Investing in real estate can be a great option to diversify your portfolio, but getting started can be difficult. Companies like Roots, Blackstone, and YieldStreet make real estate investing accessible and easier to manage via their online REIT investing platforms and products. All platforms offer different minimum investment options and strategies that they use to grow their funds. The decision ultimately comes down to your individual goals and preferences.

If you are looking for low fees, low minimums, and to invest in real estate that has a unique, positive social impact on the renters, Roots is 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. 

If you’re content with a high minimum investment and prefer having a wide variety of choices, Yieldstreet, like it's Residential Mortgage Opportunistic Fund, might be best for you.

Below you'll find an in-depth breakdown of Roots' REIT, BlackStone's BREIT, and YieldStreet's Residential Mortgage Opportunistic Fund, highlighting their differences across 4 dimensions: investment minimums, fees, liquidity and social impact.

Investment Type

Roots, YieldStreet, and BlackStone's BREIT each offer a unique portfolio of real estate assets.

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 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.

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.

YieldStreet

Yieldstreet is a cutting-edge financial services platform that bridges investors to a diverse array of private market opportunities, also known as alternative assets. Unlike traditional investments such as stocks and bonds, Yieldstreet's offerings encompass dynamic sectors like real estate, private equity, venture capital, fine art, transportation, structured notes, and legal finance. Some of these investments are real estate related, like their Residential Mortgage Opportunistic Fund which focuses on discounted mortgage purchased in the secondary market.

Yieldstreet's investment opportunities are a-la-carte.

Roots

Roots is a private REIT portfolio of single and small multi-family residential rental properties, currently in the greater Atlanta area. Roots has a unique model in which residents of Roots' properties get invested in the fund for being good renters. By simply paying rent on time, taking care of their property, and being a respectful neighbor, a Roots resident can gain tangible equity in the fund, something that's incredibly rare to find in a country where 69% of Americans have less than $1,000 in savings.

This model has led to low vacancy, lower turnover costs, and high returns for its investors, all while giving people from all walks of life the opportunity to grow wealth while renting. Roots is subject to financial reporting within SEC guidelines through its REG A+ designation

Minimum Investments, Fees & Liquidity

Roots, BlackStone, 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. With no assets under management (AUM) fees, Roots has a low fee structure, with only a $5 transaction fee for your first investment 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 after one year, there are no fees to withdraw.

Roots typically distributes to investors every quarter, and investors have the option to reinvest or cash out their distributions at that point in time. Investors can withdraw up to $100,000 of their investment on a quarterly basis.

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.

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.

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.

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.

However, it's crucial to note that past performance is not a guarantee of future results. There are always risks in investing, and it's essential to understand them 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

• BlackStone - Performance
• BlackStone - Investors FAQ
• BlackStone - BREIT Offering Terms
• BlackStone - YahooFinance - Trend of Bad News
• YieldStreet - Essentials
• YieldStreet - Performance
• Roots - Performance
• Roots - Social Impact

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