Real Estate
mogul vs. REITs
Why direct fractional ownership beats a one-size-fits-all REIT share.
| Topic | mogul | Typical Public REIT |
|---|---|---|
| Ownership | Direct LLC interest in a single property | Share in a corporation owning large mixed portfolio |
| Income Timing | Monthly | Quarterly |
| Tax Shield | Depreciation passes through; cash yield often tax-deferred | 100% of dividend is taxable at ordinary or qualified rates |
| Fees | 5% one-time fee (equals <1% per year over 5 year hold); 2.5% of rental income (aligns incentives, extremely low) | 1 – 2% of assets annually, plus admin overhead; potential promote structure at tail-end taking up to 20% of profits |
| Control | Vote on big decisions | No say; public-market whims drive price |
| Price Volatility | Tracks underlying real estate | Correlated with stock market swings |
Example: an 8% cash yield potentiall stays 8% after depreciation on mogul, but may net ~4-5% after taxes in a REIT — and you still ride stock-market volatility.
When you invest with mogul, you’re investing in real estate, not just a real estate-themed stock.