Product Overview of Roofstock
Roofstock is a pioneering real estate investment platform designed to make investing in single-family rental (SFR) properties more accessible, efficient, and manageable for both accredited and non-accredited investors.
What Roofstock Does
Roofstock enables investors to buy, manage, and sell tenant-occupied single-family rental homes across the United States. The platform leverages advanced data, technology, and a network of vetted professionals to streamline the entire investment cycle, from acquisition to management and eventual sale.
Key Features and Functionality
Marketplace for Investment Properties
Roofstock operates an online marketplace where investors can browse and purchase pre-vetted, tenant-occupied single-family rental homes. This allows investors to start generating rental income immediately after the purchase.
Data and Analytics
The platform provides extensive data and analytics, including property inspections, valuation estimates, financial projections, and market trends. These tools help investors make informed decisions about their investments.
Property Inspection and Evaluation
Each property listed on Roofstock undergoes thorough due diligence, including inspection reports and detailed financial projections. This ensures that properties meet certain investment criteria and are “certified” for investment.
Property Management Options
Roofstock partners with a network of vetted local property managers to handle the day-to-day operations of the rental properties. This service is particularly beneficial for investors who may not live near the properties they purchase.
Stessa Platform
Roofstock offers Stessa, a property management tool that helps investors track expenses, revenue, and overall property performance. This tool is essential for managing the financial aspects of rental properties efficiently.
Financing Options
The platform provides financing options through its network of lenders, making it easier for investors to secure funding for their purchases. This feature helps lower the barriers to entry for real estate investing.
Accessibility
Roofstock is designed to be accessible to a wide range of investors, including both domestic and international investors. There are no sign-up fees, and non-accredited investors can participate in the regular platform without a minimum deposit requirement.
Roofstock One
For accredited investors, Roofstock One offers pre-built SFR portfolios with professional in-house property and asset management. This option allows for hands-off real estate investing with multiple liquidity options after an initial six-month holding period.
Self-Directed IRA
Investors can also use a self-directed IRA to purchase rental properties, allowing for tax-advantaged rental income. This involves opening an IRA account with a custodian like New Direction Trust Company.
Additional Tools and Services
Roofstock provides various tools such as 3D virtual tours of properties, rental income estimates, and return on investment (ROI) calculators. The platform also connects investors with vetted real estate brokers and agents.
Fees and Costs
Roofstock charges a fee of $500 or 0.5% of the contract price for offers on properties. Sellers pay a 3% listing fee. For Roofstock One, there is a $5,000 minimum investment requirement.
In summary, Roofstock is a comprehensive platform that simplifies the process of investing in single-family rental properties by offering a range of services, from property acquisition and management to financial tracking and sales. Its use of advanced data and technology, along with its network of vetted professionals, makes real estate investing more accessible and efficient for a broad spectrum of investors.