Is it specifically a turnkey property that you're wanting, and that's why you're looking at Roofstock? Or why Roofstock in particular?
I don't agree with a lot of stuff they do and promote, personally. I don't necessarily want to spell them all out here--every time I say something about Roofstock on here I get a message from someone at the company asking me to stop responding about them.
I prefer regular turnkey provider companies for several reasons, if a turnkey is what you're looking for.
Is it specifically a turnkey property that you're wanting, and that's why you're looking at Roofstock? Or why Roofstock in particular?
I don't agree with a lot of stuff they do and promote, personally. I don't necessarily want to spell them all out here--every time I say something about Roofstock on here I get a message from someone at the company asking me to stop responding about them.
I prefer regular turnkey provider companies for several reasons, if a turnkey is what you're looking for.
@Michael Hren I suggest searching the forum, I was considering them but changed my mind after reading about other's experiences.
I think Roofstock workers well for sellers and experience buyers. If you are a first time buyer I think you may be better off with a turnkey provider who will guide you through the entire process and manage the property after.
I appreciate the feedback. I am looking for turnkey so I thought roofstock would be a good choice because they seem to walk you through the process from start to finish. I have seen other turnkey providers so I may reach out to them as well to understand the service they provide.
I’m 31 with the goals of being able to build a decent 25-30 property portfolio over the next 10-15 years. Cash flow is probably most important so I’ll have to do some research on those markets.
I've no affiliation to this company nor I've used them, but I do listen to his podcast a lot, so I'll suggest you look into them for turnkey Norada real estate
I appreciate the feedback. I am looking for turnkey so I thought roofstock would be a good choice because they seem to walk you through the process from start to finish. I have seen other turnkey providers so I may reach out to them as well to understand the service they provide.
I've been buying turnkeys for 9 years and work with people buying them.
Roofstock was the first place I looked when I wanted to buy a turnkey. They do have some good deals but a lot of them I was seeing were in poor neighborhoods with average to low returns. There are other providers on BP that can provide you with better returns and better neighborhood qualities to protect your investment.
first identify the cash flow market and the neighborhoods to invest in.
finding a rental is the next step. that can be done via turknkey providers or a realtor. in both cases, you will have to use a third party property mgt co.
@Michael Hren I've not used Roofstock but I am familiar with some cash flowing markets and buying OOS if you ever want to shoot over any questions. Happy to help! Exciting but overwhelming stage you're in. I totally understand!
@Michael Hren - I look at a lot of demographic data and the deals from TK providers tend to be low income, high crime, low forecasted population growth areas and the TK company is selling high cash on cash and high cash flow. Make sure you do the DD on the areas where you are investing. I really like a company in Kansas City and Dallas that buys properties in fantastic submarkets and master leases them from the owners 3 years at a time. No PM company due to master lease. They are doing a rent by the room model. I really like A- to B areas for my out of state investments. Most turnkey companies are selling in C to D areas. So it's really up to you but don't skimp on the education phase and don't skimp on property DD.
@Michael Hren - I look at a lot of demographic data and the deals from TK providers tend to be low income, high crime, low forecasted population growth areas and the TK company is selling high cash on cash and high cash flow. Make sure you do the DD on the areas where you are investing. I really like a company in Kansas City and Dallas that buys properties in fantastic submarkets and master leases them from the owners 3 years at a time. No PM company due to master lease. They are doing a rent by the room model. I really like A- to B areas for my out of state investments. Most turnkey companies are selling in C to D areas. So it's really up to you but don't skimp on the education phase and don't skimp on property DD.
I'd be curious in learning more about the TK company if you're open to sharing. Looking for a good one in KC and would love one who does master leases. Always good to have the nicer submarkets too. Side bar- I disagree with your claim about turnkeys in general...most of the turnkey companies I work with work in C+ and up, most in the Bs and some B+. I don't even know any turnkey companies working in Ds or low Cs. But all that aside, would love to meet a good one in KC/Dallas.
@Ali Boone - There are a few TK companies in Kansas City that only operate in C and D areas, I won't post the names on the forums, but I tell people to run away if they are ever looking at buying from these two companies. It is cool that there are some alternatives popping up like the company I am talking about. I love high-quality assets in great locations that cash flow and don't require PM. I'm sure the D class properties look better on paper but overall ROI is much higher in those better areas in the path of progress. Rent by the room is the new studio apartment if you ask me.
@Ali Boone - think the SFR definition of the C/D area is open to some interpretation. But as a KC local, I tend to think of homes east of Troost as C-/C and that east of 71 as D. One of my properties just west of Troost (the "good" part of town) has had multiple shootings in the neighborhood in the last 12 months...
Trulia/neighborhood scout are more dependable than I am, but when I see crime scores in the 90's I typically try to be careful unless the area has very strong income and population trends.
@Michael Hren just to be clear, Roofstock is not a turn key company. They don't own the properties and they haven't rehabbed them. Think of them more as an alternative to the MLS.
@Michael Hren just to be clear, Roofstock is not a turn key company. They don't own the properties and they haven't rehabbed them. Think of them more as an alternative to the MLS.
For me personally, Roofstock is worse than the MLS. In the MLS, with enough persistence and patience, you can at least find a good deal from time to time. Roofstock listings are from fellow landlords and they most certainly aren't going to underprice anything.
MLS with a good local realtor and a good PM is the way I would go. It takes time and effort, but eventually you will put together your trusted local team and find a decent deal.
If you want to do minimal effort while minimizing downside risk, I would go with one of the trusted TK providers here on BP, like Pinnacle, Norada, Smartland...or talk to @Ali boone.
@Michael Hren just to be clear, Roofstock is not a turn key company. They don't own the properties and they haven't rehabbed them. Think of them more as an alternative to the MLS.
For me personally, Roofstock is worse than the MLS. In the MLS, with enough persistence and patience, you can at least find a good deal from time to time. Roofstock listings are from fellow landlords and they most certainly aren't going to underprice anything.
MLS with a good local realtor and a good PM is the way I would go. It takes time and effort, but eventually you will put together your trusted local team and find a decent deal.
If you want to do minimal effort while minimizing downside risk, I would go with one of the trusted TK providers here on BP, like Pinnacle, Norada, Smartland...or talk to @Ali boone.
Is it specifically a turnkey property that you're wanting, and that's why you're looking at Roofstock? Or why Roofstock in particular?
I don't agree with a lot of stuff they do and promote, personally. I don't necessarily want to spell them all out here--every time I say something about Roofstock on here I get a message from someone at the company asking me to stop responding about them.
I prefer regular turnkey provider companies for several reasons, if a turnkey is what you're looking for.
That's never a good sign when a company tries to silence people from talking about them. Redflag for me.
@Ali Boone - There are a few TK companies in Kansas City that only operate in C and D areas, I won't post the names on the forums, but I tell people to run away if they are ever looking at buying from these two companies. It is cool that there are some alternatives popping up like the company I am talking about. I love high-quality assets in great locations that cash flow and don't require PM. I'm sure the D class properties look better on paper but overall ROI is much higher in those better areas in the path of progress. Rent by the room is the new studio apartment if you ask me.
I'm totally with you on preferring nicer areas! Too much headache with D-anything, and more importantly cash flow can be predicted to be as high as anyone wants, but if it's not sustainable, it's of no use.
@Ali Boone - think the SFR definition of the C/D area is open to some interpretation. But as a KC local, I tend to think of homes east of Troost as C-/C and that east of 71 as D. One of my properties just west of Troost (the "good" part of town) has had multiple shootings in the neighborhood in the last 12 months... Trulia/neighborhood scout are more dependable than I am, but when I see crime scores in the 90's I typically try to be careful unless the area has very strong income and population trends.
Ugh, even some of the nicer areas out here in LA have had an insane number of shootings lately. But yeah, classifications are always up for interpretation. My favorite sources for that kind of info are the folks on the ground who can speak directly to it. Like you! Great info for neighborhoods out there.
That's never a good sign when a company tries to silence people from talking about them. Redflag for me.
I told them several times--if you disagree with what I said, say so in the thread so everyone can benefit. I'm totally fine to be wrong. But then they never do. Doesn't make any sense to me.
I am looking for turnkey so I thought roofstock would be a good choice because they seem to walk you through the process from start to finish. I have seen other turnkey providers so I may reach out to them as well to understand the service they provide.
Hi Michael. Congratulation -- Glad to hear you're starting your real estate investing journey.
Don't assume someone will always "walk you through the process". We get enough calls telling us otherwise. My suggestion is to ask what is and is not provided, and what you'll be responsible for.
I don't - but I'm very jealous of the awesome technology platform they've built. There are a lot of advantages from working with VC backed startups - a huge one is they aren't as concerned about profitability as most other companies (free stuff!).
Do think a local turnkey provider that manages its properties in-house does have some advantages in terms of local knowledge and expertise. But at the end of the day, you need to pick the market, house, and neighborhood that you feel the best about, out of all the available options. That can be had through RoofStock or elsewhere.