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Real Estate Platform Comparison· Updated May 5, 2026

Groundfloor vs. RealtyMogul 2026 Real Estate Investing Comparison

A side-by-side breakdown of returns, liquidity, fees, and trustworthiness to help you decide where to invest your money.

★ Our PickGroundfloor logo
4.0

Groundfloor is a strong, transparent option for investors who want short-term, real-estate-backed yield without picking properties. ~10% historical returns, zero investor fees, and 6–18 month terms are excellent — but you're a lender, not an owner, so upside is capped and default risk is real.

RealtyMogul logo
3.0

RealtyMogul is a credible, established option for investors who want exposure to commercial real estate REITs. The $5,000 minimum, multi-tier fees, and 3-year minimum hold for redemption make it best for buy-and-hold investors with mid-sized portfolios.

At a Glance

Groundfloor vs. RealtyMogul — Key Stats

Groundfloor logo
RealtyMogul logo
$10 per loan ($100 account minimum)Minimum$5,000 (REITs); $25,000–$50,000+ (private placements)
6–18 months (per loan term)Holding Period3-year minimum before penalty-free redemption (REITs); 5+ years (private placements)
Unavailable — capital locked until loan repaysEarly WithdrawalQuarterly redemption with discount in years 1–3; not guaranteed
N/A — interest paid per loan terms (often deferred to maturity)Rent PayoutMonthly distributions (Income REIT); quarterly (Apartment Growth REIT)
~10% historical averageAvg. ReturnsIncome REIT targets 6–8% annual distributions; private placements target higher IRR

Pros & Cons

What each platform does well and poorly

Groundfloor logo
  • ✓

    Zero investor fees

    Groundfloor charges investors nothing — no AUM, no transaction fees, no closing costs. Borrowers pay 2–4.5% origination plus closing fees, so the entire interest yield flows to investors.

  • ✓

    $10 per-loan minimum

    Investors can spread $100 across ten loans, making real diversification accessible. Groundfloor's account minimum is $100 and individual loans go down to $10.

  • ✓

    Short hold periods (6–18 months)

    Most Groundfloor loans mature in 6–18 months — dramatically shorter than the 5–7 year holds typical of equity-style platforms — making it a useful complement to longer-duration real estate.

  • ✓

    Transparent, A–G grading

    Every loan is graded A–G with corresponding interest rates and risk factors. Loan documents, project details, and borrower track records are published before funding.

  • ✗

    Capped upside

    You're a lender. If a property doubles in value, you still only earn the interest rate on the loan. None of the appreciation upside flows to investors.

  • ✗

    Lump-sum and deferred payouts

    Many loans are deferred-payment, meaning interest accrues but isn't paid until the loan is fully repaid. That hurts compounding versus monthly- or daily-payout platforms.

  • ✗

    Default risk is real

    Groundfloor's reported default rate has historically been higher than peer platforms. Recoveries through foreclosure can take time and erode returns. The collateral is the property itself.

  • ✗

    No early withdrawal

    Once you fund a loan, capital is locked until the loan repays. There's no secondary market for Groundfloor LROs.

RealtyMogul logo
  • ✓

    Long track record

    Founded in 2012, RealtyMogul is one of the original real estate crowdfunding platforms. The company has publicly reported deploying more than $1 billion of investor capital across hundreds of properties since founding.

  • ✓

    Real commercial REIT exposure

    MogulREIT I (Income) and MogulREIT II (Apartment Growth) give non-accredited investors exposure to institutional-quality commercial real estate — multifamily, office, retail, industrial.

  • ✓

    Monthly Income REIT distributions

    MogulREIT I pays distributions monthly — more frequent than most peer REIT platforms — and has historically targeted 6–8% annualized distribution yield.

  • ✓

    Penalty-free redemption after 3 years

    Both MogulREITs offer a quarterly share repurchase program. After 3 years held, investors can redeem at full NAV (subject to availability).

  • ✗

    $5,000 REIT minimum

    RealtyMogul's REIT minimum is 50x Lofty's and 500x Fundrise's. The high minimum makes it harder to test the platform or diversify without committing real capital.

  • ✗

    Complex, layered fees

    RealtyMogul charges a 1–1.25% asset management fee plus organization, offering, and acquisition fees that vary by product. Private placements add sponsor-level fees on top.

  • ✗

    Early redemption discounts

    Redemption requests in years 1–2 are discounted (typically 2–4% off NAV) and not guaranteed if there's insufficient liquidity in the share repurchase program.

  • ✗

    Most deals are accredited-only

    Only the two MogulREITs are open to non-accredited investors. Individual private placements and 1031 exchange deals require accredited status.

Deep Dive

Detailed comparison

Groundfloor logo
RealtyMogul logo

What You're Investing In

Three core products: Groundfloor Original (individual loans graded A–G), Stairs by Groundfloor (a savings-style product paying a steady rate), and Notes (short-duration debt instruments). All are real estate debt — no equity ownership.

MogulREIT I (income-focused, monthly distributions), MogulREIT II (apartment growth, quarterly distributions), and individual private placements (accredited only, 5+ year holds, higher minimums).

Property Locations

Groundfloor lends in 45+ U.S. states, giving investors broad geographic diversification across one platform.

Properties are spread across the U.S. with concentration in growth metros — Texas, Florida, Georgia, the Carolinas, Tennessee, Arizona, and select coastal cities. Each deal's location is disclosed in the offering documents.

Expected Returns

Groundfloor's historical average return is approximately 10% per year. A diversified portfolio across all available loans has historically produced around 10.7% annualized. Loans pay between roughly 5.5% (A grade) and 25%+ (G grade), and investors earn the same rate the borrower pays. Capital not deployed within 45 days returns to the investor with no interest.

MogulREIT I targets 6–8% annualized distributions with limited NAV appreciation. MogulREIT II targets growth (apartment value appreciation) with smaller current distributions. Private placements target higher IRRs (often 12–18%) but carry deal-specific risk and longer holds.

Fees

Zero investor fees. Borrowers pay 2–4.5% origination plus other closing fees, all visible inside the offering documents but not charged to investors.

RealtyMogul charges 1–1.25% asset management on REITs plus organization, offering, and acquisition fees that vary by deal. Private placements layer sponsor fees (acquisition, asset management, disposition) on top. Investors should read each deal's full fee schedule.

Liquidity

Holding period equals the loan term — typically 6–18 months. Investors can target shorter durations by buying into in-progress loans.

Both MogulREITs offer a quarterly share repurchase program. After 3 years held, redemption is at full NAV, subject to availability. Private placements typically run 5+ years with no early-exit option.

Who Can Invest

Open to non-accredited and accredited U.S. investors. International investors can participate but must email support to fund accounts and meet a $5,000 minimum transfer.

MogulREITs are open to non-accredited and accredited U.S. investors. Private placements and 1031 exchange offerings are restricted to accredited investors only.

The Verdict

Which is better — Groundfloor or RealtyMogul?

★ Our Pick
Groundfloor logo
4.0

Groundfloor is one of the cleanest options in real estate crowdfunding. Zero investor fees, ~10% historical returns, short 6–18 month durations, and full transparency on every loan make it a strong fit for investors who want yield backed by real estate without picking properties or signing up for a 5+ year lock-up. The trade-off is real: you're a lender with capped upside and default exposure, not an owner with a stake in appreciation.

Full Groundfloor review →
RealtyMogul logo
3.0

RealtyMogul is a credible, well-established option for mid-sized investors who want exposure to commercial real estate REITs with monthly distributions and the option of accredited-only private placements. The trade-offs are real: a $5,000 minimum that limits diversification, layered fees, and a 3-year minimum hold for penalty-free redemption mean RealtyMogul rewards committed buy-and-hold investors. Investors with smaller capital, those wanting daily payouts or a 24/7 exchange, or those focused on direct property-level ownership will find better fit elsewhere.

Full RealtyMogul review →

Bottom Line

Groundfloor scores higher (4.0/5) and edges out RealtyMogul on our investment quality criteria.

Groundfloor is a strong, transparent option for investors who want short-term, real-estate-backed yield without picking properties. ~10% historical returns, zero investor fees, and 6–18 month terms are excellent — but you're a lender, not an owner, so upside is capped and default risk is real.

Frequently Asked Questions

Groundfloor vs. RealtyMogul FAQ

Which is better — Groundfloor or RealtyMogul?+

Based on our scoring criteria — returns, fees, liquidity, transparency, minimums, and track record — Groundfloor (4.0/5) scores higher than RealtyMogul (3.0/5). Groundfloor is a strong, transparent option for investors who want short-term, real-estate-backed yield without picking properties. ~10% historical returns, zero investor fees, and 6–18 month terms are excellent — but you're a lender, not an owner, so upside is capped and default risk is real.

What is the minimum investment for Groundfloor vs. RealtyMogul?+

Groundfloor's minimum investment is $10 per loan ($100 account minimum). RealtyMogul's minimum investment is $5,000 (REITs); $25,000–$50,000+ (private placements).

How do Groundfloor and RealtyMogul compare on liquidity?+

Groundfloor: Holding period equals the loan term — typically 6–18 months. Investors can target shorter durations by buying into in-progress loans. RealtyMogul: Both MogulREITs offer a quarterly share repurchase program. After 3 years held, redemption is at full NAV, subject to availability. Private placements typically run 5+ years with no early-exit option.

What returns can investors expect from Groundfloor vs. RealtyMogul?+

Groundfloor reports average yearly returns of ~10% historical average. RealtyMogul reports average yearly returns of Income REIT targets 6–8% annual distributions; private placements target higher IRR. Past performance does not guarantee future results.

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