Roofstock Review 2021: Everything Real Estate Investors Should Know 

GOBankingRates Score

Our Take: Roofstock is a web-based rental property market the place actual property buyers should buy and promote properties on a world community. The platform removes the inconvenience of exhibiting properties and disrupting tenants’ lives all through the promoting, shopping for and shutting processes.

In addition to non-public buyers, establishments and bigger buyers should buy, promote and handle rental properties on Roofstock. Whether a person or company, Roofstock offers buyers with a complete actual property market resolution on a single platform.

Customer Support

Listing Selling/Process

Fees

Buying Process

How did we calculate this?

Pros

No property showings to disrupt tenants
Network of worldwide listings and buyers
Low vendor charges in comparison with conventional mortgage brokerage
Earn rental earnings instantly after closing

Cons

No cell app
To make investments utilizing a self-directed IRA, buyers should open an account with a 3rd celebration (New Direction Trust Company)
Not all U.S. states should not represented on the Roofstock market

What Is Roofstock?
Roofstock is an actual property funding market that goals to make the true property funding course of easy, cost-effective and accessible for buyers. Serving buyers worldwide, Roofstock’s platform is accessible to first-time buyers in addition to world asset managers. Roofstock helps buyers attain their targets with progressive know-how and three service platforms:

Roofstock Services

Roofstock Marketplace. An on-line market for funding property and portfolio patrons and sellers.
Roofstock One. Investors personal entire or fractional shares of fully-managed funding properties.
Roofstock Platform Services. A complete resolution for big buyers to construct or scale their actual property portfolios.

Single-Family Rental Market
Roofstock’s advertising technique rests within the single-family rental, or SFR, market, which has confirmed to supply sturdy, steady money flows for buyers over many financial cycles. Some advantages of investing within the SFR market with Roofstock embrace:

SFR properties have parts of appreciation potential and earnings potential.
SFR returns are just like the inventory market however are much less unstable.
SFR returns don’t correlate with the inventory market and will present a greater outlook for buyers.

Roofstock Features
Here are some key options of Roofstock:

30-day money-back assure with free property re-listing
Investors should buy and promote property in addition to carry their very own property to the market.
Roofstock matches buyers with property managers to supervise rental property.

Roofstock Strengths

Investors can dwell anyplace on this planet and spend money on Roofstock’s market.
Roofstock’s property administration companies permit buyers to have a hands-off strategy whereas producing passive earnings.
15- to 35-day property itemizing, eliminating staging, exhibiting, out-of-pocket prices or disruption of tenants to organize for itemizing

Roofstock Weaknesses

Property should be licensed earlier than itemizing

How Legitimate Is Roofstock?
The Better Business Bureau has rated Roofstock a B+, which is mostly an excellent score. Roofstock has had no lawsuits and solely two complaints inside the final 12 months.
How Does Roofstock Work?
Roofstick walks you step-by-step by means of the rental property funding course of whether or not you’re a purchaser or vendor.
Buying on Roofstock
Using Roofstock’s four-step resolution, you possibly can confidently discover and purchase the funding property that’s best for you.
1. Search
First, resolve your spending finances, the quantity of your down cost and whether or not you might be paying money or financing a mortgage mortgage. Roofstock’s customized filters mean you can tailor your property search by location, checklist worth and desired return. You may even join alerts that notify you when properties that match your standards turn out to be obtainable.
2. Analyze
You can assessment the main points of the properties ensuing out of your search, together with:

Options for native property administration
Property photographs, ground plans, 3-D digital excursions, 3-D fashions and exterior views
Neighborhood and native faculty scores
Insurance quotes, title experiences and property inspection and valuation
Current tenant cost historical past and lease particulars
Interactive return and price estimate calculation instruments

3. Make an Offer
It will value you nothing to submit a proposal on a property. However, in case your provide is accepted, Roofstock expenses a market price of $500 or 0.5% of the contract worth, whichever is greater. The price covers the prices of transaction administration companies, underwriting and certification companies.
You could make a proposal on Roofstock by going by means of what’s known as Open House, or you will get pre-approved by a lender.
On Open House, you possibly can:

View new unique listings
Get an early-bird have a look at properties
Make a proposal inside the first 24 hours of a brand new itemizing

If you select to finance your property buy, you will get pre-approved by a lender. Doing so offers you a bonus over patrons with related gives and no proof of funds.
4. Close
Roofstock’s service and transaction staff works with patrons all through the complete means of escrow and shutting. For money purchases, you possibly can count on to shut inside 15 days. If you’re financing your buy, it is going to take about 30 days.
Selling on Roofstock
Investors select Roofstock to promote rental properties, to maintain present tenants and earn steady rental earnings by means of closing. The Roofstock market is engaging to sellers due to the considerably decrease charges than what actual property brokers cost at conventional mortgage brokerages.
You can observe this straightforward four-step course of to promote your property on Roofstock.
1. Submit a Listing.
Enter your property info, reply some questions on your property and add some photographs of your property. Based on the knowledge you present, you’ll obtain a worth estimate at no cost.
2. Obtain a Roofstock Certification.
Roofstock takes care of getting ready your property for itemizing and sale. It arranges the property inspection, orders a preliminary title and different relevant paperwork for the assured sale of your property.
3. Launch Your Listing
Roofstock creates an interesting itemizing on your property, which incorporates all related paperwork. It publishes your itemizing to world buyers on the Roofstock market for max publicity.
4. Receive Offers and Close
All gives in your property are obtained on the Roofstock market. Review your gives, settle for a bid and Roofstock coordinates the closing course of from starting to finish. Within 30 days of signing the acquisition and sale settlement, your transaction will likely be full.
Who Should Invest in Roofstock?
Investors who’re involved about financial downturns and market volatility is likely to be significantly occupied with investing with Roofstock. The SFR market is a substitute for the inventory market within the occasion of a recession.
Property Management Services
Roofstock buyers can have the satisfaction of being property house owners with out the complications that include being a landlord. Roofstock’s property managers save buyers time by dealing with the day-to-day property administration operations.
The firm takes care of property upkeep and repairs, and it communicates with tenants, guaranteeing that funding properties are protected and safe. The property administration service is straightforward:

How The Service Works

Roofstock connects buyers with its staff of most popular property managers.
Investors choose the property supervisor that fits them and their wants finest.
The chosen property supervisor works instantly with the investor and renter to be sure that issues run easily.

Roofstock Buyer and Seller Fees
Purchasing property on Roofstock is free. If you make a proposal and it’s accepted, Roofstock will cost a price of $500 or 0.5% of the contract worth, whichever is larger. The price covers the prices of underwriting, transaction administration companies and certification companies.
Roofstock doesn’t cost a price to checklist your property on {the marketplace}. However, should you checklist your property and it’s bought, you can be charged $2,500 or 3.0% of the sale worth, whichever is greater. Compared to the 6% usually charged by actual property brokers for conventional brokerage, Roofstock’s charges are comparatively low.
Minimum Required Investment
There’s no minimal required funding with Roofstock in addition to the value you pay to buy a property on Roofstock’s market. However, if shopping for shares of leases, buyers must have at the very least $5,000.
Roofstock vs. Competitors
Roofstock gives related companies as different actual property marketplaces. Here’s how two of the crowdfunding opponents evaluate with Roofstock.

Roofstock
Fundrise
Crowdstreet

Fees
$500 or 0.5% of buy worth
1% (plus $125 for IRAs)
0.50% to 2.5%

Investment Options
SFR
Electronic actual property trusts (REITs), IPOs
Single-sponsor actual property funds, managed portfolios

Minimum Investment
$0 ($5,000 for Roofstock One)
$500
$25,000

Roofstock Mobile Experience
Roofstock has a fairly strong web site that’s loaded with info and subjects of curiosity for rental property buyers, patrons and sellers alike.
Although Roofstock doesn’t have a cell app but, {the marketplace} companions with Stessa, which is a cloud-based platform, making it simple for buyers to trace rental earnings, bills, leases and different property-associated info.
Stessa is free for Roofstock buyers to make use of and is accessible on the net and in addition on iOS and Android cell apps.
Risks of Investing in Roofstock

Non-accredited buyers haven’t any choices for passive or automated investments.
Actual property funding might value greater than REITs.

Editor’s Favorite
If you’re searching for a brand new technique to spend money on your future by means of actual property, then you need to take into account giving Roofstock a attempt.
Final Take
With Roofstock, you should buy and promote rental property any time, anyplace. Roofstock offers a way to construct wealth by means of actual property and to make it easy and handy for any investor.

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About the Author

‌Kathy Evans is a private finance freelance author and entrepreneur with a technical writing and educational methods design background. She holds an MS in technical writing and informational design and is at the moment a doctoral pupil in educational know-how at Towson University. Through work expertise within the federal authorities in addition to business and nonprofit industries, she has centered her freelance writing on finance, investing and financial content material with a specialization in finances teaching.  

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