Considering real estate investment but unsure where to begin? Roofstock might be exactly the platform you need to get started.
This platform makes investing in rental properties straightforward—you can find and purchase single-family homes while earning substantial returns as a virtual “property manager” through Roofstock’s system.
Our comprehensive Roofstock review covers everything you need to know about managing single-family rental properties through this innovative platform.
What is Roofstock Real Estate Investment?
Launched in 2015, Roofstock operates as an online real estate investment marketplace where you can purchase or rent single-family rental homes. The platform also enables commercial real estate investments through self-directed IRAs.
Essentially, it provides an excellent gateway into real estate investing for anyone looking to build consistent rental income streams.
How does this differ from REITs or real estate investment trusts? Significantly! Rather than passive investment in real estate, Roofstock requires active participation in purchasing single-family rental properties. While this hands-on approach isn’t suitable for every investor, it can deliver superior returns for those who understand the market.
How Does Roofstock Work?
Roofstock suits investors seeking active involvement in their real estate investments—though not quite as hands-on as managing rental properties in their immediate area.
The process is straightforward.
After creating an account on this online marketplace, you can buy or sell rental properties—typically single-family homes that come with existing tenants.
Start by using customizable filters to locate properties based on price, location, or expected returns. You can also set up alerts to receive notifications when matching properties become available.
When you identify a promising property, review comprehensive details including photos, floor plans, and inspection records to evaluate the investment thoroughly.
Next, submit your offer at no cost. Upon acceptance, you’ll pay a marketplace fee of 0.5% of the contract price or $500—whichever amount is higher.
Finance your rental property purchase through traditional channels or pay cash. Standard mortgage acquisition applies just like any property transaction, and Roofstock provides resources to help secure necessary financing.
The key difference: Roofstock connects you with professional property managers who handle daily tenant interactions and property maintenance tasks.
Unlike other investment platforms, Roofstock doesn’t involve shared ownership with multiple investors. When you purchase through this platform, you gain direct, complete ownership of the property—another significant distinction from alternative real estate investing opportunities.
For selling, you have multiple options: work with local realtors, market the property yourself, or resell through Roofstock’s marketplace.
Roofstock provides valuable resources that create distinct advantages over direct property purchases. You’ll receive early access to properties before they reach the public market, plus partnerships for financing, selling, and property management services.
Investment opportunities for rental property span more than 27 states currently.
Roofstock Cost
Roofstock requires no minimum investment for purchasing rental properties—a significant advantage over other real estate crowdfunding platforms.
Buyers can select from several investment approaches: single property purchases, diversified property portfolios, or listing your own property among Roofstock’s investment opportunities.
The platform features a useful “open house” tool that lets investors preview properties not yet available for public transactions.
For those preferring passive investment, Roofstock One offers limited options, allowing accredited investors to manage properties with minimal hands-on involvement.
Can You Make Money on Roofstock?
Roofstock earnings fluctuate considerably based on multiple variables: expected rental income from your property, anticipated expenses (repairs and maintenance), property taxes, and loan interest payments if financing is involved.
Investors receive quarterly distributions when investing through fractional shares. For direct property management investments, rental income collection begins immediately after closing.
How Much Should you Invest in Roofstock?
Roofstock’s minimum investment starts at $5,000, though this can vary depending on the specific single-family homes you’re considering.
Your investment amount depends entirely on your financial goals and risk tolerance. Consult with a certified financial planner to develop a personalized investment strategy.
Is Roofstock Safe?
Real estate investment through Roofstock carries similar risks to general real estate investing. However, the platform provides excellent tools for predicting, preventing, and managing investment risks.
Roofstock offers buyer protections, including a 30-day window to initiate refunds on property purchases.
Additionally, Roofstock may cover rental payments in certain cases when properties lack tenants.
Customer Service at Roofstock
The Better Business Bureau awarded Roofstock an A- rating, indicating both exceptional customer service and reliable rental income generation methods.
The company maintains a clean legal record with no significant lawsuits and zero major complaints over the past 12 years.
These credentials demonstrate that this online marketplace operates both safely and securely.
Roofstock Pros and Cons
Here are the primary advantages and drawbacks of this property management platform.
Pro: Extensive Real Estate Market Access
Roofstock enables you to buy and sell rental properties that might otherwise remain inaccessible—whether due to logistical, financial, or geographical constraints.
The platform even allows international real estate investments, truly expanding your investment horizons worldwide.
Pro: Flexible Transaction Options
Unlike REITs limited to crowdfunded investments, Roofstock allows buying, selling, or listing your own rental properties—providing significant flexibility for strategic investors.
Pro: Solid Passive Investment Opportunities
Even if Roofstock’s hands-on approach doesn’t appeal to you, alternative pathways exist. The platform offers passive investment options for non-accredited investors seeking less intensive involvement.
Con: Limited Passive Options for Non-Accredited Investors
While passive investment options technically exist, they’re severely restricted unless you qualify as an accredited investor.
Accredited investors typically possess high incomes and extensive real estate investing experience. Without meeting these criteria, you’ll need to pursue the more active investment approach.
Con: Higher Costs Than REIT Investments
While Roofstock’s minimum investment requirements are lower than many competing platforms, costs remain relatively substantial.
Investment minimums fluctuate based on property values, but entry costs can still present barriers for some investors.
Con: No Mobile App Available
Finally, Roofstock lacks a mobile application. While this may not disqualify the platform for everyone, many investors prefer mobile accessibility over desktop-only browsing requirements.
Roofstock Competitors and Alternatives
Concluding our Roofstock review, let’s examine some popular platform alternatives.
While numerous investment options exist, Roofstock remains among the few enabling active single-family rental property investments.
However, it’s not unique in this space. Notable competitors include Crowdstreet and Fundrise.
Key differences between these platforms involve investment minimums, fee structures, and available investment types.
CrowdStreet and Fundrise function more like traditional REITs compared to Roofstock. While these platforms offer reduced investment risks, they also typically provide lower return potential.
Fee structures vary significantly—CrowdStreet charges approximately 2.5% (variable rates), while Fundrise fees hover around 1%.
Is Roofstock Legit?
Roofstock provides legitimate opportunities for active investors to purchase or sell actual rental properties. While it may not suit inexperienced property managers unfamiliar with real estate investing complexities, it’s excellent for seasoned investors looking to expand their portfolios.
This is particularly true for time-constrained investors seeking to avoid traditional property management hassles.
Ready to get started? This Roofstock review should help you determine whether this real estate investment opportunity aligns with your goals. Begin your investment journey today, or explore the numerous Roofstock alternatives available.
Roofstock Review Ratings
Ease of Use: 4.0
Cost: 3.0
Safety: 5.0
Customer Service: 5.0
