Roofstock Review 2024: Best Broker for Real Estate Investors?

As a result of Roofstock’s simplicity in SFR investing and the tools it provides, customers like the ease of investment and the tools that ensure their rental investments perform well. This review will evaluate its features, investment options, and associated fees.

RoofStock fond broker

WHAT IS ROOFSTOCK FOND BROKER?

This brokerage is a division of Roofstock Realty LLC. It deals exclusively with real estate transactions. The company does not offer other trading instruments. However, investing in real estate is not the only thing an investor can do on Roofstock – they can also list their properties for sale and trade with the company.

Roofstock offers real estate exclusively from the United States. Aside from its low trading fees, Roofstock offers additional services and has no commissions on non-trading operations. The Wall Street Journal and Forbes both wrote about Roofstock.

Roofstock $5B+ Transaction experience

ADVANTAGES OF TRADING WITH ROOFSTOCK:

• Bonus programs are available.
• It offers lower commissions for real estate trades.
• There are no additional fees associated with the company’s services.
• Support is available in several ways.
• If an investor is unsatisfied with their purchase, Roofstock guarantees a refund.

Roofstock Features

DISADVANTAGES OF ROOFSTOCK:

• Short-term investments are not suitable for this broker.
• Investing in training materials is sometimes fee-based.
• It does not disclose how it protects customer funds and personal information.

IS ROOFSTOCK RIGHT FOR YOU?

This platform is best for active investors interested in generating regular rental income by purchasing single-family properties. Both accredited and non-accredited investors can participate.

With Roofstock, you can invest in actual properties rather than passive real estate assets such as you would with Fundrise and DiversyFund. Investing in Roofstock One requires passive, accredited investors willing to pay a $5,000 minimum.

Investing in real estate long-term is best, as it is generally not a liquid asset. Only people willing to play the long game will be able to reap the benefits of real estate investing.

WHY SINGLE-FAMILY RENTALS (SFR)?

You can add the valuable asset class of Roofstock to your portfolio and long-term strategy more easily with Roofstock.

Single-Family Rentals (SFR)

ROOFSTOCK FEES AND COMMISSIONS

Currently, Roofstock provides investment properties in about 27 states. While you do not have to have an account to get started, you will be charged $500 or 0.5% (whichever is higher) to make an offer on a property.

Rates will differ regarding down payments and fees, but buying a property is a different process than selling it. There is a fee of 3% or $2,500 (whichever is greater) for people selling on Roofstock. To open an account with Roofstock One, you must have a minimum of $5,000.

Roofstock Fees and commissions

WAYS TO INVEST WITH ROOFSTOCK

BASIC INVESTMENT ACCOUNT

There are three options available to buyers:

• Invest in real estate
• Multi-property portfolio investments
• Own your property

A Roofstock portfolio contains a variety of real estate rentals in a variety of cities and states. The portfolios contain information such as the total price, the cap rate, the average monthly rent, and the net operating income.

Create a free account with Roofstock

You can submit an address of a rental property not listed on Roofstock’s marketplace through the “bring your own property” account option. After Roofstock screens the property, it will connect you with a local real estate agent. Roofstock will guide you through the entire process if it is approved.

Moreover, the platform provides neighborhood and school ratings of the surrounding areas. Furthermore, its 1031 exchange services offer tax benefits to investors when they reinvest their returns into new properties.

ROOFSTOCK ONE

Earlier this year, Roofstock One allowed passive net worth investors earning a minimum of $200,000 to invest in managed investments (accredited investors generally own a 1 million dollar home or have an annual income of $200,000).

Raise the Roofstock

Roofstock manages everything for you while you purchase a share in a single-family rental property.

A minimum investment of $5,000 will provide access to professional property and asset management. Once the initial six-month holding period is over, Roofstock One offers multiple liquidity options. If fractional interests fall below 90%, investors can sell their home interests to another accredited investor or redeem their shares.

Roofstock One

RETIREMENT SAVINGS ACCOUNTS

Roofstock’s self-directed IRAs allow you to invest your IRA in real estate. You can acquire rental properties in your IRA and assign the title to your IRA.

Roofstock’s self-directed IRAs

Open an IRA account with New Direction Trust Company and transfer existing IRA, employer-sponsored plans, or rollover existing IRAs to take advantage of this offer.

Open an IRA account

You can use your IRA to buy an investment property after you set up your account, and you’ll maintain the tax advantages of your IRA. There are IRA investing transaction guides, real estate investment guides, and real estate owners guides provided by Roofstock if you have any other questions.

INVESTMENT OPTIONS

The following US states are the only markets in which Roofstock offers single-family real estate: Alabama, Arizona, Arkansas, California, Delaware, Florida, Georgia, Illinois, Indiana, Kansas, Kentucky, Michigan, Minnesota, Mississippi, Missouri, Nevada, Several North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginias, and Wisconsin.

It is still possible to open an account on Roofstock if your state is not on the list above. However, you won’t be able to sell or buy properties from a state not on the list.

Roofstock Investment

ROOFSTOCK PLATFORM AND TOOLS

With Roofstock, it’s just as easy to find an investment property as it is to buy headphones from Amazon. The main website allows potential investors to browse the entire inventory of Roofstock properties. It is possible to use a variety of categories to sort individual properties and portfolios.

Easily save and access your favorite rental homes

Roofstock can help you find a property based on location, price, rent, gross yield, cap rate, or appreciation. You can narrow your search by location, list price, monthly rent, gross yield, cap rate, etc. You can find the year built, square footage, and neighborhood rating listed for each property.

Roofstock Platform and Tools

Clicking on a property will give you access to several metrics, including cash flow and appreciation estimates. You can use the Financial Highlight snapshot to determine how much the house will appreciate in 30 years, which gives you the annual rent, expenses, and property taxes.

With Roofstock, you can see cumulative cash flow, appreciation, and equity charts spanning decades.

ROOFSTOCK SECURITY

Roofstock uses BrainTree, one of the industry’s most reputable payment processing platforms, to protect clients’ personal information. The company never sells client information to any third parties.

Roofstock’s rigorous verification process only accepts 15% of applicant properties. It is the responsibility of veteran real estate inspectors to inspect Roofstock-certified properties.

It is safe to trust property on Roofstock if it has been examined for water damage, structural decay, pest infestation, or faulty wiring. Repairs must not exceed 15% of the listing price if needed.

Roofstock guarantees the rental income of unoccupied properties for 45 days if no tenant is moving in. This is one of the company’s best features. In addition, Roofstock guarantees money back for 30 days on all properties.

Vacancy protection

Another safeguard is that if property resells for less than the price you paid, Roofstock will relist it free of charge and refund your money.

ROOFSTOCK CUSTOMER SUPPORT

There are three ways to contact Roofstock: website, phone, or email. You can call Roofstock directly or schedule a phone meeting using its chatbot.

• Orientation for new clients (group session)
• Call with investors actively searching for properties (30 minutes)
• Interested investors (15-minute call)
• Owners looking to sell their properties

Roofstock does not offer live chat, so calling the 800 number on the Contact page is the only way to get immediate answers.

Roofstock Customer Support

ROOFSTOCK TRADABLE ASSET CLASSES

It’s not a good idea to invest in Roofstock if you’re looking for a diverse portfolio of residential and commercial properties. Roofstock only deals with single-family rental properties and does not offer student housing or business properties.

With Roofstock, you don’t have to worry about pesky accredited investor rules since Roofstock focuses on just one niche in the real estate market.

Roofstock Tradable Asset Classes

When it comes to purchasing property, Roofstock investors still have options. The marketplace currently offers over 450 properties for sale in dozens of markets. The company has listings located in New Jersey, Minnesota, and Texas. Additionally, Roofstock offers property portfolios.

Typically, 2 to 100 properties in each portfolio are located in a particular region. For example, in Memphis, Tennessee, there are two homes worth $102,000 apiece, and in Gainesville, Florida, there are 20 properties worth $3.2 million each.

A share investment program by Roofstock is available to accredited investors, called Roofstock One. This program allows investors to purchase fractional shares in single-family properties.

As a result of fractional ownership, investors can diversify across multiple regions without worrying about maintaining rental properties and the day-to-day business transactions involved. Investors must purchase at least 10% of the value of the property.

ROOFSTOCK EASE OF USE

Roofstock scores high here due to its simplicity and transparency. Finding appropriate properties on Roofstock is easier than even conducting a Google search. With the advanced search features, users can filter properties to view only the best options for them.

Stay in the know

Financial data is available at a glance. Creating an account allows you to see all the details about your choices without sifting through tedious statements.

ROOFSTOCK OVERALL RATING

Investors previously left out in the rain have access to real estate through Roofstock. Roofstock provides non-accredited investors with the opportunity to own rental properties without having to jump through hoops. In addition to streamlining the process, focusing on single-family homes simplifies the arrangement between landlord and tenant.

Roofstock track record

You’ll need to set aside cash to cover repairs and taxes, but Roofstock’s property management team handles the day-to-day operations — all you need to do is collect rent and pay for repairs when needed.

You can diversify your capital away from the stock market while generating monthly income by owning a property (particularly a single-family home).

CONCLUSION

With Roofstock, investors have several options for diversifying their portfolios with SFRs, including turnkey properties, remote management, and passive income opportunities.

According to this Roofstock review, customers liked how Roofstock simplified rental investing by buying or selling turnkey properties, remotely managing a property, and investing in property shares.

Even though Roofstock is highly expensive for non-accredited and retail investors, it’s a much better investment option than property management and traditional home sales.

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