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Roofstock wants to make buying and selling investment properties as easy as Robinhood made buying and selling shares of stock. They state that their company’s mission is to “make ownership of investment real estate radically accessible, cost-effective and simple”. Since real estate investing has traditionally been reserved for people with access to money, financing, and know-how, Roofstock could potentially make real estate investing accessible to millions of people.
The company was founded in 2015 but has already surpassed $4 billion in transactions (properties bought and sold on their platform). Roofstock has been featured in Tech Crunch, Wall Street Journal, and CNBC.
Roofstock is the #1 marketplace for buying and selling investment properties. They make it incredibly easy for sellers to list properties for sale and for buyers to browse and buy investment options. The ability to buy properties that already have a lessee is a main selling point of the platform. Since one of the main risks of buying real estate is not being able to rent it out quickly after purchasing, this solves a major problem for investors.
Roofstock is still growing but currently has properties listed for sale in 27 states. The company itself has been recognized with several awards, including Benzinga Best Real Estate Platform, Finovate Best Alternative Platform, and Forbes Fintech 50 Most Innovative Companies.
Roofstock offers a slew of valuable services, but their main three are:
Roofstock makes it incredibly easy if you want to post a property for sale on their site:
Since Roofstock helps beginners get into real estate investing, the company has gone above and beyond to provide educational material. This includes a podcast, blog, knowledge center, rental calculator, and even financing calculator that can connect you with an experienced lender if desired.
It is free to make an account on Roofstock, and their fees are competitive and transparent. Here is a breakdown of fees:
All investment platforms have pros and cons based on what you are looking for as an investor. In many situations, a feature that one investor considers a pro might be considered a con by another investor.
Let’s review the potential pros and cons of using Roofstock’s platform.
Roofstock does not make any claims of potential returns on its website. However, since they provide you with things like the net operating income, the asking price, and the current rent, you may be able to calculate what your anticipated return will be based on how much money you put down to buy the property.
It is always a good idea to do your own due diligence and not take the stats on their site as your only source. Doing your own due diligence can alert you to deals that might be less rosy than they appear to be. On the flip side, it can also bring prime deals to your attention that might not seem so great on the surface.
The average return of real estate depends on the type of property you purchase and the type of financing you use. However, according to Mashvisor, the average return of real estate in the U.S. is 8.6%.
The biggest risk associated with using Roofstock’s platform is that it is still fairly new. Although everything seems very legitimate, they have an incentive to get as many properties listed and sold on their platform as possible.
There are also risks inherent in real estate investing that you should be wary of. At any moment, the market could turn and leave the property you purchase to be worth less than you bought it for. There is also the risk that a tenant could move out and cut off your cash flow for several months. These types of risks are outside of Roofstock’s control.
After thoroughly examining its platform, Roofstock is trying (and so far succeeding) in bringing groundbreaking change to the real estate investment industry. Their platform is still young and, while expanding, is primarily focused on single-family rental real estate. However, as they start to gather more listings, they will likely become a household name.
If you are new to real estate investing and would prefer that someone guide you through the process, then Roofstock is a great option for you. If you are a seasoned real estate investor who has had no problem identifying and buying your own properties, you will probably benefit from using Roofstock’s platform for their proprietary data and analysis, management resources, and selling your property.
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