Real Estate Platform Comparison· Updated May 5, 2026

Groundfloor vs. Roots 2026 Real Estate Investing Comparison

A side-by-side breakdown of returns, liquidity, fees, and trustworthiness to help you decide where to invest your money.

★ Our Pick Groundfloor logo

4.0

Groundfloor is a strong, transparent option for investors who want short-term, real-estate-backed yield without picking properties. ~10% historical returns, zero investor fees, and 6–18 month terms are excellent — but you're a lender, not an owner, so upside is capped and default risk is real.

3.5

Roots offers an unusual win-win structure where renters earn shares of the REIT alongside investors, with $100 minimums, quarterly distributions, quarterly liquidity, and a 12.02% trailing twelve-month return as of April 2026 — but investors hold REIT shares rather than direct property ownership.

At a Glance

Groundfloor vs. Roots — Key Stats

$10 per loan ($100 account minimum)Minimum$100

6–18 months (per loan term)Holding Period1 year minimum to avoid early-redemption penalty

Unavailable — capital locked until loan repaysEarly WithdrawalPenalty applies in first 12 months; no penalty after year one

N/A — interest paid per loan terms (often deferred to maturity)Rent PayoutQuarterly distributions

~10% historical averageAvg. Returns12.02% trailing 12 months (4/10/25 – 4/10/26); 17.17% average annual since inception 7/1/2021

Pros & Cons

What each platform does well and poorly

Zero investor fees
Groundfloor charges investors nothing — no AUM, no transaction fees, no closing costs. Borrowers pay 2–4.5% origination plus closing fees, so the entire interest yield flows to investors.
$10 per-loan minimum
Investors can spread $100 across ten loans, making real diversification accessible. Groundfloor's account minimum is $100 and individual loans go down to $10.
Short hold periods (6–18 months)
Most Groundfloor loans mature in 6–18 months — dramatically shorter than the 5–7 year holds typical of equity-style platforms — making it a useful complement to longer-duration real estate.
Transparent, A–G grading
Every loan is graded A–G with corresponding interest rates and risk factors. Loan documents, project details, and borrower track records are published before funding.
Capped upside
You're a lender. If a property doubles in value, you still only earn the interest rate on the loan. None of the appreciation upside flows to investors.
Lump-sum and deferred payouts
Many loans are deferred-payment, meaning interest accrues but isn't paid until the loan is fully repaid. That hurts compounding versus monthly- or daily-payout platforms.
Default risk is real
Groundfloor's reported default rate has historically been higher than peer platforms. Recoveries through foreclosure can take time and erode returns. The collateral is the property itself.
No early withdrawal
Once you fund a loan, capital is locked until the loan repays. There's no secondary market for Groundfloor LROs.

$100 minimum, open to non-accredited investors
Roots is open to both non-accredited and accredited investors with a $100 starting minimum, making it one of the more accessible REIT-style platforms for first-time real estate investors.
Quarterly liquidity
Roots offers investors the ability to redeem shares every quarter — meaningfully more flexible than the multi-year lock-ups common at Arrived, CrowdStreet, and Cadre. After the first 12-month holding period there's no early-redemption penalty.
Strong reported track record
Roots reports a 12.02% trailing twelve-month return (4/10/25 – 4/10/26) and a 17.17% average annual return since inception in July 2021. Returns are not guaranteed, but the published track record is competitive with peer REIT funds.
Renters build wealth alongside investors
The 'Live in it Like You Own It' program gives Roots renters quarterly equity grants for behaviors that improve property value (paying rent on time, keeping properties in good condition). Roots reports more than $1.7M saved and invested by renters under the program.
Low transaction fees
Only a $5 transaction fee to get started and no penalty to cash out after the first year — light fees compared with Fundrise's 1% AUM or Arrived's variable sponsor markups.
REIT shares, not direct property ownership
You own units of the Roots REIT, not fractional ownership of a specific property. That's simpler and more diversified than per-property models, but it means investors don't pick individual properties or vote on property-level decisions.
Geographically concentrated
Roots is heavily concentrated in the Atlanta metro and a small number of additional Sun Belt markets. That focus is part of the brand but means less geographic diversification than national platforms.
Quarterly (not daily) distributions
Distributions are paid quarterly rather than daily or monthly. Investors waiting on real estate income for cash flow may find quarterly cadence inconvenient.
Less property-level transparency than per-property platforms
Because Roots is a fund, individual property underwriting and rent rolls are aggregated rather than fully exposed to investors.

Deep Dive

Detailed comparison

What You're Investing In

Three core products: Groundfloor Original (individual loans graded A–G), Stairs by Groundfloor (a savings-style product paying a steady rate), and Notes (short-duration debt instruments). All are real estate debt — no equity ownership.

A single REIT — the Roots REIT — focused on residential real estate in Atlanta and select other Sun Belt markets.

Property Locations

Groundfloor lends in 45+ U.S. states, giving investors broad geographic diversification across one platform.

Primarily Atlanta metro, with select expansion into adjacent Sun Belt markets.

Expected Returns

Groundfloor's historical average return is approximately 10% per year. A diversified portfolio across all available loans has historically produced around 10.7% annualized. Loans pay between roughly 5.5% (A grade) and 25%+ (G grade), and investors earn the same rate the borrower pays. Capital not deployed within 45 days returns to the investor with no interest.

Roots targets 12–15% annual returns and reports 12.02% trailing twelve months (4/10/25 – 4/10/26) and 17.17% average annual return since inception (7/1/2021). Past performance does not guarantee future results — read the offering circular before investing.

Fees

Zero investor fees. Borrowers pay 2–4.5% origination plus other closing fees, all visible inside the offering documents but not charged to investors.

Roots charges a $5 transaction fee to get started and no early-redemption penalty after the first year. There is no investor-facing AUM fee disclosed; the REIT covers operating expenses internally before distributing returns.

Liquidity

Holding period equals the loan term — typically 6–18 months. Investors can target shorter durations by buying into in-progress loans.

12-month minimum holding period to avoid an early-redemption penalty. After year one there is no exit penalty.

Who Can Invest

Open to non-accredited and accredited U.S. investors. International investors can participate but must email support to fund accounts and meet a $5,000 minimum transfer.

Open to both non-accredited and accredited U.S. investors aged 18 or older. International availability is limited.

The Verdict

Which is better — Groundfloor or Roots?

★ Our Pick

4.0

Groundfloor is one of the cleanest options in real estate crowdfunding. Zero investor fees, ~10% historical returns, short 6–18 month durations, and full transparency on every loan make it a strong fit for investors who want yield backed by real estate without picking properties or signing up for a 5+ year lock-up. The trade-off is real: you're a lender with capped upside and default exposure, not an owner with a stake in appreciation.

Full Groundfloor review →

3.5

Roots is one of the most differentiated REIT options in 2026. The win-win renter-equity model is genuinely unique, the $100 minimum is accessible, quarterly liquidity is meaningfully better than most private real estate platforms, and the published 12% trailing return is competitive. The trade-offs are REIT (not direct property) ownership, a heavy Atlanta concentration, and quarterly (not daily) distributions. A solid hands-off pick for investors aligned with its mission.

Full Roots review →

Bottom Line

Groundfloor scores higher (4.0/5) and edges out Roots on our investment quality criteria.

Frequently Asked Questions

Groundfloor vs. Roots FAQ

Which is better — Groundfloor or Roots?

Based on our scoring criteria — returns, fees, liquidity, transparency, minimums, and track record — Groundfloor (4.0/5) scores higher than Roots (3.5/5). Groundfloor is a strong, transparent option for investors who want short-term, real-estate-backed yield without picking properties. ~10% historical returns, zero investor fees, and 6–18 month terms are excellent — but you're a lender, not an owner, so upside is capped and default risk is real.

What is the minimum investment for Groundfloor vs. Roots?

Groundfloor's minimum investment is $10 per loan ($100 account minimum). Roots's minimum investment is $100.

How do Groundfloor and Roots compare on liquidity?

Groundfloor: Holding period equals the loan term — typically 6–18 months. Investors can target shorter durations by buying into in-progress loans. Roots: 12-month minimum holding period to avoid an early-redemption penalty. After year one there is no exit penalty.

What returns can investors expect from Groundfloor vs. Roots?

Groundfloor reports average yearly returns of ~10% historical average. Roots reports average yearly returns of 12.02% trailing 12 months (4/10/25 – 4/10/26); 17.17% average annual since inception 7/1/2021. Past performance does not guarantee future results.

One of the most flexible ways to invest in real estate

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$50 minimums · Daily rent payouts · No lock-up periods · 24/7 exchange

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Real Estate Platform Comparison· Updated May 5, 2026

Groundfloor vs. Roots 2026 Real Estate Investing Comparison

A side-by-side breakdown of returns, liquidity, fees, and trustworthiness to help you decide where to invest your money.

★ Our Pick Groundfloor logo

4.0

3.5

At a Glance

Groundfloor vs. Roots — Key Stats

$10 per loan ($100 account minimum)Minimum$100

6–18 months (per loan term)Holding Period1 year minimum to avoid early-redemption penalty

Unavailable — capital locked until loan repaysEarly WithdrawalPenalty applies in first 12 months; no penalty after year one

N/A — interest paid per loan terms (often deferred to maturity)Rent PayoutQuarterly distributions

~10% historical averageAvg. Returns12.02% trailing 12 months (4/10/25 – 4/10/26); 17.17% average annual since inception 7/1/2021

Pros & Cons

What each platform does well and poorly

Zero investor fees
Groundfloor charges investors nothing — no AUM, no transaction fees, no closing costs. Borrowers pay 2–4.5% origination plus closing fees, so the entire interest yield flows to investors.
$10 per-loan minimum
Investors can spread $100 across ten loans, making real diversification accessible. Groundfloor's account minimum is $100 and individual loans go down to $10.
Short hold periods (6–18 months)
Most Groundfloor loans mature in 6–18 months — dramatically shorter than the 5–7 year holds typical of equity-style platforms — making it a useful complement to longer-duration real estate.
Transparent, A–G grading
Every loan is graded A–G with corresponding interest rates and risk factors. Loan documents, project details, and borrower track records are published before funding.
Capped upside
You're a lender. If a property doubles in value, you still only earn the interest rate on the loan. None of the appreciation upside flows to investors.
Lump-sum and deferred payouts
Many loans are deferred-payment, meaning interest accrues but isn't paid until the loan is fully repaid. That hurts compounding versus monthly- or daily-payout platforms.
Default risk is real
Groundfloor's reported default rate has historically been higher than peer platforms. Recoveries through foreclosure can take time and erode returns. The collateral is the property itself.
No early withdrawal
Once you fund a loan, capital is locked until the loan repays. There's no secondary market for Groundfloor LROs.

$100 minimum, open to non-accredited investors
Roots is open to both non-accredited and accredited investors with a $100 starting minimum, making it one of the more accessible REIT-style platforms for first-time real estate investors.
Quarterly liquidity
Roots offers investors the ability to redeem shares every quarter — meaningfully more flexible than the multi-year lock-ups common at Arrived, CrowdStreet, and Cadre. After the first 12-month holding period there's no early-redemption penalty.
Strong reported track record
Roots reports a 12.02% trailing twelve-month return (4/10/25 – 4/10/26) and a 17.17% average annual return since inception in July 2021. Returns are not guaranteed, but the published track record is competitive with peer REIT funds.
Renters build wealth alongside investors
The 'Live in it Like You Own It' program gives Roots renters quarterly equity grants for behaviors that improve property value (paying rent on time, keeping properties in good condition). Roots reports more than $1.7M saved and invested by renters under the program.
Low transaction fees
Only a $5 transaction fee to get started and no penalty to cash out after the first year — light fees compared with Fundrise's 1% AUM or Arrived's variable sponsor markups.
REIT shares, not direct property ownership
You own units of the Roots REIT, not fractional ownership of a specific property. That's simpler and more diversified than per-property models, but it means investors don't pick individual properties or vote on property-level decisions.
Geographically concentrated
Roots is heavily concentrated in the Atlanta metro and a small number of additional Sun Belt markets. That focus is part of the brand but means less geographic diversification than national platforms.
Quarterly (not daily) distributions
Distributions are paid quarterly rather than daily or monthly. Investors waiting on real estate income for cash flow may find quarterly cadence inconvenient.
Less property-level transparency than per-property platforms
Because Roots is a fund, individual property underwriting and rent rolls are aggregated rather than fully exposed to investors.

Deep Dive

Detailed comparison

What You're Investing In

A single REIT — the Roots REIT — focused on residential real estate in Atlanta and select other Sun Belt markets.

Property Locations

Groundfloor lends in 45+ U.S. states, giving investors broad geographic diversification across one platform.

Primarily Atlanta metro, with select expansion into adjacent Sun Belt markets.

Expected Returns

Fees

Zero investor fees. Borrowers pay 2–4.5% origination plus other closing fees, all visible inside the offering documents but not charged to investors.

Liquidity

Holding period equals the loan term — typically 6–18 months. Investors can target shorter durations by buying into in-progress loans.

12-month minimum holding period to avoid an early-redemption penalty. After year one there is no exit penalty.

Who Can Invest

Open to non-accredited and accredited U.S. investors. International investors can participate but must email support to fund accounts and meet a $5,000 minimum transfer.

Open to both non-accredited and accredited U.S. investors aged 18 or older. International availability is limited.

The Verdict

Which is better — Groundfloor or Roots?

★ Our Pick

4.0

Full Groundfloor review →

3.5

Full Roots review →

Bottom Line

Groundfloor scores higher (4.0/5) and edges out Roots on our investment quality criteria.

Frequently Asked Questions

Groundfloor vs. Roots FAQ

Which is better — Groundfloor or Roots?

What is the minimum investment for Groundfloor vs. Roots?

Groundfloor's minimum investment is $10 per loan ($100 account minimum). Roots's minimum investment is $100.

How do Groundfloor and Roots compare on liquidity?

What returns can investors expect from Groundfloor vs. Roots?

One of the most flexible ways to invest in real estate

Start building generational wealth with Lofty

$50 minimums · Daily rent payouts · No lock-up periods · 24/7 exchange

View Properties Get started free