Investing in real estate has always been a great way to reduce your exposure to the volatility of the stock market. However, for a long time, it was too complicated and time-consuming for most investors. That’s not the case anymore. Today, thanks to a high-tech investing platform called Roofstock, investing in residential rental properties is as easy as investing in the stock market, and more people than ever are diversifying their portfolio by investing in real estate.
What’s So Great About Residential Rental Real Estate?
What makes the single-family rental (SFR) sector such an attractive investment? Well, for starters, right now there are 16-million SFR units in the United States worth an estimated $3 trillion. So if you’re looking to invest, there’s a lot to choose from. But it’s not just the size of the market that makes SFRs a good investment. There are three other crucial factors.
First, SFRs give investors two different ways to make money. Not only do they generate income every single month in the form of rent, but assuming you picked the property in the right area, its value should appreciate over time. 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. Because people always need somewhere to live. Third, and perhaps most importantly, SFR returns are uncorrelated to the stock market, meaning they are not impacted 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.
In the past, investing in SFR was really difficult. First you’d have to do all sorts of research and go hunting for a property that’s right for you, whether it was a house, apartment building, or condominium. And of course, you were pretty much limited to properties that were close to where you live. Then you’d have to secure financing, buy the property, and navigate the closing process. Then you’d have to find a tenant and either manage the property yourself or find someone to do it for you. So in short, real estate required a lot of time and effort that most people just did not have.
But that was then. Today, thanks to Roofstock, buying investing in real estate via residential rental properties is as easy as buying stocks and bonds with an online account.
Roofstock Online SFR Marketplace
Roofstock was founded in 2015 with the stated goal of making investing in single-family rental properties “radically simple.” To do this they built a comprehensive online platform that streamlines the entire transaction process and gives investors powerful tools to make smart decisions.
When you use Roofstock to invest in real estate, you shop for and purchase single-family rental properties through their online marketplace. Their inventory is curated using powerful AI analytics, and the properties are located all over the country. Every single listing has a “neighborhood score,” a proprietary metric developed by Roofstock that indicates the livability and value of a particular area. Each listing also includes important financial, quantitative, and qualitative data that you previously had to pull together from a variety of sources. That means you can live in Wyoming and shop for investment properties in Myrtle Beach without having to leave your living room.
When you find a property you like, you bid on it through Roofstock. If the bid is accepted they guide you through escrow and closing.
Don’t want to manage the property yourself, but don’t know where to begin when it comes to hiring a property manager? Roofstock can hook you up with one of their preferred property managers.
Most 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 offers what they call a “Lease Up Guarantee.” If you buy a rent-ready property and don’t secure a lease within 45 days of closing, Roofstock will cover rent for up to a year.
That’s not the only guarantee Roofstock offers, either. Believe it or not, they also give you a 30-day money back guarantee on the purchase of any property. 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.
Real Estate Investing Redefined
If you’ve been thinking of investing in real estate, but weren’t sure you wanted to deal with the hassle of buying properties and becoming a landlord, you need to take a look at Roofstock. They have created a one-of-a-kind, one-stop online platform that simplifies researching, buying, financing, and managing residential rental properties. There are no geographical barriers, and all properties are pre-selected for their ability to generate income. Plus you get access to powerful analytic tools plus support from a team of experts throughout the process.
So don't wait. Click here get started with Roofstock, today.
Futurism fans: To create this content, a non-editorial team worked with an affiliate partner. We may collect a small commission on items purchased through this page. This post does not necessarily reflect the views or the endorsement of the Futurism.com editorial staff.
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