Is the roof cover legal? Read before you invest

Roofstock is a real estate investment platform founded in 2015. Therefore, although not exactly brand new, it has not existed nearly as long as America’s oldest companies. And people know that when a business has existed since before World I, for example, it’s a name they can trust.

It is perhaps more important for investors that they have a track record of success. When a new investment service is introduced, it does not always have a track record showing that it is a legitimate investment opportunity.

These are the concerns we will explore in this post on Roofstock.

What is Roofstock?

Roofstock is a real estate investment platform based in Oakland, California. Its emphasis is on single-family homes, and it helps investors by handling almost all the legwork normally involved in buying investment properties. Roofstock has properties in over 40 properties throughout the United States

Zack’s Industry Overview for real estate development showed an investment return of over 35% in the summer of 2021. Although it has cooled since then, real estate is a strong investment.

As we detail in our Roofstock review, Roofstock streamlines the entire process, Roofstock not only removes most of the work, but also makes it easier for newer, inexperienced investors. After all, there is a lot of paperwork involved, and that does not mean anything about managing your investment properties.

To help with all of this, Roofstock serves as a single platform where you can purchase investment properties; then Roofstock will do the rest of the work for you. The properties in the marketplace are already occupied and you can see the return on investment for each of them. Annualized returns may be greater than 35% for some properties.

What services does roofing offer?

Roofstock offers a real estate marketplace and a subscription that allows investors to buy real estate shares. Here are the services Roofstock offers:

  • Roof cover: purchase and sale of occupied investment properties
  • Roof Cover One: Buy shares in real estate from $ 5,000
  • Lennar: buy new construction from Roofstock’s partner, Lennar

Roofstock does not charge a subscription for its services; instead, it makes money by charging a fee for selling properties on its platform. This fee is estimated at 0.5% of the purchase price or $ 500 – whichever is higher.

Buying and selling investment properties on Roofstock is very much the same as buying them on your own, except that Roofstock makes the process much easier. However, this means that the minimum investment is the price of the property you want to buy. It can be well under $ 100,000, or it can be over $ 1 million.

Roofstock also connects you with lenders if you need financing. This process is similar to taking out a mortgage with any other lender, which means you are likely to need at least a 20% down payment.

Is the roof cover secure?

No one wants to invest in a platform they do not know is secure and credible. Fortunately, Roofstock goes to great lengths to ensure that their properties are safe and fully controlled.

The Roofstock guarantee comes with several protections to ensure that you do not lose your investment. First, Roofstock arranges a comprehensive property inspection with a third-party supplier. Roofstock then undergoes a thorough inspection to ensure that the property meets its high standards, such as that necessary repairs are not too extensive and HVAC compliance.

Roofstock also ensures that there are no issues with the title or publication and that the rental payments are current.

Roofstock also has two guarantees to give you peace of mind: a 30-day money-back guarantee and a lease-up guarantee. While the former is self-explanatory, the rental guarantee applies to vacant homes purchased through Roofstock. With this guarantee, if your investment property is not occupied within 45 days, Roofstock will pay you 75% of the market interest rate for rent. It will continue to do so for up to 12 months.

Eligibility requirements for roofing

If you want to invest in Roofstock properties, there is no requirement to use Roofstock’s basic service. However, if you want to use Roofstock One, you must be an accredited investor.

To be an accredited investor, you must have at least $ 200,000 in income ($ 300,000 for couples) in the last two years or have a net worth of $ 1 million or more. If you do not meet any of these requirements, do not worry, because you can still use the Roofstock marketplace.

Ready to get started?

If you want to start investing in Roofstock, anyone can start using the service. There are no requirements to get started as an investor; the only requirement is to have the capital to invest in Roofstock properties.

Part of the Roofstock service is to connect you with lenders, but their requirements will be very much the same as any other lender. That includes putting 20% ​​down for a conventional loan.

That said, if you feel you are ready to start investing, head over to Roofstock and start exploring properties.

Give a Comment