Mondanile's departure and In Mind (2016–2019)
On May 25, 2016, the band announced that Julian Lynch had replaced Matt Mondanile, who "will continue to focus his creative energy on Ducktails." Regarding Mondanile's departure, Courtney admitted that it was less than amicable. "He didn’t just quit. I mean, there’s more to it. It’s kind of stuff that I don’t necessarily want to talk about. So I don’t know, it's just complicated. It’s definitely a little more mutual than I guess what people might think is the case," said Courtney.
After Mondanile's exit, the band considered recording their fourth album as a four-piece, with an additional guitarist brought in for live shows. While Courtney was in Madison, Wisconsin for a solo show, he met with Lynch, who by then already had several solo albums to his name and had collaborated with the members of Real Estate in various forms since high school in Ridgewood. When Courtney mentioned a vacancy in Real Estate, Lynch offered his services. After Courtney consulted with Bleeker and gained the latter's approval, Lynch officially joined and participated in writing and recording the band's fourth album.
Regarding the change in guitarists, Courtney said, "Removing Matt from the band definitely changes the equation, but I'm pretty sure I met Julian on the same day I met Matt Mondanile. So this isn't just some new guy; we have a long history with him, too." As for Lynch's contribution to the band's sound, Courtney commented, "He's a very different musician from Matthew, all around. We weren't asking him to join to replace Matthew. We were asking him to join in order to make the band new. He was a friend, yes, but it was an added bonus that he would be pretty different from Matt. So it was exciting for us to see what that meant."
During the band's Fall 2016 tour, Lynch was unable to participate due to a five-month visit to India from September to February with the purpose of research for his Ph.D dissertation in ethnomusicology. The band recruited Doug Keith, who had played guitar on tour for Courtney's solo album Many Moons, to fill in until Lynch's return.
On January 24, 2017, the band announced the March 17 release of the Cole M.G.N.-produced In Mind, their fourth album and the first with Lynch. They also debuted the music video for first single "Darling". The new album's release date coincided with several gigs the band played at SXSW, including a headlining set at an event hosted by Showtime to promote the new series of Twin Peaks; the show's lead actor Kyle MacLachlan also introduced the band before their set. On May 22, 2017, the band debuted an animated video for In Mind's second single "Stained Glass", along with a special interactive website in which viewers could virtually add color to the video as it played. On May 26, Real Estate announced it had designed a shoe for Keep Company, with net proceeds for the Keep x Real Estate limited edition Ramos shoes going to the ACLU. Each pair of shoes included a cassette single containing previously unreleased instrumental "In Time" and demos of "Two Arrows" and "Two Part".
On October 4, 2017, the band announced the postponement of a fall tour "for a mix of unforeseen reasons both personal and professional," with the cancelled dates being rescheduled for February 2018. On October 13, 2017, the band issued a statement indicating that Mondanile had been fired due to allegations of his mistreatment towards multiple women. Hours before the statement was issued, Mondanile denied the allegations in a phone interview for Pitchfork. Three days later, an article elaborating on the allegations was published in Spin, where the band added that they had not gone public sooner with details regarding Mondanile's dismissal because "the women concerned requested privacy and we honored their wishes." In a statement issued by his attorneys, Mondanile apologized for his inappropriate behavior. He also accused Real Estate of violating the "leaving agreement" he signed upon his dismissal that "prohibits both him and the band members from making any negative or derogatory statements about the other, or that may negatively affect the other’s reputation and career," claiming the band came forward not to "protect the victims" as stated but "to protect the band's commercial viability."
In January 2018, Mondanile further elaborated on his firing from Real Estate, stating that a disagreement over the inclusion of one of his songs on Atlas led to a falling out with Courtney, and he wanted to record the next album with Courtney and Bleeker at the new studio he had set up in Los Angeles without Jackson Pollis whom he felt uncomfortable working with due to Pollis' dislike towards him over his behavior with women. Ultimately, Courtney and Bleeker told Mondanile that they didn't want to record with him due to his unwillingness to tour, the distance of their living situations, and his treatment of women.
On November 16, 2017, it was reported that Real Estate would be contributing original songs for the upcoming romantic comedy Plus One starring Jack Quaid and Maya Erskine.