I am still in the research stage and looking into the website roofstock.com. They are a turnkey. I am wondering if anyone has had experience with this company or actually purchased through them. They seem to have a very transparent process and show all properties on their website. It seems pretty legitimate to me but looking for opinions from others. Thanks!
Andrew from Listen Money Matters has bought two properties from them and has had a good experience so far. They have an episode dedicated to roofstock and I'm sure you can even get ahold of Andrew to find out more if you want.
I agree with Christopher. ListenMoneyMatters is a great financial podcast, and actually did a three part (?) series on REI...specifically building towards an episode-interview with the owner of roofstock. It was very informative and provided a bit of background into their [roofstock] business model, etc. I think you, and others, might find it useful. here is the link to the podcast, listen money matters roofstock review
I'm under contract on a property with Roofstock and have previously purchased from a turnkey provider in the Chicago area.
It's important to note that Roofstock is a marketplace for certified, off-MLS properties with certified tenants in place. This means that Roofstock does diligence on the properties and tenants (all of which is available to you as an investor) and connects you to vetted property managers. They also have preferred relationships with lenders.
Unlike the firms more commonly referred to as "turnkey" operators, however, Roofstock does not renovate properties before sale, nor do they run in-house property management.
The upsides seem to be that:
- Their marketplace lets you search, filter, and analyze many properties across the Roofstock markets more efficiently than any single turnkey operator or marketer does
- Their properties do not carry the typical turnkey markups, which may leave a bit more meat on the bone (these tend to be rental properties owned by institutional investors)
- The provide much more complete and useful data in their proformas, with the ability to easily tweak assumptions
The downsides seem to be that:
- Properties are provided as-is and likely haven't had a complete renovation, so repairs and CapEx may be higher with their properties (though they do disclose details and expected useful life on big ticket items like the roof and key mechanicals)
- You lose the "one neck to choke" benefit of turnkeys, though they do assign advisors who are available to assist you throughout the process of closing on the home
If you are familiar with Homeunion, Investability, or Mashvisor, they are all worth a look for comparison.
I find Roofstock's business model and fee structure to be clearer and more investor-friendly than close-ish counterparts Homeunion.
I haven't looked closely at Investability.
Mashvisor is an interesting research tool but not as powerful for largely hands-off property acquisition and management.
None of this represents an endorsement of any particular service; I'm just sharing my observations and opinions.
@DYLAN BLUM I closed on my first Roofstock deal 3 days ago! The process was painless from start to finish and Roofstock were phenomenal with assisting me along the way and keeping me updated on the whole process, I also used one of the mortgage lenders that they recommended and that was also painless and stress free! We have our PM Company in place; tenants have been renters for 3 years. The house is in excellent condition and just outside Atlanta! We are ready to go for round two! I heard about them from Listen Money Matters so got my first transaction fee of $99 waived :)
@DYLAN BLUM Roofstock is a legitimate provider of renovated/rented properties across the US. They stand behind the home they offer and will guide you every step of the way.
My experience with them has been as a lender, financing a bunch of transactions. From my standpoint they were great to work with, are knowledgeable and will go the extra mile for their client.
*** Moderator - This is not self advertisement. Just responding to the OP's question to provide him a well rounded insight. ***
@Linda Dalton how has your experience been with Roofstock now that you are a few months into the deal?
@Cathryn Stauffer the whole process start to finish was amazing! Roofstock basically holds your hand and guides you every step of the way! I would definitely consider using them again! My house is rented until April and I have a PM that charges 6%! All in all the experience buying my first out of state investment was pretty darn good!
Since there's some new interest in Roofstock, I thought I'd post my experience which, unfortunately, hasn't been as stellar as others. I am not intending to knock Roofstock at all and hope to be a customer of theirs in the future, but my first shot with them has been disappointing to say the least.
I found a house that I liked in a decent area in Georgia (most of the GA properties are either in the boonies, in "war zones," or areas with high vacancy). I live in Atlanta so I was able to drive by and take a look; the house was really cute. I was excited to say the least. The asking price was over the market price by a good $10k, so I "negotiated" with the seller back and forth 5 or 6 times before we landed on a number we could both live with, though I was still paying more than I wanted to for the house. The numbers worked, however, so I was ok with moving forward. I put "negotiated" in quotes because there's no way for you to justify a lower price to the seller (and I had plenty of reasons: comps, repairs, etc.) why they were asking too much. You simply submit a dollar amount and the seller accepts or rejects it.
After the offer was accepted by the seller, Roofstock was quick to act, putting me in touch with a mortgage broker and an insurance agent. I signed the contract, applied for a loan, and talked to Roofstock's insurance agent and a few others. About 3 weeks later I got a call from Roofstock indicating that the buyer had stopped paying rent the month before I moved ahead with the purchase and the current owner was going to evict them. Roofstock asked me what I wanted to do. I said that if the seller could turn the place over and get a new tenant within a reasonable amount of time, I'd stick with the contract. It was a good house, after all.
Another few weeks go by and Roofstock calls to advise me that I cancel the contract. Things were taking longer with the eviction than expected. The seller was still interested in selling me the house, but they didn't know when that was going to be. Deciding I didn't want this dragging on forever while being legally bound to the offer, I decided to cancel the contract. Roofstock said they'd keep me updated on progress as the house was turned and new tenants were found. That was 3 1/2 months ago.
I've emailed and called Roofstock 5 or 6 times since then. They tell me that things are just taking time. There were problems getting the gas and electric out of the evicted tenant's names. The turnover took longer than expected. Nobody's renting during the holidays. They usually get back to me 3 or 4 days after I contact them asking for a status update.
So now I'm here with a hard pull on my credit for a mortgage I don't need and dozens of hours sunk into preparing to buy the house. Updates from Roofstock have been terrible, but I've given up at this point. I don't think any of this is necessarily Roofstock's fault (aside from the lack of communication when things didn't go perfectly). Yes, the house was still listed on their site showing that it was occupied and the tenants were current with their rent, but that's really more on the current owner of the house than Roofstock - how would Roofstock know? So I'm only frustrated with the communication, but it's definitely not been smooth sailing for me.
@DYLAN BLUM my advice would be to contact a property management company or an agent in the market you want to buy. They can find you turnkey properties in better areas that have better returns. Make sure you ask for references. Good Luck.
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Bumping this back up. Anyone with recent Roofstock experience?
I'm in the process of purchasing a property through Roofstock in Lithonia, GA. I close towards the end of July. I will do a case study on the experience like @Tyler Jahnke did with Morris Invest once we close on the property.
@Jason Gines . I have 1 SFR in Lithonia for last 8 years. Do you have a property management company to work with or plan to self manage?
@Amby Agawal , have you used them before?
Its a good concept but bad experience with them. My biggest issue with them was the responsiveness. Sometimes it took days to be able to get in contact to them even after numerous emails and phone calls
@Eric P. , did you end up purchasing a property through them? We have a closing date set on a property on July 18th and have found our point of contact at Roofstock to be very responsive since we began the process with them.
@Jason Gines Yes, I closed two weeks ago. Im not sure if it was a one off kinda thing but I've experienced very unresponsiveness and disorganization. It was like pulling teeth half the time. Wasn't the seamless kind of transaction they advertised it to be. im glad its over now
@Eric P. , aside from their unresponsiveness, did you have any issues that arose during the process? We've so far had two, one dealing with the requirement of DeKalb County in Georgia requiring properties built prior to 1993 to have a certificate of compliance that all plumbing fixtures (sinks, toilets, and showers) are low-flow, otherwise the owner or a future tenant won't be able to obtain water service. The other was that the inspection report from Roofstock indicated no electrical issues but the appraisal report indicated some outlets weren't attached to the wall and weren't operating correctly.
@Jason Gines I didnt recall encountering any notable issues. That sounds like a huge pain. I think the inspections are done in house from Roofstock so it could be that they sway it a bit in their favor or provide inaccurate information as opposed to their appraisal since that is done with a third party.
@Eric P. , which state did you purchase the property in?
@Zach Evanish , I understand that. I was never under the impression that Roofstock influenced the outcome of the third party inspections.
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