Doorvest vs Roots Comparison

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

Invest in single-family homes

Invest in a real estate fund

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Investments
$56,000

The minimum investment on Doorvest is a 25% down payment on a home, averaging $56,250 based on the average home price of $225,000.

Investments
$100

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


Moderate Risk
3/5

Investing with Doorvest involves risks such as market volatility, economic changes, and property-specific issues. While the platform aims to manage these effectively, outcomes can be uncertain, and investors should carefully consider their risk tolerance and conduct due diligence before investing.

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

Doorvest allows investors to sell their homes back to the platform, requiring them to connect with a client partner for more information on the process.

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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High Return
18 %

Doorvest reports an average annual investment return of 18%, accounting for rental income, property appreciation, and mortgage leveraging.

High Return
16 %

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


Long-term Investment
5-30 years

Doorvest focuses on long-term investments in single-family rentals, generally suggesting a commitment of several years to decades, based on real estate appreciation and rental income.

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

To invest with Doorvest, you need to be in the U.S. or able to sign documents at a U.S. Embassy.

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 Doorvest can experience volatility due to economic shifts, interest rate changes, and local market trends, potentially affecting investment values and posing risks for short-term investors.

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
TREC Regulated

Doorvest complies with the Texas Real Estate Commission (TREC) consumer protection notice, indicating adherence to state-level real estate transaction standards. It does not provide details on broader financial regulations or audits, focusing more on real estate industry compliance than securities regulation.

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

Doorvest protects rental investments with homeowner's insurance, covering physical structure damage and potentially extending to personal belongings and medical expenses. This coverage is a mortgage lender requirement, safeguarding against various damages, though investors should be aware of any coverage limitations.

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
Rental Income

Doorvest offers rental income as returns to investors, bolstered by a Rent Guarantee that includes vacancy and non-payment protection for the first three months, with an option to extend up to 12 months. Additionally, a Renovation Guarantee covers repair costs for the first year of ownership.

Payouts
Dividends

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


Withdrawals

To get their money back, Doorvest investors need to sell their property, with the timeline depending on market conditions and the sale process. The process is initiated through Doorvest, and funds are received after the property is sold and the transaction is completed.

Withdrawals

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


Extra Fees
Yes

Doorvest employs a fee model, deriving revenue from a portion of the monthly rental income and margins on home sales, always at fair market value.

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

Doorvest facilitates tax compliance by providing investors with all necessary documentation for tax filing, related to real estate investment income and expenses.

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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