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TopicmogulTypical Public REIT
OwnershipDirect LLC interest in a single propertyShare in a corporation owning large mixed portfolio
Income TimingMonthlyQuarterly
Tax ShieldDepreciation passes through; cash yield often tax-deferred100% of dividend is taxable at ordinary or qualified rates
Fees5% 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
ControlVote on big decisionsNo say; public-market whims drive price
Price VolatilityTracks underlying real estateCorrelated 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.