REI Sites Legitimacy Roofstock etc.

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REI Sites Legitimacy Roofstock etc.

KS Hanley
Queens, NY · Member since 2017 · 4 posts · 1 vote

Biggerpocket gurus pls share thoughts on crowdfunding REI sites like roofstock, HomeUnion etc.

Does it tie into the Biggerpocket ideals and methodology?

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  • Saul L.
    Specialist · Kiryat Motzkin, Israel · Member since 2014 · 266 posts · 159 votes
    8y

    @KS Hanley - Do a search- there are a fortune of threads on this topic. (new and old)

    BTW- What exactly is the " Biggerpocket ideals and methodology" you are referring to ? 

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  • Ian IppolitoBusiness Member
    Investor · Tampa, FL · Member since 2015 · 1k+ posts · 1k+ votes
    8y

    With Roofstock you own the whole house, rather than crowdfunding with someone else. So it requires deeper pockets and the ability to finance the loan yourself (including taking that liability). They have $70 million worth of venture capital, so they are probably not going to go bankrupt anytime soon. And supposedly they get a lot of their inventory from institutional investors, so theoretically it might mean higher quality inventory. 

    The issue I've seen with them is that the yields don't look super impressive to me. For example, they had many properties in my city of Tampa, that I personally wouldn't be investing in because of the low yields. (I've been able to do much better by sourcing myself). 

    On the other hand, if a person lives in a market where they can't buy a property locally, this can be a nice alternative. Just be careful, as an investor did report recently that the Roofstock inspection did not catch everything that he expected it to any had unexpected extra expenses. If you want more info, pm me.

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