Roofstock

43 Replies

Originally posted by @Tom Ott :
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. 

 That is why I'm asking.  I looked at the listing and I didn't see anything that would give me the impression they were marketing it as a turnkey.  

@Jason G.

It’s never wise to give too many details about an issue you are still dealing with. Just know I purchased a “turnkey,” and what I got was anything but turnkey. I guess one way to learn is to go through it yourself. There’s a ton of good reviews on Roofstock out there, unfortunately my experience was, or is a disaster, and I personally wouldn’t recommend Roofstock to anyone I know!!

Originally posted by @Alex Penalva :

@Jason G.

It’s never wise to give too many details about an issue you are still dealing with. Just know I purchased a “turnkey,” and what I got was anything but turnkey. I guess one way to learn is to go through it yourself. There’s a ton of good reviews on Roofstock out there, unfortunately my experience was, or is a disaster, and I personally wouldn’t recommend Roofstock to anyone I know!!

We don't know that you purchased a "turnkey" property.  You are making a representation without offering any supporting information.  Did Roofstock represent it was a turnkey property in the listing?  In any of the documents including in the listing? In any of the closing documents? In an e-mail to you?

With respect to the failing the occupancy inspection, were the items that failed also items that were evaluated as part of the inspection report Roofstock had performed?  Did you obtain completed disclosure forms from the seller prior to executing the PSA and if so, did those forms address any of the items that failed the occupancy inspection?  Did you have your own inspection performed on the property?

The answers matter because that tells us if Roofstock made mistakes, if you had certain expectations that were unrealistic, made assumptions, if there are holes in your due diligence, or a combination of those things.

@Jason G.

And you answered your own question, I can’t give out too much detail in case Roofstock did make a mistake and offers to rectify it. As of right now, if anyone asks me what I think about Roofstock, as was the original question posted, I would advise to stay away from my personal experience, but you are welcome to do with your money as you please. You don’t have to know much more than that. That’s really all personal stuff until it ain’t, if it ever comes to a point that it isn’t, ie. Class action for misrepresentation or something of the like.

Originally posted by @Alex Penalva :

@Jason G.

And you answered your own question, I can’t give out too much detail in case Roofstock did make a mistake and offers to rectify it. As of right now, if anyone asks me what I think about Roofstock, as was the original question posted, I would advise to stay away from my personal experience, but you are welcome to do with your money as you please. You don’t have to know much more than that. That’s really all personal stuff until it ain’t, if it ever comes to a point that it isn’t, ie. Class action for misrepresentation or something of the like.

Taking what you say at face value, I do see that Roofstock has recently introduced a turnkey program with a one year warranty.  Once the issues you've had ultimately resolve, however that may be, I think it will be beneficial to others if you share your full experience, including how that warranty actually worked.  So I hope you consider sharing that and as someone who owns several properties I know how frustrating it can be to have expensive issues come up, so I truly hope it all works out for you.

I looked into Roofstock a few years ago when they first started. They had some decent listings in the Indiana region. I think I filled out something where they send you weekly listings. I still get them. From just using quick math: 25% down, estimated rents listed on their Pro-forma, and the 50% rule, the numbers are red. 

@Chris Yeung I purchased a property with Roofstock back in November last year and the ability to view inspection reports, tenant ledgers, recommended property managements and renovation estimates makes it easy to analyze properties on Roofstock. There are also neighborhood ratings which help you even further. Hope this helps. 

I've sold 2 on roofstock. Both properties were occupied and managed by a professional management company who was registered with RS. The process was pretty simple. RS sent out an independent inspector to the property and I got a 60page report. It was a renovated property so I only had minor things they asked me to fix. I had to provide the lease and the full ledger for that tenant who at the time was there 3 months. Every month, I needed to provide updated documents. My buyers were both cash but I know others who have purchased with lending and they use whatever bank they normally use. 

Someone asked months ago on this thread- why do sellers dump properties on RS. She made it seem like the owners didn't want them anymore and were looking for an easy exit. That's not the case. The people in my area who use RS do so as an exit strategy. 

For people who have issues with RS, I think part of the problem is your expectations. They are not a turnkey company. They don't own the properties. They are basically a glorified broker for tenant occupied properties. They provide as much info up front as possible but like anything, they rely on the seller to be honest. And even when sellers are honest, the AC condensers do break down after the sales sometimes. 

Closed on a property listed via RS in LaPore, IN two weeks ago. As the acting agent there was once or twice that both my loan officer and myself thought there could have been some better communication but all in all it was a pretty seemless process. I selected a local bank to work with and maintained the existing PM. While not their listed lender or PM they had no issue working with who I selected. 

The property is in an a city I've worked in for a number of years so it is not like I didn't know the area. I was also able to visually inspect it as well as review all the financials and documentation they offer before purchasing. 

Now for the craziness  ... Literally 1hr before closing after walking out of the bank from wiring my down payment I get an email from the PM the tenant has vacated 3 months early. I come to find out the tenant has been in a coma for over a month from a car accident and of course can no longer pay. RS had no knowledge of this either but to their credit now that the house is vacant they put it under their RS rent guarantee. So if it remains vacant for 45 days they will pay me rental income at market rate. I would hope the PM will have a new tenant in place before then but it was nice that RS went ahead and did that on their own after learning from the PM about this unique case. 

@Ronald Trepton Wow!! to find out 1 hour before closing, that's scary. But I have heard of Roofstock helping out with the rent guarantee so not surprised with their service. 

@Joseph Brown PM has listed the property but no tenant yet even though they let me know they have one application and a few others "looking". That was 1.5 weeks ago so hopefully something soon. What I do not understand is how they listed the property and placed it on Rently so people can tour it before they finished making the repairs stated in the tenant-make-ready (TMR) report they sent me. This is my first time using a PM so I do not have anyone else to compare them to. 

I’ve bought two SFHs on Roofstock this year. These were my first investments so take all of this with. grain of salt. 

The first is performing well. The second which I just closed on seems to have a dysfunctional sewer that may require 10K+ of repair (the inspection I got before closing missed this). This may not be Roofstock’s fault so much as that of the seller they connected me with; not sure how much responsibility Roofstock has to guard against this kind of thing. In my interactions with Roofstock, the company has bene professional and cordial. 

I feel your pain on that 2nd property @Lewis Kerwin. For the life of me I cannot understand how their property inspection missed so many items I need to fix. I've read other people trusting RoofStocks inspection only to find out major issues after the purchase that any property inspector should have found. If you are buying a house on Roofstock do not trust the inspection they provide. Demand your own inspection or walk away.

 @Adrien S
I am using CAPS right now but really considering switching or self managing. I really wanted to find a good property manager however because I am finalizing the sale of a house in Merrillville and almost ready to start expanding my portfolio. I do not want to self manage once I hit 3+ properties.

I've heard good things about Vilgar and see they manage in both Lake and LaPorte counties.

For anyone that saw my previous post about the original tenant being in a coma. I know it's not related to Roofstock or real estate I general but I talked to the next door neighbor that happened to be the father of the young man in the car accident and was in a coma for months. He awoke from that coma, was able to meet his newborn child his wife gave birth to. He is walking with a cane and only has some minor memory loss. All in all a miracle. 

Originally posted by @Ronald Trepton :
 @Adrien S
I am using CAPS right now but really considering switching or self managing. I really wanted to find a good property manager however because I am finalizing the sale of a house in Merrillville and almost ready to start expanding my portfolio. I do not want to self manage once I hit 3+ properties.

I've heard good things about Vilgar and see they manage in both Lake and LaPorte counties.

Yeah- i used to use them and go to church with them. I'd still use them if i didn't start my own. We're right next to the post office in Griffith- stop in some time. 

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