Investing in real estate can be a great option to diversify your portfolio, but getting started can be difficult. Companies like Roots, Cardone Capital, and Blackstone make real estate investing more accessible and easier to manage via their online investing platforms and products. Each platform presents a unique value proposition, catering to different investment styles, and goals. The decision ultimately comes down to your individual goals and preferences.

For those looking to invest in the greater Atlanta area and have a positive social impact, Roots offers a model where renters become stakeholders, creating a mutually beneficial environment that drives high returns.

If you prefer a more traditional approach with large-scale multifamily residential properties and are willing to lock in your investment for the long haul, Cardone Capital may be a good option for you. 

If you’re an experienced investor, have the time to coordinate with a financial advisor, and want to allocate a larger amount of resources to bet on a REIT, BlackStone’s BREIT may be the right one for you. 

In this comparison, we’ll break down Roots' REIT, Cardone Capital's Non-Accredited Fund, and Blackstone's BREIT across 4 dimensions—investment type, minimums, liquidity, and returns—so you can decide which platform best fits your investment goals.

Property Type

Roots

Roots' REIT offers a portfolio of residential rental properties, single-family and small multi-family in the greater Atlanta area. Roots is available to both accredited and non-accredited investors. What sets Roots apart is its unique "win-win" model, where good renters (those who pay rent on time and take care of the property) also become investors in the fund. This strategy has led to low vacancy and turnover costs, and thus high returns for investors.

Cardone Capital

Cardone Capital focuses on large-scale multifamily properties. Cardone Capital also offers accredited investors the option to buy into fractional shares of properties a la carte. For non-accredited investors, they can invest in the Non-Accredited Fund, giving them the chance to invest in real estate. Cardone Capital manages everything from acquisition to rent collection, providing a hands-off experience for investors.

Blackstone (BREIT)

Blackstone is the 1000-pound gorilla in any real estate room, and in this case, has a very large “private” non-listed REIT appropriately named BREIT.

BREIT is the largest owner of student housing in the United States and also owns QTS, one of the world's fastest-growing data center companies. BREIT also invests in multi-family, single-family, and affordable housing.

BREIT allows individual investors to invest in institutional-grade commercial properties, typically only available to large institutions. BREIT's portfolio is concentrated in high-growth sectors, including data centers, warehouses, student housing, and the fast-growing Sunbelt market.

Minimum Investments, Fees & Liquidity

Roots

Roots allows you to invest with a $100 minimum, making it highly accessible. With no assets under management fees, Roots has a low fee structure, that only charges a $5 transaction fee per transaction and a $3 transaction fee on any recurring investments. Early withdrawals within the first year incur a 6% fee, but after one year, there are no fees for withdrawals. 

Roots provides quarterly distributions to investors, with the option to reinvest or cash out. Liquidity is available quarterly, allowing investors to withdraw up to $100,000.

Cardone Capital

Cardone Capital's Non-Accredited Fund requires a $5,000 minimum investment for non-accredited investors and a $100,000 minimum for accredited investors. Investors are subject to a 1% asset management fee, a 1% transaction fee on acquisitions and dispositions, and a 20% management promotion fee based on distributable cash flow. 
Liquidity is limited, with a ten-year investment horizon, though investors can sell shares to third parties.

Blackstone (BREIT)

Blackstone allows you to invest with a $2,500 minimum for their Class D, S, and T shares and a $1,000,000 minimum investment for their Class I shares. Unlike the other REITs mentioned in this article, Blackstone is open to investors based on a minimum income requirement of $70,000 annually or a net worth of at least $250,000.

Blackstone offers monthly distributions for the BREIT but cautions investors that these are not guaranteed. They have a limited number of repurchases that they choose to make each month or quarter and can potentially choose to repurchase none of the submitted shares.

Blackstone has a 1.25% management fee, a stockholder servicing fee, a selling commission fee, and a high-performance fee.

Performance

Roots

Roots had an average annual return of 17.17% as of July 10, 2024, and has returned 51.5% since inception (July 1, 2021- July 10, 2024).

Cardone Capital

Cardone Capital targets a 15% internal rate of return (IRR) and 6% annualized returns from property income. The fund aims for a total return of 12-15% but emphasizes that there are no guarantees, and liquidity is highly restricted.

Blackstone (BREIT)

Blackstone reports an annualized return of 10.2% since BREIT's inception in 2017. While it has been historically dependable, BREIT had a rough 2023, and 2024 does not look much better. BREIT returned -0.5% last year, and 2.4% year to date.

Ready To Get Started? Invest With Roots

Imagine owning real estate where your renters are invested in its success as much as you are.

With a $100 minimum investment and a one-of-a-kind model that creates wealth for both investors and renters, Roots is perfect for those seeking positive social impact alongside strong returns. Start investing today with just 5 minutes of your time.

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Sources

• Cardone Capital - Disclosures
• Cardone Capital - FAQs
• Cardone Capital - 12%-15%
• Cardone Capital - Equity Fund 24
• Cardone Capital - Non-Accredited
• BlackStone - Performance
• BlackStone - Investors FAQ
• BlackStone - BREIT Offering Terms
• BlackStone - YahooFinance - Trend of Bad News
• Roots - Performance
• Roots - Social Impact

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