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Real estate investments provide outstanding returns compared to other asset classes. The problem is that it’s historically been a hard market to buy into. But now, beginner investors who want to get into real estate have options. One of those options is Roofstock. Learn more about this service in our Roofstock Review.
on Roofstock’s website
Quick Summary: Roofstock is an online marketplace for investing in single-family rental properties. They provide research, analysis and evaluation of their listed properties to make it easier for people to invest in rental properties across the U.S.
What is Roofstock?
Roofstock is a turnkey platform for buying and selling single-family rental homes. Simply put, it’s a marketplace for beginner real estate investors to invest in rental properties without being an accredited investor.
The properties listed on Roofstock are all screened, appraised, and certified independently. This helps users (investors) get a complete picture of what they’re buying.
One of the interesting benefits of Roofstock is that it is set up to create cash flow from the start. The listed properties already have tenants living in them, so they have already proven to be profitable. Roofstock simply matches investors with these profitable rental properties.
The platform is a turnkey online marketplace. This means that it’s meant for busy individuals who want to make money in real estate but aren’t real estate professionals. So, Roofstock is meant for those without real estate experience.
How Does Roofstock Work?
There are two ends to the Roofstock marketplace: the property and the investor.
All Roofstock properties meet certain core requirements. As discussed, they must be single-family, rental properties. Furthermore, they must be occupied by paying tenants.
Roofstock’s team, comprised of experienced real estate professionals, finds properties they want to invest in. These professionals work with large real estate investment trusts (REITs) to source high-quality single-family properties.
REITs buy, manage, refurbish, and eventually sell hundreds and even thousands of properties. The process of selling a property (such as a single-family property) can be very costly and time-consuming for some of these REITs. This is where Roofstock comes in, as they work directly with large holding companies to help them certify, document, and price these properties for them. This reduces the holding companies’ overhead and allows Roofstock to list its properties for a lower price.
Of course, this process requires a lot of trust when the U.S. is plagued by real estate scams. Selling a property in a distant location requires a detailed certification process, and this is Roofstock’s first and most important job. The process includes:
- A property inspection conducted by a trusted professional inspection company.
- A property valuation.
- A full title report.
- A full review of lease terms.
- A background check for tenants.
- A 3D virtual tour of the property.
- A full home disclosure report.
- … And more.
The full process is complex, and we can’t fully cover it in this Roofstock review. What we can tell you is that the Roofstock team is very professional. They also offer 30-day money-back guarantees.
After finding and preparing these properties, they move on to the next phase.
At this point, Roofstock lists the rental properties for its users, and customers can choose from a wide selection of properties. But the company’s features and services don’t end there.