December 7, 2022

Actual property investing could be intimidating to new traders – you will need to seek for the appropriate property, acquire financing, buy the property, after which discover tenants. Lots can go incorrect, from shopping for a property with structural points to challenges with discovering the best tenants. 

Actual property investing takes work and could be dangerous, and lots of don’t have the time or threat tolerance to commit.

Enter Roofstock, an actual property investing platform that helps you spend money on single-family properties with out leaving your private home. Roofstock needs that can assist you turn into an actual property investor no matter the place you reside. 

About Roofstock

Roofstock is engaged on constructing the world’s greatest actual property investing market. The corporate was based in 2015 by Gregor Watson, Gary Beasley, and Wealthy Ford, all having years of actual property expertise. 

Roofstock’s major service is a market that lets you purchase and promote single-family properties. {The marketplace} is free, giving anybody entry to discover and browse properties. 

The Roofstock Market permits actual property traders to search out important info in a single place, making knowledgeable funding selections simpler. The corporate touts that its mission is to make investing in actual property accessible and easy. 

Roofstock has handed over $5 billion in transactions in additional than 70 actual property markets. 

What Does Roofstock Supply? 

Roofstock gives three foremost packages, every differing primarily based on how a lot cash you need to make investments and your expertise with actual property investing. 

Roofstock Market

Roofstock website landing page

This on-line market is for consumers and sellers of funding properties and portfolios, and Roofstock vets its properties by means of a strict course of. 

This market lists properties primarily based in your most well-liked standards, like location, neighborhood ranking, itemizing worth, and extra. You may also discover tenant-occupied funding properties right here. It’s additionally price noting that you should utilize {the marketplace} to promote your private home and solely pay a last 3% sale payment. 

We go into element on utilizing the Roofstock Market later on this assessment. 

Roofstock One

Blogpost introducing Roofstock one

Roofstock One is an choice for accredited traders who don’t need to buy a whole property. The minimal quantity to get began is $5,000, and customers should buy a 1/tenth share of a number of the properties on {the marketplace}. Roofstock One is good in the event you don’t need the burden of carrying your entire property mortgage alone. 

Roofstock One supplies two funding choices:

  1. Monitoring inventory: Supplies publicity to many properties and markets. 
  2. Widespread inventory: Offers you broad publicity to all properties within the Roofstock One REIT.

Each choices will make it easier to keep away from the dangers related to dwelling possession, and also you gained’t have to fret about placing your title on a mortgage. Roofstock One permits traders to make customized selections of their portfolio methods, not like conventional REIT investments. 

It’s price mentioning that these investments are extremely illiquid, and there’s no secondary marketplace for Roofstock One shares. It requires an funding horizon of not less than 5 years, so that you should be affected person. 

Roofstock Institutional Providers

Screenshot of Roofstock Institutional services website landing page

Roofstock Institutional Providers is an end-to-end resolution for traders with extra capital who need to scale their portfolios. They provide these companies for giant traders and establishments and embrace the next advantages:

  1. Acquisition: This contains market evaluation, underwriting, and rehab administration. 
  2. Transaction administration: You may obtain native market info, supply administration, and full transaction companies.
  3. Property administration: This covers advertising, tenant relations, repairs, upkeep, and development administration.
  4. Portfolio administration: You get reporting, accounting, oversight, and proposals.
  5. Disposition: This covers technique suggestion, a multi-channel exit technique, and portfolio disposition. 

Lets’ take a better take a look at another noteworthy companies Roofstock gives its customers:

Retirement Accounts

Screenshot of RoofstockOne landing page

You may spend money on actual property by means of your retirement account with Roofstock’s partnership with New Direction Trust Company. Roofstock lets you combine your properties right into a self-directed IRA. As soon as achieved, the IRA turns into the holder of your title report, which means the revenue out of your rental property turns into tax-deferred.

Roofstock Academy

Screenshot of Roofstock Academy landing page, depicting woman on a laptop

Roofstock launched a course that teaches you all the things you need to learn about investing in actual property properties. This system’s purpose is to have a one-stop useful resource for all actual property traders. There’s entry to a personal Slack group, teaching teams, and personal teaching. 

Roofstock claims that academy members have closed $45 million in actual property acquisitions on and off the Roofstock platform. There’s a money-back assure, however enrollment is presently closed. 

Whereas there’s no free academy tier, you’ll be able to entry the Roofstock blog for free. The weblog covers matters starting from inflation to REITs. 

Store with an Agent 

Man watching a video on a laptop

Roofstock has a curated community of brokers who closed greater than $50 million in actual property transactions in 2021. The brand new Store with an Agent characteristic connects you with a licensed agent who will make it easier to resolve on which property to spend money on and how you can make an knowledgeable supply. 

This software is price contemplating in the event you’re new to actual property investing and need somebody to information you thru the method. 

How Does Roofstock Work? 

If you wish to get into actual property investing, Roofstock simplifies your entire course of. You may browse properties on the Roofstock Market with out registering on the web site. Merely click on on the “Properties” tab to see the out there properties. From there, you’ll be able to filter your analysis by

  • Newly Listed 
  • Neighborhood ranking
  • Finest colleges
  • A number of items
  • Pre-inspection
  • Increased yield

If you click on on a particular property, you get detailed details about the funding to make an knowledgeable supply. 

You may also resolve what number of Roofstock companies you need to use. You may faucet into Roofstock for financing and property administration, or you should utilize the platform to search out tenant-occupied funding properties on the opposite aspect of the nation. With so many companies provided, most traders can profit from utilizing Roofstock.

Roofstock Pricing

There are not any charges to signup with Roofstock and browse properties on the Roofstock Market. As talked about on this article, in the event you shut on a property, you’ll pay 0.50% of the contract worth or $500, whichever is larger. If you promote a property by means of Roofstock, you pay an inventory payment of three% or $2500, whichever is larger. Bear in mind to acquire an correct valuation of your private home earlier than you checklist.

Accredited traders can pay asset administration charges of roughly 0.50% (and up) after they make investments by means of Roofstock One.

Find out how to Get Began With Roofstock Market

Roofstock gives totally different choices for property consumers and sellers. When you’re prepared to speculate with Roofstock, create your free account and start your search. 

Step 1: Seek for your property.

Customized filters permit you to discover a property primarily based on the value, anticipated return, location, and extra. You may even join alerts when a property that matches your standards comes in the marketplace. With 1000’s of properties listed on its market, Roofstock will seemingly have one thing for everybody.

Step 2: Analyze the property.

Roofstock supplies sufficient detailed details about the property to reply most questions you could have. The platform shares the next:

  • Flooring plans and photos: You may also get a 3D tour and curb view.
  • Property inspection and valuation: This contains the title report and an insurance coverage quote in order that you recognize precisely what you’re signing up for. 
  • Instruments for determining the numbers: You may see how a lot of an preliminary funding you need to make, together with the entire return. 
  • Present lease and tenant info: You understand what sort of tenants you inherit. 
  • College and neighborhood scores: You will get an correct image of the neighborhood you’re investing in.
  • Native choices for property administration companies: You need to use one in all Roofstock’s property managers to deal with all the things and be a hands-off investor.

Step 3: Make a proposal. 

You may submit a proposal on Roofstock totally free and never get charged any fee till your supply is accepted. {The marketplace} payment is both 0.5% of the contract worth or $500, whichever is greater. 

Roofstock supplies an Open Home characteristic the place you get an unique take a look at properties on the platform. You’re allowed to assessment and submit a proposal throughout the first 24 hours. 

Step 4: Shut the property.

The service and transaction workforce from Roofstcok will work with you thru escrow till the property is lastly underneath your possession. As soon as this course of settles, you’re formally the rental property proprietor.

Roofstock Benefits

Through the years, many opponents have popped up within the on-line actual property funding house. Traders have extra choices than ever earlier than, making it troublesome to decide on one platform over one other. Listed below are some advantages of selecting Roofstock over opponents in the actual property house.

Free to begin

You may browse properties totally free on the Roofstock Market, together with the complete inspection report and evaluation of potential properties. Customers can entry all the knowledge they need concerning the report, from the present lease to the detailed financials (just like the down fee and the anticipated annual return). 

Eliminates the stress of discovering tenants

Being a landlord could be annoying. Roofstock helps you discover tenant-occupied properties, so that you don’t have to fret about discovering tenants. With tenant-occupied properties, you assume the lease settlement from the earlier landlord, which means you don’t have to fret about screening tenants or performing background checks. 

The corporate additionally gives Emptiness Safety for single-family leases operated by Roofstock-partnered property managers. This assure guarantees that in the event you can’t discover a tenant inside 45 days, the corporate can pay 75% of the market rental price for as much as six months or till a brand new tenant is discovered. 

Supply detailed inspections and stories

There’s loads of uncertainty that comes with investing in property. You both should spend the cash on a full property inspection or buy as-is if the actual property market is scorching sufficient. 

With Roofstock, you get detailed stories on the house’s standing, so you recognize what you’re getting your self into, and also you gained’t should fly out to see the property in individual. 

Easier financing for rental properties

Roofstock makes it straightforward for traders to analysis financing choices. You may have an inventory of quotes from quite a few third-party lenders by offering a little bit info, like credit score rating, goal property worth, mortgage phrases, and down fee percentages. 

Roofstock Options

In the meanwhile, Roofstock is exclusive in permitting non-accredited traders to purchase and promote tenant-occupied residential actual property properties for a fraction of the price of going by means of common channels. There are lots of of properties listed on the Roofstock market.

However Roofstock One, which lets traders purchase into portfolios of single-dwelling residences, is simply out there to accredited traders. Fundrise and RealtyMogul are two Roofstock alternate options price contemplating in the event you’re searching for a REIT-style funding choice.

Fundrise

With Fundrise, you’ll be able to spend money on residential and business actual property portfolios, beginning with a minimal funding of $10. In contrast to publicly-traded REITs, Fundrise portfolios are privately held. Whereas they’re not uncovered to pure market volatility, they’re much less liquid than conventional REITs. Fundrise fees an annual payment of 1% of your total portfolio worth, which is cheap for the asset class. Study extra in our Fundrise assessment.

RealtyMogul

Los Angeles-based RealtyMogul provides non-accredited traders entry to a REIT portfolio with a minimal funding of $5000. On the time of this writing, you’ll be able to spend money on the RealtyMogul Earnings REIT or the RealtyMogul House Development REIT. As well as, RealtyMogul permits accredited traders to spend money on personal placements. RealtyMogul charges are just like Fundrise, at 1 to 1.25%. For extra info, try our RealtyMogul assessment.

What Are The Professionals and Cons of Roofstock? 

Professionals

  • Roofstock does the entire analysis for you, saving time
  • Funding properties typically have already got tenants
  • Aggressive transaction charges
  • Roofstock Market is obtainable to non-accredited traders

Cons

  • REIT choice is restricted to accredited traders (Roofstock One)
  • Funding is illiquid. Shopping for a property will maintain up your capital
  • The Roofstock Market could be aggressive, primarily as extra individuals use it

Is Roofstock For Me?

https://www.youtube.com/watch?v=S0n1HMuOjd8

The Roofstock Market is good for real estate investing beginners searching for an easy option to get began shopping for or promoting particular person actual property. Roofstock is inexpensive, straightforward to know, and shares all of the related property info with you.

On the flip aspect, in the event you’re interested by actual property crowdfunding choices as a non-accredited investor, Fundrise or RealtyMogul will probably be extra appropriate than Roofstock One, which is open to accredited traders solely.

Investing in actual property could be intimidating, particularly while you’re doing it from a distance. It helps to make use of a trusted platform that does the vetting for you.