Groundfloor vs RealtyMogul

RealtyMogul Overview

RealtyMogul is best suited for investors who want accredited and non-accredited investors seeking diversified commercial real estate exposure with low minimum investments and regular income distributions, balanced with illiquidity and moderate risk tolerance.. The platform, RealtyMogul has built a growing investor base.

With a minimum investment of $5K, RealtyMogul offers some investments open to non-accredited investors. The platform does not currently offer a secondary market and requires manual investment selection.

Key Strengths:

• Low minimum investment of $5,000 for REITs makes commercial real estate accessible to non-accredited investors
• Strong due diligence process; multiple reviewers noted RealtyMogul has 'best due diligence in the business'
• Non-accredited investor eligibility for REIT offerings with reasonable limitation (10% of income/net worth)
• Long track record with 234 realized investments as of October 2024 showing 18.1% realized IRR

Key Drawbacks:

• Completely illiquid investments with no secondary market for selling positions
• Mixed investor reviews with some reporting only 1 of 3 deals performing as projected
• Some investors reported deals had no returns or lost money completely

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Groundfloor Overview

Groundfloor is best suited for investors who want non-accredited investors seeking short-term, high-yield real estate debt investments with low barriers to entry and automated portfolio management capabilities.. Founded in 2013, Groundfloor manages $2.2 billion+ lent out as of January 2026 in assets.

With a minimum investment of $10, Groundfloor is open to all investors regardless of accreditation status. The platform does not currently offer a secondary market and supports auto-invest features.

Key Strengths:

• Very low minimum investment ($10) makes it accessible to all investors
• No accreditation required - open to non-accredited investors
• SEC-qualified Regulation A offering provides regulatory oversight
• Strong historical returns averaging 10% annualized since 2013

Key Drawbacks:

• Illiquid investment with limited secondary market
• Loss ratio of less than 1% indicates real default risk exists
• Flywheel Portfolio charges 1.00% management fee on disbursements

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Head-to-Head Comparison

Fees & Costs

RealtyMogul carries a fee rating of 3.0/5, with fees structured as: Income REIT: 1% annual; Apartment Growth REIT: 1.25% annual. Groundfloor scores 4.5/5 on fees, charging: 0.50%-1.00% on Flywheel Portfolio (assessed at disbursement).

Edge: Groundfloor. More competitive fee structure overall.

Minimum Investment

RealtyMogul requires $5K to get started, while Groundfloor requires $10. Groundfloor's lower minimum makes it more accessible for new investors.

Edge: Groundfloor. Lower barrier to entry.

Accreditation Requirements

RealtyMogul partially requires accreditation. Groundfloor does not require accreditation.

Edge: Groundfloor. Open to all investors.

Liquidity

RealtyMogul offers illiquid investments. Groundfloor provides semi-liquid investments.

Edge: Tie. Similar liquidity profiles.

Ease of Use

RealtyMogul scores 3.5/5 for ease of use. Groundfloor scores 4.3/5 and also has a mobile app.

Edge: Groundfloor. Better overall user experience.

Transparency

RealtyMogul earns a 4.0/5 transparency rating. Groundfloor scores 4.0/5.

Edge: Tie. Both platforms provide comparable transparency.

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Who Should Choose RealtyMogul?

RealtyMogul is the better choice if you:

• Are comfortable with a $5K minimum investment
• Meet accredited investor requirements and want premium deal flow
• Want exposure to diversified real estate portfolios
• Prefer to hand-pick your investments

Who Should Choose Groundfloor?

Groundfloor is the better choice if you:

• Want to start investing with a low minimum
• Are a non-accredited investor looking for access to alternatives
• Want exposure to specific real estate deals or projects
• Prefer a hands-off, auto-invest approach

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Verdict

Winner: Groundfloor. With 4.2/5 overall rating versus RealtyMogul's 3.7/5, Groundfloor edges ahead with a lower minimum investment and better fees. That said, RealtyMogul may be the better fit if you specifically need accredited and non-accredited investors seeking diversified commercial real esta.

For most investors exploring alternatives, we recommend starting with Groundfloor — but consider your specific goals before committing.

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FAQ

Is RealtyMogul or Groundfloor better for beginners?

Groundfloor is generally more beginner-friendly with its $10 minimum investment compared to RealtyMogul's $5K. Additionally, Groundfloor doesn't require accreditation, making it accessible to more new investors.

Can I use both RealtyMogul and Groundfloor?

Yes. Many alternative investment portfolios benefit from diversification across platforms. RealtyMogul and Groundfloor overlap in some asset classes but may offer different deal structures, fee models, and investment approaches.

Which platform has better returns?

Historical returns vary by specific investment and time period. Groundfloor has a higher overall rating, but past performance doesn't guarantee future results. Both platforms provide different risk-return profiles depending on the specific offerings you choose.

Are RealtyMogul and Groundfloor safe?

Both platforms are legitimate, regulated investment services. RealtyMogul is regulated by SEC. Groundfloor is regulated by SEC. As with all alternative investments, there is inherent risk — these are generally illiquid, long-term investments and not FDIC insured.