Roots Investment Community Makes Space For Everyone To Invest In Real Estate

A new initiative by Atlanta-based Roots Investment Community is seeking to disrupt the traditional real estate investment landscape, which has often favored large institutional investors over individual, lower-income participants.

As the age for first-time homebuyers rises to 38 amid an environment of low savings and high rents, many renting families find themselves priced out of homeownership. Institutional investors, meanwhile, are reportedly generating profits by capitalizing on this gap in the market, with real estate investments reaching $1.15 billion in the third quarter of last year alone.

“Wall Street shouldnt be able to push the little guy out,” says Roots co-founder Daniel Dorfman. “We want all of our investors — including our residents — to have the opportunity to put their money in a lucrative real estate investment.”

Roots is adopting a different model by allowing tenants to invest in the properties in which they live through a program called “Live in it Like You Own it.” The initiative incentivizes residents to maintain their homes for which they receive rebates that can be invested back into Roots proprietary fund. This fund not only facilitates significant savings for renters but aims to prepare them for future homeownership.

Roots’ strategy seems to resonate well with its tenants, showing above-industry averages in renewal and occupancy rates: Roots sees 83% renewal rates to the industry average of 57%, and a 97% average occupancy compared to 91% industry-wide. The company reports that its initiative has helped residents build over $765,000 in savings.

The company says its investment fund offers returns of 12–15%. Since its founding in 2021, Roots investors have seen total returns of 61%, and the company has homed more than 700 residents.

Recognized as a 2024 Pacesetter by the Atlanta Business Chronicle, Roots hopes to expand its reach to help a million families by 2028, demonstrating a commercially viable yet community-focused approach to real estate investment.