Real estate remains one of the most compelling ways to diversify your investment portfolio, but finding the right platform can make all the difference between a great return and a missed opportunity. In 2024, three real estate investment platforms—Roots, Cardone Capital, and Gatsby Investment—stand out for their distinct approaches and investor offerings. Each platform presents a unique value proposition, catering to different investment styles, risk appetites, and goals.

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 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 accredited investor seeking aggressive returns in the Los Angeles real estate market, especially through multifamily and development projects, Gatsby Investment might suit you best.

In this comparison, we’ll break down Roots' REIT, Cardone Capital's Non-Accredited Fund, and Gatsby Investment across four critical 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.

Gatsby Investment

Gatsby Investment targets residential and multifamily real estate in the greater Los Angeles area, with a range of multi-family properties that span from small multi-family units to developments with over thirty units. The platform provides accredited investors the opportunity to participate in high-growth markets, focusing on both rental and development projects.

Minimum Investments, Fees & Liquidity

Roots

Roots allows you to invest with a $100 minimum, making it highly accessible. With no assets under management (AUM) fees, Roots has a low fee structure, with only a $5 transaction fee for the first investment 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.

Gatsby Investment

Gatsby Investment has a $10,000 minimum investment and is only open to accredited investors. Fees vary by project but typically include development and service fees.  For rental properties, investors receive quarterly distributions, while development projects pay out lump sums after the completion of the sale. 

When it comes to liquidity, an investor is committed to the fund until the specified timeline for each investment.

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.

Gatsby Investment

Gatsby Investment reports an average annual return of 23.0% from 2017-2023 across all of its properties.

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 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
• Gatsby Investment- Equity Fund Information
• Gatsby Investment - How It Works
• Gatsby Investment - Q&A
• Gatsby Investment - Investment Opportunities
• Gatsby Investment
• Roots - Performance
• Roots - Social Impact

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