RoofStock Investing?


#1

Hi there!

We have been looking into additional streams of income, including real estate investing. We recently heard about a new-ish company, “RoofStock” on the Stacking Benjamins Show.

https://www.roofstock.com

Has anyone had any experience with RoofStock? Any thoughts on their model (looks somewhat like a turnkey?)?

Thank you in advance!


#2

Sign of a RE bubble? :smiley:


#3

Personally I wouldn’t invest through a company like roofstock.com, although it has nothing to do with them specifically. If someone wants to own rental real estate, it makes more sense to me to own it locally (even if you hire a property manager). Being able to physically inspect a property I owned would make me more comfortable with the investment.

Just my opinion, though…

John


#4

Both responses make a lot of sense. I’ve always had the feeling that, while not necessary, relatively close proximity to a rental would be ideal for finding and maintaining the property. Thank you both @_TJ and @60MinuteFinance


#5

While I think it would be ideal to invest in close proximity to where you live, sometimes that doesn’t work. I live in NYC and the numbers don’t really make sense in most areas that are relatively close. There would be negative cash flow or I’d have to raise a lot of capital. I purchased a investment property in Kansas City, MO where the numbers make sense.

I looked in Roofstock and it seems like an interesting concept. It seems like more of a platform for selling investment properties than a turnkey provider. I’m not sure what value it brings over a turnkey provider though. Whereas a turnkey company supposedly buys at a discount, renovates, sells to the investor at market price as well as provides property management, it appears that roofstock just lists investment properties from other investors or real estate investment companies. Maybe I’m missing something.


#6

@AdventureRich There was also a couple of podcasts that Listen Money Matters did with Roofstock. One of the hosts has two properties through them and seems to have had a very positive experience. I haven’t listened to the Stacking Benjamins one yet, but it’s on my to-do list.

My wife and I are interested in diversifying with some real estate, as well. In Utah, prices right now are NUTS. There aren’t many properties locally that will pencil out as good rentals if you buy them at this point in time. So we’re interested in the long-distance option.

Another interesting idea another investor told me about is that you may be able to write off some or all of your travel if you have a rental property somewhere near where you like to visit anyway (say, family in the area). If you go out there and check up on your property and meet with your property manager, it’s a business trip. Obviously you’ll want to check all that against your own situation :slight_smile:

A Rebel Spy from the MMM forums has a pile of rentals he manages from afar, as does Paula Pant now, so it isn’t totally out there. I suspect it’s more of a decision about whether your local market is rental investment friendly or whether it makes more sense to go somewhere else.