Luis Pazos 
I’ve been investing with Fundrise since 2018. Important note: using my link for sign-up earns me a commission, but all opinions here are my own.
Getting started with real estate investing can be overwhelming, especially for newcomers. You have to find the right property, secure financing, make the purchase, and then manage to find tenants. A lot can go wrong — from unknowingly buying a damaged property to struggling to find good tenants. Real estate investing is demanding and risky, and not everyone has the time or tolerance for such risks. That’s where Roofstock comes in. Roofstock is a platform that lets you invest in single-family homes without ever leaving your house. It aims to help anyone become a real estate investor, no matter where they live.
About Roofstock
Founded in 2015 by Gregor Watson, Gary Beasley, and Rich Ford, Roofstock aspires to build the best real estate investing marketplace in the world. Specializing in single-family home sales, the platform offers a free marketplace where you can browse and explore properties. Roofstock aims to make real estate investing more accessible and straightforward, having facilitated over $5 billion in transactions across more than 70 markets.
What Does Roofstock Offer?
Roofstock provides three main programs tailored to various investment amounts and experience levels in real estate.
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Roofstock Marketplace
This is an online marketplace where both buyers and sellers can list their properties. Roofstock applies a strict vetting process to its listings, which can be filtered based on your preferences such as location, neighborhood rating, or price. You can even find tenant-occupied properties, and if you sell a home here, the only fee is a final 3% sale charge. -
Roofstock One
This option is for accredited investors who want to buy shares of properties rather than entire homes. Starting with a minimum of $5,000, you can invest in 1/10th shares of certain properties. This way, you avoid the full burden of a property loan. Roofstock One offers two investment options:- Tracking stock: Provides exposure to multiple properties and markets.
- Common stock: Broad exposure to all homes in the Roofstock One REIT.
These options help you sidestep the risks of full property ownership and avoid mortgage worries. However, note that these investments are highly illiquid and require a minimum investment horizon of five years.
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Roofstock Institutional Services
Designed for large-scale investors and institutions with significant capital, this service includes market analysis, underwriting, rehab management, transaction services, property management, portfolio management, and exit strategies.
Additional Services
- Retirement Accounts: You can invest through your retirement account thanks to Roofstock’s partnership with New Direction Trust Company, making rental income tax-deferred.
- Roofstock Academy: This educational course teaches everything about real estate investing and includes access to coaching and resources.
- Shop With an Agent: Helps you connect with certified agents who guide you through investing decisions.
How Does Roofstock Work?
Roofstock simplifies real estate investing. You can browse properties on the platform without signing up by clicking the “Properties” tab. Filter options include newly listed, neighborhood rating, best schools, multiple units, pre-inspection, and higher yield. Detailed property information helps you make informed offers, and you can use Roofstock’s services for financing and property management.
Roofstock Pricing
There are no fees to sign up or browse on the Roofstock Marketplace. Upon closing a property deal, you pay 0.50% of the contract price or $500, whichever is greater. When selling a property, you will pay a listing fee of 3% or $2500. For Roofstock One investments, accredited investors pay asset management fees starting at approximately 0.50%.
Getting Started with Roofstock
To begin investing, create a free account on Roofstock:
- Search for Your Property: Use custom filters to find properties that match your criteria.
- Analyze the Property: Get detailed information like floor plans, inspections, and financial details.
- Make an Offer: Submit offers free of charge until they are accepted.
- Close the Property: Roofstock’s team guides you through escrow until the property is yours.
Roofstock Advantages
- Free to Start: Browsing properties and accessing reports is free.
- Stress-Free Tenant Finding: Buy tenant-occupied properties and assume existing leases.
- Detailed Inspections and Reports: Obtain property details before purchase.
- Simplified Financing: Easily compare third-party loan options.
Roofstock Alternatives
Roofstock is unique in allowing non-accredited investors to buy and sell tenant-occupied homes for a lower cost. For accredited investors, Roofstock One is an option, but for non-accredited investors looking for REIT-style investments, consider alternatives like Fundrise or RealtyMogul.
Fundrise: Invest in real estate portfolios with a minimum of $10. Learn more in our Fundrise review.
RealtyMogul: Offers REIT portfolios for a minimum of $5000, plus private placements for accredited investors. Learn more in our RealtyMogul review.
Is Roofstock for Me?
Roofstock is ideal for beginners in real estate investing who want a straightforward way to buy or sell properties. It’s user-friendly and provides detailed property information. For non-accredited investors interested in real estate crowdfunding, alternatives like Fundrise or RealtyMogul may be preferable.
If you’re keen on real estate from afar, a trusted platform that handles the vetting process can be invaluable.
Summary of Roofstock
Roofstock is revolutionizing real estate investing by making it easy to buy and sell rental properties remotely. Whether you’re a novice or experienced investor, Roofstock offers vetted properties with comprehensive data to help you make informed decisions, all while simplifying the process with transparent and user-friendly features.
Overall Pros:
- Saves you time by doing the research.
- Often has properties with tenants already.
- Competitive transaction fees.
- Open to non-accredited investors.
Overall Cons:
- REIT option is limited to accredited investors.
- Investments are illiquid.
- The marketplace can be competitive.
