Investing in real estate can be an excellent strategy to diversify your investment portfolio, but taking the first steps can be challenging. Fortunately, companies like Roots, Arrived, and YieldStreet have streamlined the process to make real estate investing accessible and easier to manage through their online platforms.

If you’re looking for more flexibility in your investments, Arrived may suit you best as you can purchase fractional investments in residential or vacation homes, or invest in a portfolio of residential properties.

If you’re content with a high minimum investment and prefer having a wide variety of choices, Yieldstreet might be best for you.

For those looking for a low entry point, low fees and to invest in residential real estate that has a unique, positive social impact on the renters, Roots is for you.

All three platforms offer a great way to invest in real estate without the hassle. But, it's crucial to conduct thorough research, understand the associated risks involved, and seek professional financial advice before investing your money.

Below you'll find key points of Roots' REIT, Arrived's Single Family Rental Fund, and YieldStreet's Residential Mortgage Opportunistic Fund, highlighting their differences across 4 key dimensions: investment type, minimums, fees, and liquidity.

Investment Type

Roots, Arrived Homes, and YieldStreet all provide the opportunity to invest in a portfolio of assets.

Roots

Roots offers one investment option, a portfolio of residential and small multi family rental properties. Roots has a unique model where the residents of the properties get invested in the fund if they are good renters (pay rent on time, take care of the property, and are a good neighbor). This has led to low vacancy, low turn costs, and high returns for its investors, as you’ll see below.

Arrived Homes

Arrived offers three ways to invest: you can purchase a fractional share of a vacation rental, you can purchase a fractional share of a single family property, or you can invest in the Single Family Residential Fund, which will be the focus of this article.

YieldStreet

Yieldstreet gives investors the opportunity to participate in crowdfunding for alternative investments on its platform. Some of these investments are real estate related, like their Residential Mortgage Opportunistic Fund which focuses on discounted mortgage purchased in the secondary market.

Minimum Investments, Fees & Liquidity

Roots, Arrived Homes, and YieldStreet make real estate investing easy, but when it comes to fees and liquidity, each company differs significantly.

Roots

Roots allows you to invest with a $100 minimum. Roots has a low fee structure, with only a $5 transaction fee and a $3 transaction fee on any recurring investment. If you need to liquidate your funds before one year, there is a 6% early withdrawal fee, but there is no fee after the one year point.

Roots distributes to investors quarterly, providing investors the option to reinvest or cash out their distributions. Roots offers the ability to liquidate quarterly as well, $100k or up to 5% of the fund.

Arrived Homes

Investment in Arrived's Single Family Residential Fund has a 0.25% management fee and other potential fees which may include but are not limited to closing costs, offering costs, property renovations, sourcing fees, holding costs, operating expenses, and more. These investments are positioned as longer-term investments with a six-month holding period on withdrawals. For those who are looking to liquidate earlier than 5 years, there is a 1-2% cost associated with doing that.

YieldStreet

Every Yieldstreet investment opportunity has different costs and associated fees. The minimum investment for the Residential Mortgage Opportunistic Fund is $15,000. The investment carries a 1.0% annual management fee.

Prospective investors should first browse Yieldstreet’s website or talk to a support team member to best understand the entire fee structure.

Performance

All platforms have delivered returns to their investors with Roots generating some great returns.

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

Arrived’s average total historical returns for single family residential properties has ranged between 6-10%.

Every Yieldstreet investment opportunity has its own distinctive return. Yieldstreet reports a 9% net annualized returns from all of their real estate investments from July 1 2015 - June 30, 2024. This return is used to factor in the range of returns that an investor may have seen when investing in Yieldstreet.

It's essential to note that past performance does not guarantee future results. Investing always involves risks, and a comprehensive understanding of these risks is crucial before investing your money.

Ready To Get Started? Invest With Roots

Imagine owning real estate where your renters wanted it to succeed as much as you do.

Start investing with as little as $100, and own a piece of the only REIT that creates wealth for both its investors and its residents. It took us years to build Roots, but you can invest in as little as 5 minutes.

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Sources

• Roots - Social Impact
• Roots - Performance
• Arrived - Why are homes held in a Series LLC
• Arrived - How does Arrived make money?
• Arrived - What fees do investors pay to property managers?
• Arrived - Arrived Single Family Residential Fund
• Arrived - What returns can I expect from Arrived properties?
• Arrived - Single Family Residential Fund
• YieldStreet - Houston Industrial Development Equity
• YieldStreet - Residential Mortgage Opportunistic Fund
• Yieldstreet - By the Numbers

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