Roofstock One offers investors another option to buy single family properties

Roofstock announced the launch of Roofstock One that allows investors to buy fractional shares of single family rental properties

For a majority of investors there are two ways to access the family rental market, either buying a property directly or purchasing a publicly traded real estate fund or REIT. Roofstock first tackled opening up individual direct ownership by creating a platform for buyers and sellers of single family rentals. To date, they have transacted over $1 billion on the platform which allows investors to browse properties in select markets. Most often, these homes already have tenants in place. The platform removed a major hurdle for investors to access real estate if the numbers simply didn’t work locally. You can learn more about this offering in our Lend Academy podcast episode from October of 2018.

Earlier this year Roofstock launched Roofstock One, which is a hybrid between the completely hands off approach a REIT offers and still having direct ownership of an individual property. CEO and Co-Founder Gary Beasley explained more about this unique offering and how they position the product.

Roofstock One is a platform which allows fractional ownership on rental homes with minimums as low was $5,000. It is truly a passive product where everything from financing to property management is taken care of. Interestingly, it was born out of feedback from users. Beasley spoke with people who had been on the original Roofstock.com platform over 20 times but had yet to make a purchase. He learned that potential investors were paralyzed by the choice of picking an individual property and some were reluctant when it came to financing. Some investors didn’t want to be on the title of the property and others simply expressed concerns over dealing with property managers/tenants. That, coupled with the lack of diversification when you invest in one property is how Roofstock One was born.

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