Single-family rental real estate investing platform Roofstock has launched a new product so that investors can purchase shares in properties across the country, rather than having to invest in a property by purchasing an entire home.
The new product, called “Roofstock One,” will allow investors to purchase shares in single-family rentals as they might do with a share of stock, the company explained in a statement released Monday. Now through the end of December, accredited investors will also have access to a limited-time offer of investing in Roofstock One shares for $1,000. After that time, the minimum investment will be $5,000.
Using its data science and research teams, the company will identify properties in various markets that have investment potential, acquire those properties, and then through Roofstock One, issue ownership shares in the properties.
Shares will also be bundled by geographic region or other similar characteristics so that investors can select shares based on different investing strategies, depending on their particular investment goals.
“The attractiveness of [single-family rental] has long been its ability to generate strong, consistent returns over the long-term in a way that is almost entirely uncorrelated to the stock market,” Roofstock CEO Gary Beasley said in a statement. “We believe Roofstock One makes [single-family rental] real estate investing the simplest it has ever been.”
By purchasing shares in a property, investors will have the benefits of cash flows and appreciation over time without having to also deal with all of the typical responsibilities of owning an investment property, like maintenance or placing tenants, which Roofstock will handle.
Initially, investors will be able to purchase shares in affordable markets in Georgia, Indiana and Alabama, which Roofstock has identified as locations where remote work trends are likely to continue, and will benefit the single-family rental asset class.
Roofstock was founded in 2015. In August, the company acquired property management platform Great Jones.