Invest in private credit deals
Invest in a real estate fund
Investments
$500
Investors can enter the private credit market via Percent with a minimum of $500, accessing a variety of asset-based securities and corporate loans.
Investments
$100
The Roots Investment Community Fund allows investors to start with a minimum investment of $100.
Moderate Risk
3/5
Investing on Percent comes with inherent risks, despite efforts to minimize these through a proprietary risk framework for its own deals. The risk levels can vary across the platform, depending on whether Percent or a third party underwrites the deal.
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
Liquidity on Percent, as with many private credit platforms, varies by investment. Generally, these investments are less liquid than public stocks, tied to longer-term commitments without guaranteed immediate access to funds.
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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Moderate Return
13.41 %
As of February 1, 2024, Percent offers a 2.5% interest rate on idle cash in accounts and reports a historical weighted average APY of 13.41% on investments.
High Return
16 %
Investors in the Roots Investment Community Fund can expect an annualized return of 16%.
Short-term Investment
3+ months
Percent offers investment horizons starting at 3 months, accommodating short-term investment strategies.
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
Percent accepts investments only from accredited investors in the U.S. with U.S. bank accounts, adhering to Reg D 506(c) exemption rules.
Who can invest
United States
The Roots Investment Community Fund is open to both non-accredited and accredited investors.
Moderate Volatility
3/5
Assets on Percent generally show lower volatility than public market investments due to the nature of private credit, which often involves fixed returns from contractual agreements.
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
Percent is regulated under Regulation D, 506(c) of the Securities Act, allowing only accredited investors to participate after verifying their status.
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
Funds deposited with Percent are held at an FDIC-insured bank, ensuring protection up to $250,000, the maximum allowed by law, providing security for investors' capital in case of a bank failure.
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
No Recurring Payouts
Percent provides returns through interest payments or fixed returns from private credit deals, rather than traditional dividends.
Payouts
Dividends
Investors receive quarterly distributions, which they can reinvest or cash out, offering flexibility in managing returns.
Withdrawals
Upon investment maturity on Percent, funds (principal and yield) are credited to the investor's account. Investors can then transfer these funds to an external account or reinvest.
Withdrawals
Investors can cash out after the first year, with the Roots Investment Community Fund offering quarterly liquidity options.
Extra Fees
Yes
From September 2023, Percent charges a fee of 10% on interest payments, not affecting the principal.
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
Percent provides investors with a consolidated 1099-INT form each tax year, reporting all investment income as ordinary income for tax purposes.
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.