You know how transaction fees can really eat into your market gains, right? Well, thanks to technology, most stock market investors don’t have to worry about that too much. But for us real estate investors, it’s a different story.
Roofstock.com is the only company I’ve found that’s actively working to lower costs for landlords and other rental property investors. They’ve got an online marketplace specifically for rental properties that’s worth checking out if you’re looking to invest in real estate.
Our Roofstock review will explain how it works and if it’s a good investment platform.
At the end of this article, I’ll also share with you a passive income idea that has allowed me to earn enough money for a down payment.
Below is what I’ll cover in the review of Roofstock.
What is Roofstock?
Roofstock is a real estate investment marketplace and platform that gives you access to all kinds of investment opportunities. They mainly focus on single-family homes, but you can also buy portfolios and sell existing ones.
Three friends started Roofstock back in May 2015 because they thought the way investment properties were being bought and sold was outdated. Their goal was to create a platform where serious real estate investors could easily access all the info they need to make informed decisions.
So far, they’ve closed transactions worth over $5 billion in more than 70 markets and have a team of around 500 Roofsters (that’s what they call their employees).
How does Roofstock work?
Roofstock is an online marketplace for real estate investments. Not only can you find great investment opportunities on their platform, but they also hook you up with property management companies for any single-family rental properties you purchase.
Their website is super user-friendly and makes it a breeze to navigate compared to working with a traditional real estate agent. Plus, signing up is totally free. Once you’re registered, you’ll have access to tons of info on different properties to help you make your first investment.
Listed below are some of Roofstock’s most important features and services.
So you’ve found your dream home and you’re ready to buy it. First things first, you’ll need to put down a 0.5% deposit using your credit card. Once that’s done, you’re good to go! If you’re financing the purchase, the last step before you officially become the new homeowner is finalizing the loan paperwork. And the best part? The seller only has to pay a low listing fee of 3%.
This is seriously huge, guys. Thanks to companies like Fundrise and CrowdStreet, it’s now possible to invest in real estate markets without breaking the bank. And with Roofstock, they’ve removed the biggest obstacle for real estate investors. It’s a game-changer, no doubt about it!
One of the perks of being a property owner is that you can start collecting rent right away. The previous owner’s obligations under the contract are now yours, so you’re good to go. But finding reliable tenants can be a bit of a challenge.
But here’s a pro tip: buying a building with established, reliable tenants is like hitting the jackpot. One company, Roofstock, can make it even better for you. They offer a “lease guarantee” for investors who buy vacant properties.
If you can’t find tenants for your “rent ready” home within 45 days, Roofstock will even pay your rent for a whole year. Check out the guarantee details on their website to see what “rent ready” means.
The company does a thorough inspection of all the properties they list, so you know exactly what you’re getting into. They give you all the details, from the condition of the house to the cost of repairs. Plus, you can even buy a house without ever setting foot in it.
But, if you’re like me, you’ll probably want to check out a few houses in person before making a decision. It’s totally understandable to want to see a place before buying it, even though Roofstock makes it possible to buy sight unseen. Just keep in mind, it’s not without its risks.
Are you thinking about buying a rental property, but you’re not sure how to finance it? No worries! Roofstock has got you covered. They offer an easy financing solution for folks with good credit and the ability to put down 20%.
And the best part? You can close the deal in just 30 days! Now, don’t get too excited about the interest rate, but the quick processing time is a pretty sweet deal. And if you’re still not sure, compare loan terms offered by Roofstock and LendingTree to see if you can save some cash.
Roofstock offers two options to help you sell your house quickly for cash. You can sell it on their marketplace for a 3% commission, or use their Roofstock Offers program for a 3% service charge. Either way, Roofstock can help you get rid of that property in your portfolio.
Are there any fees?
Here are the costs associated with using Roofstock Marketplace and Roofstock One. The breakdown is as follows.
If you’re thinking about using Roofstock to buy or sell a property, here’s the deal: sellers gotta pay a listing fee of either 3% or $2,500 (whichever is bigger), and buyers gotta pay a marketplace fee of either 0.5% or $500 (whichever is bigger).
But here’s the good news: compared to the usual commission that real estate agents charge (which can be up to 6%), these fees are super low.
And when it comes to property management, Roofstock’s recommended managers charge around 10% of the monthly rent. But keep in mind, this can vary depending on where you’re located.
It’s kind of confusing that Roofstock isn’t being more upfront about how much Roofstock One costs. I couldn’t find any info about it on their website or in the FAQ section.
From what I could dig up online, it looks like the asset management fee for Roofstock One starts at 0.50% of the home purchase price and then goes up or down depending on the gross rent.
Roofstock Marketplace vs. Roofstock One: What’s the Difference?
Roofstock Marketplace and Roofstock One are pretty similar, but there are a few key differences. First off, only fancy pants accredited investors can get in on the action. And second, it’s a way for people to put their money into a bunch of different single-family homes. Just like other real estate crowdfunding platforms, the focus here is all about property.
To get started with Roofstock One, you gotta have at least $5,000 to throw into the pot. And once you do that, Roofstock takes care of all the properties in its Roofstock One portfolios. So if you’re looking for a more hands-off approach to your real estate investments or want a more diverse portfolio of properties, this might be a good option for you.
But here’s the catch: it’s super difficult to sell your investments in Roofstock One. Right now, there’s no secondary market for the sale of Roofstock One shares, so you’ll want to hold onto your investment for at least 5 years.
Roofstock just launched the Roofstock Academy – a super cool educational platform for anyone looking to learn all about managing turnkey rental homes. It’s the perfect complement to their platform that helps you buy properties.
Not only can you take online courses, but you’ll also have access to personal coaches and a tight-knit community of other real estate investors. So, if you’re interested in investing in real estate, this is definitely worth checking out.
Who is Roofstock for?
Roofstock can help anyone get started with real estate investing. You don’t even need a free account to check out the general offerings, but if you do sign up, you’ll have access to more information about each property.
And here’s the best part – you don’t need to be some fancy accredited investor to buy or sell properties on Roofstock. The only exception is Roofstock One, which does require that status and an initial payment of $5,000.
Just keep in mind that since Roofstock is a real estate marketplace, you’ll need either cash or financing to make a purchase. It’s not like investing in stocks or real estate investment trusts where you can just sit back and watch your money grow.
With Roofstock, you’ll have to take an active role in finding, inspecting, and managing buildings. But don’t worry, if you hire a property manager, you won’t have to be as hands-on as an investor.
How much can you earn with Roofstock?
Roofstock is an investment marketplace, but there’s no guarantee you’ll make money from it. But don’t worry, the company wants to make sure you have all the information you need to make a good choice about the properties they offer.
They’ll give you details like the asking price, how much you’ll need to initially invest, what the rent will be, and more. But keep in mind that the amount you can make from each property can vary because prices, rents, and other things can change.
When thinking about whether or not to buy a property, there are a few things to keep in mind, like ongoing costs like property taxes and loan payments. And don’t forget about other expenses like management fees, down payments, and closing costs.
All the properties on Roofstock have been checked out by a third party, and some even come with an ownership report. You can find these inspection and ownership reports on the property listing.
How to get paid on Roofstock?
Are you thinking about buying a home through Roofstock? Congrats, you’re on your way to being a proud new homeowner! And, as the owner, collecting rent from tenants is all part of the gig. But don’t worry, if you don’t want to deal with it, you can always hire a property management company to handle it for you.
And if you’re an approved investor going through Roofstock One, even better news – you’ll be getting regular payouts. And if things are really going well, you could even be cashing in every three months.
Is Roofstock worth it?
If you’re thinking about investing in real estate but don’t want to break the bank, Roofstock might be the perfect brokerage firm for you.
One of the best things about Roofstock is how easy it is to use. They have partners who can help you finance your purchase and even offer property management services. So, you can buy a building that’s already got tenants living in it, making it a pretty low-risk investment.
But, if you’re more experienced or just prefer to do things your own way, you can totally find your own agent, inspect the property, secure your own financing and manage it yourself.
Just keep in mind, if you’re already a pro at property management, you might not need Roofstock’s services. But, if you’re new to the game, they can be a big help.
Before making any big decisions, make sure you’re ready to jump into real estate investing. And if you are, use Roofstock as just one tool in your arsenal.
Do some research, check out what’s available on the local market, and don’t be afraid to use resources like this one to help you make the most informed decision.
Looking for some alternatives to Roofstock? Check out Crowdstreet, Diversyfund, and Pacaso.
Crowdstreet is a cool platform where you can find and chat about crowdfunding opportunities in the commercial real estate world. The team there has already paid out over $591 million in dividends to investors and they’ve got over 120 years of experience in the biz. But keep in mind, only high net worth individuals can invest in their Real Estate Investment Trust.
Diversyfund is a great option if you’re looking to invest in real estate, even if you’re just starting out. There are no minimum net worth requirements, so you can start investing with as little as $500. This is a great way to get into the market and diversify away from traditional stock and bond investments.
Pacaso is a unique option that lets you pool your money with other investors and buy a second home together. It’s a smart way to own a property in a desirable neighborhood at a reasonable price and use it at different times of the year. Plus, Pacaso takes care of all the property management stuff like furnishings, utilities, and repairs.
How to get started with Roofstock?
If you’re looking to explore available homes without revealing your identity, Roofstock is the way to go.
But, just a heads up – if you want to see more photos and get the pricing details for a specific home, you’ll need to create an account. But don’t worry, it’s super easy!
You can sign up using your Google or Facebook account, or you can just provide your name, phone number, email, and password to create a new account.
Who is the CEO of Roofstock?
The CEO of Roofstock is Gary Beasley, one of the co-founders.
Is Roofstock publicly traded?
Roofstock is a private company and Roofstock One is a private placement REIT, so it’s not publicly traded.
Is it safe and secure?
Safety and security is a top priority for Roofstock, so rest assured that the website is encrypted and they provide loads of data to help you make an informed decision.
Can you buy newly built homes on Roofstock?
If you’re looking for newly built homes, you’re in luck! You can buy Lennar homes in select regions on the Roofstock platform.
Does Roofstock have an app?
Roofstock Marketplace does not have a mobile app, but the Roofsavvy iOS app lets you monitor your rental property’s finances.
How do I contact Roofstock?
If you have any questions or need assistance, you can reach out to Roofstock by calling 800-466-4116, emailing [email protected], or sending a message through their contact form.
Other than real estate investing, how can I earn more money?
Although investing is one of the most popular ways to grow your wealth and give you some passive income, the property market is far riskier than you think.
Making money from real estate requires a large capital upfront. Since you are paying the market price for a whole house, any fluctuation in the market might result in a loss of thousands of dollars or even more.
So if you really want to make a stable and secure stream of passive income, I would suggest you start an affiliate marketing business online instead.
Affiliate Marketing is perfect for anyone who is new to online business.
In fact, of all the online business models I’ve tried, affiliate marketing is the easiest and most rewarding so far.
In affiliate marketing, you can actually run your business almost with zero cost and achieve a steady and sustainable passive income to pay for your bills. You don’t need any initial capital and can even do it as a side hustle.
And suppose you really want to learn affiliate marketing and build a business from scratch. In that case, I’d recommend you to get started with the most reputable platform for affiliate marketing: Wealthy Affiliate.
Wealthy Affiliate is an all-in-one platform for building your affiliate marketing business from scratch. It offers you a free account (including a free website) with comprehensive training on SEO (free traffic methods), which enables you to get started with affiliate marketing right away without paying a penny.