Welcome to another episode of The Roadmap, an ASBN exclusive that features CEOs, business executives, and entrepreneurs who learn how to climb the corporate ladder, expand their companies, and eventually scale their businesses. Today, host Ted Jenkin is joined by Daniel Dorfman, CEO and Co-founder of Roots Investment Community, to veer off course and discover how renters can build equity.
Roots Investment Community, which grew out of Dorfmans’ prior real estate and investment experience, started to bloom in 2020. But, when the world stopped to handle the COVID pandemic, real estate brokers were forced to reevaluate their impact. “And it wasn’t good. We were a part of the problem,” declares Dorfman. The disparity in wealth was caused by agents selling houses for more than they were worth in a low-rate market.
1. Dorfman found he could fix the gap by creating a model where everyone could participate in the real estate market by investing as little as $100. He also established a model where renters could share part of the success.
2. Tenants can participate in the Roots Investment Community program after 12 months of working closely with the S.E.C. (Security and Exchange Commission.) Dorfman notes, “The first thing we do is take the $1,500 deposit they would have otherwise put in a landlord’s account and instead invest that into the Reap.” On day one, renters become a partner and an owner.
3. The company then offers a program that lets tenants “Live in it like you own it.” Dorfman states, “As long as renters pay their rent on time and upload a quarterly video of the home, they will receive an additional $150 into their initial investments.” So, by the end of the year, the initial $1,500 investment will turn into $2,100.
4. 70% of Americans have less than $1,000 in their savings accounts. This is a problem because in the event a property needs repairs, most will turn to more debt via credit cards.
5. The company’s technology is created internally. It also gives the community a variety of services and portfolios that allow tenants to earn money while they go.
"We believe all 66 million renter homes in the United States should have the opportunity to accumulate wealth while renting." – Daniel Dorfman