When it comes to investing, real estate has always been tough. Some investors shied away from real estate investing since it was often nerve-racking and overly complicated. Others simply didnâ€™t have easy access to the information required to make a solid investment decision. However, thanks to an online real estate investment marketplace called Roofstock, real estate investing is now as easy as buying stock.
So, why is investing in real estate, especially in single-family rentals (SFRs) a great way to diversify your portfolio? To begin with, SFRs provide a steadfast cash flow every month. And aside from being a stable source of income, SFRs tend to appreciate over time. Although there were many calamities in 2020, this hasnâ€™t affected the SFR market at all. According to BusinessWire, despite the economic downturn, home prices in the US still rose by 9.4 percent.
As the SFR market goes through its renaissance, it is worth mentioning that in the third quarter of 2020 SFRs had a 95.3-percent occupancy rating, which is the highest rate since 1994. However, the growth of the SFR market isnâ€™t expected to stop. Presently, the SFR market is worth around $3 trillion, and 13-million new rental households are expected to appear in the US by 2030. The SFR market also offers numerous tax benefits, such as operating expense deductions, interest expense deductions, and accelerated depreciation.
However, as it was previously mentioned, the process of investing in real estate was nerve-racking and complicated. Luckily, long-time real estate investors Gregory Watson, Gary Beasley, and Rich Ford had that in mind when they set out to found Roofstock, an online marketplace for cost-efficient and transparent real estate purchases. Since their launch in 2015, Roofstock has managed to surpass a whopping $2 trillion in transactions, which has changed real estate investignas we know it.
Whether youâ€™re a first-time investor or a global asset manager, Roofstockâ€™s simple interface makes investing in real estate as easy as investing in stock. By using their online marketplace, you can purchase or sell rental properties, including SFRs. But before you buy, you can learn more about the rental property. The platform offers pictures, floor plans, a 3-D tour, and even a 3-D model of the property.
Apart from heaps of visual proof, Roofstock offers plenty of interactive tools to help you analyze the feasibility of the property, such as a visualizer of return and cost estimates. To ensure you are investing in the right property, Roofstock also offers information such as neighborhood and local school ratings.
Not wishing to manage the property yourself? Roofstock has you covered. It offers a wide array of property managers, which take care of anything from repairs to the maintenance of your property. Roofstockâ€™s property managers operate in all of the US, which means that you can buy your property in Illinois while living in California. In short, you buy the property and receive the income, while property managers will do the rest.
Roofstock also offers to invest in real estate portfolios in different cities and states. Roofstockâ€™s 1031 Exchange program offers you a deference of capital gains taxes if you invest in a property or a portfolio with the same or higher value. Roofstock helps you through the 1031 Exchange program by identifying the best replacement portfolios to invest in, as well as helping you in selecting the best property management partners. If youâ€™re having a hard time choosing between portfolios to invest in, Roofstock offers expert advice, which can help with finding and/or building the portfolio based on your needs and assets.
One of Roofstockâ€™s main innovations is the â€œBring Your Own Propertyâ€ program, where investors can buy properties that are not listed on the Roofstock Marketplace. If the purchase is available, Roofstock will connect you with a trustworthy local real estate agent, which will give you further details, as well as financial projections of the property. Roofstockâ€™s local real estate agent will help you in the negotiation process and after an offer has been accepted, with post-purchase activities.
Regardless of whether the property has been listed on the Roofstock Marketplace, Roofstock offers a 30-day money-back guarantee on any property purchased. This means that a refund is possible if you are unsatisfied with your property. Just contact Roofstock within 30 days from closing on the property.
Another perk of investing in real estate via Roofstock is their Lease-Up Guarantee program. If you fail to manage to secure a lease within 45 days, Roofstock will cover rent for up to one year.
Although investing in real estate was notorious for being tedious and complicated, Roofstock is redefining it. As the real estate market (especially the SFR) is booming at the moment, there might not be a better time for you to check out Roofstock for yourself. Click here to get started now.
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