From Renters to Owners: How Roots is Democratizing Real Estate Investment
In an era where real estate ownership feels increasingly out of reach for many Americans, Daniel Dorfman and his company Roots are charting a different course. As founder of the Atlanta-based private REIT, Dorfman is pioneering a model that transforms traditional real estate investing by aligning the interests of investors and residents alike.
Dorfman’s journey to founding Roots wasn’t a straight path. Like many entrepreneurs, he experienced both successes and setbacks in various ventures. However, real estate remained a constant passion throughout his career, recognizing it’s potential as a foundation for building generational wealth. It was this personal interest, combined with a troubling observation about market accessibility that sparked the idea for Roots.
“[Real Estate] is an amazing wealth creation vehicle for generational wealth,” Dorfman explains. “But it is almost inaccessible at this point for 92% of America.” This contradiction became the catalyst for creating a platform that opens real estate investment to everyone, whether they have $100 or $10,000 to invest.
Roots operates as a private REIT that utilizes Regulation A+ offering rules, allowing them to raise capital from both accredited and non-accredited investors. This structure dramatically expands access to real estate investment opportunities beyond the traditional limitations of private real estate offerings, while still maintaining the tax advantages and professional management of a REIT structure. While investors are from all locations and backgrounds, their portfolio currently focuses on the Atlanta market, where they’ve developed a sophisticated approach to property acquisition and management that emphasizes both financial returns and social impact.
The company’s innovative resident partnership model transforms the traditional landlord-tenant dynamic. Instead of paying a security deposit, residents can invest that amount in the property portfolio, earning appreciation and distributions like any other investor. This approach is enhanced by their “Living It Like You Own It” program, which incentivizes timely rent payments and proactive maintenance reporting through a quarterly review system.
This systematic approach to property management has yielded impressive operational efficiencies. “What’s really changed is our renewal rate,” Dorfman notes. “At 83%, when you do that across a portfolio, that really makes a huge difference in the economics.” The high retention rate not only reduces turnover costs but also creates a more stable investment environment.
In today’s challenging real estate market, Roots maintains a disciplined approach to portfolio management. The company has developed sophisticated strategies to navigate industry-wide challenges, particularly the dramatic increase in insurance and property tax costs. Their focus on operational efficiency and strategic market selection has enabled them to maintain target return metrics of 12-15% annually while pursuing their social impact objectives.
The platform’s success is evident in its rapid growth. From an initial base of local Atlanta investors, Roots has expanded to include over 9,000 investors from across the country. Their disciplined investment approach and commitment to transparency have helped them maintain strong performance while scaling their operations.
The company’s digital investment platform has been key to democratizing access to real estate investment. Through investwithroots.com, investors from all 50 states can participate with investments starting at just $100. The platform’s light fee structure and customizable investment options allow individuals to build their real estate portfolio at their own pace. This technological approach to real estate investment has resonated strongly with investors – the platform currently adds 100-150 new investors weekly, a dramatic acceleration from their early days when it took two years to reach their first 100 investors.
Looking ahead, Dorfman and his team are evaluating expansion opportunities throughout the Southeast. “We’re currently looking at deals across the southeast right now that would kind of expand outside of the Atlanta market,” Dorfman explains. “We are very disciplined in terms of where we buy and what we want to buy.” However, their vision extends beyond geographic expansion. “Our vision is more around this community of impact investors, and our goal has always been to help a million people build wealth before 2028,” Dorfman shares, demonstrating how real estate investment can successfully balance profitability with purpose.
For real estate professionals seeking to participate in this innovative approach to property investment, Roots continues to welcome new investors through their platform. Their success shows that by re-imagining traditional real estate investment models, it’s possible to create sustainable value for both investors and residents while addressing the industry’s pressing challenges of accessibility and affordability.
