We are excited for today's official public launch of the Roofstock marketplace!
I would encourage you to check out our new site, www.roofstock.com, and our expanded inventory of Roofstock certified properties. The investment opportunities on the site provide a wide variety of Single-Family Rentals (SFR) in several attractive markets throughout Florida. We chose to launch in the Sunshine State, given considerable interest from both buyers and sellers in the market. The Roofstock team is busy certifying properties in existing and new markets, which will be rolling out shortly.
In this time of increased market volatility, I believe it is particularly interesting to consider diversifying into SFR homes as a component of your investment strategy. Home prices tend to adjust much more slowly than prices of stocks, and in the past, rents typically remain "sticky" even when home prices decline. During the Great Recession many markets saw home prices drop 50%+, but rents declined only modestly, if at all, as the market was awash with new renters. Note that many of the homes on our marketplace have recovered some, but remain 60% or less of peak values, and are generating attractive current yields. We only see demand continuing to increase as there are an additional 13 million new renter households expected to form by 2030. This should provide a significant tailwind for the SFR industry both in terms of supporting increasing rents and the underlying asset value.
I am frequently asked how the Roofstock marketplace is different from investing in Real Estate Investment Trusts, or REITs. Prior to Roofstock, I ran one of the largest SFR REITs, and am a big believer in the value of REITs as a component of a balanced investment strategy. They provide real-time pricing, excellent liquidity, and broad diversification for investors. However, REITs can be burdened with significant overhead as public companies, limited in a practical sense to the amount of leverage they can utilize, and are often "over-diversified," which prevents investors from making concentrated market bets. With the Roofstock marketplace, you can choose your markets, favor properties that meet your risk/return objectives, and determine the leverage level that suits you.
Many aren't aware of this, but individual investors can qualify for 80% financing at attractive 30-year fixed rates on up to 10 investment properties. Consequently, it is possible to acquire one of our lower-priced properties on Roofstock for as little as $20,000 in equity, making wealth creation from rental property ownership a lot easier than many think.
Roofstock is on a mission to make investing in real estate “stock market simple” and making your SFR investment process cost-effective and efficient, while meeting needs of investors like you. Only with your help and engagement can we get there!
All the best,
CEO + Co-Founder