When it comes to investing, real estate can be a great way to hedge against the ups and downs and general uncertainty of the stock market. However, for a long time, investing in real estate was complicated, especially when it came to residential rental properties. First, you’d have to go through the onerous process of actually finding and purchasing the right property, whether it was a house, apartment building, or condo. But of course you were almost always limited to properties in your area. Then you’d have to find a tenant. Then you’d either have to manage the property yourself, or find a reliable property manager to do it for you. In short, despite the benefits of investing in residential rental properties, it was just a whole lot easier to put your money in a traditional portfolio of stocks and bonds. But what if it wasn’t so complicated? What if there was a way to make investing in real estate easier? That would be a game changer, right? Well, thanks to an innovative tech-driven investing platform called Roofstock, buying investment properties is easier than ever.
Before we get to Roofstock, we should talk about what makes the single-family rental (SFR) sector such an attractive investment. Right now, there are 16 million SFR units in the United States worth an estimated $3 trillion. But it’s not just the size of the market that makes SFRs a good investment. Really, it all boils down to three factors.
First, SFRs give investors two different ways to make money. Not only do they generate income every month from rent, but assuming you picked the property in the right area, its value should appreciate over time. That’s what you call a win-win.
Second, studies based on data from the U.S. Census Bureau, S&P 500 returns, and U.S. Treasury returns have shown that the SFR market offers similar returns to the stock market, but with less volatility. Whether the economy is good or bad, people always need somewhere to live.
Third, and perhaps most importantly, SFR returns are uncorrelated to the stock market, meaning they are not affected by the same economic forces. That makes the SFR market an excellent choice for anyone who wants to diversify their investments and hedge against market downturns.
When Roofstock was founded in 2015, their mission was to make investing in single family rental properties “radically simple.” To do this, they built a comprehensive online platform for buying single-family rental properties that streamlines the entire transaction process and gives investors powerful tools to make smart decisions.
With Roofstock, you shop for and purchase rental properties through their online marketplace. Their curated inventory is assessed by powerful AI analytics, and the properties are located all over the country. Every single listing has a proprietary “neighborhood score,” plus all other financial, quantitative, and qualitative data that you previously had to pull together from a variety of sources. That means you can live in California and shop for properties in Florida with full confidence, and all without having to leave your living room.
Once you find a property you like, you bid on it through Roofstock. If the bid is accepted, they will guide you through escrow and closing. If you don’t want to manage the property yourself, they can even hook you up with one of their preferred property managers.
Amazingly, many of the properties available in the Roofstock marketplace already have tenants, which means they will start generating income as soon as you take ownership. However, for vacant properties Roofstock has what they call a “Lease Up Guarantee”: They guarantee you will secure a signed lease on your rent-ready home within 45 days of closing, or they will cover rent for up to a year.
That’s not the only guarantee Roofstock offers. Believe it or not, there’s also a 30-day money back guarantee on the purchase of your rental home: if you are not satisfied with your purchase, all you have to do is contact Roofstock within 30 days of closing and they will start the refund process.
Roofstock is a one-of-a-kind, one-stop online marketplace for researching, buying, and connecting with partners for financing and property management. Unlike traditional real estate transactions, there are no geographical barriers, and properties are pre-selected for their ability to generate income. You also get access to powerful analytic tools, and you get support from a team of experts throughout the process.
So if you’ve been thinking of investing in real estate, but weren’t sure you wanted to deal with the hassle, you need to take a look at Roofstock, today.
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