Our Experience Investing in Roots
I’ve always liked real estate as an investment, but actually owning rental property takes a lot of money, time, and work.
That’s what initially caught my attention with Roots. The idea is pretty simple: instead of buying and managing a rental property myself, I can invest in a fund that owns a portfolio of residential real estate without having to be accredited.
I started with about $1,500 more than a year ago. It was really just a test to see how it worked.
How does Roots make money?
The returns come from two main places.
First, the properties generate rental income, which helps fund distributions to investors.
Second, as the underlying real estate increases in value, the NAV of the investment can increase.
So you’re essentially getting exposure to both rental income and potential real estate appreciation without having to deal with tenants, repairs, or buying a whole property yourself.
Roots launched in 2021, so it’s also not a brand-new platform.
Another thing I find interesting about Roots is the mission behind the company. They’re not just focused on owning real estate — they’re trying to create better outcomes for renters too. Their model includes rewarding renters for positive behaviors, like paying rent on time, by giving them investment rewards.
I think that’s a really interesting concept, especially at a time when many renters struggle to save enough for a down payment and get on the path toward owning a home. Turning responsible renting into a way to build wealth is an idea I think has a lot of potential.
How has my investment done?
My trailing 12-month return has been around 12%, combining roughly 8% from NAV growth and 4% from distributions.
I’m not expecting that every year, and obviously real estate investments come with risk. But I’ve been very happy with the results so far.
Test Withdrawal
The bigger test for me was whether I could actually get my money back.
After having my initial investment for more than a year, I tested a withdrawal. It went smoothly.
I’ve also had a few questions for customer service along the way, and I’ve consistently found them responsive and helpful.
Those things gave me considerably more confidence than simply watching an account balance increase.
Why I’m still invested
I don’t view Roots as a replacement for my other investments. I still like index funds, retirement accounts, and owning real estate directly when the right opportunity comes along.
I see Roots as another way to diversify into real estate without taking on another property, mortgage, tenant, or maintenance headache.
What started as a $1,500 experiment has turned into an investment I’m comfortable continuing to hold.
If you’re interested in checking it out, my referral link gets you $25 free with your first investment.
https://app.investwithroots.com/users/sign_up?referral_code=G2B41iFG_b6TqVyFcX034g
Disclosure: This is my personal experience with Roots and is not financial advice. I am an investor in Roots and may receive a referral benefit if you invest through my link. Investments involve risk, and past performance is not a guarantee of future results.
