Is Roofstock Legit? Read Before Investing

Roofstock is an actual property investing platform based in 2015. Therefore, whereas it is not precisely brand-new, it hasn’t been round almost so long as America’s oldest companies. And other people know that when a enterprise has been round since earlier than World World I, for instance, it is a title they will belief.

Maybe extra to the purpose for buyers, although, is having a monitor file of success. When a brand new funding service is launched, it does not at all times have a monitor file to point out it is a legit funding alternative.

These are the considerations we’ll discover on this publish about Roofstock.

What’s Roofstock?

Roofstock is an actual property investing platform primarily based in Oakland, California. Its emphasis is on single-family houses, and it helps buyers by dealing with almost the entire legwork usually concerned with shopping for funding properties. Roofstock has properties in over 40 properties throughout the U.S.

The Zacks Industry Overview for actual property growth confirmed an funding return of over 35% in the summertime of 2021. Whereas it has cooled since then, actual property is perennially a robust funding.

As we element in our Roofstock review, Roofstock streamlines all the course of, Roofstock not solely removes a lot of the work, but in addition makes it simpler for newer, inexperienced buyers. In any case, there may be loads of paperwork concerned, and that’s to say nothing of managing your funding properties.

To assist with all this, Roofstock acts as a single platform the place you should buy funding properties; then, Roofstock does the remainder of the give you the results you want. The properties on its market are already occupied, and you may see the funding returns for every of them. Annualized returns could be better than 35% for some properties.

What Providers Does Roofstock Supply?

Roofstock provides an actual property market and a subscription that enables buyers to buyers to purchase property shares. Listed here are the companies Roofstock provides:

• Roofstock: purchase and promote occupied funding properties
• Roofstock One: purchase shares in properties beginning at $5,000
• Lennar: purchase new-construction houses from Roofstock’s accomplice, Lennar

Roofstock does not cost a subscription for its companies; as a substitute, it makes cash by charging a price on the sale of properties on its platform. That price is assessed as 0.5% of the acquisition value or $500—whichever is greater.

Shopping for and promoting funding properties on Roofstock is way the identical as shopping for them by yourself besides that Roofstock makes the method a lot simpler. Nonetheless, that signifies that the minimal funding is the price of whichever property you need to purchase. That may very well be effectively underneath $100,000, or it is perhaps over $1 million.

Roofstock additionally connects you with lenders in the event you want financing. That course of is much like taking up a mortgage with every other lender, which means you’ll possible want a minimal of a 20% down fee.

Is Roofstock Protected?

Nobody desires to put money into a platform they do not know is secure and reliable. Fortuitously, Roofstock goes to nice lengths to make sure their properties are secure and totally vetted.

The Roofstock assure comes with a number of protections to assist make sure you will not lose your funding. First, Roofstock arranges a complete property inspection with a third-party vendor. Then, Roofstock opinions the inspection totally to make sure the property meets its excessive requirements, akin to essential repairs not being extreme and HVAC compliance.

Roofstock additionally ensures there aren’t any points with the title or disclosure and that lease funds are present.

Roofstock additionally has two ensures to provide you peace of thoughts: a 30-day money-back assure and the lease-up assure. Whereas the previous is self-explanatory, the lease-up assure applies to vacant houses bought by way of Roofstock. With this assure, in case your funding property shouldn’t be occupied inside 45 days, Roofstock pays you 75% of the market fee for lease. It’s going to proceed to take action for as much as 12 months.

Roofstock Eligibility Necessities

If you wish to put money into Roofstock properties, there aren’t any necessities to make use of Roofstock’s fundamental service. If you wish to use Roofstock One, although, you have to be an accredited investor.

To be an accredited investor, it’s essential to have a minimum of $200,000 in earnings ($300,000 for {couples}) for the previous two years or have a web value of $1 million or extra. Should you do not meet both of those necessities, don’t be concerned as a result of you may nonetheless use the Roofstock market.

Able to Get Began?

If you wish to begin investing on Roofstock, anybody can begin utilizing the service. There aren’t any necessities to get began as an investor; the one requirement is having the capital to put money into Roofstock properties.

A part of the Roofstock service is connecting you with lenders, however their necessities shall be a lot the identical as every other lender. That features placing 20% down for a traditional mortgage.

That mentioned, in the event you really feel you might be prepared to begin investing, head over to Roofstock and start browsing properties.