Real estate investing has always been a reliable way to build wealth, but today, the landscape is rapidly evolving, with innovative platforms offering new ways to participate. Whether you're looking for residential rental properties, commercial real estate loans, or fractional shares in individual homes, platforms like Roots, EquityMultiple, and Concreit provide unique options for investors at different levels.

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 its renters, Roots is for you.

EquityMultiple caters to those seeking investments in commercial real estate or those interested in generating returns through mortgage loans. 

If you're looking for more flexibility in your investments, Concreit may suit you best as you can purchase fractional shares of properties or invest in a diversified portfolio of various real estate properties. 

Let’s break down Roots, Concreit's Cash Flow Fund, and EquityMultiple's Ascent Income Fund and see how these three funds compare across investment types, minimums, fees, liquidity, and returns.

Property Type

Roots

Roots offers a portfolio of residential rental properties made up of single-family homes and small multifamily units in the greater Atlanta area. 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, low turnover costs, and high returns for investors.

EquityMultiple

EquityMultiple allows accredited investors to invest fractional shares of commercial real estate or portfolios like the Ascent Income Fund, which will be the focus of this comparison. The Ascent Income Fund focuses on first-mortgage loans, providing opportunities to invest in property loans that span across different sectors.

Concreit

Concreit offers fractional ownership in residential real estate, giving investors access to individual rental properties, or they can invest in the Cash Flow Fund which is a professionally managed real estate fund.

Minimum Investments, Fees & Liquidity

Roots

Roots allows you to invest with a $100 minimum, making it highly accessible. With no assets under management fees, Roots has a low fee structure, that only charges 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 of profits to investors, with the option to reinvest or cash out. Liquidity is available quarterly, allowing investors to withdraw up to $100,000.

EquityMultiple

EquityMultiple requires a $5,000 minimum investment to participate in its Ascent Income Fund. 
EquityMultiple has various fees depending on the investment type. Debt and preferred equity offerings come with a servicing fee of around 1%. Fund investments may also include an Origination Fee, which is paid upfront.

Liquidity is limited, as investors are locked in for one year.

Concreit

Concreit is highly accessible, with a minimum investment of just $100. The platform charges a flat $5 monthly fee for accounts under $5,000, and a 1.0% annual fee for accounts over $5,000. 

Investors can withdraw from the Concreit fund monthly however any shares liquidated within the first year will incur a 20% penalty. Once shares are liquidated, the funds must then settle before they can be withdrawn, and withdrawals within the first 60 days are subject to a hold period.

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). Roots' target returns are 12-15%.

EquityMultiple

Equity Multiple’s Ascent Income Fund has a historical distribution yield of 10.82%, with a target return of 11-13% net annualized. Investors benefit from the stability of first mortgage loans backed by commercial real estate, though liquidity is limited during the investment period.

Concreit

Cconcreit's Cash-Flow fund returned an average of 5.56% from June 26, 2021, to July 5th, 2024 which is aligned with Concreit's goal of providing an annual return rate of 5.5%.

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 in Real Estate?

Invest With Roots

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

• EquityMultiple - Ascent
• EquityMultiple - FAQ
• EquityMultiple - Fees
• Concreit - Minimum investment
• Concreit - Preferred returns
• Concreit - Historical performance
• Concreit - Cash-Flow Fund
• Concreit - How it works
• Concreit - Fees
• Concreit - Estimates hold for Home Shares™
• Concreit - Withfrawal Rules
• Roots - Performance
• Roots - Social Impact

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