You will receive any property appreciation, rental income, tax benefits and sales proceeds directly to your mogul account. Property values are updated on a monthly basis through a 3rd party data provider that offers appraisal-level valuations in real time. Rental income is distributed to investors on a monthly basis. Tax benefits come in the form of a filled-out tax document uploaded to your account. On each property card, we demonstrate yearly returns in a range based on a conservative analysis (underwriting). The yearly return is net of fees and includes returns from appreciation and rental income, what you see is what you get. You can test your own assumptions in the “Investment” tab of the property information to see projected returns. The default assumptions are the assumptions used in our models. You will have the option to sell your shares in one of 2 ways: 1) hold your shares, collecting rental revenue until the property is sold after the typical 5-7 year hold 2) sell on our secondary market at the fair market value (coming soon). All sales proceeds will be distributed to your account.

mogul creates an LLC entity (“PropCo”, taxed as a partnership) for each property in the state of the property. The LLC is used as the buying entity for the property, and ownership is offered on mogul's platform through an investment club structure. Each investment club will use proceeds from the offering to acquire the single property and will conduct no operations other than relating to the ownership, maintenance, and eventual sale of the property. The initial offering amount will be pursuant to the administrative services agreement and determined by the amount of equity needed to close the property, maintenance reserves, vacancy reserves, and any necessary fees, costs, and expenses.

In legal terms, you are purchasing ownership in the investment club LLC that owns the individual property. In practical terms, you are purchasing part of an investment property and the rights to all benefits associated with your portion of the property, including appreciation, monthly income, and tax benefits. Any major decision regarding the operation of the property will be put to a vote, with no one major shareholder determining the outcome (super-majority rules). If the property is purchased using leverage (a mortgage), you as the owner are not liable for the debt on the property. Additionally, the reserves capitalized in the initial offering of the property account for roughly 8-12 months of complete vacancy, and property insurance pays the market rent on the property in the event of a pipe-burst or similar events, meaning, the property would be effectively occupied during that time. When you purchase part of a property on mogul, you are a property owner and receive the pure benefits of being just that.

Any decision less than $1k will be handled directly by the licensed property managers. Any decision greater than $1k will be put to a vote. In a vote, the property manager will gather all necessary information and hold a formal vote. They will have a recommendation, and should you not be able to vote, your default vote will count towards the recommended decision. The winning vote will be determined by a super-majority, so one investor can never fully decide without other input. If there are any major capital improvements, the funds used will be from the maintenance reserve. We adequately capitalize the property prior to launch and take out insurance to mitigate against the need to make any future capital calls.

mogul currently collects 3 sources of revenue. A 3% onboarding fee and a 2% setup fee (in the future, with more user offered opportunities, we will eliminate this fee) capitalized in the deal. The percentages are calculated based on the purchase price of the property and cover our expenses related to finding, vetting, and onboarding the property. We collect 2.5% of the rental income for coordinating with the property managers and having negotiated institutional, wholesale discounts. The 2.5% minimally impacts returns and ensures our incentives are aligned, we do not get paid this 2.5% if you don't get paid. All returns conveyed on our platform are inclusive of these fees (if it says 20% IRR that is what is projected net of these fees).