Fintech companies are not only changing the way we do business, but also the way we invest. As more companies turn to technology to improve the delivery of their financial services and make them easier to use, it also creates new investment opportunities. Sectors that once had limited access to only accredited investors, such as real estate, are now widely accessible to everyone. Emerging online marketplaces are helping new investors increase their net worth through single-family rental properties. So, if you are looking for innovative ways to diversify your portfolio, here’s how to make money with Roofstock.
What is Roofstock?
The first and most important question you are probably asking yourself is what exactly is Roofstock? This unique marketplace is a real estate crowdfunding platform where investors can buy and sell single-family rental properties (SFR). You have the option to buy an entire property or mitigate your financial risk by purchasing shares in one instead. What separates Roofstock is that they seek to facilitate the sale of these properties without disrupting tenancy, helping you get a faster return on your investment.
Another unique benefit of their platform is that it doesn’t limit you to your local real estate market. You can browse listings across the country since Roofstock investors don’t need to be onsite. Since they have partnered with and vetted several property management companies nationwide, they can pair you with the best team to help you manage and maintain your property.
So, if you have considered investing in real estate, you can create an account and browse potential properties on their website for free. Their website allows you to view each property’s investment profile and analyze its cash flow potential. However, if you prefer a new build, Roofstock also works with the national homebuilder, Lennar, in two markets (Dallas and Atlanta). Either way, the company has created an innovative way to diversify and customize your investment portfolio.
How Do You Make Money with Roofstock?
The next question you should be asking yourself is how will you make money with Roofstock? And, the answer is very simple. Since the property already has renters, you will start receiving passive income almost immediately. You don’t waste valuable time or money searching for renters while the property sits empty. In fact, the site guarantees that you will see cash flow within 45 days of them deeming the property “rent-ready.”
Historically speaking, the SFR market has good returns. Currently, there are 16 million single-family rentals across the country. However, analysts expect it to increase by an additional 13 million properties by 2030. This not only creates more opportunities but also the option to be more selective when making such a large investment.
But, if you are still hesitant to dive in head-first and purchase the entire property, there is another investing option. Through Roofstock One, you can purchase shares of fully managed properties. The value of each share is one-tenth of the home’s equity. Therefore, you avoid all the landlord obligations by paying the management fee. However, you will still receive the economic rights and benefits from the property. And, should you have a change of heart, there are liquidity and ownership options after 6 months.
Is It Risky to Invest with Rooftstock?
No matter which financial vehicle you choose, there are always risks when you invest. However, Roofstock shows excellent money-making potential. Although the company was established in 2015, it has already passed the $3 billion mark in property transaction value. This signifies that more people are trusting and using the platform. As more people join the community, it creates greater stability and longevity.
However, there are a few requirements you should be aware of before investing with Roofstock. First, you will need a minimum of $5,000 for an initial investment. This may seem like a lot for new investors, especially since it is a relatively new company. But, keep in mind that you have 30 days to back out of a sale if you change your mind. Although there may be a few associated fees if you go this route, getting a refund in the real estate market is almost unheard of.
And, don’t forget, you have the option to buy shares in a property to lower your financial stake in the venture. This greatly reduces the long-term risk when compared to purchasing the entire property.
Lastly, Roofstock pairs you with trusted partners to connect you with the right property management team. That way, you can ensure the property doesn’t sit vacant or that you miss out on potential income. Even the best property can quickly turn into a money pit if it isn’t properly managed and maintained
Roofstock is Changing How People Invest in Real Estate
Roofstock has taken the real estate market and flipped it upside down. Although real estate investment has typically been restricted to accredited investors and those with large capital reserves, Roofstock welcomes all investors. Its founders had the revolutionary idea to make investing in real estate as simple as stocks.
Using their own technology and data that was previously inaccessible to the average investor, they have created a new niche in the real estate market. Their easy-to-use marketplace allows you to peruse their listings, or even suggest one of your own that you are interested in. They take the hassle out of the required due diligence by doing all the research and analyzing the properties for you. Then, they even match you to the local property management company best suited to your needs.
So, if you are looking for new ways to invest or have always wanted to break into the real estate market, Roofstock could provide the perfect entry point. Many people have already learned how to make money with Roofstock. And, they even offer one-on-one classes to help you get started. Since there are no obligations to buy, why not sign up and check out the current listing and investment opportunities today?
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Jenny Smedra is an avid world traveler, ESL teacher, former archaeologist, and freelance writer. Choosing a life abroad had strengthened her commitment to finding ways to bring people together across language and cultural barriers. While most of her time is dedicated to either working with children, she also enjoys good friends, good food, and new adventures.
