Compare Top REIT Platforms for 2024 – Roots, Fundrise, and YieldStreet

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, Fundrise, 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 property types with a lower entry point, Fundrise might be the better option for you.

If you're looking for the most property types and you're content with a higher minimum investment, YieldStreet could be your choice.

For those looking for a low entry point, less 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 a comprehensive review of Roots, Fundrise, and YieldStreet, highlighting their differences across 5 key dimensions: property type, minimums, fees, liquidity and average returns.

Comparing Roots, Fundrise, and Yieldstreet across minimum investment, returns, fees, and social impact.

Property Type

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

Roots

Roots offers one investment option, a portfolio of residential 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 less vacancy, lower turn costs, and higher returns for its investors, as you’ll see below.

Fundrise

Fundrise offers three property types: multifamily apartments, industrial properties, and single-family rentals. Similar to Roots and Yieldstreet, these properties are offered in electronic real estate investment trusts (eREITs), mirroring traditional REITs, but accessible through an online platform.

YieldStreet

Yieldstreet offers many property types: multi-family, industrial, office, single family rentals, storage, and more. YieldStreet also announced that “The Fund also seeks to invest across different investment types including, but not limited to, first lien mortgage loans and preferred equity opportunities to help generate current and regular income for investors.”

Minimum Investments, Fees & Liquidity

Roots, Fundrise 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. Unlike Fundrise and YieldStreet, Roots has a lower 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 other than that there are no additional fees to investors.

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

Fundrise

With Fundrise, you can start with as little as $10, with a 1% annual asset management fee, a 0.15% annual advisory fee, and a 0.85% annual investment fee. It’s also important to note that Fundrise is intended to be a long-term, illiquid investment. They offer the ability to withdraw your investment at the beginning of each quarter, but there is an approximate penalty of 1% of your total share value if it’s liquidated before 5 years.

YieldStreet

YieldStreet allows you to invest with a $10,000 minimum. They have utilized a concept they call “DRIP” which automatically invests an investor's distributions back into their fund. Investors have the option to opt out of this feature but should be aware that it's on by default.

YieldStreet has a 1.5% annual asset management fee, and a 0.5% fee for operating expenses that is deducted from distributable cash.

YieldStreet’s policy indicates that investors may not touch any of their funds for the first year. After that, investors have the option to potentially liquidate a portion of their investments on a quarterly basis.

Investors should be cautious of early withdrawal fees that will occur if the funds are removed within the first five years of their initial investment request date. To learn more, please see the link “YieldStreet - Essentials” below for more information.

Performance

Chart comparing the returns of Roots, Fundrise, and YieldStreet.

All platforms have delivered returns to their investors with Roots leading the way.

Roots had an average annual return of 16% as of April 1, 2024 and has returned 48% from July 1, 2021- April 1, 2024.

Fundrise boasts an average income return of 4.81%.

YieldStreet has a net annualized return of 9.6%.

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

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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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