Roofstock

Roofstock

4.0

Real Estate

Roofstock provides a marketplace that helps to generate passive income through investing in tenant-occupied Single-Family Rental (SFR) properties. The online platform makes it a breeze to invest in SFRs across 40 states in the US and generate cash-flow from day one.

Investment risk

Low

Min investment

$20,000

Target return

13.22%

Fees

0.5%

Overview

Roofstock is an online marketplace that provides investors with opportunities to invest in single-family rental homes with great cash flow potential. Roofstock differentiates itself from competitors by offering already-occupied homes, so investors can start earning a return as soon as they close on a Roofstock property. Additionally, Roofstock doesn’t own the properties. Instead, they evaluate, negotiate, and close the transactions on behalf of the investor. This effectively removes the hard work involved in real estate investing, providing investors with a much easier path toward owning a rental property.

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Why Invest

  • Easily invest in Single Family Rental (SFR) properties
  • Buy a house from 25k and instantly start earning passive income
  • Become a home owner with ease, online

How you make money

Roofstock sells homes with tenants already in them. Investors purchase these properties and have a steady flow of income right from the start. Returns are earned from the rental cash flow on your investment properties and any appreciation in the property value when it’s sold. If you decide not to self manage, a Property Manager can be appointed to collect rents, pay expenses and remit the net income to each investor.

How Roofstock makes money

Roofstock charges investors a marketplace fee of 0.5% of the contract price. The seller pays a 3% broker commission and a 2.5% all-in-seller fee. For investors looking for a hands-off investment, Roofstock offers a property management solution for an 8% to 10% management fee, however, investors have the option to manage the property themselves and save on property management fees. 

Is it Safe?

They offer an industry-leading guarantee that allows you to invest with confidence, regardless of whether the home is leased or vacant.

  • 30-Day Money Back: If you are not satisfied with your purchase, contact them within 30 days of closing and they’ll start the refund process.
  • Lease Up Guarantee: Buy a vacant home with confidence. They guarantee that you’ll secure a signed lease on your rent-ready home within 45 days, or they will cover rent for up to a year. You must work with a Lease Up Guarantee-eligible Preferred Property Manager and the home must have passed a Roofstock-approved inspection prior to closing. Plus, you pay no monthly management fees until your property is leased.

Owning a rental property requires work, and it can come with its own obstacles. You'll need to make sure you set aside money in case of emergencies, for instance. If something breaks in the house (like a dishwasher or furnace), you as the owner are responsible for it. Rental property is highly illiquid, and it can be much easier to buy than to sell. And unlike investing in a REIT or loaning money on a real estate crowdfunding platform for a specified term, you're buying a home on Roofstock.

Things to know

  • You make money onValue + Dividends
  • Fees0.5%
  • Payout frequencyQuarterly
  • Term of investment6+ months
  • LiquidityModerate
  • Open toAll Investors

Company

  • Country availabilityWorldwide
  • Assets under managementUnknown
  • Established2015
  • Mobile Application No

Investment Return Calculator

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Invested

$26,000

Projected fees

$849.47

Projected return

$18,988.20

Value after fees

$44,988.2

Any references to past performance, regarding financial markets or otherwise, do not indicate or guarantee future results.

Forward-looking statements, including without limitations investment outcomes and projections, are hypothetical and educational in nature. The results of any hypothetical projections can and may differ from actual investment results had the strategies been deployed in actual securities accounts.

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