(CNN) –
“Real Estate Investments” and “Residual Income”. Both terms are very appealing, but for many in their 20s and 30s, both can seem very distant. But Roofstock is trying to solve that. The first step in this process is to dispel some myths about buying property:
Myth 1: You have to move and live in the house you are buying.
Myth 2: You must buy a multi-unit house or building to rent.
Myth 3: As a landlord, you must carry out all maintenance work on your rental property.
In short, Roofstock is a company that lets you buy an investment home for rent and make the experience as turnkey as possible. Roofstock started in 2015 and has grown fairly quickly thanks to several rounds of venture capital investment. Roofstock’s value proposition is that anyone, from first-time investors to global asset managers, can invest in real estate from anywhere. Roofstock uses a variety of technology tools to provide insights and analysis on single family homes available for sale in over 40 markets. Deals start at $ 60,000.
Roofstock.com lets you search for listings just like other popular property sites using a variety of filters including price, neighborhood rating, location (state), and property status. You can also browse some preset filters, such as: B. New Listed, Minimal Repairs, Best Schools, and Discounted. Once you’ve focused on a few properties, Roofstock’s analytics tools will help you decide with financial data, neighborhood information, and 3D tours.
Once you’ve decided to buy, you can make a free quote through Roofstock. If you’re accepted, Roofstock will help you close. The fee for this is 0.5% of the contract price or $ 500, whichever is greater. Note that if you take the time to get pre-approved with a lender before you begin the closing process, the process will go a lot smoother. Once you have your home, you can use one of the recommended Roofstock property manager lists in the area to do pretty much all of the aspects as you start generating rental income.
If you don’t get the idea of owning an entire home, Roofstock is also building a new feature called Roofstock One, a crowdfunding model for owning rental properties. You can buy shares of a single rental property for as little as $ 5,000. Note that Roofstock One investors must meet the minimum income requirements outlined here (at the bottom of the landing page).
Finally, you should note that Roofstock is not a zero risk. Like most investments, your money is subject to risks and losses which are described on the website. You should be especially aware of this if you plan to flip a home and sell it with Roofstock instead of “buying and holding”. In addition, when purchasing a Fixer upper, you should learn more about the local market that you might want to shop at for regional market trends and regulatory requirements.
Still, when it comes to investment vehicles, Mark Twain’s famous quote applies: “Buy land, they can’t make it.” Roofstock is a compelling option to get you started on real estate investing.