12 Roots Alternatives

When exploring alternatives to Roots for fractional real estate investing, investors have multiple options ranging from $10 minimum investments to institutional-grade platforms. While Roots offers a unique social-impact model, many investors seek platforms providing monthly passive income, transparent operations, and accessible entry points. This comprehensive guide examines the top fractional real estate platforms, with Ark7 emerging as the superior choice for investors seeking monthly cash flow with as little as $20.

Key Takeaways

• Ark7 leads as the top Roots alternative – Offers monthly cash distributions, $20 minimum investments, and full operational transparency across 10+ markets
• Roots focuses on social impact – Unique model allows renters to invest in their buildings, but with higher minimum investments
• Diverse platform options available – 12 alternatives range from $10 minimums to $25,000 institutional platforms, with daily to quarterly income frequencies
• Monthly income advantage – Ark7 provides monthly distributions versus quarterly payouts from many competitors
• Accessibility defines Ark7 – 230,000+ active investors can start with $20 and access curated rental properties nationwide
• Choose by investment goals – Ark7 for monthly passive income; Fundrise for lowest minimum; Arrived for largest investor base

Understanding Roots: A social-impact focused platform

Roots positions itself as a fractional real estate investment platform with a unique social impact angle, allowing renters to invest in the buildings they occupy. The platform emphasizes community building alongside financial returns, creating a distinctive value proposition in the fractional real estate space.

Key Roots Strengths:

• Social impact model – Enables renters to become partial owners of their residential buildings
• Quarterly dividends – Provides regular income distributions to investors
• Community focus – Emphasizes relationship between residents and property ownership
• Transparent operations – Offers clear information about investment opportunities

Platform Considerations:

• $100 minimum investment – Higher entry point than some alternatives
• Quarterly income frequency – Less frequent than monthly distribution platforms
• Limited property types – Focuses primarily on specific residential buildings
• Social impact emphasis – May prioritize community goals alongside financial returns

With its unique approach to blending social impact with real estate investing, Roots serves a specific niche, but many investors seek alternatives offering different features, lower minimums, or more frequent income distributions.

Top 12 Roots Alternatives Ranked

1. Ark7: The best overall alternative for accessible monthly income

Ark7 revolutionizes fractional real estate investing by offering monthly cash distributions with minimum investments as low as $20, making rental property ownership accessible to a broad investor base. With 230,000+ active investors and $20MM+ in property value funds, Ark7 provides transparent, professionally managed rental properties across 10+ markets nationwide.

Key Ark7 Advantages:

• Low $20 minimum investment – Among the most accessible entry points in the industry
• Monthly cash distributions – Paid on the 3rd of each month for consistent income
• 230,000+ active investors – Demonstrated trust and platform adoption
• Full operational transparency – 24/7 access to legal and financial disclosures
• $20MM+ property value funded – Significant assets under management
• $2.5MM+ cash dividends paid – Proven track record of investor distributions
• 4.7/5 Apple App Store rating – Highly rated mobile investment experience

Monthly Income Advantage:

Unlike many competitors offering quarterly distributions, Ark7’s monthly cash flow model provides more consistent income for investors. The platform’s annualized cash returns range between 3.22%-6.96% per property, with recent performance showing $59,268.88 distributed in a single month representing a 4.58% annualized return.

Property Portfolio and Management:

Ark7 sources and manages high-quality rental properties in growth markets, holding a minority ownership stake (1%-20%) in each property to align interests with investors. The platform’s mobile app allows investors to discover, purchase, and manage shares directly from their devices, while the secondary marketplace provides liquidity options after a 1-year holding period.

IRA Investment Options:

Ark7 also supports retirement account investing through partnerships with Inspira Financial Company, allowing investors to use Traditional or Roth IRA funds to purchase real estate shares. This provides additional tax advantages while maintaining the platform’s low $20 minimum investment threshold.

2. Fundrise: The lowest minimum investment option

Fundrise serves as the most accessible entry point into fractional real estate investing with a $10 minimum investment. With over 330,000 investors and a 12-year track record, Fundrise offers exposure to private REITs and diversified real estate portfolios.

Key Fundrise Advantages:

• $10 minimum investment – Lowest entry point in the industry
• Over 330,000 investors – Large and established investor base
• 12-year track record – Longest operational history providing stability
• Quarterly dividends – Performance varies by fund; for example, the Income Fund offered an annualized distribution rate of approximately 7-8% as of late 2024
• $194M total dividends paid – Significant historical distributions to investors
• 4.7/5 Investopedia rating – Strong third-party validation

Investment Structure:

Fundrise operates through private REIT structures rather than direct property ownership, offering diversified exposure across multiple properties. The platform’s Flagship Real Estate Fund provides broad market exposure, while the low minimum makes it ideal for beginners testing fractional real estate investing.

3. Arrived Homes: The largest investor community platform

Arrived Homes has built the largest investor community in fractional real estate with 929,000+ investors and $364M invested. Backed by Jeff Bezos, the platform offers access to single-family residential properties and vacation rentals with a $100 minimum investment.

Key Arrived Homes Advantages:

• 929,000+ investors – Largest community in the fractional real estate space
• $364M total invested – Significant capital deployment across properties
• $59M dividends distributed – Substantial historical payouts to investors
• Jeff Bezos backing – Strong institutional support and credibility
• 4.8/5 Apple App Store rating – Highly rated user experience
• Secondary marketplace launched – Trading platform became available in late 2025

Property Focus:

Arrived specializes in single-family residential properties and vacation rentals, offering investors exposure to specific homes rather than diversified portfolios. The platform’s recent performance shows a 5.14% return over the last 12 months for its Single Family Residential Fund, with Q2 2025 dividends of $2.39M representing a 15% increase over the previous quarter.

4. Lofty: The blockchain-powered daily income platform

Lofty stands out as the only platform offering daily rental income payments through blockchain tokenization on the Algorand network. With 170+ properties tokenized and no lock-up periods, Lofty provides unique liquidity and income frequency.

Key Lofty Advantages:

• Daily rental income – Only platform offering daily distributions
• No lock-up periods – Instant buying and selling with no restrictions
• $50 minimum investment – Accessible entry point for blockchain-based real estate
• 170+ properties tokenized – Growing portfolio of tokenized assets
• 4.6/5 Product Hunt rating – Positive user feedback on the platform
• 2.5% marketplace fee – Transparent fee structure for secondary transactions

Blockchain Innovation:

Lofty’s blockchain approach enables unique features like daily income and instant liquidity that traditional platforms cannot match. The platform projects annual returns of 0-12% cash flow plus 0-15% appreciation, with the blockchain infrastructure providing transparent ownership records and automated income distribution.

5. RealtyMogul: The highest return commercial platform

RealtyMogul focuses on commercial real estate investments with an average annual return of 12%, the highest among major platforms. The platform offers access to pre-vetted public and non-traded REITs with both accredited and non-accredited investor access.

Key RealtyMogul Advantages:

• 12% average annual return – Highest returns among major platforms
• 6% dividend yield – Strong income component on Income REIT
• $5,000 minimum for REITs – Accessible commercial real estate exposure
• Commercial property focus – Multifamily, office, retail, and self-storage assets
• Business Insider Best Overall rating – Industry recognition for quality

Investment Structure:

RealtyMogul offers both REIT investments ($5,000 minimum) and individual property investments ($25,000-$50,000 minimum), providing options for different investment levels. The platform’s commercial focus and higher returns come with higher minimum investments compared to residential-focused platforms.

6. Yieldstreet: The alternative asset diversification platform

Yieldstreet provides access to diversified alternative assets beyond just real estate, including private credit, art, and cryptocurrency. With a 9.6% average annual return across asset classes, Yieldstreet offers broad portfolio diversification.

Key Yieldstreet Advantages:

• 9.6% average annual return – Strong performance across alternative assets
• 8.3% net annualized yield – Solid returns on Alternative Income Fund
• $500 minimum for Prism Fund – Accessible entry to diversified alternatives
• Broad asset selection – Real estate, private credit, art, and crypto exposure
• 6-month to 5-year options – Flexible investment timelines

Diversification Benefits:

Yieldstreet’s strength lies in its broad alternative asset selection, allowing investors to diversify beyond real estate while maintaining exposure to the asset class. The platform’s short-term options as low as 6 months provide flexibility not available with traditional real estate investments.

7. Groundfloor: The minimal-fee debt investment platform

Groundfloor offers a unique debt-based approach to real estate investing with minimal investor fees and $10 minimum investments. The platform focuses on short-term real estate loans with 6-24 month terms and expected annual returns of 10%.

Key Groundfloor Advantages:

• $10 minimum investment – Among the lowest entry points available
• Minimal investor fees – Borrowers cover most costs; some portfolios may have small management fees
• 10% expected annual return – Strong returns on Flywheel Portfolio
• 6-24 month investment terms – Short holding periods compared to equity platforms
• Monthly interest payments – Regular income during loan term

Debt vs. Equity Approach:

Groundfloor’s debt-based model provides more security than equity investments, as loans are secured by real estate collateral. The short investment timeline and minimal fees make it attractive for investors seeking fixed returns with low costs and shorter commitment periods.

8. Constitution Lending: The payment-guaranteed debt platform

Constitution Lending offers the unique feature of a 6-month payment guarantee if borrowers default, providing unprecedented security in real estate debt investing. The platform delivers 10-14% annualized returns with a $1,000 minimum investment.

Key Constitution Lending Advantages:

• 10-14% annualized returns – Highest fixed returns in the industry
• 6-month payment guarantee – Unique protection against borrower defaults
• Zero principal losses – Perfect track record of principal preservation
• Under 2% default rate – Significantly below the 4% national average
• First-lien position – Priority repayment rights on all loans

Risk Management:

Constitution Lending’s conservative underwriting approach includes loan-to-value ratios of 75% or less, providing a 25%+ equity cushion on all loans. The platform co-invests its own capital alongside investors, aligning interests and demonstrating confidence in its lending standards.

9. RealT: The global blockchain accessibility platform

RealT provides global investor accessibility through blockchain tokenization of U.S. properties, with minimum investments around $50. The platform offers rental income paid in cryptocurrency (USDC) and multiple liquidity options.

Key RealT Advantages:

• $50 minimum investment – Accessible entry point
• Global investor accessibility – International investors can participate
• Cryptocurrency payments – Rental income paid in USDC stablecoin
• Multiple liquidity options – Own marketplace and decentralized exchanges available
• Blockchain transparency – Transparent ownership records on blockchain

Blockchain Infrastructure:

RealT’s blockchain approach enables international participation and cryptocurrency payments, creating unique accessibility for global investors. RealT offers liquidity through its own marketplace and decentralized exchanges, providing flexible options for investors seeking to exit positions.

10. EquityMultiple: The institutional commercial platform

EquityMultiple focuses on institutional-grade commercial properties with minimum investments of $5,000-$10,000. The platform offers access to diverse asset classes including multifamily, office, industrial, and specialized properties like car washes and data centers.

Key EquityMultiple Advantages:

• Institutional-grade assets – High-quality commercial properties
• Diverse investment structures – Equity, preferred equity, and senior debt options
• 12+ property categories – Including specialized assets like cannabis facilities and data centers
• Accredited investor focus – Tailored to sophisticated investors
• Low fee structure – Competitive pricing relative to institutional alternatives

Commercial Specialization:

EquityMultiple’s strength lies in its focus on institutional-quality commercial assets and diverse investment structures. The platform serves accredited investors seeking exposure to commercial real estate with professional management and institutional underwriting standards.

11. DiversyFund: The appreciation-focused multifamily platform

DiversyFund specializes in undervalued multifamily properties with a focus on long-term appreciation rather than immediate dividends. The platform offers a unique auto-invest feature and $500 minimum investments.

Key DiversyFund Advantages:

• $500 minimum investment – Accessible entry to multifamily real estate
• Auto-invest feature – “Set it and forget it” recurring investment capability
• Appreciation-focused strategy – Buy undervalued, improve, sell for gains
• 4-6 year property holds – Medium-term investment horizon
• No dividend payments – Returns primarily through property appreciation

Growth Strategy:

DiversyFund’s approach focuses on property appreciation rather than immediate income, making it suitable for investors with longer time horizons seeking capital gains. The platform’s auto-invest feature provides hands-off portfolio building for busy investors.

12. CrowdStreet: The self-directed commercial marketplace

CrowdStreet operates as a commercial real estate marketplace with $25,000 minimum investments and accredited investor requirements. The platform provides direct control over investment selection and management with institutional-level opportunities.

Key CrowdStreet Advantages:

• Highest transparency – Detailed property information and due diligence
• Self-directed investing – Direct control over investment decisions
• Institutional-quality deals – Pre-vetted commercial opportunities
• Diversified Funds option – Passive management alternative
• 3-5 year lock-up periods – Medium to long-term investment horizon

Investor Control:

CrowdStreet’s strength lies in its transparency and investor control, allowing experienced investors to directly select and manage their commercial real estate investments. The platform serves as a marketplace connecting investors with sponsors rather than managing investments directly.

Why Ark7 stands out for accessible monthly income

Ark7’s dominance in accessible fractional real estate investing stems from several unique advantages. The platform’s monthly cash distribution model provides more consistent income than quarterly competitors, with distributions paid on the 3rd of each month. This regular income stream, combined with the low $20 minimum investment, makes real estate investing accessible to a broad investor base.

Operational transparency represents Ark7’s cornerstone principle, with 24/7 access to complete legal and financial disclosures. Unlike platforms offering limited information, Ark7 provides full visibility into property performance, management fees, and investment terms. The platform’s professional property management ensures investors receive rental income without landlord responsibilities, while Ark7’s 1%-20% ownership stake aligns interests with investors.

The mobile-first experience enhances accessibility, with the Ark7 mobile app allowing investors to discover, purchase, and manage shares from their devices. The platform’s secondary marketplace provides liquidity options after a 1-year holding period, addressing one of the traditional limitations of real estate investing.

Proven track record validates Ark7’s effectiveness, with 230,000+ active investors, $20MM+ in property value funded, and $2.5MM+ in cash dividends paid. The platform’s annualized cash returns of 3.96% provide competitive income while maintaining principal protection through professional property management and conservative underwriting.

Specific use cases where each platform excels

Choose Ark7 when:

• Seeking monthly passive income with minimum investments as low as $20
• Requiring full operational transparency with 24/7 access to financial disclosures
• Wanting professional property management without landlord responsibilities
• Needing mobile-first investment experience with the Ark7 app
• Seeking IRA investment options through Ark7’s retirement program
• Prioritizing alignment of interests with platform ownership in each property

Select other platforms for:

• Lowest minimum investment regardless of income frequency (Fundrise at $10)
• Largest investor community and institutional backing (Arrived Homes with 929,000+ investors)
• Daily income and blockchain innovation (Lofty with no lock-up periods)
• Highest returns with commercial focus (RealtyMogul at 12% average annual return)
• Alternative asset diversification beyond real estate (Yieldstreet with 9.6% returns)
• Short-term debt investments with minimal fees (Groundfloor with 6-24 month terms)
• Payment guarantees and maximum security (Constitution Lending with 6-month guarantee)
• Global accessibility and cryptocurrency payments (RealT with blockchain infrastructure)
• Institutional commercial assets for accredited investors (EquityMultiple with $5,000 minimum)
• Appreciation-focused multifamily investments (DiversyFund with auto-invest feature)
• Self-directed commercial investing with maximum control (CrowdStreet with $25,000 minimum)

Investment features comparison

Minimum Investment Requirements:

• Ark7: $20 per share – fractional real estate made accessible
• Fundrise: $10 – Lowest in the industry
• Groundfloor: $10 – Equal lowest with Fundrise
• RealT: ~$50 – Accessible blockchain entry
• Lofty: $50 – Moderate entry point
• Arrived Homes: $100 – Higher minimum but large community
• DiversyFund: $500 – Mid-range accessibility
• Yieldstreet: $500 – Prism Fund minimum
• Constitution Lending: $1,000 – Higher minimum for debt security
• EquityMultiple: $5,000-$10,000 – Accredited investor range
• RealtyMogul: $5,000 – REIT minimum
• CrowdStreet: $25,000 – Highest minimum for institutional access

Income Frequency and Returns:

• Ark7: Monthly distributions, 3.22%-6.96% annualized cash returns
• Lofty: Daily income, 0-12% cash flow + 0-15% appreciation
• Groundfloor: Monthly interest, 10% expected annual return
• Constitution Lending: Monthly payments, 10-14% annualized returns
• Fundrise: Quarterly dividends, performance varies by fund
• Arrived Homes: Quarterly dividends, 5.14% trailing 12-month return
• RealtyMogul: Monthly/quarterly, 12% average annual return
• Yieldstreet: Varies by asset, 9.6% average annual return
• DiversyFund: No dividends, appreciation-focused strategy
• RealT: Periodic rental income after expenses
• EquityMultiple: Varies by offering, commercial focus
• CrowdStreet: Varies by property, institutional quality

Making the Right Choice

Selecting the ideal Roots alternative depends on your specific investment goals, risk tolerance, and income preferences. Ark7 emerges as the clear winner for investors seeking monthly passive income with minimal capital requirements, combining accessibility, transparency, and consistent cash flow.

For investors prioritizing monthly income, requiring low minimum investments, or seeking professional property management without landlord responsibilities, Ark7 provides the optimal balance of accessibility and performance. The platform’s proven track record with 230,000+ active investors, mobile investment capabilities, and IRA investment options ensure successful real estate investing for both beginners and experienced investors.

The future of fractional real estate investing is accessible, transparent, and income-focused, and Ark7 leads the charge in democratizing rental property ownership for every investor. Start building your real estate portfolio today with Ark7’s $20 minimum investment and join the growing community of investors earning passive income.

Frequently Asked Questions

What is fractional real estate investing?

Fractional real estate investing allows multiple investors to purchase shares of individual rental properties, making real estate ownership accessible with minimum investments as low as $20. Platforms like Ark7 enable investors to buy shares in curated high-yield rental properties nationwide, earning passive income through monthly cash distributions without landlord responsibilities. This model democratizes real estate investing by eliminating traditional barriers like high down payments and property management requirements.

How does Ark7 compare to other investment opportunities?

Ark7 offers monthly cash distributions with minimum investments starting at $20, compared to quarterly payouts from many competitors. With 230,000+ active investors and $20MM+ in property value funded, Ark7 provides accessible real estate investing with full transparency. The platform’s annualized cash returns between 3.22%-6.96% per property offer competitive income, while professional property management and full operational transparency differentiate Ark7 from traditional real estate investments and other fractional platforms.

Can I invest my IRA funds in real estate through Ark7?

Yes, Ark7 supports IRA investing through partnerships with Inspira Financial Company, allowing investors to use Traditional or Roth IRA funds to purchase real estate shares. The platform charges $0 to open an IRA account, with Inspira Financial charging a $100 annual fee per property (capped at $400 annually, waived for account balances over $100,000). This provides tax-advantaged real estate investing while maintaining Ark7’s low $20 minimum investment threshold.

What are the typical risks associated with fractional real estate investments?

Fractional real estate investments involve risks including illiquidity, lack of diversification, and potential loss of capital. Ark7 properties are typically held long-term for appreciation, and the ability to liquidate shares on the secondary market is not guaranteed. Investors should carefully review the risks in the respective offering circular and consult with financial advisors before investing. Past performance is no guarantee of future results, and all investments carry inherent risks.

How does Ark7 ensure transparency in its operations?

Ark7 provides full operational transparency with 24/7 access to complete legal and financial disclosures. The platform maintains SEC Regulation A+ qualified offerings with detailed offering circulars available for review. Ark7 holds a minority ownership stake (1%-20%) in each property, aligning interests with investors, and provides regular updates on property performance and distributions. The platform’s commitment to transparency is reflected in its 4.1/5 Trustpilot rating based on over 200 reviews.

What are the fees involved with Ark7 investments or IRA accounts?

Ark7 maintains a no hidden fees policy for property share investments. For IRA accounts, Ark7 charges $0 to open, while custodian Inspira Financial Company charges $100 annually per property (capped at $400/year, waived for account balances over $100,000). Property management fees of 8%-15% are clearly disclosed and deducted before investor distributions. All fees are transparently communicated, with no surprise costs or hidden charges.