Roofstock One Review 2022 – Investors Beware
 | By: Jeremy Biberdorf | April 21,2022 |
In a Nutshell: Investors are able to buy and sell single-family home rental properties in their online marketplace. By doing so, investors can collect passive income from the renters (who inhabit the property when you buy it). Fractional ownership of a single property is also available on the platform, which eliminates the headache of shouldering hefty loans.
| Minimum Investment | Fees | Types of Investments | Promos |
|---|---|---|---|
| $5,000, after the initial investment you can purchase fractions | 10% of property management fees | Single-family rentals | None |
Pros & Cons
Pros
- Offers fractional share purchases on the rental properties
- Indirect investment options
- Actively managed passive investments
- Investors have the ability to leave Roofstock One (with a penalty fee)
Cons
- No full bankruptcy protection
What is Roofstock One?
Roofstock One was introduced onto the Roofstock platform as a way for investors to get in on fractional ownership and to make it easier for accredited investors to have a more hands-on approach to customize passive investments. Investors will no longer need to shoulder a loan on their own, which can be a lot of pressure. Think of Roofstock One as a way to do things remotely even if you don’t have the capital.
Roofstock One Review – How Does It Work?
To start, you will need a minimum of $5,000. Although this is a much smaller capital than direct property investing, it’s still a considerable sum for the average person. However, alternatives such as Fundrise gives investors more control over how much to spend because it offers various plans. Not only that, but Fundrise isn’t only for accredited investors, which brings real estate investments to the average investor!
You can start with as little as $10 for the Starter, $1,000 for the Basic, match Roofstock’s $5,000 and get the Core plan, or go $10,000 or even $100,000 for the Advanced and Premium accounts.
Roofstock doesn’t put a limit on the number of shares you can buy, but you cannot exceed the amount for a single tracking stock. At the moment, Roofstock’s services are only available to US accredited investors, which again, reduces the pool of potential investors. You may invest as an individual, use a joint account, or be an LLC or corporation, but you cannot use your retirement account for the platform’s investments, which again, limits some people.
If you’re looking for a platform exclusively for accredited investors, we also suggest PeerStreet, which offers one more type of asset (single-family and residential homes) than Roofstock One.
What Does Roofstock One offer?
Roofstock One offers various features, but these are the most prominent ones.
Passive Investing and Active Management
There’s not much for you to do as your property is actively managed by experienced property managers. Roofstock One will automatically match you with one of their experts. You won’t need to stress about taxes, HOA fees, or anything a traditional landlord is responsible for.
Other platforms can easily manage your assets for you through something as easy as automated investing.
Fractional Ownership
One of the biggest wins for Roofstock One is the fractional ownership option. You don’t have to put down the entire amount for a single-family rental property. Invest in a way that works for you without the pressure of getting enough capital together.
What Makes Roofstock One Different?
Roofstock One is faster and easier to use than traditional real estate investments, but there are other real estate platforms that do the same. You directly invest in the property, but you have everything handled for you by experienced property managers, who you do not have to seek out for yourself.
Roofstock One automates everything and investors only have to focus on picking the right profile. Because the minimum investment is quite low compared to traditional real estate investments, users can spread their capital across various properties for more exposure and diversity. Historically, this could also lead to stabler long-term growth.
Who is RoofStock One for?
Roofstock One seems easy to use, but is it for beginners? There isn’t a right answer, as long as the results meet your financial goals. We do believe it’s a good choice for beginners because of the fractional ownership option and Roofstock One’s helpful guides and extra tips. The platform also has a podcast that shares knowledge with its users. While these are all helpful resources, they are not unseen on other platforms.
Roofstock One Reviews
A lot of the reviews of Roofstock talk about the price compared to the value, and most believe it is overpriced for the quality of service. We always try to bring the most honest perspective to our readers. Let’s take a look at some of the most prominent user reviews on Trustpilot and BBB.org.
“OK but its pretty expensive, there are other services with better support.“ – Monika Milchova
BAD service, no one answers, clients are stressed. support always closed. disappointing, agent won’t answer.. Etc.” – DV Lazarescu
“Roofstock just wants your money as fast as possible and will then leave you in the dust. Their “inspection” reports are misleading at best and fraudulent at worst. I take responsibility since I trusted an inspection done by the seller’s agent (Roofstock). Please learn from my mistake and either avoid doing business with Roofstock or hire your own inspector to perform a real report on any properties that you’re looking at.” – Dean A.
“I am noticing significant bias and Roofstock conflict of interest, as a buyer investor…”complete review here – Raja M.
Bottom Line
Roofstock One is an effective alternative to traditional real estate investing that lets investors pick and choose the right portfolio, and removes the stress of handling things behind the scenes. However, for the price and the services provided, there are other platforms that do these things well. Click here to learn more about how to get started with Roofstock One. Or you can choose Peerstreet here as an accredited investor for a lower minimum investment.
If you’re not accredited, it’s okay, because Fundrise is a great platform for you. Click here for a discount.
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