'People-First' Real Estate Fund Shares Rent With Tenants While Generating Strong Returns For Investors

One dark horse Atlanta startup may have solved an age-old problem that has been emptying investors’ pockets for centuries. Surprisingly enough, this innovation that generated 16% returns for its investors over the past 12 months didn’t come from tech, but from a more humane approach to renting.

Cutting Costs And Changing Lives

Vacancy and tenant carelessness has been tearing a hole in investors’ pockets for ages. It takes around 2 months to find a new tenant. In case you don’t find the next one in time, you’re looking at a 16.67% hit to your annual revenue. Meanwhile, insurance costs, taxes, debt service and fixed-cost utility bills all stay the same and thereby cut deeper into the profit margin. But there’s not much you can do if tenants just want to move out, right? Not really, but what Roots has created is making that much less likely to happen.

Roots uses a tried-and-tested method of real estate investing that’s made investors billions of dollars over the past 60 years. The company pools funds from investors to build a portfolio of income-generating rentals. The profits from these rentals are then distributed back to investors in regular intervals. To maximize the consistency of the cash flow, Roots has devised a clever encouragement system for tenants that has had a profound impact on its investors’ bottom line.

Learn more about Roots' unique approach to real estate investing

The ‘Live In It Like You Own It’ program gives a small portion of the rent back to the tenants who pay their rent on time, take good care of the property, and are good neighbors. Tenants then have the option to invest the rebate into the fund. 

By doing so, a Roots tenant saves $1,877 a year on average in their first year, which is a fortune when you’re one car breakdown or a medical bill away from bankruptcy. A shocking survey recently revealed that 69% of Americans do not have more than $1000 in savings, and for most, investing is seen as a fantasy.

So you can probably imagine what Roots means to its tenants.

What’s In It For Investors?

This approach brings a number of benefits to investors as well. The returns are currently at 16% for the past 12-month period. However, the primary benefit of investing in Roots is the potential for consistent payouts.

Since rent rebates are a form of passive income for tenants, they are reluctant to move out and leave it behind. This consequently drives the occupancy rate up, and as of January 2023, it’s sitting at 98% - 3.8% higher than the national average for rentals.

Furthermore, Roots’ method also has the potential to significantly bring down renovation and repair costs, as tenants are incentivized to keep their rental in pristine condition.

The company’s goal is to help 1 million people build their wealth through their platform. If you’d like to be one of them and amplify the impact it’s creating on communities across 5 different states, you can do so with as little as $115.

Click here to invest with Roots today. 

Images courtesy of Roots

All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Historical returns, expected returns, and probability projections are provided for informational and illustrative purposes, and may not reflect actual future performance. Please see the Full Disclosure for important details on the Roots website.