Roofstock Review

Donny Gamble
May 6, 2022
4.0
Personalincome rating

Roofstock allows people to purchase and sell stock in real estate properties. It gives people the opportunity to make money as they rent out a property and sell it once the value increases.

Roofstock logo
on Roofstock's website
Roofstock
FEES
3%
marketplace fee
Minimum Investment
$0
PROMOTION

Fees waived (depending on the investment amount)

Some of the links in this post are from our partners who compensate us. This may influence some of the products and services we write about and choose to review. However, this does not influence our research process and our opinions are our own. Here is how we make money.

The information provided on this page does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual.

Key Takeaways

  • Go through multiple pieces of real estate and place your bids on them.
  • It allows you to invest and sell remotely.
  • You can track your properties and make changes to gain money.

Pros & Cons

Pros
  • Large-scale investing
  • Remote real estate investing
  • You get a property manager to handle the daily operations.
Cons
  • You need to pay fees once you secure a property or decide to sell one.
  • Since it requires investing, you could lose money.

Do you like the idea of real estate investments, but you can’t figure out where to start? Do you find it difficult to find sellers so that you can get started in the rental industry?

If so, you need to check out my Roofstock review.  Roofstock focuses on bringing buyers and sellers together in the real estate industry. You can go through their listings, purchase a property, and rent it out.

The process makes investing in real estate simpler for newer investors.  If you need some examples of the benefits Roofstock offers, make sure to keep reading my Roofstock review.

I want to talk about the company, its services, how much it costs, and who should try Roofstock.

About Roofstock

Do you find it challenging to get involved with the real estate industry? Gregor Watson did, so he founded Roofstock in 2015 by working with Gary Beasley and Rich Ford.

They established the company as a real estate investment marketplace.  They did so with one primary goal: creating a marketplace where anyone can invest in real estate.

From its creation, the company successfully created portfolio tools, added neighborhood ratings, and spread the business.

Along with the three original creators, the business expanded to work with about one dozen leaders for various departments. They even gained multiple investors, including Silicon Valley Bank, Canvas Ventures, etc.

As its main product, Roofstock offers a marketplace to purchase and sell real estate. They also provide management tools for people to check on their real estate properties.

Each service focuses on giving you a more accessible real estate marketing experience.

Services

As you look into Roofstock, you need to understand the four primary services.

  • It lets you search for and purchase real estate.
  • You can sell real estate through Roofstock.
  • You can track your property information and manage it.
  • You get a property manager to assist you on-site.

When you go on their website, you can check the properties listed. You can filter through them to find the price, neighborhood rating, and location you want.

It even offers details about the house size and the number of rooms.  If you own real estate and want to sell it to another investor, you can list your property.

From there, people will place their bids, so you can sell your property and make money off of it.  Roofstock simplifies the tracking process when it comes to property.

It does so by using a program called Stessa which you can use for free. It stores the information in a cloud so that you can access it from any device.

Roofstock even gives you a property manager to look after the location once you purchase it. That way, you can keep track of the property and allow the manager to handle the daily operations.

By using services like these, you can get started on your real estate investments. However, some people don’t know where to start, so Roofstock gives them a kick-off point to purchase property and rent it out.

Pricing & Fees

If you plan to work with Roofstock, you need to know the pricing and fees. When it comes to pricing, it depends on the property, so Roofstock calculates it and offers a quote.

That way, you understand how much you need to pay Roofstock.

  • Buyers pay 0.5 percent of the price or 500 dollars based on the higher value.
  • Based on the higher value, sellers pay three percent of the estimated price or 2,500 dollars.

However, the price for the sellers can drop depending on how many properties the seller submits. Roofstock remains transparent throughout the process and shows you what you should expect and how much money you need to pay.

Since you set the rate you want to bid when buying a property, you know how much you need to pay for the fee.

Who is Roofstock Best For?

Roofstock works best for people who want to buy or sell real estate while simplifying the process. For example, instead of finding a property yourself, you can rely on Roofstock and use their search function to help you with your investing.

Because of the approach, you don’t need to develop your real estate investors and sellers network. Instead, you can start the process and focus on making your passive income right away.

Since it helps you secure property, you can rent it out. Then, once you want to cash in on the property or get rid of it, you can sell it to another investor.

In short, Roofstock works best for people who want someone to handle the logistics when it comes to real estate.

Compare to Other Platforms

Fundrise logo
ANNUAL FEES
.15%
INVESTMENT MINIMUM
$1,000
PROMOTION
Invest and get $10 in shares
Realty Mogul Logo
MANAGEMENT FEES
1% to 1.25%
INVESTMENT MINIMUM
$5,000
PROMOTION
No current promotions
CrowdStreet logo
PROJECT FEES
0.50% to 2.5%
INVESTMENT MINIMUM
$25,000
PROMOTION
No current promotions

Roofstock FAQ's

To conclude this Roofstock review, I want to discuss frequently asked questions (FAQ's) in relation to Roofstock. Then, you can learn about the company, see what it offers, and start your investments.

Is Roofstock a safe investment?

All investments come with risks. The process involves putting money into a property you feel will increase in value or make you money through renting.

Since you can rent your property out, you can minimize the risk of finding one with high enough demand. However, Roofstock goes through the trouble of finding properties for you.

Since you can manage and sell properties online, it works as one of the safer real estate investment options.

Is Roofstock good for beginners?

Since Roofstock works as an in-between for buyers and sellers, it works great for beginners. You just have to browse their market, bid on your choices, and secure the deal once you get it.

Likewise, sellers just need to list their properties and wait for bids.  Since Roofstock handles the tricky part of real estate, you make the process easier for yourself.

In addition, you can find an extensive price range on real estate, so you can go with a lower price to get started.

How does Roofstock make money?

Roofstock makes money by charging fees to the buyers and sellers. Since they don’t allow you to buy or sell the properties for free, they make money through the transaction process.

So the fees help them cover their costs while allowing them to make money.  As the network grows and they work with more people, they make more money.

The process allows them to benefit from the fees while securing more investors and sellers as their market grows. In addition, since they offer properties across the country, they can keep expanding.

Is Roofstock a REIT?

Yes, Roofstock offers a REIT option. A REIT refers to a real estate investment trust. It allows you to invest in property without owning it.

Instead, it enables you to make passive income through rental homes.  However, Roofstock offers both REIT and non-REIT options, so you can choose whichever one you prefer.

In addition, you can use the standard marketplace for non-REIT options and Roofstock One if you want a REIT.

Roofstock

Earn passive income by purchasing rental homes with tenants from Roofstock.

  • Roofstock
  • Rating: 4
  • Reviewed by:
  • On May 6, 2022
  • Last modified:May 12, 2022

Review Summary:

Earn passive income by purchasing rental homes with tenants from Roofstock.

Review of: Roofstock

Reviewed by:
Rating:
4
On May 6, 2022
Last modified:May 12, 2022

Summary:

Earn passive income by purchasing rental homes with tenants from Roofstock.

About the author 

Donny Gamble

I’m Donny. I’m a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.

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