Roofstock

43 Replies

I've heard some good things before, but haven't used it myself. 

I'm always weary about these sorts of "clearing houses". The price generally shoots up a bit higher than you could get marketing, driving for dollars, etc. May be a bit more efficient though. 

Originally posted by @Anthony Angotti :

I've heard some good things before, but haven't used it myself. 

I'm always weary about these sorts of "clearing houses". The price generally shoots up a bit higher than you could get marketing, driving for dollars, etc. May be a bit more efficient though. 

Awesome thanks for the input!

@Rob Willhite @Anthony Angotti I am the director of business development for Roofstock and would love to answer any questions you might have about our online marketplace for single family rentals. I don't want to hijack your post but please check out our site or feel free to pm me directly. 

@Eric P.  Roofstock speaks with those that have purchased through our site on a monthly basis and sometimes more for those individuals who like a more personal touch.  We connect you with a local certified property manger that handles all of the day to day management. We feel this is the best way to ensure the best possible level of service and highest returns for those that purchase through Roofstock.

@Account Closed  Interested in your service but have a few questions. 

Would you describe Roofstock as an amped up realtor service for investors (connecting buyers and sellers) or more of a turn-key sales company? In other words, does Roofstock own the properties for sale on the site? 

@Jason Doering  Thanks for the interest! Roofstock is curated online marketplace for tenant occupied investment properties. We do not own any of the properties on our site. Every property on the site has a tenant in place and passed through the Roofstock Certification process. The company was built by a team that has purchased and managed thousands of single family homes and felt there was a need for a tech enabled and highly transparent marketplace. You can actually make offers right through the site. Happy to answer any questions you might have.

I just wanted to chime in... roofstock is awesome!  It is particularly awesome to sell your homes and we have a sold a few on the site.  You post homes with your tenant in them so you don't have to pay for disposition, remodel of the home, pay a realtor... it's brilliant.  In our case, that allows us to price them a little better then if we put them on the open market, win-win.  As far as the pricing of homes... just compare it to zillow or run comparables.  Pricing is pretty transparent these days.  I've found that the homes on the site trade at decent prices, but the good ones go pretty fast.  Just wanted to share my experience.  

@Rob Willhite There’s a good interview with the founders of Roofstock on the Meb Faber Show podcast. It’s episode 63. You might check that out. Has some good info, history, etc on the company. I personally haven’t used them, but have been considering it.

@Elaine Hester The biggest difference is that Roofstock does not own the inventory on our site. We are a curated marketplace specifically for investment properties. We use data and technology to allow investors to buy and sell investment properties in an easy and fully transparent fashion. We have a lot of investors that are using Roofstock to satisfy their 1031 exchange. I will send you a DM so we can chat further.

I'm very interested in Roofstock and in my effort to vet this service, I have a few questions please.  

1.  Are the in place tenants Nightmares, and that's why the current owners want to get out, lol?  

2.  Does Roofstock divulge any info on the tenants for example any issues the tenant has had with the property?

3.  Is the tenants pay history divulged? 

Under the Analysis tab for each property you can download the ledger for the current tenant which will list late payments. Also, I believe there is a summary on the analysis tab that gives a brief summary of when the lease was started, expires and the number of late payments as well as if the tenant is current or late with the most recent payment. You can also talk to one of their advisors for more details. This post is a year old, and roofstock has grown since then. Not all places listed on the site have a tenant in place any more; however, you can search properties that are vacant or occupied. I have not made a purchase through them yet myself. There are some other discussions and reviews on BP about roofstock.

I haven't used them yet, but am really curious on how the whole process works - I've been doing the due diligence, looking at rent averages in areas, checking out the ledgers, and paying particular attention to occupancy status and inspection reports. I've worried about the whole process, not sure how it works, so I haven't placed a bid yet, but I hear they can connect you with PMs etc as needed for your situation.

@Account Closed I would be interested in connecting with you to discuss more details with you or someone at Roofstock!

Hi @Duane Richards - nice to meet you! I'm one of the advisors at Roofstock and would be happy to provide any information you need to see if Roofstock would be a good fit. I personally bought my first two rentals through the platform so happy to help anybody on BP that may have a slight interest on how the process works. Feel free to send me a message!

Here's my two larger pennies on Roofstock and the broader prop tech industry...

1) Prop techs are very new to the marketplace and are gaining significant steam based on high property valuations across the country in solid  and not so solid markets. These sites tell you what you want to hear. They're not lying about anything per se, but they rarely discuss the past performance of most markets in a downturn. They also tend to dig more into the positive return on analysis of properties. but less on the more nuanced details such as how far the value of the overall market has come from its inherit/median value based on incomes, job growth, internal vs external population growth and diversity of employment industries.

2) Every investor should know that we've never seen this much cash sloshing around the marketplace (paired with debt) as we do today. When everyone and their grandma are investor experts from an armchair in Brooklyn, that worries me. Most investors never step foot in Memphis. Oklahoma City, Indy or Chattanooga. They just read the data put in front of them and pull the trigger based on near past and pro forma numbers. Tier 2 and 3 markets are about the pockets and neighborhoods, not the city as a whole sometimes. When you buy Indy, which area are you buying? That can significantly make that advertised 12% gross return become a 4% return or lower.

Throwing in one more Abe Lincoln coin here...if you're an investor, visit the market you're investing in, create one on one relationships with your service partners on the ground, start you're own RSS feed on all things on the city from jobs, crime and fiscal health of the city and state (reason I stay faaaaaar away from Chicago and Illinois). A fancy online dashboard may seem like it's all good in the neighborhood, but when things go south, you're the one left holding the bag. Not the turnkey operator, not the prop tech that went belly up because their VC money dried up and were leveraged to the tilt and not the Roofstocks of the world that just presented you with opportunities.

To be clear, this is not a knock on Roofstock, but how the prop tech industry as a whole may be helping to inflate values in areas that really shouldnt see the values they're seeing incrementally rise. This will become an issue at some point, but who knows when it actually will negatively hit the market. Just make sure you know who's writing the story.

@Ikra Kafayat

I am still dealing with these issues so, unfortunately I can’t go into too much detail, but the property I bought was marketed as turnkey, and it turns out that it needed a good amount of work. It failed the occupancy inspection on 2 of 2 units, and now the central ac unit is not working and needs to be replaced. All in all, I’m at about $3000+ in expenses in 2-3 months of ownership, not counting whatever the cost of central AC issue is.

Originally posted by @Alex Penalva :

@Ikra Kafayat

I am still dealing with these issues so, unfortunately I can’t go into too much detail, but the property I bought was marketed as turnkey, and it turns out that it needed a good amount of work. It failed the occupancy inspection on 2 of 2 units, and now the central ac unit is not working and needs to be replaced. All in all, I’m at about $3000+ in expenses in 2-3 months of ownership, not counting whatever the cost of central AC issue is.

Why can't you go into too much detail?  In what way was the property marketed as turnkey?  What was raised in the occupancy inspection?   The details are what will help inform prospective purchasers in deciding to use Roofstock or an alternative.  

Originally posted by @Jason G. :
Originally posted by @Alex Penalva:

@Ikra Kafayat

I am still dealing with these issues so, unfortunately I can’t go into too much detail, but the property I bought was marketed as turnkey, and it turns out that it needed a good amount of work. It failed the occupancy inspection on 2 of 2 units, and now the central ac unit is not working and needs to be replaced. All in all, I’m at about $3000+ in expenses in 2-3 months of ownership, not counting whatever the cost of central AC issue is.

Why can't you go into too much detail?  In what way was the property marketed as turnkey?  What was raised in the occupancy inspection?   The details are what will help inform prospective purchasers in deciding to use Roofstock or an alternative.  

 It seems kind of odd they market them as a Turnkey, when they are not even a Turnkey Provider. 

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