RealtyMogul charges different fees depending on whether investors participate in its Income REIT, Apartment Growth REIT, or individual private placements. Its two REITs disclose annual asset management fees of 1% and 1.25%, respectively, while additional servicing, operating, and transaction expenses depend on the underlying investments.
The calculation method matters as much as the advertised percentage. This guide examines RealtyMogul's fees as of October 2026, explains how recent platform changes affect investors, and compares its commercial real estate investment structures with property-level fractional real estate investing through mogul.
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
Income REIT fees: RealtyMogul charges a 1% annual asset management fee based on the fund's total equity value, with additional servicing fees on qualifying loans and preferred equity investments
Apartment Growth REIT fees: The fund carries a 1.25% annual asset management fee, alongside applicable investment servicing and operating expenses
Offering and transaction costs: RealtyMogul's REITs permit reimbursement of qualifying organization and offering expenses up to 3% of gross proceeds, while sponsor-level fees vary by transaction
2026 investment availability: Both REITs have paused new subscriptions since July 2025 and suspended their share repurchase programs effective April 21, 2026
mogul's fee structure: mogul charges a one-time 5% platform fee, without an ongoing rental-income fee or traditional recurring annual AUM fee on invested equity
How RealtyMogul's Investment Structure Affects Fees
RealtyMogul's investment products
Founded in 2012, RealtyMogul provides access to commercial real estate through pooled REITs and individual private placements.
Its principal investment categories include:
Income REIT: A diversified portfolio of commercial real estate debt, preferred equity, and equity investments
Apartment Growth REIT: A portfolio focused on multifamily properties, industrial assets, and related equity investments
Individual private placements: Sponsor-managed commercial real estate transactions offered to eligible accredited investors
Each product uses a different ownership arrangement, which influences the fees investors indirectly bear.
REIT shareholders generally own shares in a portfolio, while private placement participants may hold interests in a particular project or investment entity.
Understanding real estate investment trusts helps explain why these investment products have different management, reporting, and distribution arrangements.
What types of fees does RealtyMogul charge?
Real estate investment fees generally fall into several categories:
Asset management fees: Compensation for overseeing investments and managing portfolio strategy
Servicing fees: Charges associated with administering qualifying loans or preferred equity investments
Organization and offering expenses: Costs related to structuring, documenting, and administering investment offerings
Property management expenses: Costs associated with leasing, maintenance, and property operations
Acquisition and disposition fees: Transaction-related charges when properties are purchased or sold
Other operating expenses: Legal, accounting, financing, administration, and related investment costs
These charges can be calculated using different financial bases.
For example, a 1% fee on total fund equity differs from a 1% fee on gross rental income or outstanding loan principal.
This distinction is essential when comparing different real estate investments and their overall economics.
RealtyMogul Income REIT Fees in 2026
The RealtyMogul Income REIT, formerly known as MogulREIT I, invests in commercial real estate through equity interests, loans, and preferred equity positions.
Its fee disclosures distinguish recurring asset management compensation from investment-specific servicing expenses.
Annual asset management fee: 1%
The Income REIT charges a 1% annualized asset management fee based on its total equity value.
For this calculation, total equity value equals the fund's current net asset value (NAV) per share multiplied by its outstanding shares.
The fee is paid monthly to the fund's manager.
This arrangement means the fee is based on the fund's equity valuation rather than each investor's original contribution.
The September 2026 semiannual filing covers the six months ended June 30, 2026, and provides the fund's latest financial reporting and management expense information.
Loan and preferred equity servicing fees
The Income REIT also discloses servicing fees for particular investment holdings.
These include:
Standard servicing fee: 0.5% of the principal balance plus accrued interest of qualifying loans or preferred equity investments
Special servicing fee: 1% of the original value of qualifying nonperforming debt or preferred equity investments
Other operating expenses: Variable costs associated with fund administration and its underlying investments
These fees apply to the relevant investment assets.
For example, the 0.5% servicing charge is calculated using qualifying loan or preferred equity balances rather than every shareholder's entire account balance.
The total amount depends on the fund's holdings and applicable servicing arrangements.
Organization and offering expenses
The Income REIT permits reimbursement of qualifying organization and offering expenses of up to 3% of gross offering proceeds.
Eligible expenses include legal, accounting, marketing, and administrative costs associated with the investment offering.
These expenses form part of the fund's investment economics rather than necessarily appearing as a separate charge billed to each investor.
The percentage uses gross offering proceeds as its calculation base, which differs from the annual management fee's NAV-based calculation.
Income REIT valuation and distributions
RealtyMogul's latest disclosed Income REIT NAV was $6.79 per share as of June 30, 2026, approved by its board on September 17, 2026.
The September 2026 NAV filing also reported the preceding March 31, 2026, valuation of $6.85 per share.
The Income REIT continued to publish a 1.5% annualized cash distribution rate in its October 2026 platform disclosures.
Its July 2026 distribution filing confirms that distributions for April through June 2026 corresponded to approximately 1.5% of NAV on an annualized basis.
These figures describe different financial measures:
NAV: The estimated net value of the fund's assets attributable to each share
Distribution rate: Cash distributions expressed relative to the applicable valuation base
Total return: Investment performance incorporating distributions and changes in share value
The distribution rate represents a payment measure, while total investment returns reflect the broader financial outcome.
RealtyMogul Apartment Growth REIT Fees in 2026
The Apartment Growth REIT, formerly known as MogulREIT II, focuses on commercial real estate equity investments.
Its portfolio includes multifamily properties, industrial assets, and related investment interests.
Annual asset management fee: 1.25%
The Apartment Growth REIT charges a 1.25% annualized asset management fee based on total equity value.
Like the Income REIT, this fee uses the fund's NAV-based equity valuation.
Additional charges may apply to specific investment holdings.
These include:
Preferred equity servicing: 0.5% of principal plus accrued interest for qualifying preferred equity investments
Special servicing: 1% of the original value of applicable nonperforming preferred equity investments
Organization and offering expenses: Reimbursement of eligible costs up to 3% of gross offering proceeds
Operating expenses: Variable legal, accounting, administrative, financing, and property-related costs
The September 2026 investor update provides more recent financial and operational information covering the first half of 2026.
The servicing rates apply to qualifying investments rather than being universal charges on shareholder capital.
Latest NAV and distribution changes
The Apartment Growth REIT reported an estimated NAV of $6.36 per share as of June 30, 2026, approved by its board on September 17, 2026.
The September 2026 NAV supplement confirms the valuation and describes the calculation using the fund's assets, liabilities, and outstanding shares.
The fund also approved a temporary pause in cash distributions on January 29, 2026, as part of its portfolio management and liquidity planning.
The January 2026 distribution notice documents that decision.
NAV, cash distributions, and management fees represent separate components of the fund's investment economics.
Property-level operating costs, financing obligations, and capital requirements also influence the cash available for distributions.
RealtyMogul Private Placement and Transaction-Level Fees
RealtyMogul provides individual commercial real estate opportunities through sponsor-managed private placements.
Unlike its REIT products, these transactions have sponsor-specific fee arrangements determined by the property, investment structure, and financing plan.
Published transaction disclosures illustrate how these fees are calculated.
Acquisition and management fee examples
Truist Plaza
RealtyMogul's disclosures for the Truist Plaza property in Orlando, Florida, identify several fees associated with the underlying property entity:
Acquisition fee: Approximately 1.98% of the property's purchase price
Asset management fee: 1% of annual effective gross rental income
Property management fee: 3% of effective gross revenue
Construction management fee: Up to 5% of qualifying capital improvement expenditures
The 2026 Truist Plaza filing details these transaction-level arrangements.
FedEx Ground Portfolio
RealtyMogul's disclosures for FedEx Ground properties in Kentucky and Tennessee identify another set of sponsor-level charges:
Acquisition fee: 2% of the applicable property's purchase price
Asset management fee: 1.5% of annual effective gross rental income
Property management fee: 2% of annual effective gross rental income
The FedEx Ground fee disclosures, published in December 2025, describe fees paid to sponsor affiliates through the relevant property entities.
These examples represent fees associated with specific underlying transactions, including investments held by RealtyMogul REITs. They are not a standardized fee schedule charged directly to every private placement investor.
Effective gross income generally refers to a property's potential rental revenue adjusted for vacancy and credit losses, plus applicable other income.
Fees calculated using effective gross income differ from charges based on property value or invested equity.
Technology and administration charges
Some transactions also involve technology licensing and administration fees associated with the sponsor's use of RealtyMogul's platform.
Published technology licensing fee disclosures include:
A $1,500 technology licensing fee for each qualifying investor onboarded through the sponsor's arrangement
A $125 quarterly administration licensing fee per qualifying investor serviced
These charges arise through the relevant sponsor or property arrangements.
Their treatment depends on the transaction's structure and should be distinguished from fees billed directly to individual investors.
Minimum investments and eligibility
RealtyMogul's published platform guidance identifies typical private placement minimums of approximately $25,000 or $35,000, depending on the offering.
Private placements offered under Rule 506(c) generally require accredited investor status.
The investment sponsor determines the specific transaction terms, distribution arrangements, fees, and projected holding period.
Understanding property investment due diligence helps connect acquisition costs, operating assumptions, and potential exit expenses.
What Changed at RealtyMogul in 2026?
Several developments affect how RealtyMogul's investment products operate in 2026.
These changes concern ownership, access to new investments, shareholder liquidity, and portfolio management.
New REIT subscriptions remain paused
Both RealtyMogul REITs temporarily paused new cash subscriptions effective July 11, 2025.
The pause followed the withdrawal of RM Securities' broker-dealer registration.
RealtyMogul's current REIT disclosures continue to describe both products as unavailable for new subscriptions while their offering documents are being updated.
In September 2026, the Income REIT also requested withdrawal of a pending offering statement that had not been qualified or used to sell securities.
The pause applies to these REIT offerings. Individual private placements have separate availability and eligibility arrangements.
Share repurchase programs were suspended
Both REITs suspended their share repurchase programs effective April 21, 2026.
The Income REIT's 2026 share repurchase suspension documents the decision to stop accepting and processing new repurchase requests under the program.
The Apartment Growth REIT's April 2026 repurchase filing confirms the corresponding suspension.
The funds cited liquidity preservation and financial flexibility as reasons for these changes.
The suspensions affect investors seeking to sell shares through the REITs' established repurchase programs.
RealtyMogul's ownership changed in 2025
RealtyMogul was acquired by The Wideman Company and associated investors in November 2025.
The transaction transferred control of the platform's parent organization to RM Investor, LLC.
The November 2025 acquisition filing documents the ownership transition.
The Wideman Company also introduced a commitment to co-invest alongside members in new real estate opportunities offered through the platform.
The transition provides context for RealtyMogul's current commercial real estate investment strategy and sponsor arrangements.
How to Calculate RealtyMogul Fees Correctly
Why the fee calculation base matters
RealtyMogul's management and servicing fees use different financial bases.
Consider a hypothetical Income REIT with:
$10 million in total equity value
$2 million in qualifying serviced loan principal
A 1% annual asset management fee
A 0.5% servicing fee applied to the qualifying loan principal
The illustrative calculations would be:
Asset management fee: $100,000 using the $10 million equity value
Servicing fee: $10,000 using the $2 million qualifying principal balance, excluding accrued interest for simplicity
Combined illustrative amount: $110,000 before other expenses
This hypothetical fund-level example demonstrates why the 1% and 0.5% fee rates should not automatically be combined into a universal 1.5% annual charge on investor equity.
For the Apartment Growth REIT, a 1.25% management fee applied to the same hypothetical $10 million equity base would equal $125,000 annually.
Actual amounts depend on fund valuations, qualifying investment holdings, and applicable servicing arrangements.
Other expenses that influence net performance
Management and servicing charges represent only part of a real estate investment's operating economics.
Additional costs can include:
Property taxes and insurance
Financing interest and loan administration
Leasing and property management
Repairs and maintenance
Capital improvements
Property acquisition and disposition expenses
Major improvements and replacements are generally classified as real estate capital expenditures.
These expenditures differ from routine maintenance and may affect both cash flow and long-term property value.
The SEC's non-traded REIT investor bulletin explains how non-traded investment structures can involve multiple fee categories and specific liquidity provisions.
Holding periods and total returns
The impact of recurring fees depends partly on how long an investment is held.
Acquisition-related costs generally occur near the beginning of an investment. Management and operating expenses arise throughout ownership, while disposition expenses occur when an asset is sold.
Understanding cash flow versus appreciation helps distinguish income earned during ownership from potential changes in property value.
Other useful metrics include:
Net operating income (NOI): Rental income remaining after qualifying property operating expenses
Cash-on-cash return: Annual cash flow relative to the cash invested
Internal rate of return (IRR): Annualized performance that accounts for cash flow timing
Multiple on invested capital (MOIC): Total investment value or proceeds divided by original invested capital
The internal rate of return is particularly useful when evaluating investments with different holding periods and distribution schedules.
Projected performance should remain distinct from realized investment results.
Comparing RealtyMogul with Property-Specific Investing
Pooled commercial real estate vs. individual residential properties
RealtyMogul's REITs pool capital across commercial real estate investments, while its private placements provide access to specific sponsor-managed projects.
Property-specific residential platforms use another approach: investors select interests associated with identified individual properties.
These structures create differences in investment analysis.
Pooled REIT investing typically involves:
Exposure to multiple assets within one investment vehicle
Portfolio allocation decisions made by fund management
Fund-level asset management expenses
Distributions and valuation determined at the fund level
Property-specific fractional ownership generally involves:
Participation in individually identified properties
Access to property-specific acquisition and operating assumptions
Ownership interests through dedicated legal entities
Cash flow and eventual sale proceeds tied to the particular asset
Different ownership structures also create different opportunities for building property portfolios.
Rental strategy and operating costs
A commercial property portfolio can include multifamily, office, retail, or industrial assets.
Residential fractional ownership can involve short-term, mid-term, and long-term rental properties.
Each strategy has different operating requirements.
For example, residential rental strategy differences can affect tenant turnover, vacancy assumptions, property management, and maintenance costs.
Likewise, financing changes the amount of capital needed to acquire a property and the cash flow remaining after debt payments.
The use of borrowed capital is known as real estate investing leverage.
These factors make investment structure and property operations important components of a complete fee comparison.
Tax reporting considerations
RealtyMogul's REIT investors generally receive Form 1099-DIV reporting for applicable distributions.
Its private placement investors may receive Schedule K-1 documents, depending on the underlying entity.
Partnership-taxed fractional LLC ownership can also involve Schedule K-1 reporting and allocations of qualifying income, expenses, and deductions.
The IRS's partner Schedule K-1 instructions for tax year 2025, applicable to the 2026 filing season, explain partnership income, deduction, and reporting requirements.
Potential investment property tax benefits, including depreciation-related deductions, depend on the investment structure and individual tax circumstances.
The reporting form alone does not determine whether a deduction can be used immediately.
How mogul Connects Fees to Individual Property Economics
RealtyMogul's REIT fees are tied primarily to portfolio-level equity value and qualifying investment services. mogul offers a different perspective by connecting its pricing structure to identifiable residential properties, their rental strategies, and their operating economics.
Founded by former Goldman Sachs real estate professionals with more than $10 billion in collective institutional transaction experience, mogul brings selective underwriting and professional management to fractional property ownership.
Its approach follows the key stages of a property's investment lifecycle:
At acquisition: A one-time 5% platform fee is calculated using the property's purchase price and capitalized into the initial transaction
During rental operations: mogul does not charge an ongoing rental-income fee or a traditional recurring annual AUM fee on invested equity
Throughout ownership: Investors hold membership interests in dedicated property LLCs, with individual investment opportunities supported by property-specific underwriting and operating assumptions
The current mogul how-it-works page outlines the one-time 5% platform fee and explains how fractional interests in individual residential assets are structured.
Connecting fees with financial analysis
mogul's free investment property analysis calculator provides a practical way to explore property-level assumptions, including rental income, financing, operating expenses, and holding periods. This helps place fee calculations in the context of a residential property's broader financial model.
For investors comparing RealtyMogul's equity-based management and investment servicing fees, mogul brings the analysis to the individual property level, where the one-time platform fee, rental income, and ongoing operations can be considered together.
By combining institutional real estate experience with selective property underwriting and a clearly defined fee structure, mogul provides a streamlined way to participate in professionally managed residential real estate through fractional ownership.
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 annual fees does RealtyMogul charge in 2026?
RealtyMogul's Income REIT charges a 1% annual asset management fee based on the fund's total equity value, while the Apartment Growth REIT charges 1.25% using the same general calculation method. Additional servicing fees may apply to qualifying loans or preferred equity investments, alongside variable fund operating expenses. Individual private placement fees depend on the specific transaction.
Does RealtyMogul charge a 1.5% annual fee on every investment?
No. The Income REIT's 1% annual management fee applies to its total equity value, while its 0.5% servicing fee applies to qualifying loans or preferred equity investments. These fees use different calculation bases and should not automatically be combined into a 1.5% charge on each shareholder's entire investment. The Apartment Growth REIT has a separate 1.25% annual management fee.
Can new investors still invest in RealtyMogul's REITs in 2026?
Both the Income REIT and Apartment Growth REIT have paused new cash subscriptions since July 11, 2025. The pause remained in effect in their latest September 2026 disclosures. RealtyMogul also offers individual private placements, which have separate eligibility requirements and investment minimums. Its published guidance identifies typical minimums of approximately $25,000 or $35,000 for those transactions.
Can RealtyMogul investors redeem their REIT shares in 2026?
Both RealtyMogul REITs suspended their share repurchase programs effective April 21, 2026. Consequently, investors cannot currently use those programs to submit new repurchase requests. Any future changes depend on the relevant fund's decisions and governing documents. Non-traded REIT interests generally have different liquidity arrangements from publicly traded securities.
How does mogul's fee structure compare with RealtyMogul?
mogul charges a one-time 5% platform fee calculated using the property's purchase price. It does not charge an ongoing rental-income fee or a traditional recurring annual AUM fee on invested equity. RealtyMogul's REITs calculate annual asset management fees using fund equity value, with additional expenses determined by their investment holdings. mogul's dedicated LLC structure also allows investors to participate in individually selected residential properties supported by property-specific financial assumptions.