Best REITs for 2023 – Compare Roots vs Fundrise vs Arrived Homes

Member since 2018 · 24 posts · 16 votes

Recently came across Roots which is a online eREIT that currently owns about 50 single family homes near Atlanta GA. It rents out the homes and gives tenants in good standing an incentive to keep the homes up and in good condition by giving them some equity. You can invest small amounts and optionally reinvest dividends. It claims a 16% PA average return over its lifetime which is only a couple of years so far. There are also two other eREITs Arrived that allows you to choose a property to invest in and Fundrise that offers a choice multifamily, industrial real estate or single family rentals respectively. Roots publishes a comparison article on their blog:

Disclosure I just started investing in Roots.

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Chris SeveneyBusiness Member
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Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
3y
Quote from @Dave Nixon:

Recently came across Roots which is a online eREIT that currently owns about 50 single family homes near Atlanta GA. It rents out the homes and gives tenants in good standing an incentive to keep the homes up and in good condition by giving them some equity. You can invest small amounts and optionally reinvest dividends. It claims a 16% PA average return over its lifetime which is only a couple of years so far. There are also two other eREITs Arrived that allows you to choose a property to invest in and Fundrise that offers a choice multifamily, industrial real estate or single family rentals respectively. Roots publishes a comparison article on their blog:
Best REITs for 2023 – Compare Roots vs Fundrise vs Arrived Homes

Disclosure I just started investing in Roots.

My recommendation is to read the financial statements and balance sheets of the company. What a company "claims" what it provides can be very different. There are 100's of these types of funds available (some REIT's some funds) that are available.
Of course along with returns please make sure to consider risk.
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Dave Nixon
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Member since 2018 · 24 posts · 16 votes
3y
Quote from @Chris Seveney:

Quote from @Dave Nixon:

Recently came across Roots which is a online eREIT that currently owns about 50 single family homes near Atlanta GA. It rents out the homes and gives tenants in good standing an incentive to keep the homes up and in good condition by giving them some equity. You can invest small amounts and optionally reinvest dividends. It claims a 16% PA average return over its lifetime which is only a couple of years so far. There are also two other eREITs Arrived that allows you to choose a property to invest in and Fundrise that offers a choice multifamily, industrial real estate or single family rentals respectively. Roots publishes a comparison article on their blog:
Best REITs for 2023 – Compare Roots vs Fundrise vs Arrived Homes

Disclosure I just started investing in Roots.

My recommendation is to read the financial statements and balance sheets of the company. What a company "claims" what it provides can be very different. There are 100's of these types of funds available (some REIT's some funds) that are available.
Of course along with returns please make sure to consider risk.
Does anyone publish ratings for REITs similar to the way Weiss publishing ratings for banks and stocks and cryptos?
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Chris SeveneyBusiness Member
Moderator
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
3y
@Dave Nixon
I am sure there is data out there but also there are private non traded REIT's that info is not available
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Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
3y
Quote from @Dave Nixon:

Recently came across Roots which is a online eREIT that currently owns about 50 single family homes near Atlanta GA. It rents out the homes and gives tenants in good standing an incentive to keep the homes up and in good condition by giving them some equity. You can invest small amounts and optionally reinvest dividends. It claims a 16% PA average return over its lifetime which is only a couple of years so far. There are also two other eREITs Arrived that allows you to choose a property to invest in and Fundrise that offers a choice multifamily, industrial real estate or single family rentals respectively. Roots publishes a comparison article on their blog:
Best REITs for 2023 – Compare Roots vs Fundrise vs Arrived Homes

Disclosure I just started investing in Roots.

What I could say is Fundrise and Arrived is quite conservative in their offering. I don't see too many red flags. Having said that though, investing in local Bank with 5% CD is still better than 4% that's offered by Arrived LTR.

Anything claiming 16% blablablabla, it would test your due diligence capacity. I like when company is conservative.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
3y
50 homes is a very small sample size to see how the model works.. Just sayin.
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David M.
Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
3y
@Dave Nixon
What other reits are you comparing? what's an "online" eREIT? 50 sfh --- so like a market cap of 10mil? That's a rounding error for most to all publically traded reits. Are you looking at public or privately traded REITs? For public, there are plenty of reviews out there. And what sector are you looking at, specifically single family?
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Dave Nixon
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Member since 2018 · 24 posts · 16 votes
3y
Quote from @David M.:

@Dave Nixon
What other reits are you comparing? what's an "online" eREIT? 50 sfh --- so like a market cap of 10mil? That's a rounding error for most to all publically traded reits. Are you looking at public or privately traded REITs? For public, there are plenty of reviews out there. And what sector are you looking at, specifically single family?
I am new to REIT investing so have not compared to other REITs. I was attracted to Roots REIT by the social benefits (Renter's equity) that aligns incentives to keep the properties in good condition. I like that renters get more than a fair shake and also that they will act more like owners than renters. I am planning to invest monthly and reinvest dividends at least initially. I am retired (age 69) and need to keep a little growth in my portfolio but would like to diversify away from the stock market a bit.
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David M.
Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
3y
@Dave Nixon
Oh I see. I don't track private reits. I would certainly be wary of reading a self published blog/article. Personally, at first glance I think their incentives are somewhat "gimmicky." You know... there are plenty of owners who don't treat their property well?? etc...
Good luck.
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