The startup operates an investment platform that enables individuals to invest in single-family rental properties through a share model, allowing for liquidity by selling shares back to the company at any time. This approach democratizes real estate investing, providing users with transparent performance tracking and informed decision-making capabilities.
Funding
$33M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
Many individuals lack the capital or expertise to directly invest in real estate, limiting their ability to generate passive income and build long-term wealth. Traditional real estate investment trusts (REITs) may not offer the same level of community impact or transparency.
Solution
Roots provides a real estate investment platform that allows both accredited and non-accredited investors to purchase shares in a portfolio of single-family and small multi-family rental properties, starting with a minimum investment of $100. The platform focuses on residential properties in growing markets and incorporates a "Live In It Like You Own It®" program, which incentivizes renters to care for the properties and participate in the fund's success. This model aligns the interests of investors and renters, fostering a win-win ecosystem that aims to deliver solid returns while creating opportunities for renters to build wealth. Roots operates as a Reg A+ REIT, distributing rental income and profits quarterly, and offers investors the option to reinvest or cash out their distributions.
Target Audience
The primary target audience includes individual investors, both accredited and non-accredited, who seek to diversify their investment portfolios with real estate and generate passive income, as well as renters who are interested in building wealth and participating in the real estate market.
Features
- Low minimum investment of $100, accessible to both accredited and non-accredited investors
- Diversified portfolio of residential rental properties across multiple locations
- "Live In It Like You Own It®" program, rewarding renters for property care and timely rent payments with investment rebates
- Quarterly distributions of rental income and profits, with options for reinvestment or cash-out
- Low fees, including a $5 transaction fee to get started and no fees to cash out after the first year
- Quarterly liquidity, offering investors the ability to sell shares back to the company
- Properties are workforce housing, which has shown to be resilient and holds a consistent value throughout all types of market conditions