If you are researching for a property out of state or looking to buy a turnkey property, Roofstock offers multiple reasons to buy a property on their website because of its investor friendly features. Below are some of the reasons I bought mine on Roofstock
- Ease of Placing offer: Roofstock has the ability to place an offer on the property on the website itself without talking to anyone. It can be done in three steps and you can also pay your Earnest Money Deposit (EMD) of $500 in those three steps with a credit card which will be kept on hold until the transaction is finalized.
- Creating a roof to create a funnel for deals: If you are looking to find deals, you can create a "roof" with your criteria like "List Price", "Neighborhood rating", "Location", "Contingencies"
- Latest Inspection Report - Every property listed on Roofstock has an Inspection Report included for the investors to view and see what the state of the property is and what the estimated rehab costs would be. If the inspection report is more than 4 months old, Roofstock will pay for the inspection after you place an offer and you can still back out of the transaction if you don't like what you see post inspection.
- Property Valuation Report - Every property has a Property Valuation Report which is similar to an appraisal report that will show you three similar listings in the area.
- Ledger - If the property is tenanted, the ledger will show all the financials related to rent, repairs, maintenance, late fees and security deposit. This is also included in the same packet as the Property valuation and inspection report.
- Financial Analysis - You can analyze any property using the calculators they provide right under the "Analysis" tab on the listing
- Recommended Property Management - At the bottom of the listing, there are 4 property management companies that Roofstock recommends. One of them is the current Property management that shows the Property Management Fee, Leasing fee, Renewal Fee and Maintenance fee and helps you compare with the other 3 property managements that Roofstock recommends.
- Tenant Occupied - Since most of these properties are owned by investors, they are even sold with a tenant in place with rents at the market rate.
- Referral Bonus - Earn $1000, Give $1000. Earn $1000 if the investor buys or sells a property with Roofstock. Your friend will also get $1000! This is one of the best parts of purchasing a property on Roofstock. If someone uses your referral link to create an account and buy or sell a property, you can get $1000 off your purchase or $1000 prepaid VISA card within minutes.
- 30 Day Buy Back guarantee - If you are not happy after purchasing the property, you can sell it back to Roofstock within 30 days. NO QUESTIONS ASKED.
There are many other advantages of Roofstock I might have missed but these are the 10 I felt really appealed to me when I was going through the purchase.
Hi AJ, thanks for sharing your findings on Roofstock. Were there any downsides to the service that you came across?
@Joe Doss No downsides yet. I had to find my own lender for the financing but the lenders that Roofstock recommended also had competitive interest rates. I was looking at the Memphis market and was able to find a lot of deals that were within my price range. If you are looking for a turnkey property, Roofstock has a section for that as well.
Pretty interesting. Did you just buy online, site unseen? Is the inspection report just on certain items, or is it a legitimate, thorough inspection? Can you request for a due diligence period of your own, to bring your own contractors/inspectors?
Was it the same time as a traditional SFH closing, ~30 days?
Yes, Bought unseen
It is legitimate inspection report but you can also order your own inspection. You will just have to work with the Roofstock transaction coordinator. They can help coordinate any contractor appointments, inspections that you are trying to get on the property. You can work with the transaction coordinator to decide the closing date. Let me know if this helps.
Wow! Great information. Thanks for sharing!
@Jennifer Donley That is amazing. Roofstock is so easy to work with. Definitely recommend it.
There's few downside Roofstock (that can be improved): The inventory are very very very low these days.....Second, the portfolio section is not really that friendly for buyers.
Other than that, it's 6 star company. I visited their office before I made transactions.
However you could actually find a similar deal from MLS or Turnkey, I'm more venturing this route due to low inventory in RS.
@Carlos Ptriawan Thanks for the feedback. Can you share some experiences on why the portfolio section is not friendly for investors? I have not explored the portfolio side of it yet. But I agree, as far as purchasing single family rentals go, Roofstock makes it really easy to get started.
Some houses in portfolio sections are not certified, some houses don't have pictures, most don't have an inspection report. Many don't even have photos. But investor needs to buy 3 out of 100 houses for example and pay the marketplace fee. The portfolio section I feels more like buying from the wholesale, risky but fun :) There's a ton of improvement they can do to make Portfolio section more informative.
Oh btw, another downside: some of the assumptions in RS are really not that accurate. There should be a warning somewhere mentioning this to beginner investors to do double diligence. But that's true for everything that due diligence is a must.
Now I give you the real advantage of buying from Roofstock: they have a better negotiation rate with Property Management that you're working with. So if you're buying from Turnkeyand paying 10% for PM, the same PM charges only 8% for the same property. This is what I like the most about RS.
I guess I don’t really understand Roofstock still. I rarely come across pictures of the inside of homes. None of the homes on there seem “Turnkey”. The only thing I’ve noticed is a lot of times it seems that tenants are already in place. I’m not sure if thats a good or bad thing. Why would an investor sell a home thats working for them? Anyways, just what I’ve noticed so far. Maybe I’m missing the whole concept.
@Carlos Ptriawan I completely agree on the 8% Property management fee. And the comparison of pricing that they offer at the bottom of the listing is absolutely worth it.
Due diligence is something that an investor has to do regardless of whether Roofstock presses on it or not. Learning how to run your numbers is the first thing we should be doing before placing an offer on any property.
I have never explored the wholesale side of Real estate strategy. Still a lot to learn.
@Andrew Coulter Since most of the houses listed on Roofstock are owned by Investors, there are different goals that investors might have. Having said that, I look at the "late payment months" section under "Analysis" which will show you how the tenant is performing and if he is paying on time. You can also refer to the "Ledger". That might be a reason why the investor is planning to sell. Currently, Roofstock has over 300 properties on their website and there is a section for "turnkeys" , "1% rule", "2-4 units" and even "higher yield" on it which might be useful for you. There is an ability to create a "roof" on the website where you can specify what you are looking for in a property and you will get email alerts as soon as it meets your requirements.
Let me know if you need help in analyzing a property on Roofstock or just find out more details on it. I can help you with it. Also, I closed on a turnkey property with Martel Turnkey who are based in Cleveland and Memphis so if that is a strategy that interests you, I can connect you with them with an email intro. Looking forward to hearing from you.
Roof stack should give you a discount, a referral fee, or maybe hire you for public relations. If you are simply a impressed customer of roof stack they are definitely getting some good recommendations by you. At first I thought it was a disguised commercial put on by roof stack, but after reading through the Comments you might just really be a real live customer that is impressed by roof stack. :-)
many people don't realize the potential of Roofstock. This is actually the way the property (especially MLS) should be sold to open market: with auction market and open transparent disclosure(inspection report and open ledger, so on). What RS does, it creates a tangible new niche market for a rental property that any property shall be as transparent as possible.
Maybe similar to CarMax in used car market (except Carmax makes an undisclosed profit).
At the beginning, I'm also reluctant to have an investment with RS but when I attended their office, meet their officer, there's no selling pressure, they're pretty much only the broker of the open rental market.
Looking at the early investor of RS such as Khosla, I believe they're on right path to be successful.
@Joe S. I suppose you are referring to "Roofstock". I am not getting paid to endorse anything here. I am just sharing my experience and my purchase and if someone is interested in buying, I would be more than happy to help. No other intention.
@Carlos Ptriawan The main advantage of Roofstock is how easy it makes it for investors to analyze a deal and place an offer. I haven't been able to find a better portal out there compared to them.
Thanks for the feedback.
Yes, in 190 seconds usually I know if the property is a bad or good investment due to their open inspection report/receipt and open ledger. I scanned 30 houses daily and looking for a hidden gem. These days it's hard to find. Many sellers just offload their junk houses. This procedure is almost impossible unless there's certain disclosure to a property.
The bad thing, the good house is gone in 90 seconds. You are competing with lot of professional and funds in RS.
This is great info! I liked the platform, but had a hard time finding deals in my target markets. Also, even though I would always recommend getting a 3rd party inspection, its awesome that they provide one. Easy to do quick DD.
AJ Parikh - DO you receive any compensation from Roofstock?
@Steve Morris I wish you could add something positive to the article. I am just sharing my experience buying with Roofstock. If you have any feedback, I am all ears.
Do you receive any compensation from Roofstock?
I looked on this site and all the local properties are way overpriced compared to what a local would pay and more often then not in awful parts of town. My gut tells me a lot of newbies are buying these sight unseen and not realizing what they are really getting themselves into. Best of luck though. I think you need to walk properties and walk the neighborhoods for a true understanding before purchasing.