Larry Dorfman and his son Daniel, along with Scott Jacobsen, are co-founders of Roots, a real estate investment company that encourages renters to build wealth while living in an affordable home.
While volunteering with HOPE Atlanta, Dorfman said he became “more and more aware” of the affordable housing crisis happening in Atlanta.
Roots promotes workforce and affordable housing by educating renters on how to save money while taking care of the property in which they live. They offer financial literacy courses in partnership with Warrick Dunn Charities to empower residents and their communities.
“Live in like you own it” is the company’s motto.
“When Daniel came up with the idea, ‘Wouldn’t it be cool to not only help people afford to have a place to live but to build wealth at the same time?’ I got very interested,” said Dorfman, who stepped out of retirement to work on Roots.
The 68-year-old spent the majority of his career in the automotive business, having founded APCO Holdings in 1984. His philosophy is that as long as you’re having a good time, it isn’t work. “What we’re doing now is extremely rewarding,” Dorfman said.
Together, the father-son duo, and Scott, nurtured the idea that they could build something that would be profitable for everyone involved.
There are 44 million renters in the U.S., and the average renter in America has less than $650 in savings.
“One incident would create a homeless situation very easily,” said Dorfman. “Most Americans have $1,000 for an emergency. Renting Americans have a lot less than that.”
With about 250 residents, Dorfman said Roots is trying to create an opportunity for as many renting Americans as possible. The number of rental units fluctuates, as Roots is adding units constantly.
Throughout their stay, residents receive financial education. Residents have the opportunity to invest their security deposit into the Roots fund, making them an owner from day one and starting to grow their wealth. In two years, they can have up to $3,600 in savings for the resident to keep when they move out. The security deposit paid upon move-in is fully refundable if the resident “lives in the property like they own it.”
Residents pay rent monthly, and quarterly residents are asked to report back with a short video of the property to show Roots what may need to be repaired.
“We don’t ask people to fix it. We just want them to learn to look for what could be going wrong in a house. Is there a leak? If there is, let us know. Don’t be afraid to tell us,” said Dorfman.
At the end of each quarter, residents who pay rent on time, send in quarterly videos, and are good neighbors, earn a $150 rental rebate into their wealth building account.
“There’s an incredible thing that happens when people who have never had a chance to save money can watch their savings account grow,” Dorfman said.
Dorfman wishes everyone in Atlanta would think about affordable housing. It should be more than just getting someone into a home, he said.
“They should be thinking about getting them in a home where residents can pay the rent and build wealth and bridge the wealth gap. What we’re doing at Roots is creating a bridge to the wealth gap,” he said.
