2022 Roofstock Review • Single Family Rental Broker • Benzinga

The group-sourced actual property funding market has exploded with dozens of recent brokers over the previous few years, however none of them function fairly like Roofstock. As the primary actual property market to focus solely on single-family properties, Roofstock brings affordability and transparency to a sector that desperately wants it.  For too lengthy, actual property has been an illiquid and nebulous market. With Roofstock, you’ll get readability, consistency, and — most significantly — fast revenue.

Who’s Roofstock for?

Roofstock is a market that brings actual property patrons and sellers collectively. Certain, there’s plenty of crowd-sourced actual property investing marketplaces on the market, however Roofstock is totally different. For starters, there’s no crowdsourcing. Once you purchase a property on Roofstock, you aren’t handing cash to a developer or LLC such as you do with Fundrise or CrowdStreet. You personal it and also you’re entitled to all the advantages of possession. In fact, possession has its downsides too, however Roofstock offers buyers distinctive actual property alternatives with out involving brokers or middlemen.

Roofstock is terrific for newbies to the sector since they haven’t any guidelines relating to accredited buyers. Most actual property marketplaces solely enable accredited buyers to make purchases, which normally means having a $1 million internet value or a $250,000 annual wage. As an alternative, Roofstock permits nonaccredited buyers to purchase properties with no minimal buy worth. This makes the corporate ultimate for millennials and youthful buyers who wish to personal rental properties however can’t pony up the funds wanted for accredited standing. Roofstock will even set you up with a lender if you wish to purchase property with a mortgage.

Simply bear in mind, possession comes with totally different perks and downsides. Sure, your tenant will probably be paying hire that goes straight into your pocket, however they’ll additionally count on immediate repairs if the heater or dishwasher breaks. If you happen to can’t afford the providers wanted for widespread repairs, you can rapidly end up in authorized bother. 

Discovering an acceptable funding property with Roofstock is as straightforward as looking for a brand new pair of headphones on Amazon. Potential buyers can navigate the total docket of Roofstock properties from the primary web site. You’ll be able to view particular person properties or portfolios of properties, sorted by plenty of totally different classes.

In search of a particular sq. footage? Roofstock will enable you to slender your search. You’ll be able to view properties based mostly on location, listing worth, month-to-month hire, gross yield, cap price or annual appreciation. All properties listed have the 12 months constructed, sq. footage and neighborhood ranking proper on the thumbnail.

When you click on on a property, you’ll have entry to plenty of instruments, together with money stream and appreciation estimates. The Monetary Spotlight snapshot tells you the annual hire, bills, and property taxes to formulate an anticipated money stream determine. Need to see how a lot you possibly can count on the house to understand in 30 years? Roofstock lets you lengthen the evaluation out a long time with charts exhibiting cumulative money stream, appreciation and fairness.

When you’ve reviewed a number of properties and selected an acceptable buy, you possibly can provoke the purchase course of by contacting the property proprietor and selecting a property administration group. Roofstock works as a dealer to make sure a clean transition and your administration group will make certain the property is as much as normal for tenants. 

Every property listed on Roofstock meets particular standards to make sure high quality and dependability. Unoccupied properties include a 90-day rental assure and inspection information can be found. Roofstock supplies an intensive evaluation of every property, extending far past the easy money stream estimates.

The very first thing you’ll discover within the property evaluation is the due diligence reviews. These embody title paperwork, valuations and inspection reviews. For instance, this property in Alabama has 3 totally different inspection reviews, which discovered all the things appropriate besides some bogs in want of restore. If the property is occupied, you’ll obtain information about lease size, safety deposits and late funds. 

Need to study extra in regards to the space? Along with a star ranking, Roofstock lists colleges within the district, median revenue and residential values, and employment statistics of the neighborhood. Additionally they provide a coaching course referred to as Roofstock Academy. For a one-time payment, Roofstock Academy members get entry to academic supplies and lectures about the true property market and proudly owning property. You’ll get one-on-one teaching periods, entry to the Roofstock group Slack channel, a personalised funding playbook and $750 in Roofstock market credit score. 

If you happen to don’t wish to shell out the value for the programs, Roofstock has a terrific weblog protecting subjects like funding methods, market developments and property possession suggestions and tips.

Shopping for a single-family house the old style means carries a whole lot of charges. The brokers take their lower, the financial institution takes its lower, even the federal government will get in on the motion. However the fantastic thing about on-line marketplaces is their capacity to cut back charges, and Roofstock buyers get an incredible deal in comparison with extra conventional counterparts. 

The platform must generate income, so some charges do apply. Nevertheless, they cost a lot lower than conventional brokers. In truth, they’re one of many extra modestly priced actual property marketplaces round. Roofstock prices a market payment, which is both $500 or 0.5% of the contract (whichever is increased). You’ll nonetheless pay closing prices, and in the event you use a Roofstock property administration group they’ll should be paid.

Sellers additionally pay a payment, a stiffer one. If you wish to see your private home on Roofstock, you’ll be hit with a $2,500 or 3% payment, whichever is bigger. The vendor’s payment is decreased in the event you personal a number of properties, for instance, an proprietor of 6 properties solely pays 2.75%. Once more, closing prices nonetheless apply. Whereas the charges are comparatively inelastic, the price of proudly owning and sustaining a house varies relying on the property. Be sure you learn every monetary assertion totally and perceive the true prices of upkeep, taxes, and insurance coverage.

Roofstock takes shopper safety very significantly. All private information is encrypted and bank card processing is finished via BrainTree, one of many business’s prime processing platforms. No private data is ever offered to a 3rd social gathering.

Solely 15% of candidates’ properties are accepted following Roofstock’s rigorous verification course of. Roofstock-certified properties are evaluated by veteran actual property inspection distributors. If a property is listed on Roofstock, you possibly can really feel secure understanding the inspector discovered no proof of water harm, structural decay, pest infestation or defective wiring. If repairs are wanted, they need to not exceed 15% of the itemizing worth.

One among their finest options is the purpose of shopper satisfaction. Unoccupied properties include a rental revenue assure: Roofstock pays 75% of the market price hire if no tenant has moved in inside 45 days. Moreover, all properties have a 30-day money-back assure. If you happen to now not want to personal the house you bought, Roofstock will relist it without spending a dime and refund your cash regardless if the property resells for much less after relisting.

Roofstock could be contacted through its web site, cellphone or electronic mail. You’ll be able to name Roofstock straight or use its chatbot to schedule a cellphone assembly with an advisor. Utilizing the chatbot lets you categorize your required assembly into 4 classes: 

• New shopper orientation (group session)
• Buyers actively in search of properties (30-minute name)
• Buyers inquiring about particular properties (15-minute name)
• Property homeowners trying to promote

There’s no stay chat function, so getting fast solutions requires a cellphone name to the 800-number listed on Roofstock’s Contact web page.

If you happen to’re in search of a various portfolio of residential and business properties, Roofstock won’t be the platform for you. Roofstock concentrates particularly on single-family rental properties — no enterprise properties or scholar housing. By specializing in this one area of interest in the true property market, Roofstock is ready to present higher and extra handy service to shoppers. Plus, you don’t have to fret about any pesky accredited investor guidelines. 

Roofstock buyers nonetheless have choices on the subject of shopping for property. {The marketplace} at present lists over 450 totally different obtainable properties in dozens of markets. Roofstock has listings positioned from New Jersey to Minnesota to Texas. Moreover, Roofstock gives property portfolios. Every portfolio is positioned in a particular area and consists of wherever from 2 to 100+ properties. For instance, a portfolio in Memphis, Tennessee, accommodates 2 properties valued at a mixed $102,000 whereas one other portfolio in Gainesville, Florida, accommodates 20 totally different properties valued at $3.2 million.

Lastly, Roofstock does function a shares investing program, however solely accredited buyers can take part. Referred to as Roofstock One, this system permits buyers to purchase fractional shares in single-family properties. Shopping for fractional shares of possession permits buyers to diversify throughout a number of areas with out worrying in regards to the day-to-day enterprise transactions and upkeep required to maintain a rental property. Buyers should buy a share value at the very least 10% of the property worth.

Roofstock will get excessive marks right here due to its simplicity and transparency. If you happen to can navigate a Google search, you possibly can navigate the Roofstock market and seek for applicable properties. The superior search capabilities allow customers to get rid of properties that don’t match their standards, presenting solely the very best choices for every investor. The monetary information is expressed in clear and elementary phrases. You received’t be slowed down going via statements as you peruse your decisions, however all the main points can be found when you create an account. 

Roofstock supplies entry to actual property for a lot of buyers who beforehand have been neglected within the rain. By opening its doorways to nonaccredited buyers, Roofstock permits youthful generations to expertise rental property possession with out leaping via hoops. Specializing in single-family properties streamlines the method and simplifies the association between proprietor and tenant.

You’ll have to put aside money to fund repairs and taxes, however Roofstock’s property administration groups deal with the each day operations — you simply gather hire and pay for repairs when wanted. Proudly owning property (particularly single-family properties) is a good way to diversify your capital away from the inventory market whereas netting month-to-month revenue.

Methodology

To assessment Roofstock, Benzinga took into consideration the next options and attributes: choices, charges, safety, cellular app, ease of use and buyer help. Every class was given a price between 1 and 5 on a weighted scale. The Total Ranking was decided by the mixture ranking from every class depending on the pre-determined weight every class holds.