The Key Features Of Roofstock
- Free to join: You can register a free account and immediately look for the opportunities of real estate investment on the platform of Roofstock.
- Certified Properties: The listed properties on Roofstock have been vetted and reviewed by professionals.
- User-friendly platform: The searching tools are simple and allow you to find out the properties that meet your requirements in a few minutes.
- Turnkey: Roofstock handles all the legwork required for purchasing a property. You can buy a property without stepping foot in it.
- 30-day guarantee: Every property comes with a 30-day guarantee. If it doesnt live up to your expectation, you can ask for a refund.
Is Roofstock Only For Accredited Investors
You do not have to be an accredited investor to buy or sell properties using Roofstock. There’s some confusion with Roofstock One, a premium service that the platform has offered since 2019. We’ll cover this tool for accredited investors later.
The platform aims to open up the real estate market to ordinary investors. Making its service exclusive to accredited investors would defeat the point! Of course, you need to provide evidence of a strong credit score if you want to finance your purchase through the company’s lenders.
Is Rental Property Investing Safe
While nothing is guaranteed, Rental Propertys are a pretty safe place to store your money.
Before officially closing, Roofstock allows you to either renegotiate or back out of the deal if the inspection or appraisal show any information that worries you. So, if you get to closing time, you should already be fairly comfortable with your choice of rental properties.
There is always the risk that you cant find a renter forlong periods of time, but your Property Manager will work with you to help makesure that doesnt happen.
In addition, Roofstock offers a Rental Guarantee if you buya house without a current renter.
If the house is rent ready, but you still cant find someone to rent the house to, Roofstock will pay you 75% of the rent for up to 12 months! This eliminates the risk even further.
Regarding maintenance and damages, your reserve accountsshould help lessen most of that risk. Plus, if something truly catastrophichappens, your insurance should cover it.
In general, try and avoid using your insurance, since usingit will cause premiums to rise. However, its nice to have the option in casesomething terrible happens.
The last risk to be aware of is the risk of being sued byyour tenant. While rare, the tenant can technically try and sue you for anythingthat goes wrong in the house even if they trip and fall.
AIM Loan allows mortgage transfers only if the mortgage is done through Fannie May, so make sure to request that if you plan on transferring to an LLC.
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How Does Roofstock Work Exactly
Roofstock is an online marketplace. It functions basically the same as other marketplaces you may be familiar with. The only distinction is it deals with real estate properties.
The company will function as the broker between the buyers and the sellers ultimately removing the need for actual brokers. Furthermore, they also make the whole thing easier since they will do all the paperwork necessary to secure the property.
They actually have a team of brokers that deal with everything but from your end, you will never notice it because everything is done online.
Who Can Use Roofstock
Learning how to invest in real estate hasnt always been easy, but Roofstock can help anyone get started. You dont need an account to browse the general listings available on Roofstock, but a free account will let you view more detailed information about each property.
You also dont need to be an accredited investor to buy or sell properties on Roofstock. The only service with this requirement is Roofstock One, which also requires a $5,000 minimum investment.
If you want to buy a property on Roofstock, youll need cash or financing. Since youre buying actual properties and not investing in shares or real estate funds, Roofstock might be best if you have some real estate knowledge and are ready to be actively involved. If you plan to have someone else manage your properties, you might not have to be as active of an investor.
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Final Thoughts: Is Roofstock Worth It
Signing up to Roofstock is free and easy, so its a no brainer for investors who are wanting to find a rental property investment or at least get an idea of the best properties. The nominal fee of $500 or 0.5% of the contract price make this an attractive option for buyers. For sellers, the commission fee is 3%, which is often lower than real estate agents. All in all, Roofstock is a good option for those who are new to real estate investing, and those who are looking for an all-in-one online solution to find a rental property.
How Is Roofstock One Unique In The Real Estate Investing Space
Roofstock One provides an efficient alternative to direct investing,so you can avoid the need to be on title, secure a mortgage, deal with agents, supervise rehabilitation teams and property managers and address ownership and tenancy issues. Investors can instead focus on assembling targeted portfolios with allocations across markets, focusing on specific investment goals.
Notably, investors can also help lessen the asymmetric risk of single property ownership, thanks to shares of tracking stock that provide exposure to multiple properties. Investors with shares of tracking stock may receive a pro rata distribution based on the economics of the underlying properties, a portion of which may be tied to available depreciation. They may also benefit from potential long-term growth from home price appreciation.
Please review the level of risk youre comfortable with before investing.
Plus, Roofstock One makes investing catered to you. An investor in Roofstock One can pick and choose from a curated list of investment opportunities and construct an investment that suits their investment goals.
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Who Should Use Roofstock
Roofstock is aimed at ordinary investors looking to bypass the extortionate transaction fees you’ll typically face when investing in single-family rental homes.
Its fees are extremely low, and it provides good-faith estimates of any additional costs such as closing fees.
The properties are vetted so you know what you are getting. This is also true of its property management services you can create a diverse portfolio in markets across the country and have confidence that they’ll be taken care of by well-reviewed professionals.
And if youre an accredited investor and want to have long-term passive exposure to single-family real estate, then Rooftstock One is a feature worth considering.
Option To Buy Entire Portfolios
Hungry for multiple properties? Some sellers list several properties as a portfolio for combined purchase. They set a minimum number of properties that must be bought simultaneously. You can specifically browse portfolios of properties if youre looking to buy in bulk, perhaps at a discount compared to buying individual properties.
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What Information Is Included In Roofstock Listings
Roofstocks listings offer plenty of information to help you make an informed decision:
- Property summary. Explore the list price, lot size, location, occupancy status, lease start and end date and more.
- Financials. Run the numbers on projected cash flow, equity, interest rates, closing costs and net cash flow over time.
- Analysis. Assess the propertys overall value, rental value, inspection highlights, neighborhood rating and more.
- Diligence documents. Review inspection, title and property valuation reports.
- Buy process. Explore your financing and property management options with Roofstocks partners.
- Similar listings. Compare similar listings available on Roofstocks marketplace.
Roofstock Review The Final Word: Is Roofstock A Good Investment
Roofstock stands out in the world of online real estate investing. They leverage technology to make finding the right rental property easier than ever with in-depth analysis. You can literally search and buy rental properties from anywhere in the world.
This is an attractive way to start investing in real estate if youve never done it before, and Roofstock has some major perks, especially positive cash-flow investments and low fees. But there are still risks. Owning an investment property takes work, whether or not you acquired it in person or online.
You have to understand the risks and do your due diligence, and if it still makes sense, Roofstock can be a great way to own your first investment property.
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Signing Up For Roofstock Is Free
Youd expect there to be a catch for signing up for the service, but there isnt. .
The reason they can provide you with fees lower than traditional real estate agencies is due to technology. They use technology to pair potential buyers and sellers efficiently.
This streamlines the process, and they can pass on these savings in far lower fees.
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Were in the throes of 2022, which means our New Years resolutions are in full swing. With that, the goal to not only save your money but grow your income, too, may be a financial priority.
Though everyones financial situation looks different, those looking to invest have a few options. Aside from using some of the best investment apps to grow your portfolio by means of stocks or mutual funds, you can opt for real estate investing.
Trying your hand at single-family rental real estate investing requires no down payment or dealing with renters. Plus, you wont have to work the numbers only to toss all your eggs into one basket .
With Roofstock One, if youre an accredited investor, you can seamlessly invest in the real estate market remotely, with interests tied to properties in several geographic markets. You wont have to worry about the significant capital and infrastructure required to acquire and manage an SFR.
Thats something to raise the roof about.
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Use As Much Or As Little Of The Platform As You Want
One of the best things about Roofstock is how open the platform is. You can buy tenant-occupied real estate, with Roofstock partner financing, and use Roofstocks property manager.
On the other hand, you can find a buyers agent, pay for your own inspection, find your own financing, and manage the property yourself.
This is an incredibly important point to consider. If youve got a property management system in place, you dont have to pay for a Roofstock property manager. If youre a new investor, you may appreciate the hand-holding.
Before you buy, make an independent evaluation if real estate investment is for you. If it is, is just one tool. You should also look for houses in your local market, and study resources at sites like before making the plunge.
Recommendations For Lenders And Insurance Agents
For our first home purchase, I selected a house that had a fixed price. After clicking the “buy now” button, an agent guided me through the entire process.
They explained all details, including the process, and checked my background. I was then able to understand how the entire buying process would work.
The agent then referred me to insurance brokers and lenders. The offers she made were so amazing that I accepted them and continued.
It was so easy!
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Evaluate Track And Compare Properties Automatically
If you buy a rental home, you would undoubtedly require a dependable team. The most critical aspect of the operation, though, is assessing the contract.
Is the asking price too much? Do your property taxes eat away your cashflow? How do two properties with comparable prices compare?
These are all problems I had trouble with, and I ended up with a ridiculously complex spreadsheet that took a lot of time and energy to create and manage.
A real estate transaction is constantly changing as new knowledge becomes available, and in order to be stay ahead of the game, you must quickly rerun calculations regularly.
Since all of the current resources are disgracefully awful, I wanted to create my own.
The initial property review is free, and weve received a lot of positive reviews on it. It takes in pricing data automatically and makes calculations it also allows you to store evaluations of Property Groups to monitor properties you own and those you wish to purchase in the future.
What Makes It So Different
Roofstock offers an alternative method for real estate investment thats more convenient than the conventional method. You dont have to hire a realtor, visit different properties, or if the property is already leased, find reliable tenants.
It might be easy to confuse Roofstocks concept for a real estate crowdfunding platform. Most crowdfunding platforms involve investing cash in a tiny piece of a development project with a timeline attached to it.
But an investor working with Roofstock actually owns the property right away, no strings attached. Its merely a more accessible and cheaper way of buying rental property without the usual hassle. Many Roofstock properties can generate cash for their owner from day one as they already have renters living on the property.
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Roofstock Is A Legit Company That Offers Opportunities To Invest In The Real Estate Market
Roofstock is the first online real estate marketplace that is designed for people looking to invest in single-family rental homes.
Launched in 2015, the company basically provides you with an opportunity to purchase real estate rental properties without the hassle of meeting brokers and doing the leg work yourself.
All the required details are already posted and the company also provides access to research materials, analytics, and insights that you can use to help you analyze properties and make individual purchases.
Based on what Ive seen so far about Roofstock, I can say that the opportunity that the company offers is very much legitimate.
The properties that the company post in their marketplace are really legit and they undergo a strict review process before they allow them to be posted on the site.
So you can be assured that they only allow good properties to be posted on their site and they value the trust that investors put in them.
Of course, this doesnt mean that there arent any issues with the opportunity that they are offering. One of the issues youll have to consider is the large amount of money youll need for the investment.
Another is that youre still required to do your own due diligence and not just rely on what Roofstock says. Lastly, a lot of the best deals tend to sell out quickly.
Ill discuss these issues in more detail as we progress further in this review of Roofstock.
Ways To Fund Your Roofstock Investment
Buying a home isnt cheap. Because of that, Roofstock offers three options to fund your investment:
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What Are People Saying About Roofstock
When it comes to peoples comments and reviews about this opportunity, mostly all of them are positive. People rave about what the company is offering and says it made investing in real estate much easier.
Of course, this doesnt mean there arent any issues with this opportunity. The first major hurdle youll likely encounter is the large capital required for this type of investment.
Not only will you need a huge amount of money for the down payment, but youll also need large reserve funds for possible repairs and to keep the property in tip-top shape.
The cost of repairs of the house will likely fall on you, even if you hire a property manager. So you need to be financially prepared for this as well.
Another issue about Roofstock is that a lot of the best deals they offer tend to sell out quickly. So you need to be fast in finding and scooping up the best deals.
The last issue is that you are still required to do your own due diligence on the property, especially if you are new to real estate investing.
Despite Roofstocks best efforts to provide all of the important information to the buyers, there will likely be some information that they will miss out.
I read about the experience of one buyer who purchased a property that had an undisclosed full roof replacement on it.
This made the situation tricky for her and she wound up selling the property after only owning it for 1.5 years which resulted in a loss for her.
What Are Roofstock Fees
The Roofstock marketplace is completely free to use. You can browse and make offers for free.
If you go through with buying a house, the fee is 0.5% of the purchase price or $500, whichever is greater. So on a $100,000 house, you’ll pay $500 in fees. This is much lower than traditional realtor commission fees, which is typically 6%.
If you sell a property, the fee is 3% of the sale price or $2,500, whichever is greater.
Remember that there may also be additional fees like HOA costs, closing costs, management service fees, etc.
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How Do I Sign Up
Get started online in four simple steps:
You dont need to be a US citizen to open an account. During your application, youll need to provide the following information:
- First and last name
- Investment and financial information