Arrived vs Roots Comparison

Assess their risks, liquidity, investments, returns, timeframes and other terms

Invest in rental homes and vacation rentals

Invest in a real estate fund

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Investments
$100

Arrived allows for a minimum investment of $100 USD per property.

Investments
$100

The Roots Investment Community Fund allows investors to start with a minimum investment of $100.


Moderate Risk
3/5

Investing in Arrived carries risks including market fluctuations, economic factors, and property-specific issues. There's also the potential for loss, and investments are generally illiquid, meaning they can't be easily sold or exchanged for cash quickly.

Moderate Risk
3/5

Investing in the Roots Investment Community Fund carries risks including market fluctuations, economic changes, property-specific issues, and potential for financial loss.


Minimum Liquidity
1/5

Arrived is designed for long-term investments with limited liquidity options. The Single Family Residential Fund offers share redemption after six months with restrictions. For individual properties, shares are held until the property is sold, typically after 5-7 or 5-15 years. A secondary market for shares is being considered but is not currently available.

Minimum Liquidity
1/5

Investors in the Roots Investment Community Fund can cash out after the first year, with liquidity options available quarterly for added flexibility.

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Low Return
5.5-15 %

Arrived investors may earn returns through monthly rental income dividends and property value appreciation upon sale, with historical annual return estimates ranging from 5.5% to 15%, depending on the property type and use of leverage.

High Return
16 %

Investors in the Roots Investment Community Fund can expect an annualized return of 16%.


Long-term Investment
5-15 years

Arrived targets a 5-7 year hold period for Single-Family Residentials and a 5-15 year hold period for Vacation Rentals, emphasizing a long-term investment horizon.

Short-term Investment
1 year

The recommended investment period for the Roots Investment Community Fund is at least a year, but liquidity is offered quarterly for investors needing flexibility.


Who can invest
United States

U.S. citizens or residents who are at least 18 years old can invest with Arrived, and accreditation as an investor is not necessary.

Who can invest
United States

The Roots Investment Community Fund is open to both non-accredited and accredited investors.


Moderate Volatility
3/5

Real estate assets on Arrived can be subject to market volatility influenced by economic shifts, interest rates, and local market conditions.

Moderate Volatility
3/5

Assets within the Roots Investment Community Fund may experience volatility due to economic conditions, interest rate changes, and local market dynamics. However, real estate typically shows less volatility than stocks, with rental income offering some stability.


Regulation and audits
SEC Regulated

Arrived's offerings are regulated by the SEC, requiring compliance with securities laws and provision of detailed offering circulars to investors. Audits and financial reviews are conducted for transparency.

Regulation and audits
SEC Regulated

The Roots Investment Community Fund is regulated by the SEC, with an offering circular filed under Regulation A+.


Insurance
Yes

Arrived properties are insured against physical damage or loss, but insurance may not cover all risks and does not protect against market volatility, economic downturns, or other investment-related losses.

Insurance
Yes

The Roots Investment Community Fund likely holds insurance to protect its assets, including property, liability, and loss of income insurance, safeguarding against damage, claims, and lost rental income.


Payouts
Dividends

Arrived pays out dividends monthly, with single-family residential properties historically averaging 45 days to lease and vacation rentals taking 3-6 months to start generating income. The first dividend payment for the Single Family Residential Fund is scheduled for February 25th for investments made by December 31st, and it may take up to 60 days to receive the first dividend after investing. Subsequent dividends are paid monthly, near the end of the month.

Payouts
Dividends

Investors receive quarterly distributions, which they can reinvest or cash out, offering flexibility in managing returns.


Withdrawals

Investors can get their money back from Arrived after the property is sold or through share redemption options, subject to specific terms and conditions. Proceeds are distributed to the investor's Arrived wallet and can be withdrawn from there.

Withdrawals

Investors can cash out after the first year, with the Roots Investment Community Fund offering quarterly liquidity options.


Extra Fees
Yes

For long-term rentals, Arrived charges an 8% management fee on gross rental income. Vacation rentals incur a 15-25% management fee. Additional fees include a one-time sourcing fee (3.5% for long-term, 5% for vacation rentals), and a quarterly Asset Management Fee (0.25% for the fund, 0.15% for long-term rentals). Other costs may apply for closing, renovation, and operating expenses.

Extra Fees
Yes

The platform charges a $5 transaction fee for the first investment and $3 for subsequent investments. A 6% fee applies if liquidating before one year; no fee after one year.


Taxes
Tax Form

Arrived sends investors a 1099-DIV form by the end of January for tax reporting, and state taxes are based on the investor's state of residence, not the property's location. Vacation rentals are taxed similarly but do not qualify as a REIT.

Taxes
Annual Statement

As a REIT, the Roots Investment Community Fund passing profits to shareholders who can deduct up to 20% of dividend income as capital gains, with no cap or wage restrictions.

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