Letter From The CEO
Roots Family,
Earlier this year, we wrote to you about the proposed legislation aimed at limiting large institutional ownership of single-family homes. Since then, more details about the bill have been released, and we want to provide an update on what we’re seeing.
The most important takeaway remains the same: as of now, nothing has changed for Roots or your investments.
In fact, the additional clarity around the proposed legislation reinforces something we’ve believed in from the beginning the Roots model aligns with the spirit of expanding access to homeownership rather than restricting it. Roots was created to help build a community where anyone can participate and the proposed bill is right in line with that thinking.
The proposed bill includes several “excepted purchase” categories that allow home acquisitions when they support housing supply, rental availability, or pathways to homeownership. After reviewing the latest details, many of these categories closely match how Roots already operates.
For example, the legislation allows:
• Purchases of newly constructed homes or homes acquired directly from builders
• Build-to-rent programs that create rental housing in communities with both renters and homeowners
• Renovation programs that restore distressed housing
• Programs designed to help renters move toward homeownership
These are core parts of the Roots model today.
A significant portion of the homes in the Roots portfolio are purchased directly from builders, helping add to overall housing supply. Many of these homes are located in mixed communities with both homeowners and renters, and in some cases we acquire properties that require substantial renovation and rehabilitation. In addition, Roots already operates a program that gradually transitions certain homes to resident ownership, allowing our renters the opportunity to purchase them. An approach that closely aligns with the seven-year transition window outlined in the bill.
Most importantly, Roots was built around the idea that renting should be a stepping stone toward ownership, not a permanent destination.
Through Wealth Building Rewards, renters across the country now have access to tools designed to create real upward mobility, including:
• Opt-in rent reporting that helps build credit
• Credit monitoring and coaching tools
• Financial education tied to real outcomes
• Investable Rewards™ earned by taking positive financial actions
• Opportunities to explore home purchases within the Roots network
These programs are designed to help renters strengthen their financial position so they can eventually buy a home, either within the Roots portfolio or elsewhere.
The conversation happening nationally right now is important. Many people are asking who should or shouldn’t own homes. But the bigger opportunity is asking a different question:
How do we help the people living in those homes build wealth and move toward ownership themselves That’s exactly the problem Roots was created to solve.
Since launching in 2021, the Roots community has delivered on its target 12–15% annual returns while expanding access to real estate investing and wealth-building tools for everyday people, with zero institutional capital involved.
With Roots, anyone can invest in real estate starting with as little as $100, and renters can begin building financial momentum while they live in the homes our community helps provide.
In many ways, the current policy conversation is catching up to something this community has already been proving:
When renters and investors grow together, everyone wins.
If you feel inspired to join the conversation, we encourage you to share the story with others in your network.
Here’s one example you could use:
“Everyone deserves a seat at the table. @investwithroots builds wealth for both investors and renters. Who doesn’t love a win-win!”
Bonus points if you include your referral link.
We’re incredibly grateful to have you as part of this community. Everything we’re building is possible because of you, and together we’re continuing to prove that expanding access to housing and wealth creation can, and should, be a win-win.
With gratitude,
Daniel Dorfman
