From inception, mogul has strived to revolutionize the real estate industry. Founded by real estate investors, for real estate investors, mogul aims to democratize real estate and make it accessible to everyone. At the forefront of this mission is a commitment to provide investors with industry-leading returns, outperforming not only traditional investment avenues, but also any other competitors in the space. With monthly dividend distributions, property appreciation, and tax benefits, mogul stands above other companies in the fractional real estate space; this is complemented by the company’s headache-free investment process that allows anyone to invest in real estate from the comfort of their home, while having the peace of mind their investment property is in good hands. That’s right - no more 3am calls from tenants!
Beyond the unique offering provided by the platform, mogul’s returns to date are a testament to the company’s rigorous vetting process (lower acceptance rate than Harvard’s), where less than 1% of properties reviewed make it onto the platform. With an average IRR of 18.8% to date, mogul stands on a league of its own in relation to other alternatives in the market.
In today’s blog post, we will be comparing one of mogul’s flagship properties, The Roman, to Fundrise’s Flagship Fund. Fundrise’s flagship fund, which combines both yield and property appreciation to calculate its returns, still falls short when compared to The Roman’s cash-on-cash yields alone. This highlights The Roman’s ability to deliver superior cash flow, before factoring in the property’s appreciation, and ultimately showcases mogul’s ability to deliver market-leading returns for its investors.
An Overview of mogul’s Properties
Although this blog focuses on comparing The Roman to Fundrise’s Flagship Fund, we wanted to provide an additional overview on the platform’s other properties, all of which are equally as impressive as The Roman in different ways.
The Bowser: mogul’s first ever property, The Bowser is a Dallas, Texas staple that set the tone for things to come on the platform. This property, which sold out incredibly quickly, saw mogul lock in a 2.625% APR mortgage, with a 98% realized IRR.
The Kendall: Another sold out Texas property, The Kendall has given its investors plenty of reasons to celebrate. With a current valuation of over 7% of its original purchase price, The Kendall is on track for over 13% annualized yields from distributions alone. This was another prime opportunity for people interested in real estate investing in Texas.
The Logan: A picturesque mansion in Yucaipa, California, The Logan is a stunning multi-use property that stands tall as an appreciation behemoth. Available for both residential and commercial (TV, film, and commercials) bookings, this property has seen robust monthly cash-on-cash yields complemented by projected appreciation of 25.3% when taking leverage into account.
The Wambsgans: Located in Ramsey, New Jersey, The Wambsgans saw mogul employ an innovative sale leaseback approach with its previous owner. Under this approach, mogul purchased the property and leased it back to the previous owner for a 15-year period, with 3% annual escalations that provide investors with a consistent and stable return outlook.
The Shiv: mogul’s newest property, The Shiv is another Texas opportunity that has seen incredible demand since its launch, with only ⅓ of its offering amount still available a week after launch. With a forecasted starting yield of 10.2% and IRR of 15-20%, The Shiv is a testament to mogul’s relentless pursuit of the best offerings for its investors.
The Roman: A Cash-On-Cash Machine
The Roman’s popularity from day one showcased the strong fundamentals of this Houston, Texas, property. With relentless bookings since it was first listed and equally strong returns, The Roman’s rapid sell out was not a surprise for any of its investors. Although its appreciation to date given the high demand of where it is situated is impressive, it is the monthly cash-on-cash yields that we are choosing to focus on for this blog; this showcases just how far ahead of the competition mogul is, where a property’s dividends alone eclipse others’ flagship funds and traditional investment avenues.
To date, The Roman has been a cash flowing machine, delivering impressive monthly cash-on-cash yields without fail since its first distributions:
- April: 2.6%
- May: 1.1%
- June: 1.22%
- July: 1.2%
These monthly yields add up to approximately 6.12% over four months, showcasing remarkable income generation purely from cash flow, not factoring in any potential appreciation gains. On an annualized basis, these yields are on track for an annualized yield of over 24%. This is a figure that not only eclipses Fundrise’s Flagship Fund (as seen below), but also other traditional investment avenues outside of real estate.
Fundrise’s Flagship Fund Returns
Fundrise's flagship fund has achieved a 4.72% return year-to-date through June 30, 2024, combining property appreciation and yields. While this return may seem competitive at a glance, they pale in comparison to The Roman’s yield alone. On an annualized basis, Fundrise’s Flagship is on track for a return of 9.44% (in comparison to The Roman’s annualized return of over 24% from distributions alone). When factoring in a levered year to date appreciation of 1.9%, The Roman is on track for a yearly return of almost 26%. Ultimately, as shown above, The Roman is just one of many available investment properties and examples how mogul continues to differentiate itself from the competition, showcasing its core fundamentals, unmatched real estate pedigree, and overall performance for investors.
The mogul Difference
- Focus on High Cash Flow: The Roman’s robust monthly yields provide consistent income for investors, creating value immediately rather than just relying on long-term property appreciation.
- Active and Strategic Management: mogul’s commitment to actively managing properties ensures maximum returns through strategic enhancements, leasing tactics, and market responsiveness, contributing to The Roman’s superior yield. This can be seen especially through The Roman’s occupancy numbers, with relentless bookings being par for the course; September’s occupancy is already at over 60%.
- Transparency in Returns: Unlike funds that blend a number of metrics and charge higher fees, mogul focuses on transparent reporting, giving investors a clearer picture of their cash flow performance and any other updates pertaining to their property on a weekly basis.
Conclusion
The Roman’s performance is a testament to mogul’s ability to deliver superior results through a number of different strategies. From high yield properties, to innovative sale leasebacks, and even multi-use case properties, mogul is always looking for new and lucrative ways to reward its investors. Founded by two former Goldman Sachs executives with over $10 billion deployed in real estate, the company’s fundamentals, ability to source premium properties, and fully-managed approach to real estate ownership all combine to provide investors with the peace of mind they need when investing their money.
Unlike other competitors in the space, as seen in the case of Fundrise’s Flagship Fund, mogul aims to offer only the best of the best on its platform, ensuring that every single property listed has passed a rigorous vetting process that ensures a minimum hurdle rate of 12% on a bear case scenario.
Interested in getting started with your real estate journey today? Sign up to mogul and invest in blue-chip single family rentals for as little as $250.