Actual Property Investing Made Simple

Actual property investing could be intimidating to new buyers – you have to seek for the precise property, acquire financing, buy the property, after which discover tenants. Quite a bit can go incorrect, from shopping for a property with structural points to challenges with discovering the perfect 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 houses with out leaving your private home. Roofstock desires 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 houses. {The marketplace} is free, giving anybody entry to discover and browse properties. 

The Roofstock Market permits actual property buyers to seek out important data 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 fundamental applications, every differing based mostly 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 way of a strict course of. 

This market lists properties based mostly in your most popular standards, like location, neighborhood ranking, itemizing worth, and extra. You too can 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 ultimate 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 buyers who don’t need to buy a whole property. The minimal quantity to get began is $5,000, and customers can purchase a 1/tenth share of among the properties on {the marketplace}. Roofstock One is right for those who don’t need the burden of carrying the whole property mortgage alone. 

Roofstock One supplies two funding choices:

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

Each choices will allow you to keep away from the dangers related to dwelling possession, and also you received’t have to fret about placing your title on a mortgage. Roofstock One permits buyers to make customized decisions 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 at the least 5 years, so that you have to be affected person. 

Roofstock Institutional Providers

Screenshot of Roofstock Institutional services website landing page

Roofstock Institutional Providers is an end-to-end answer for buyers with extra capital who need to scale their portfolios. They provide these providers for giant buyers and establishments and embody the next advantages:

  1. Acquisition: This consists of market evaluation, underwriting, and rehab administration. 
  2. Transaction administration: You may obtain native market data, supply administration, and full transaction providers.
  3. Property administration: This covers advertising and marketing, tenant relations, repairs, upkeep, and building administration.
  4. Portfolio administration: You get reporting, accounting, oversight, and proposals.
  5. Disposition: This covers technique advice, a multi-channel exit technique, and portfolio disposition. 

Lets’ take a more in-depth take a look at another noteworthy providers Roofstock gives its customers:

Retirement Accounts

Screenshot of RoofstockOne landing page

You may spend money on actual property by way 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 executed, the IRA turns into the holder of your title report, which means the earnings 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 objective is to have a one-stop useful resource for all actual property buyers. There’s entry to a non-public 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 function connects you with a licensed agent who will allow you to resolve on which property to spend money on and how you can make an knowledgeable supply. 

This instrument is price contemplating for those who’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 the whole 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 houses. From there, you’ll be able to filter your analysis by

  • Newly Listed 
  • Neighborhood ranking
  • Greatest faculties
  • A number of items
  • Pre-inspection
  • Greater yield

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

You too can resolve what number of Roofstock providers you need to use. You may faucet into Roofstock for financing and property administration, or you should utilize the platform to seek out tenant-occupied funding properties on the opposite facet of the nation. With so many providers supplied, most buyers 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, for those who shut on a property, you’ll pay 0.50% of the contract worth or $500, whichever is larger. If you promote a property by way of Roofstock, you pay an inventory payment of three% or $2500, whichever is larger. Keep in mind to acquire an correct valuation of your private home earlier than you checklist.

Accredited buyers pays asset administration charges of roughly 0.50% (and up) after they make investments by way of Roofstock One.

The right way to Get Began With Roofstock Market

Roofstock gives completely different choices for property consumers and sellers. In the event you’re prepared to take a position with Roofstock, create your free account and start your search. 

Step 1: Seek for your property.

Customized filters help you discover a property based mostly on the worth, anticipated return, location, and extra. You may even join alerts when a property that matches your standards comes available on the market. With hundreds of properties listed on its market, Roofstock will possible have one thing for everybody.

Step 2: Analyze the property.

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

  • Flooring plans and photos: You too can get a 3D tour and curb view.
  • Property inspection and valuation: This consists of 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 data: what sort of tenants you inherit. 
  • College and neighborhood rankings: You will get an correct image of the group you’re investing in.
  • Native choices for property administration providers: You should utilize one in all Roofstock’s property managers to deal with all the things and be a hands-off investor.

Step 3: Make a suggestion. 

You may submit a suggestion on Roofstock without spending a dime 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 function the place you get an unique take a look at properties on the platform. You’re allowed to assessment and submit a suggestion 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 beneath 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 area. Buyers have extra choices than ever earlier than, making it troublesome to decide on one platform over one other. Listed here are some advantages of selecting Roofstock over opponents in the true property area.

Free to begin

You may browse properties without spending a dime 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 cost and the anticipated annual return). 

Eliminates the stress of discovering tenants

Being a landlord could be anxious. 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 for those who can not discover a tenant inside 45 days, the corporate pays 75% of the market rental fee for as much as six months or till a brand new tenant is discovered. 

Supply detailed inspections and studies

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 true property market is sizzling sufficient. 

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

Easier financing for rental properties

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

Roofstock Alternate options

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

However Roofstock One, which lets buyers purchase into portfolios of single-dwelling residences, is just out there to accredited buyers. Fundrise and RealtyMogul are two Roofstock options price contemplating for those who’re searching for a REIT-style funding choice.

Fundrise

With Fundrise, you’ll be able to spend money on residential and industrial 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 prices an annual payment of 1% of your general portfolio worth, which is affordable for the asset class. Study extra in our Fundrise assessment.

RealtyMogul

Los Angeles-based RealtyMogul provides non-accredited buyers 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 Revenue REIT or the RealtyMogul Condominium Development REIT. As well as, RealtyMogul permits accredited buyers to spend money on non-public placements. RealtyMogul charges are just like Fundrise, at 1 to 1.25%. For extra data, try our RealtyMogul assessment.

What Are The Professionals and Cons of Roofstock? 

Professionals

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

Cons

  • REIT choice is proscribed to accredited buyers (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?

The Roofstock Market is right for real estate investing beginners searching for a simple approach to get began shopping for or promoting particular person actual property. Roofstock is inexpensive, straightforward to know, and shares all of the related property data with you.

On the flip facet, for those who’re serious about actual property crowdfunding choices as a non-accredited investor, Fundrise or RealtyMogul might be extra appropriate than Roofstock One, which is open to accredited buyers solely.

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