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

[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.

[Dave Nixon]

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.