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The Roofstock Review


The Roofstock Review 03.09.2019Leave a comment
The Roofstock Review
Questions and Answers
When was founded?
in 2014
How many employees?
150 employees
Who founded Roofstock?
Gary Beasley, Gregor Watson, Rich Ford
Monthly Visits
220.000 (SimilarWeb)
Revenue
$14 million
Platform
Web
Website

What is Roofstock?

Are you thinking of making an investment in rental property? Roofstock is an online marketplace where you can find the perfect property to invest in. The website does its operational activities by concentrating on the single-family rental sector.

Basically, you are buying and investing in the property, which already has a family living in it. The CEO and co-founder of Roofstock, Gary Beasley, notes that their users are not buying houses to live in it; they typically invest in an asset and receive a rental income.

So, this makes Roofstock’s target market, not the people who are looking for houses to live in, but the ones who want to receive income via rental property.

Unlike many websites you would find turnkey rental properties, Roofstock does not actually own any of the listed properties in their platform.

Roofstock
Roofstock

What they do is they evaluate, negotiate, and close the deal for you. They focus on practical and transparent transactions. To provide total confidence to their users, Roofstock has a guarantee for you to have confidence in what you are investing in.

The details of the guarantee will be presented further in the article.

The revolutionary aspect of this platform is that investors have the opportunity to treat real estate assets as stock portfolios, focusing on the allocation of their assets, rather than doing property management.

Guarantee Page
Guarantee Page

Roofstock Features

With Roofstock you can buy and sell property 100% online. It enables you to filter out the criteria you need to find the real estate you’re looking for.

You can review the details and learn more about the property by looking at property inspection and valuation reports, current lease, tenant details or payment history, and even neighborhood and local school ratings. When you have chosen the property you want to invest in, you should start the check-out procedure.

If your offer is accepted, the platform charges a commission of 0.5% for at least $500. The final phase is the closing, and it may take up to 15 days.

During this time, the platform guides you through the processes of selecting your partner and finalizing the deal.

Roofstock.com
Roofstock.com

Buy at Roofstock

Roofstock allows you to choose how you are going to invest in property. If you prioritize ownership based on interest on appreciation or higher yield, you can simply select the criteria, and the platform will show you the most suitable options.

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Buying at Roofstock
Buying at Roofstock

 

Roofstock ensures you are happy with your purchase. However, if you are not satisfied with your investment, you can notify Roofstock within 30 days and they will re-list the property in the platform. Whenever, the property in one sale, they will refund the initial amount you have invested. If by any chance, no one buys the house within 90 days, Roofstock itself will buy it and give you the money back.

When you purchase the property, you should keep in mind that you are responsible for costs of ownership such as insurance, property management fees, etc.

Certified Real Estate

When listing the property on the platform of Roofstock, it should be certified. First of all, the property must be inspected by independent professional evaluators prior to listing it on Roofstock. Other necessary information which is included in the description are photos of the property, floor plan, and title report.

Roofstock works based on its mission to provide a trustworthy network for their investments. Even when sellers want to list their property on Roofstock, the platform may refuse to many if it thinks the real estate is not in line with the company standards or if the price is set too high.

 For Sale Page
For Sale Page

Sell at Roofstock

If you want to market your property to a vast network of investors, Roofstock is the right platform for you. Regardless of being accredited or not, the website is accessible to all potential investors, to research and find the most suitable house for them.

So, if you are selling your house, be sure that the market is not limited. The first step for you to make is to register and input the information about the property you want to sell.

Sell Property Page
Sell Property Page

The platform will be able to generate a free valuation report. When you receive the valuation report, you can determine the right price that would attract investors. Roofstock also collects inspection reports, leasing information to attract potential buyers of your property. Management of your listings is done entirely online.

So, once you have accepted the bid, the platform will close the deal and make the transaction within 30 days.

Why invest with Roofstock?

Real estate is already inspected

If you want to invest in real estate, the first and foremost step should be monitoring and ensuring the constant cash flow you will get. The good thing about Roofstock is that the houses have already been inspected and it will save you more time and money.

Inspected
Inspected

The houses already have people living there

When you invest in any property, you want to ensure your cash flow will be constant and received as soon as possible. As the houses are already being rented, your money will be collected immediately.

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To the question, whether the buyer can ask the residents to move out from the home, CEO and co-founder Gary Beasley answered that none of their investors are looking for a house to live in, they are merely making a long term investment which would ensure them consistent cash flow.

This statement also clarifies the mission of the platform saying that if you are looking for a house for your primary residence, this is not the right place for you.

However, if you think of diversifying your portfolio with one of the fastest-growing industries in the U.S., you are on the right spot.

Accessible Database

The platform is easy to use, and it presents all the information you need to make a sound decision. When buying the property, you are given an opportunity to check all the boxes you are interested in.

Let’s say you are interested in higher yield or higher appreciation, and the website has already grouped all the available items suitable for those criteria. You can also choose the location, price range, and monthly rent you are looking for. Overall, users are delighted by the way the website is constructed; it’s very flexible and easy to use.

Marketplace
Marketplace

Low Fees

The marketplace fees are less on Roofstock compared to other real estate agencies. As already mentioned, the website charges 0.5% from buyers and 2.5% from sellers.

You DO NOT have to be an accredited investor

You don’t have to make $200,000 annually or have a net worth of $1,000,000 to be able to use this platform. The website is available for every potential investor who wants to diversify their portfolio.

30-day guarantee

By offering you a 30-day guarantee, Roofstock shows how confident they are about the listed property. Note that even if the house is not sold within 30 days of being on the platform, the website will purchase it and reimburse you the initially invested amount.

Be up to date with Roofstock

One of the most significant features Roofstock provides its users is the Roofstock blog. Here you can learn many interesting facts about the economic conditions of the real estate market and be informed about recent changes.

Blog Page
Blog Page

On the display of the page, you can see the trending posts in the blog. As for now, it is 45 Fascinating Real estate facts and Stats for 2019. It includes much interesting information, and here are 10 of them:

  1. The prices of houses increased by 7.2% in the last year
  2. The average rate of rent per night in the U.S. is $217
  3. 91 out of 100 top housing markets have noticed an increase in the price of rent since last year.
  4. Millennials will account for 45% of mortgage creditors in 2019
  5. For 78% of the buyers, neighborhood quality is prioritized over home size. Note that in the buying section, Roofstock provides information about neighborhood quality as well.
  6. According to Realtor.com, 2020 is expected to be the peak of Millennials’ home buying.
  7. 36.6% of the U.S. households are renting
  8. According to VRMA, short term rental market was valued $100 billion in 2016 and $167.9 billion in 2019
  9. The average holding days in the market before the offer is accepted is 40 days.
  10. Twelve million of the U.S. homeowners spend more than half of their income on rental expense.
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The data illustrates how important is the role of the real estate market in the current economic well being of the U.S., it represents one of the major industries in the overall economy and is expected to grow at an even faster rate.

So, if you are looking for a long term prosperous investment, the real estate market is what you should consider.

The idea of Roofstock has inspired many articles on popular websites and magazines. An article published by  Forbes lists the advantages of Roofstock. One of the greatest benefits of the site is the money-back guarantee.

Forbes
Forbes

The good thing about this feature is that you have absolutely no risk of not getting your money back. If the house you have invested in is not resold on the platform within 30 days, Roofstock will buy it. No matter if the new investor paid more or less, you are going to receive the exact amount you have initially invested. The CEO and co-founder Gary Beasley explains that there are no strict regulations requiring them to apply this feature; they are doing this simply because they want to ensure users’ trust towards the platform and their comfort while using it.

One of the most recent articles about Roofstock has been published in Bloomberg. According to it, the number of investors in Roofstock has increased by 126% from 2017 to 2018.

As of June 2019, Roofstock continues growing faster and attracting even more users. The interesting fact is that 75% of Roofstock users are beginners in investing in the real estate sector.

Bloomberg
Bloomberg

The growth in this sector is undeniably fast as nowadays, most of the investors are willing to make more than $100,000 transactions in the marketplace. According to Gary Beasley, their mission is to democratize real estate investment. This platform is perfect if you want to earn income via the Single-Family rental (SFR) sector. By offering you data analytics, property management, and other tools, Roofstock is the perfect platform for you to buy, own and sell real estate entirely online.

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According to Crowdfund Insider, as of July 16, 2019, Roofstock tops $1.6 billion in transactions. Roofstock also reports that the majority of the listed properties on their website sell in less than 15 days.

Crowdfund Insider
Crowdfund Insider

For now, the platform offers real estate in the regions of Atlanta, Dallas, Houston, Indianapolis, and hopefully will enlarge its market to other regions as well. CEO and co-founder Gary Beasley says that real estate is a very powerful path of building wealth, so they are minimizing the costs and driving greater accessibility of effective and transparent investments.

Listenmoneymatters.com has referred to Roofstock’s case as well. According to the article, there are 450 properties available on sale as of August 7, 2019. This is the most significant amount of turnkey properties that were found out during the research of Listenmoneymatters.com. Currently, Roofstock has properties in 35 markets and expands it rapidly.

Listen Money Matters
Listen Money Matters

The good thing about the website offers is that the prices are already negotiated and the immediate cash flow is guaranteed because the tenants already live there.

After the transaction, the site also ensures that everything goes well, whether the transaction was completed with no technical difficulties or whether you have already received your first month’s rent. All in all, the platform is perfect if you want to diversify your portfolio with the real estate market and have a passive income.

Roofstock earnings

The platform is free to join, and you can sign up even if you are not an accredited investor. Roofstock makes money by charging a small marketplace fee on both buyers and sellers in the platform.

Even though there are no membership or subscription fees, the platform charges a 2.5% commission from sellers and 0.5% from buyers.

The website offers fewer costs than you can get with traditional real estate agencies, which typically charge fees at 6%.

How It Works
How It Works

Wrapping up

The demand for the single-family rental market is increasing at a rapid rate. One of the vivid illustrators of rapid growth is that from 2005 to 2015, 56% of the gains in rental housing stocks were due to the Single-Family Rental industry.

The number speaks for itself; the SFR sector is growing rapidly and ensures consistent returns on your investment. When you think of a long term investment, real estate is the sector you should definitely have in mind.

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If you are interested in the turnkey project of single-family rentals, then Roofstock is the right place for you. For either side of the contractor, the website provides accurate and efficient terms. It means, in any case, the transaction is a win-win. Buyers have great access to the rental properties in many states, choose the price range and monthly rent they would get.

Most importantly, one of the hardest things while deciding where to invest in the market research part. Roofstock has a solution for that too. They only put the houses which have been monitored and go in line with their standards. With these features in the rental market, investors will have great opportunities in terms of return on investment.

On the other hand, for sellers, this is an excellent platform to find investors who are interested in their properties. The information that the website provides to its potential investors has a very detailed and accurate description for them to make a sound decision.

By trusting this platform, you ensure your stable financial future, immediate cash flow; as the houses are tenant occupied and allow you to have a diversified portfolio. Make sure you are aware of market details and single-family rental investments and start your journey with Roofstock.com.

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Andrei Shilkov

Blog author. I am well versed in Finance and Digital Marketing. I have two bachelors degrees in Finance. Born in Russia, but later moved to the USA, to western Pennsylvania, the city of Pittsburgh. I have a Certified Public Finance Officer (CPFO) certificate. I also worked at IRS and Microsoft.

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