Earning passive income is every investor’s dream. Just put your money somewhere and have it work for you.
So, is Roofstock the right real estate platform that will help you get rich quick?
Our Roofstock review will cover everything you need to know before you decide to invest money in one of the listings on the company’s marketplace.
- Investing in out-of-state properties at an affordable cost
- Diversified rental property portfolio
- 30-day money-back guarantee
- Guaranteed lease up on vacant properties
- Low fees
- Occupied turnkey rentals are available
- Large initial investment amount and emergency fund needed
- The certification process is done by Roofstock-approved vendors
Account Setup Fee:
What Is Roofstock Best For?
Roofstock is best for purchasing out-of-state real estate. Simply put, Roofstock is a marketplace where you can buy properties, portfolios, or property shares.
The platform is mostly used by real estate investors in areas where real estate is expensive. Roofstock provides the option to invest in an affordable out-of-state property. While not many investors would feel comfortable buying property they haven’t set a foot in, there are some gems to be found on Roofstock that are well worth it.
Roofstock reviews show that investing in rental property using this platform can be a hit or miss. Though, if you do your due diligence, you may find turnkey rental properties that will generate easy passive income. Another advantage of using this platform is that some of the properties are already rented out, which means you will be collecting rent from day one.
What types of services does the platform offer?
Roofstock is a platform where buyers can browse and analyze properties, and make an offer to the seller. The company will then assist buyers with closing the deal.
Besides the option to buy a single rental property, Roofstock allows investors to purchase multiple rental properties.
Buy Property Shares
Roofstock One is a way for investors to get passive income without operating responsibilities. Buyers can purchase shares in single-family rental homes starting at $5,000.
Roofstock is also a place where sellers can list their properties and find a potential buyer for either 3.0% of the sale price, or $2,500 (whichever is greater).
Setup & Ease of Use
To create an account on roofstock.com, you will only need to provide the most basic personal information. After stating the purpose of your account, you can browse the listings.
The process is free and takes less than a minute. Though not mandatory, you can also complete your investor profile by adding details about your goals and background.
Once you have finished setting up your account, you can check out the marketplace. You can adjust the search filters regarding the location, 15 rule, appreciation, inspection contingency, HOA, etc.
Every listing includes details about the property, such as inspection reports, property valuation, etc.
Overall, the website is easy to use and if you have any questions, you have the option to talk to someone. The website further has pop-up instructions, guiding you on how to use the search filters.
What are your Roofstock investment options?
Single-Family Rental Properties
Roofstock is mostly known for its single-family rental listings. Less confident inventors can take advantage of this service which offers a hands-free approach. You can purchase a property remotely and have a property manager handle the daily tasks for you.
Portfolio (Multiple Properties)
Purchasing a real estate portfolio is a good way to diversify your investments with a single transaction. The deal can be finalized online and Roofstock will hold your hand through the whole process.
Shares of Individual Rental Homes
Roofstock One was launched in 2019 and is a marketplace where accredited investors can buy shares of single-family rental homes. The shares represent 1/10 ownership of the property.
Roofstock One investors won’t have to worry about investment management — this service includes a team to take care of the assets under management. Roofstock will manage the homes and the investors will receive quarterly cash distributions. This is a convenient way to earn passive income, even if it’s not automated investment management.
Here are some of the disadvantages of investing in Roofstock property:
Large Upfront Investment
Financing investment property is more difficult than financing your primary residence. This means that it can be harder to get a loan and you would need to put down upwards of 20%. You should also have an emergency fund for property repair and maintenance.
Certification Done by Roofstock-Approved Vendors
Depending on how you look at this, this can be a good or a bad thing. The good thing is that this is one more thing that will be taken care of. The bad thing is that you may find issues not included in the report. This was mentioned by several Roofstock clients in their bad reviews. It is recommended that you do your own independent research.
Roofstock support can be contacted on the Roofstock phone number or email.
In almost all of the positive Roofstock reviews, customers mentioned how helpful the employees were. Customer service is one of Roofstock’s strong suits.
Roofstock has an extensive FAQ on its website, covering most everything you need to know about using their investment services.
The only thing that we found lacking is a post explaining all the risks you will be taking on by using their platform.
Besides the FAQ and the blog featured on their website, Roofstock has a ‘how to get rich quick’ academy.
The Roofstock Academy is a training program that teaches you how to build wealth through real estate investment. They offer a Mastery program (4 monthly payments of $349) and a Coaching Program (4 monthly payments of $199).
Commissions & Fees
Roofstock charges a 0.5% marketplace fee to buyers and a 3% commission to sellers.
For buyers: 0.5% of the purchase price or $500, whichever is greater
For sellers: 3.0% of the sale price or $2,500, whichever is greater
Roofstock does not have a mobile app at the moment. However, you can open their website using your phone.
Roofstock User Reviews
We looked up Rooftock reviews on Reddit, Google, and BiggerPockets. Here is a summary of what clients had to say about their Roofstock experience.
Roofstock reviews on Google give the company an almost perfect rating of 4.9 stars. In addition, all of the customers that rated the company in 2020 gave them 5 stars.
On the other hand, the reviews of Roofstock on Biggerpockets and Reddit were a mixed bag. People that were brand-new to investing were satisfied with what this financial technology company has to offer. The company charges less than realtors. The employees are also there to guide you with the process and to answer any questions about your investment. Though some were skeptical about what type of financial advice a company working both with the seller and the buyer would provide, it turned out that Roofstock worked in the best interest of both sides.
What most clients writing positive reviews of Roofstock have in common is their desire to invest in an out-of-state property, due to the exorbitant prices of properties in their home state.
The most common complaints in the negative Roofstock reviews were about the inspection report. In particular, in one Roofstock review, a client complained that some issues with the property weren’t included in the inspection report. This meant that the client had to shell out money for unexpected repairs.
In another Roofstock review on BiggerPockets, a client wasn’t sure if they were overpaying. This might have been so, however, ultimately the client felt that it was worth it to overpay a bit, due to how easy the process was.
On Reddit, users were mostly dubious about using the Roofstock marketplace. In one Roofstock review on Reddit, a user said that the company gave him the courage to start investing, however, once the deal was closed they were left on their own.
Experienced investors felt it was not worth to purchase a property from this online marketplace, as it is possible to get a better deal on your own. However, that is one of the main reasons people turn to Roofstock — to have someone do all the hard work for them.
To sum up: what stood up most from the bad Roofstock reviews were the inspection reports or the state of the properties. If you are unable to visit the property personally, make sure you have done your due diligence and know exactly what you are paying for.
Unfortunately, we couldn’t find a Roofstock One review online. The service is relatively new, so it is hard to say whether the investment is worth it.
Is Roofstock the Best for You?
Deciding is Roofstock is right for you depends on your priorities and the amount of free time you have, along with your risk tolerance. If you want to invest, but don’t have the time to contact realtors and visit properties, you can use their marketplace to view listings and make offers from the comfort of your home.
Alternatives of Roofstock
How does Roofstock stack up against competitors?
Roofstock vs HomeUnion
HomeUnion is Roofstock’s top competitor.
Both companies have a marketplace where you can browse listings, and they work similarly. The main differences are the perks and services included.
Roofstock offers a 30-day money guarantee and a rent guarantee. HomeUnion doesn’t offer either.
Roofstock vs Fundrise
Fundrise works as a crowdfunded real estate investing platform. You can get started with as little as $500. In comparison, Roofstock requires a $5,000 of minimum investment.
To see which platform is right for you, compare our Fundrise review with our Roofstock review.
This fintech company has managed to create a platform for simplified investing in real estate, making it possible for first-time buyers to dip their toes into the world of investing. While investors should still rely on their own research, Roofstock has made it easier than ever to invest in property.