Exploring Top Real Estate Investment Platforms in 2024: Roots, Fundrise, and Landa
When looking to diversify your investment portfolio, real estate is one of the best options available, but it isn’t always easy to get started. Finding the right place to invest can be a challenge, but Fundrise, Landa, and Roots make real estate investment easy with transparent online platforms that are both easy to use and understand.
If you're looking for the most property types and portfolio investing, Fundrise might be the best option for you.
If you’re interested in trading shares of property after your purchase, then Landa may be the better option for you.
Roots may be the best choice for you if you’re interested in a residential focused real estate portfolio with lower fees and a fund that has a one-of-a-kind social impact on its renters.
Below you'll find an in-depth review of Roots, Fundrise, and Landa, highlighting their differences across 5 dimensions: property type, minimums, fees, liquidity and average returns.
Roots offers a portfolio of residential rental properties, single family and small multi family. 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 offers three property types: multifamily apartments, industrial properties, and single-family rentals. Like Roots, these properties are in an electronic real estate investment trust (eREITs), similar to traditional REITs, but offered through an online platform.
Landa is a mobile app investment platform used to invest in a share of single-family homes and small, multi-family residential rental properties. Unlike Fundrise and Roots, these are fractional shares and not a portfolio investment.
Minimum Investments, Fees & Liquidity
Roots allows you to invest with a $100 minimum. Unlike Fundrise and Landa, Roots has a lower fee structure, with only a $5 transaction fee and a $3 fee for any subsequent 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 offers the ability to liquidate quarterly as well, $100k or up to 5% of the fund.
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.
With Landa, you can begin investing on their mobile app with a minimum of just $5. Fees for Landa include an acquisition fee of up to 6% and a property management fee of up to 8%, and a 2% trading fee when buying and selling shares of a property.
Investors can trade shares of a property on their platform as long as all of the initial shares of the property have been sold. The liquidity of Landa is based on the supply and demand nature of their platform, which means there is never a guarantee that trading will be available.
When selling shares on Landa, you have the ability to set the price, but it doesn’t necessarily mean that someone will buy it.
All platforms have delivered returns to their investors with Roots leading the way.
Roots returned 16.96% from January 1, 2023 - January 1, 2024 and has returned 43.5% from July 1, 2021- January 1, 2023.
Fundrise boasts an average income return of 4.81%.
Because of the way it functions, Landa’s returns are tied directly to the individual user.
Even though historically all three companies have delivered returns to investors, it’s important to remember that past results do not determine future success. Risks are always present when investing your money, so it’s important to understand what those risks are before making your first investment.
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