Here’s a new proposition from a company that markets single-family rental homes to mom-and-pop investors: Want to buy a tenth of a house?
Roofstock is pitching a chance for those interested in the asset class to start small. The company will buy a home and put it in a trust, then sell stakes for as little as $5,000. The aim is to provide investors direct access to rental income — and the tax benefits of owning commercial real estate — while lowering the buy-in and eliminating inconveniences like having to carry a loan on their personal balance sheet.
“The whole idea at our founding was to create a platform where real estate could trade much more like a stock,” said Gary Beasley, chief executive officer at Roofstock, a four-year-old startup based in Oakland, California. “At the end of the day, you can go to a website and after a few clicks, you have real estate exposure.”