Invest in a real estate fund
Invest in real estate loans
Investments
$100
The Roots Investment Community Fund allows investors to start with a minimum investment of $100.
Investments
$10
Groundfloor enables individuals to begin investing in real estate with a minimal initial requirement of only $10.
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 Risk
3/5
Investing on Groundfloor involves credit risk from borrower default, market risk due to real estate market fluctuations, liquidity risk as investments are tied up until loan maturity without a secondary market for early exit, regulatory risk from changes in laws affecting real estate and crowdfunding, and platform risk related to operational disruptions or cybersecurity threats.
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.
Minimum Liquidity
1/5
On Groundfloor, liquidity is tied to the term of the real estate loans, which range from 6 to 18 months. Investors' funds are committed until the loan matures and the borrower repays.
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High Return
16 %
Investors in the Roots Investment Community Fund can expect an annualized return of 16%.
Moderate Return
10.72 %
Groundfloor's loans are graded from A to G, with interest rates ranging from 5.5% to 25.5% annually, based on risk. A diversified portfolio across all repaid loans to date would have earned a 10.72% annualized net return.
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.
Short-term Investment
6+ months
Groundfloor investments have loan terms ranging from 6 to 18 months.
Who can invest
United States
The Roots Investment Community Fund is open to both non-accredited and accredited investors.
Who can invest
International
Groundfloor is accessible to investors both in the US and internationally. However, for non-US investors, a minimum transfer-in amount of $5,000 is required.
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.
Moderate Volatility
3/5
The assets on Groundfloor, which are short-term real estate loans, generally exhibit lower volatility compared to stocks, as their value is more closely tied to specific real estate projects and less to daily market swings.
Regulation and audits
SEC Regulated
The Roots Investment Community Fund is regulated by the SEC, with an offering circular filed under Regulation A+.
Regulation and audits
SEC Regulated
Groundfloor offers securities under Regulation A of the Securities Act of 1933, allowing it to sell securities to residents in states where it's qualified or announced its intent under Regulation A's Tier 1 or Tier 2.
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.
Insurance
No
Investments on Groundfloor are not insured by any government agency such as the FDIC or SIPC, nor are they guaranteed by Groundfloor. This means investors fully assume the risk of borrower default or project failure, without any insurance safety net.
Payouts
Dividends
Investors receive quarterly distributions, which they can reinvest or cash out, offering flexibility in managing returns.
Payouts
Interest
Groundfloor pays interest on funded loans. Interest accrues from the investment date until the loan is repaid. Loans may have monthly or deferred payment terms, with monthly interest payments processed once a month and lump sum repayments for deferred loans.
Withdrawals
Investors can cash out after the first year, with the Roots Investment Community Fund offering quarterly liquidity options.
Withdrawals
Investors on Groundfloor get their money back, including principal and accrued interest, once the borrower repays the loan, typically within 6 to 18 months. Repayments are processed within 7 days, with funds made available in the investor's dashboard for withdrawal or reinvestment.
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.
Extra Fees
No
Investors on Groundfloor pay no fees. Instead, borrowers are charged an underwriting fee by Groundfloor, ranging from 2% to 4.5% of the loan's principal amount.
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.
Taxes
Tax Form
Groundfloor provides tax support by issuing a 1099-INT form for interest income over $10, a 1099-B for principal losses, and a 1099-MISC for promotional credits over $600.