income-producing residential properties, places each into a state-registered LLC, and offers fractional ownership to investors. Key highlights:
- Property Selection: Browse and select individual properties rather than investing in a pooled fund
- Monthly Distributions: Receive actual rental income distributions monthly, not quarterly
- Tax Benefits: Potential access to depreciation-related deductions and other real estate tax advantages proportionate to ownership, subject to the offering terms and each investor's tax situation
- Governance Rights: Major property decisions are put to a vote under the applicable property and club governance documents, with super-majority rules
- Exit Strategy: Properties held for 3 to 10 years with proceeds distributed upon sale
Performance and Track Record
mogul has an 18.8% average annual return (IRR) across platform investments. The platform focuses on short-term rentals, mid-term rentals, long-term rentals, and sale-leasebacks, with current property examples in high-growth markets across Texas, Arizona, and the Southeast and a nationwide underwriting process. mogul personally invests in every property offered, aligning management interests with investor returns.
Investment Structure
- Average Investment: ~$10,000
- Distribution Frequency: Monthly
- Target Returns: 15 to 20% annual IRR
- Investor Access: Non-accredited welcome
- Fees: One-time 3% platform fee included in the initial capitalization; one-time 2% setup fee if the property requires rent-ready setup
Technology and Transparency
mogul leverages blockchain technology for ownership tracking and provides detailed underwriting for each property listing. The platform offers free investment calculators that use the same data and tools employed by institutional real estate firms.
Best For: Investors seeking property-level control with institutional-quality underwriting, monthly income distributions, and higher target returns without accreditation requirements.
2. Fundrise
Fundrise operates as one of the longest-running real estate investment platforms, having launched in 2012. The platform has grown to serve 385,000+ investors with $2.87+ billion in equity managed.
Key Features
- Industry-low $10 minimum investment
- Automated portfolio diversification across hundreds of listed assets and thousands of residential units
- 12+ years of operational track record
- Quarterly dividend distributions
- Low annual fees of approximately 1% total (0.15% advisory plus 0.85% management)
Investment Approach
Fundrise pools investor capital into diversified funds rather than offering individual property selection. This approach provides broad exposure, with the fund's team handling property allocation.
Historical Performance
Fundrise performance varies by fund and investment objective. For example, Fundrise's Income Fund reports recent annual returns in the mid-to-high single digits, while broader advisory-client returns vary by objective. This product-specific performance is generally more conservative than property-specific platforms but comes with broader diversification. The platform's extensive track record provides historical data for evaluating performance consistency.
Best For: Beginning investors with minimal capital who prioritize automated diversification over property-level control and are comfortable with more conservative, fund-specific returns.
3. RealtyMogul
RealtyMogul, founded in 2012 and now part of The Wideman Company, has built a 12+ year track record serving both accredited and non-accredited investors through different product tiers. The platform has grown to more than 300,000 members.
Platform Structure
- REITs for Non-Accredited Investors: Access to pooled real estate investment trusts
- Individual Deals for Accredited Investors: Direct investment in specific commercial properties
- Share Buyback Program: Some liquidity options for investors
Investment Parameters
- Minimum Investment: $5,000
- Historical Returns: Varies by product (Income REIT: 3.0% annualized distribution rate)
- Annual Fees: Vary by product and offering documents
- Track Record: 12+ years
Focus Areas
RealtyMogul emphasizes commercial real estate opportunities and provides different access levels based on investor accreditation status. Non-accredited investors can participate through REIT structures, while accredited investors gain access to individual commercial deals. RealtyMogul performance varies by product: its Income REIT currently discloses a 3.0% annualized distribution rate, and its Apartment Growth REIT is paused for new investors.
Best For: Investors interested in commercial real estate exposure who prefer a platform with an established long-term track record.
4. EquityMultiple
EquityMultiple serves accredited investors seeking institutional-grade commercial real estate opportunities. The platform reports $478M+ in total distributions, including cash flow, profits, and return of principal, along with a selective investment process.
Core Capabilities
- Deal-by-deal selection for individual property investment
- Detailed documentation and transparency on each offering
- Focus on institutional-quality commercial real estate
- Various investment structures including equity and preferred equity
Investment Requirements
- Minimum Investment: $5,000
- Investor Requirement: Accredited only
- Annual Fees: Vary by offering
- Asset Focus: Commercial real estate
Deal Access
EquityMultiple provides high transparency with detailed deal documentation, allowing accredited investors to evaluate individual opportunities before committing capital. The platform's focus on commercial properties differentiates it from residential-focused alternatives.
Best For: Accredited investors seeking direct access to individual commercial real estate deals with detailed underwriting documentation.
5. Arrived
Arrived enables investors to purchase fractional shares in individual rental properties with a low entry point. The platform offers fractional investments in individual single-family rentals and vacation rentals, as well as diversified fund products such as the Real Estate Income Fund, Single Family Residential Fund, and City Funds.
Key Features
- $100 minimum investment
- Individual property selection capability
- Non-accredited investor access
- Focus on residential rentals and diversified fund products
- Product-specific AUM fees, currently disclosed as 0.1% to 0.30% per quarter, plus offering-level expenses such as one-time sourcing fees where applicable
Performance Profile
Arrived states that its single-family residential investments have an estimated historical annualized return range of 6% to 10%, based on rental income and appreciation assumptions; actual results vary by property. Properties typically have 5 to 7 year hold periods, and individual properties begin paying monthly dividends once they generate income, with timing that can vary by investment.
Comparison to mogul
While both platforms offer property-level selection, mogul provides monthly rental income distributions. Arrived also offers monthly distributions for individual properties once income begins, while first-distribution timing may vary. Additionally, mogul's reported 18.8% average IRR exceeds Arrived's estimated historical 6% to 10% range.
Best For: Investors seeking property-level selection with a very low minimum investment alongside access to diversified fund products.
6. Groundfloor
Groundfloor takes a different approach by focusing on real estate debt investments rather than equity ownership. The platform enables investors to fund short-term real estate loans, typically for fix-and-flip projects.
Investment Model
- Debt-based returns: Investors earn interest on loans rather than property appreciation
- Short durations: Short-term products, including Notes with 30-day, 90-day, and 12-month terms and individual real estate loans often structured around 6 to 18 months
- Frequent offerings: New LRO loans commonly added weekly
- Interest on property-backed debt: Repayment timing depends on the product, and many individual loans repay principal and interest at maturity or borrower payoff
Accessibility
- Minimum Investment: As low as $10 for individual loans; certain automated or portfolio products may require $100
- Investor Requirement: Non-accredited welcome
- Investment Type: Real estate debt
- Term Length: 30-day, 90-day, and 12-month Notes; individual loans often 6 to 18 months
Risk Considerations
Groundfloor's debt investments carry different risk characteristics than equity investments. While loans are secured by real property, investors are essentially acting as hard money lenders, which involves borrower default risk.
Best For: Investors seeking shorter-term real estate exposure through property-backed debt instruments.
7. CrowdStreet
CrowdStreet began as a commercial real estate marketplace and continues to offer CRE investments, but now positions itself more broadly around private-market investments for accredited investors. The platform says it has deployed nearly $4.5 billion in equity across around 800 individual transactions and reports about 300,000 members.
Platform Scale
- Large deal flow among accredited-investor real estate platforms, with around 800 individual transactions historically
- 10+ years of operational history
- Commercial real estate roots with expansion into broader private-market investments, including private credit and private equity
- Deal-by-deal investment selection
Performance Range
CrowdStreet performance is deal-specific and varies across individual offerings.
Entry Requirements
- Minimum Investment: $25,000
- Investor Requirement: Accredited only
- Annual Fees: Vary by deal, sponsor, and investment structure
- Asset Focus: Commercial real estate and broader private-market investments
Best For: High-net-worth accredited investors seeking institutional commercial real estate and other private-market deals with significant capital to deploy per investment.
Why mogul Stands Out for Fractional Real Estate Investing
Institutional Expertise Made Accessible
mogul was founded by former Goldman Sachs real estate alumni who bring $10 billion in collective real estate investing and deal experience to the platform. This institutional pedigree translates into rigorous property selection: less than 1% of properties reviewed pass mogul's diligence process. Unlike platforms founded by technology entrepreneurs, mogul's leadership has direct Goldman Sachs real estate experience.
Monthly Income Distributions
While several competitors distribute returns quarterly, mogul provides monthly rental income distributions. For investors building a real estate portfolio focused on cash flow, this frequency provides better liquidity and more consistent income timing.
Property-Level Transparency and Control
mogul enables investors to select specific properties rather than investing in a pooled fund. Each property listing includes detailed underwriting data, allowing investors to evaluate individual deals based on location, projected returns, and property characteristics. This transparency gives investors a level of control that pooled-fund structures are not built to offer.
Higher Target Returns
mogul has an 18.8% average annual return, which compares favorably to:
- Fundrise: recent Income Fund annual returns in the mid-to-high single digits
- RealtyMogul: a 3.0% annualized distribution rate on its Income REIT
- Arrived: an estimated historical annualized return range of 6% to 10%
- Roots: 17.17%
Technology-Forward Infrastructure
mogul leverages blockchain technology for ownership tracking and provides institutional-grade investment calculators free to all users. mogul also offers platform-based liquidity, allowing investors to sell their shares to other platform members at fair market value, with valuations informed by third-party appraisal-level data and little-to-no closing costs. This provides liquidity options not typically available in direct real estate ownership.
Accessible Without Accreditation
Unlike platforms that require accredited investor status, mogul welcomes non-accredited investors, with an average investment of around $10,000. This accessibility, combined with institutional-quality underwriting, bridges the gap between retail investor access and professional-grade real estate opportunities.
Aligned Interests
mogul personally invests in every property offered on the platform. This co-investment model ensures management interests align with investor returns, a commitment that differentiates mogul from platforms that earn fees regardless of property performance.
For investors evaluating alternatives to Roots who want individual property selection, monthly income, and institutional expertise, mogul offers a compelling combination of accessibility and quality. Explore available properties or use the rental property calculator to analyze potential investments.
Disclaimer: The information provided in this guide is for educational purposes only and does not constitute financial, tax, or legal advice. Always consult with a licensed professional before making any financial or investment decisions.
Frequently Asked Questions
What is the main difference between fractional real estate platforms and REITs?
Fractional platforms like mogul provide direct ownership in individual properties through LLC structures, giving investors governance rights, property-level transparency, and specific tax benefits including depreciation. REITs pool capital into diversified real estate portfolios where fund managers make all property decisions, and investors own shares of the trust rather than direct property interests. Learn more about why real estate offers distinct advantages as an asset class.
Can non-accredited investors access these Roots alternatives?
Several platforms welcome non-accredited investors, including mogul (with an average investment of around $10,000), Fundrise ($10 minimum), Arrived ($100 minimum), Groundfloor (as low as $10 for individual loans, with certain products requiring $100), and Roots ($100 minimum). CrowdStreet and EquityMultiple require accredited investor status with $25,000 and $5,000 minimums respectively. Understanding how much you need to invest helps determine which platform fits your situation.
How do distribution frequencies compare across platforms?
mogul provides monthly distributions. Roots and Fundrise generally distribute quarterly. Arrived currently describes monthly dividends and distributions for many products once income-producing. Groundfloor repayment timing depends on the debt product, and many loans repay principal and interest at maturity or borrower payoff. For investors prioritizing consistent cash flow, distribution frequency can significantly impact portfolio income timing.
What kind of liquidity can investors expect from fractional real estate investments?
Real estate investments are generally illiquid compared to stocks. mogul offers platform-based liquidity, allowing members to sell their shares to other platform members at fair market value. Roots offers quarterly liquidity, which is uncommon for private real estate funds. Most platforms require investors to hold positions until property sale, typically 3 to 10 years depending on the platform's strategy.
Are there free tools available to help analyze rental property investments?
mogul offers four free investment calculators that analyze any U.S. address for rental investment potential. These tools provide projections on rental income, ROI, IRR, cash-on-cash yield, and comparisons with similar properties, using the same data employed by institutional real estate firms. The Airbnb calculator specifically analyzes short-term rental potential using data from millions of listings.