HoneyBricks vs Roots Comparison

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

Invest in multifamily real estate

Invest in a real estate fund

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Investments
$5,000

The minimum investment amount on HoneyBricks typically starts at $5,000, although some specific projects may require higher minimums.

Investments
$100

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


Moderate Risk
3/5

Investing in HoneyBricks involves various risks inherent to real estate and investment platforms, including market volatility, liquidity challenges, regulatory changes, operational uncertainties, economic fluctuations, and technology-related vulnerabilities.

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.


Moderate Liquidity
2/5

HoneyBricks offers a Secondary Market for liquidity, allowing investors to buy and sell assets after a 12-month hold via SPVs and blockchain technology.

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
15 %

HoneyBricks targets over 15% annual returns and aims for a cash-on-cash return of over 5% from its real estate investments. These returns are projections based on conservative reviews and are derived from property appreciation and reliable cash flows from high-occupancy assets.

High Return
16 %

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


Long-term Investment
1-5 years

The investment time horizon on HoneyBricks is inherently long-term, with the expectation that investors may hold their investments for several years to fully realize the potential appreciation and sustained cash flows from multifamily real estate assets. While a secondary market exists to provide liquidity after a 12-month holding period, immediate or short-term exit opportunities may be limited.

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
International

HoneyBricks is available to accredited US investors and to non-US investors without accreditation requirements.

Who can invest
United States

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


Moderate Volatility
3/5

The assets on HoneyBricks, like any real estate investments, are subject to market volatility influenced by economic conditions, interest rates, and local market trends. These fluctuations can impact property valuations, posing risks particularly for those seeking short-term gains.

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

HoneyBricks adheres to regulations set by the SEC and undergoes necessary audits to ensure transparency and investor protection. Its investment offerings require SEC filings and provide detailed offering circulars to investors.

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

HoneyBricks ensures its properties are insured against physical damages and losses, offering a layer of protection for investments. However, this insurance does not cover market volatility, economic downturns, or fraudulent activities that might affect property values. Additionally, coverage limits may not fully reflect current market valuations.

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

HoneyBricks investors receive dividends from the net rental income of properties after expenses and reserves. These regular cash distributions aim to provide a predictable passive income stream from high-occupancy multifamily real estate investments. The exact amount of dividends may vary with the performance of the assets.

Payouts
Dividends

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


Withdrawals

Investors on HoneyBricks can potentially get their money back by selling their shares on the platform's Secondary Market after a 12-month holding period, subject to market demand. The timing and success of the sale depend on market conditions, and while there are no HoneyBricks fees for the transfer, blockchain network fees may apply.

Withdrawals

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


Extra Fees
No

HoneyBricks charges no fees for initial investments or for transfers on the Secondary Market. Investors may only incur blockchain network fees for transactions executed on the platform.

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

HoneyBricks offers tax-advantaged investing and provides necessary tax documentation to support investors in reporting their investment income.

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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