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, Concreit, EquityMultiple, and Gatsby Investment 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.

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. 

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

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.

Let’s break down Roots, Concreit's Cash Flow Fund, EquityMultiple's Ascent Income Fund, and Gatsby Investment across three dimensions minimum investment, liquidity, and social impact.

Property Type

Roots

Roots offers a portfolio of residential rental properties made up of single-family homes and multi-family properties 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) can also become investors in the fund. This strategy has led to low vacancy, low turnover costs, and historically high returns for investors.

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. This fund allocates 75% of its portfolio to short-term debt notes, and the remaining 25% is invested in mid-term equity positions.

EquityMultiple

EquityMultiple allows accredited investors to invest in 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.

Gatsby Investment

Gatsby Investment targets residential and multi-family 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 fees, Roots has a low fee structure. Roots only charges a $5 transaction fee per investment but drops to a $3 transaction fee for recurring investments. Early withdrawals within the first year incur a 6% fee, but after one year, there are no fees for withdrawals. 

Historically, Roots has provided quarterly distributions of profits to investors, giving them the option to reinvest or cash out. Liquidity is available quarterly, allowing investors to withdraw up to $100,000.

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.

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.

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 has target annual returns of 12-15%. Since inception, the fund saw an average annual return of 17.43% and a total return of 61% (July 1, 2021- January 10, 2025).

EquityMultiple

EquityMultiple’s Ascent Income Fund has a historical distribution yield of 8.4% (as of November 15, 2024), 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

Concreit's Cash Flow fund targets an annual return rate of 5.5%.

Gatsby Investment

At the time of writing, Gatsby Investment has not published data on its target returns. The returns vary from user to user as they are dependent on the properties the user invests in. Gatsby Investment reports historical annualized returns on individual properties ranging from 10-25%. It has an average annual return of 22% from 2017-2024 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 in Real Estate?

Invest With Roots

With a $100 minimum investment and a one-of-a-kind model that builds wealth for both investors and renters, Roots is a great opportunity 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
• 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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