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Jason G.
  • Rental Property Investor
  • Long Island, NY
480
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433
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Roofstock Case Study

Jason G.
  • Rental Property Investor
  • Long Island, NY
Posted Jul 22 2017, 07:19

My girlfriend and I have been saving money for a down payment on our first rental property and had initially been looking at single family properties and multifamily properties in upstate New York. In May 2017 I came across Roofstock and that shifted our discussion to the idea of purchasing an out of state single family property. I haven't seen anyone write a really thorough review of their experience using Roofstock, so I decided to document the journey. I know a lot of people are scared to pull the trigger, especially when they really have no idea what to expect, and just hearing people casually say they either had a great experience or terrible experience really doesn't help much in giving others an understanding of what the experience will be like. I decided to organize the post in date order based upon steps we took and all the interactions we had with Roofstock and their partners that they connected us with, which include Tru Mortgage, Real Protect Insurance, Excalibur Homes, and Mortgage Connect. I found the entire process a good learning experience and I hope others find the same by reading through the post.

May 26, 2017 (Friday)

We applied for a mortgage through Tru Mortgage, a partner of Roofstock through their company in anticipation of purchasing a single family property at $150,000 or less in Atlanta Georgia. We chose the Atlanta area due to their low purchase costs.

June 8, 2017 (Thursday)

We were approved by Tru Mortgage and made an offer on a property in Lithonia, Georgia. The property is a 3 bedroom, 2.5 bath, 1,616 sq ft home built in 1975 on a 17,424 sq ft lot. Roofstock rates the neighborhood as a 3/5, the elementary school a 2/10, the middle school a 5/10, and the high school a 3/10. A tenant is already in the property leased through April 2019 and pays $893 a month. As part of the property inspection report the report indicated that the following capital expenditures would be required:

1. Scrape and paint wood siding - estimated cost $1,650 @ turn.

2. Repair driveway and walkway cracks - estimated cost $2,460 @ 1+ years.

3. Fill holes in yard to remove trip hazards - $90.00 @ turn.

Roofstock requires a credit card at this point and the seller has two days to accept, counter offer, or reject the offer or the offer will expire.

Property Photos

June 9, 2017 (Friday)

The seller submitted a counter offer and we then responded with a second offer which was accepted at $81,000.00 My credit card was then charged a "Marketplace Fee" of $405.00. The Marketplace Fee is .5% of the purchase price. I am also given access to a "Property Closing Timeline" feature on the site for the chosen property. There are twelve steps with an estimated closing date of July 18, 2017. These are the twelve steps:

01. Purchase and Sales Agreement

02. Earnest Money Deposit

03. Financing

04. Insurance

05. Documents and Financing

06. Appraisal Fee for Property

07. Final Insurance Quote and Terms

08. Loan Terms for Financing

09. Property Management

10. Property Management Agreement

11. Closing Documents

12. Final Disbursal of Funds

We were contacted by Marissa at Roofstock via e-mail and was told by Marissa that she would be our point of contact moving forward and requested that I call her to discuss certain details on the phone. I was told I would be sent a Purchase and Sale Agreement (PSA) that will need to be executed via Docusign and asked me who will be on the title, our mailing address, and information for our loan officer. She also stated she would be sending me a home insurance quote in the next few days and would like to know which property management company we would like to use. I told her we would like to go with Excalibur Homes, which was listed as an option on Roofstock. She said the PSA would be sent to us within twenty-four hours. I asked her if it would be sent on Monday since the next day was a Saturday and she said it would be sent on Saturday.

According to Roofstock, "A PSA will be delivered electronically promptly following payment of the Marketplace Fee and must be executed by Buyer within 24 hours of receipt."

June 12, 2017 (Monday)

I asked Marissa if everything was still on track because we had not received the PSA. She stated the seller signed it that morning and it would be sent over later in the day. We received the PSA and executed it through Docusign, but had a question related to part of the agreement which stated that we had an obligation under the DeKalb County Plumbing Ordinance. It stated that we "shall be obligated as a condition of applying for water service from DeKalb County to attach to the application a certificate of compliance signed by a home inspector, Department of Watershed Management inspector or licensed plumber certifying that all plumbing fixtures on the Property are water conserving plumbing fixtures." We wanted to know how we would go about having this completed.

June 13, 2017 (Tuesday)

We executed the Purchase and Sale Agreement. Roofstock verified that financing was selected through Tru Mortgage.

Marissa responded to my question about the plumbing ordinance telling me that as per the lease all utilities should be in the tenant's name and will be checking with the current property manager that it is in fact in the tenant's name and will continue to be in it when the property is sold. However, this did not answer my question because the ordinance appears clear that I need a certificate of compliance. I asked her if she knew if we still needed that certificate if this tenant leaves and is replaced by a new one. Marissa then contacted the DeKalb County Watershed Department who confirmed to her that nothing needed to change if the utilities were in the tenant's name, but that if the tenant left and a new tenant opened an account then the certificate of compliance would be required. They recommended that once I close on the property to have an account opened with the water/sewer service and keep it inactive. She also stated that she would be checking with their inspection company that conducted the inspection if they will be able to complete the certificate of compliance.

I received a separate e-mail from an Alexis at Roofstock who provided wiring instructions for the $1,500 Earnest Money Deposit. I then went to the bank and initiated the wire transfer, which cost $25.00 in addition to the $1,500 sent.

June 15, 2017 (Thursday)

Roofstock confirmed that the Earnest Money Deposit of $1,500.00 was wired to the Title Insurance Company.

Real Protect gave us a quote for insurance. What I found interesting was that in Roofstock's document/diligence vault they had a quote from a different carrier with a lower premium. Their application attached that we were required to fill out contained a lot of questions that are geared towards those with extensive real estate portfolios or who intend to flip houses. I was told that Marissa would be able to help us through those items of the application that we may not know the answers to regarding the actual property. I asked Marissa if we would be receiving quotes from any other insurance carriers and was told that we wouldn't, that this carrier was the only one and that it was a sister company to the one that provided the quote found in the document vault on their site. She also updated us that she was still waiting for a response from the inspection company on the certificate of compliance.

I filled out the application but we did not execute it. I asked Marissa to review and add in any property information we couldn't answer and asked her to send it back to me with any changes she made to it so we can then execute it and send it back to her.

Tru Mortgage sent instructions on completing the required documents to finalize the loan application which we filled out and sent back through their website.

June 16, 2017 (Friday)

We received a response from Tru Mortgage that they received the executed loan documents and that we will be receiving the instructions on how to pay the appraisal fee. Shortly thereafter we received those instructions and paid the fee of $695. We were told we would receive an update once the appraisal was scheduled.

Marissa e-mailed us a completed insurance application. We told her the Tru Mortgage documents were executed and the appraisal fee was paid and we would be sending her back the executed insurance application later in the day. We also asked for an update on the certificate of compliance for the water company. She told us that she followed up with the inspector and is waiting for a response. We sent her the completed insurance application and asked her what the next steps will be as we move towards closing.

An introduction e-mail was sent from Marissa to Excalibur Homes, the management company we chose to manage the property.

June 17, 2017 (Saturday)

Tru Mortgage informed us that our loan has been sent for processing.

June 19, 2017 (Monday)

Excalibur Homes followed up with us and we requested the management agreement for review. After reviewing the document and asking some questions about the fees we completed the agreement and e-mailed it back to them. The management fee is 6%.

Marissa informed us that the appraisal for the property has been scheduled for Thursday, June 22nd. She confirmed that she sent the completed insurance application to the insurance carrier and followed up again with the inspector for the certificate of compliance for the water company.

June 20, 2017 (Tuesday)

Marissa informed me that their inspector could not issue the certificate of compliance.

I was confused because one of Roofstock's guarantees is that they complete "[a] property inspection conducted by an experienced national inspection firm" and provide "[a]n estimate of the cost of major repairs." The entire point of the Roofstock certification process, as per Roofstock, states that "[t]he Roofstock Property Certification allows prospective buyers to see the diligence on each property from home, office or while on the road without the need to enter each home." This is especially important since as part of the buying process we waive the inspection contingency. According to Roofstock's site: "Waived Inspection Contingency: Since diligence information is provided prior to investment, there is no need for a traditional Inspection period or contingency. Investors should carefully review all of the materials in the Diligence Vault before investing." So the fact that the inspection company failed to either issue a certificate of compliance or indicate costs related to complying with the ordinance in order to obtain the certificate of compliance, puts into question, at least in my mind, the entire idea of relying on Roofstock's inspection process, to begin with.

I asked her to follow-up with the seller to see if they ever had one performed. She also explained that a company called Mortgage Connect will contact us to schedule a mobile notary to meet with us to sign the required closing documents once we get closer to the closing date.

Tru Mortgage sent us a Loan Estimate to sign, which we did.

June 21, 2017 (Wednesday)

The Roofstock website gave a notification that the insurance application was approved.

Marissa informed me that she contacted the seller to find out if they ever obtained a certificate of compliance.

I asked Excalibur if they received our completed management agreement and if they would be able to facilitate having such an inspection done to obtain the certificate of compliance. They responded that they can manage the property once we own it, but do not handle inspections prior. They provided a list of several inspectors we could use prior to closing.

June 22, 2017 (Thursday)

Marissa heard back from the seller who had not in the past obtained a certificate of compliance.

I asked Excalibur if they would be able to set up the inspection for the certificate of compliance after we close on the property.

June 23, 2017 (Friday)

I received appraisal report. The property is appraised at $88,000. Of note was that the report indicated that "[s]everal outlets are not properly secured to wall and some outlets do not function properly. Electrician is recommended to diagnose and repair. Estimated cost to cure $500." It also noted that "[d]riveway area by garage has severe cracking from nearby tree root system. Estimated cost to cure $500 (this price estimate does not include tree removal)." The issues with the electrical outlets were not reflected in the Roofstock inspection report.

I e-mailed Marissa with a copy of the report expressing my concerns as the electrical issues were not reflected in the inspection report and their inspector already won't issue a certificate of compliance for DeKalb Water even though they inspected the plumbing and fixtures and now we have an appraisal report that conflicts with the inspection report on the electrical review.

Roofstock gave a notification that the property was approved by the lender.

Marissa responded thanking me for sending her a copy of the appraisal report and said she would like to have the inspection company review the report as the electrical issues may have occurred after the inspection on November 23, 2016. She also reached out to the current property manager to see if they can shed some light on the matter.

I responded to her explaining that we are out of state investors who are relying on Roofstock to facilitate the purchase of this property. That the certificate of compliance issue is already frustrating enough because we have no way of handling it on our own and it is something that should be addressed prior to closing. That we haven't heard back from the management company if that is even something they can handle for us after closing. In addition, if the plumbing fixtures are not up to code then we are looking at potentially hundreds of dollars in extra costs that weren't revealed in Roofstock's diligence vault. Now with this electrical issue, there can be potentially very large costs if there are issues with wiring in the house. I explained that we already have a down payment ready to go on a second investment property and were planning on making offers on properties through Roofstock after we closed on this one, but that we were already stressed over the certificate of compliance issue and now we are getting a little freaked out with the possible electrical issues on top of the possible plumbing ones and I'm not sure how confident we can be in relying on Roofstock.

Moments after sending the above e-mail Marissa e-mailed the management company asking them to respond to my inquiry on whether they could handle the certificate of compliance.

Aside from one of our early contacts, all my communication with Marissa has been through e-mail. She responded to the above e-mail by calling. With respect to the certificate of compliance, she assured me that the management company would handle that. I explained that (1) This should have been something adequately documented in the Roofstock diligence vault prior to any offers being made, whether the faucets, shower heads, and toilets were up to code due to the local statutes requiring the certificate of compliance. (2) Irrespective of that not being done, I need to know if the management company will actually handle it for us after the fact because I still had not heard back from them. Her response was that as per the lease the tenant was responsible for utilities and that it would have been the tenant's responsibility to have a plumber inspect the property, remedy any deficiencies, and obtain the certificate of compliance. This definitely is not the case and she is mistaken about the tenant's responsibilities in this situation. I explained to her that one of the exemptions to the statute is if the property was purchased through foreclosure, which is what the seller did, a certificate of compliance was not needed. It is clear they purchased it on foreclosure, renovated the property, and then rented it and are now flipping it to yours truly. Moving on from that I explained that now we are dealing with this potential electrical issue and if there are wiring issues that mean opening up walls and it would cost a significant amount of money to remedy. She told me that she is (1) Waiting to hear back from their inspector to certify they inspected all the outlets and they were functioning as of the date of the inspection, (2) Waiting to hear back from the current property manager on whether or not the tenant made any complaints about electrical issues, and (3) Waiting to hear back from the current property manager on if the seller or tenant would be responsible for any electrical issues. She indicated from there she may need to get her Director involved in order to have the inspector sent back to inspect the electrical situation.

I received a response from Excalibur and was told the inspection could be completed for $250.00. I replied to confirm that they would set it up with the vendor and the tenant following closing and asked how I would pay for it; if I pay the vendor directly or the management company takes it out of a maintenance fund they will set up that is funded through collected rents.

June 24, 2017 (Saturday)

Excalibur confirmed they would be able to proceed once closing is completed with obtaining the certificate of compliance and explained we would send them the money and they would pay the vendor.

June 26, 2017 (Monday)

Marissa informed me that they will be scheduling a second inspection so the inspector can review the electrical issues indicated in the appraisal. The inspector will also inspect the plumbing to see if it conforms with the DeKalb water regulation and if so issue a certificate of compliance. I asked her if she heard back from the seller or current property manager as to whether they had any additional information regarding the electrical situation. She said she was still awaiting a response.

Tru Mortgage sent a status update informing me that my loan has been conditionally approved by underwriting.

June 29, 2017 (Thursday)

I asked Marissa if she had any updates. I also asked if there were any additional steps to finalize the insurance as the Roofstock website indicates the insurance has not yet been finalized. She told me that she has confirmed that we are all set with the insurance and that the only item outstanding prior to closing will be the inspection. She also confirmed with me that I will be using Excalibur for property management. She told me she will let me know tomorrow if she has the second inspection date, otherwise, another Roofstock employee would keep me updated next week since Marissa will be out of the office.

July 5, 2017 (Wednesday)

I asked Alexis, who Marissa indicated would keep us updated this week while she was out, if there were any status updates with respect to the scheduling of the inspection. She responded that they were currently working with the property manager and tenant for this inspection and will provide me with the scheduling information once available.

July 10, 2017 (Monday)

I asked Marissa if the second inspection had been scheduled and also if the closing will be pushed back since it is next week and the inspection hasn't been completed yet.

Tru Mortgage contacted me for some additional information relating to personal assets, employment verification, and a weird issue on my primary home's insurance which listed two mortgages when there really was only one.

July 11, 2017 (Tuesday)

Marissa responded that she reached out to her inspector facilitator for an update and will let me know as soon as she hears back.

I sent Tru Mortgage additional documentation they needed and a corrected insurance dec page.

July 12, 2017 (Wednesday)

Tru Mortgage confirmed receipt of the updated information I sent them.

July 13, 2017 (Thursday)

I asked Marissa if we would have to push back the losing since it is supposed to be on July 19th and the second inspection hasn't been completed yet. She said they are working with the inspector and hope to have it completed this week, they are just pending approval from the tenant. Roofstock is hoping to have the inspection completed this week with the report sent to me before having to send out an amendment to extend the closing.

I received a notification from Tru Mortgage that my loan had been fully approved by their underwriting department and was sent a final loan estimate to execute, which I did. I also asked Tru Mortgage some questions about planning for the future. I wanted to know if they offered only four mortgages to an individual or up to the ten limit and I also wanted to know if I took a HELOC out on my primary residence if I could use that to pay the down payments on future properties mortgaged through them. They told me that they go up to ten mortgages and could use the HELOC, but that they factor in the HELCO payments in my debt to income ratios to make sure I still qualify for a mortgage.

Mortgage Connect contacted us on my marital status for preparing the deed.

July 14, 2017 (Friday)

I asked Marissa for another update on the second inspection. I was told that Roofstock was still pending confirmation from the tenant and that they would be working to have it completed this weekend, or if not over the weekend, then on Monday.

I was sent a property management agreement from Excalibur Homes. This confused me because (1) we already sent them a signed agreement back on June 19th, and (2) the address on this agreement was incorrect. I was told his assistant sent it by mistake, but that they will follow-up next week since we are expected to close then.

July 17, 2017 (Monday)

The inspection was performed and the certificate of compliance was issued. A review of the electrical system revealed "1. The outlet behind the tv is not functioning properly. 2. The dining room outlet is not functioning properly. 3. The gfci outlet in kitchen is installed on an angle. It's hard to plug in appliances. 4. The living room outlet next to dining room is loose in the wall. 5. The living room outlet next to the foyer is loose. 6 Upstairs outlet by window is loose. 7. The Master outlet next to hall door isn't functioning properly. The Master outlet by the window isn't functioning properly. 8. After testing a representative number of outlets in each room it is recommended to have ALL outlets replaced. Most outlets are functioning properly but if you put any side pressure on the outlets they lose connection. This could be a possible fire hazard." I was told that with respect to closing Mortgage Connect and Tru Mortgage would be working together on the closing papers and I would be forwarded the documents to review along with wiring instructions for the down payment and closing costs and that Mortgage Connect would be contacting me to schedule the mobile notary for us to execute the closing papers.

We received a closing estimate from Tru Mortgage and executed it.

July 18, 2017 (Tuesday)

I e-mailed Mortgage Connect and asked them how the closing will be scheduled. According to the PSA it should be occurring tomorrow. They said it would be going forward tomorrow as scheduled and wanted to know the location where we wanted the mobile notary to meet us and at what time. We gave them our home address and asked to do it at 5:30 p.m. The time was confirmed and then a short time later we were informed that the lender was not prepared to proceed tomorrow, but would be ready for the day after, July 20th and asked if we can do the same location and time. We agreed. We were told we would need to make copies of two forms of identification and that they would bring all the closing documents.

July 19, 2017 (Wednesday)

Marissa sent me a pre-closing check-in e-mail to see if we had any questions. I told her I was confused about when to wire the down payment/closing funds as we had not yet received the wiring instructions from Mortgage Connect. She told me that it should be sent shortly before or after the closing.

I asked Mortgage Connect for the final wiring instructions and amount, which they provided.

The mobile notary called to confirm the meeting for tomorrow. She told me that we would also need an attorney from Georgia on the phone as we were signing the documents and that Mortgage Connect would set that up.

July 20, 2017 (Thursday) [CLOSING DAY]

We went to our bank and wired the down payment and closing funds as instructed. Wiring cost us $25.00.

The mobile notary was thirty minutes late due to traffic. Many of the documents for some reason did not include my name, but only my girlfriend's, so we had to add my name. There was also an issue of requiring a witness for several documents, which was not something the mobile notary or I were informed about. We had to recruit our thankfully very friendly neighbor for that. We wrapped up the closing at around 7:30 p.m. and the mobile notary headed to UPS to overnight the documents.

June 21, 2017 (Thursday)

I told Marissa about the issues with the closing documents. I also asked her about what happens next, such as when we receive the lease agreement, copies of all the executed closing documents, the seller's keys, etc. She e-mailed us the lease agreement and said, "we await to hear from Mortgage Connect that they’ve received funds from you and seller and dispersed them to the appropriate parties (security deposit will be transferred directly to Excalibur). Once they inform us this is done, I’ll be sending you official congratulations on purchasing the property. At this time, we will also be alerting Excalibur that the property has fully closed and they are free to reach out to the tenant. Additionally, as soon as the county courthouse records your title deed, Mortgage Connect will be sending that directly over to you (in the meantime, you should be receiving a copy of the fully executed closing docs soon). As for keys, the seller is an institutional seller and does not keep keys to avoid any liability concerns. They only access the property with the permission of the tenant. If you would like a copy of keys, Excalibur should be able to request a copy from the tenant."

I informed Excalibur Homes that we closed on the property and that Roofstock was able to obtain the certificate of conformity prior to closing. They told me that they are still waiting to receive the deposit and lease documents from the closing attorney and Roofstock, but expect to receive everything by Monday and at that time I will be introduced to the person that will specifically be handling the property management of the property.

Tru Mortage sent me a notification that my loan has been funded.

Expected Monthly Cashflow

Gross Income: $893.00

Expenses

- Mortgage (Principal, Interest, Insurance, and Taxes): $540.30

- Management Fee (6%): $53.58

- Vacancies (5%): $44.65

- Repaires & Maintenance (5%): $44.65

- CapEX (8%): $71.44

Net Income: $138.38

Thoughts on Roofstock

Fees: I've had friends ask me how Roofstock makes their money since it seems like they are doing a lot of work on their end to facilitate the sale and purchase of the property. The buyer pays a .5% marketplace fee when their offer is accepted and the seller pays a 2.5% broker commission and a 2.5% all-in-seller fee. So on a $100,000 sale, Roofstock should take in $5,500 total between the buyer and seller.

Property Ratings: Roof stock uses a five-star system to rate neighborhoods instead of the typical letter class system (A, B, C, and D). I prefer the typical letter system that is commonly used to discuss properties on investment forums and sites.

Roofstock Certification Process: Roofstock, through their certification process, provides a tremendous wealth of information on their listed properties. The properties aren't necessarily "turn-key," but it appears that many of the properties were once foreclosures that were purchased by companies that renovate the properties, place a tenant in them, and then chose to sell the property through Roofstock, so most of the properties we've looked at seem to be in very good shape.

Waived Inspection Contingency: "Since diligence information is provided prior to investment, there is no need for a traditional Inspection period or contingency. Investors should carefully review all of the materials in the Diligence Vault before investing." This issue with this is that depending on when the property went through the Roofstock Certification Process and was inspected, the inspection could have occurred months prior to your offer being accepted and issues may have occurred since then that you will not necessarily become aware of unless it is noted by the appraiser.

Offers and Negotiations: The price negotiations on the site are beyond simple because you cannot discuss with the seller why you are giving the offer you are giving. If the seller accepts offers you can submit your offer and the seller has two days to accept, reject, or counter offer. If they reject or counter offer there is no explanation as to how they have arrived at the new value. This continues until either both parties arrive at a number they agree on or the process fails. On one property I put an offer in that was rejected by the seller, I received an e-mail from Roofstock telling me the seller rejected the offer because it was less than half the asking price and that they think the asking price is fair based upon estimates from Zillow, Trulia, and Realtor, and that Roofstock accounts for any repairs needed when the seller and Roofstock determine the list price. I was also told that most of their properties sell for 97% of list price. If you receive a message from Roofstock like this after having an offer rejected, just ignore it, don't let it sway your personal determination on the property. Good properties on the site go very quickly and if you notice a property sitting on the site for months and month, then there is likely a reason for that. Also, their inspection report is not fool proof. The inspector may not notice things and use your best judgment when looking through these reports and material found on the property from other websites, as there can be indications that there can be issues with the property that are likely more significant than the estimates being represented in the inspection report, and that Roofstock is not factoring into the list price for the property.

The Actual Process: Roofstock holds your hand through the entire process from start to finish. The employees at Roofstock we've interacted with have always been polite, helpful, and took the time to answer any questions we've had throughout the process and work with us to address concerns. They also connect you with 3rd party partners they have for obtaining financing, insurance, and property management and will coordinate with those partners through the process.

Convenience: Roofstock literally allows you to go through the entire process of purchasing an out of state investment property without ever needing to leave your home.

Website Interface: I found their site to be very straight forward and easy to use. I compare it to a site like HomeUnion, the main competitor of Roofstock, which I find a bit confusing.

Interested Party: No matter what though, always remember that Roofstock is an interested party. That means that through your interactions with them prior to any deal being accepted, it is in their interest for the property to sell for as much as possible. Remember that between the seller and buyer they are walking away with 5.5% of the sale price. Do your own homework on properties, look at sites like Trulia, Zillow, Realtor, the local county's property lookup page, check school rates, crime rates, check out the area using Google Maps, and do your own math to see what you think the property is worth and don't let anyone from Roofstock tell you that they think you've given the seller too low of an offer.

Would I Use Roofstock Again? Yes. I felt that even though I had issues with the certificate of compliance, the inspection/appraisal report, and closing, I would use Roofstock again and would recommend it to others. Obviously, that recommendation may change as we move forward and have more experiences with Roofstock, and become more experienced investors, but as of right now I have been pleased with the experience, communication, and ultimate result of using Roofstock for our first out of state rental purchase.

User Stats

433
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480
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Jason G.
  • Rental Property Investor
  • Long Island, NY
480
Votes |
433
Posts
Jason G.
  • Rental Property Investor
  • Long Island, NY
Replied Sep 8 2021, 16:07
Originally posted by @Alex Alexander:

@Jason G. Hello Jason, just to make sure when bough the property from roofstock, can you optain another loan against the property you bought already so you can buy another one?

Thank you

I am not sure I understand your question.  If you purchased the investment with 20% down then you wouldn't have enough equity to take out a line of credit on it or cash out refinance. 

User Stats

433
Posts
480
Votes
Jason G.
  • Rental Property Investor
  • Long Island, NY
480
Votes |
433
Posts
Jason G.
  • Rental Property Investor
  • Long Island, NY
Replied Sep 8 2021, 16:08
Originally posted by @Alex Alexander:

@Jason G. Another question, did you go through there real estate study course so you can learn the in and the out of real estate investing?

Thank you

I have never heard of the study course you are referring to.  I've only ever used Bigger Pockets and whatever free research I've done using Google.  

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Sara T.
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7
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Replied Sep 27 2021, 13:00

Wow, this thread is amazing, thank you @Jason G. for very detailed case study! 

I have question about tenants, you mentioned that when you got your first property through RoofStock, you didn't ask any question about existing tenant. But then for your next purchases, were you able to get additional info about tenants you inherited from RoofStocks before signing up with them? If so, what kind of info could they provide? Is there something to watch out for in this regard? And on average how long does it take to fill your vacant property after the tenant leaves? 

User Stats

433
Posts
480
Votes
Jason G.
  • Rental Property Investor
  • Long Island, NY
480
Votes |
433
Posts
Jason G.
  • Rental Property Investor
  • Long Island, NY
Replied Sep 28 2021, 16:08
Originally posted by @Sara Tansari:

Wow, this thread is amazing, thank you @Jason G. for very detailed case study! 

I have question about tenants, you mentioned that when you got your first property through RoofStock, you didn't ask any question about existing tenant. But then for your next purchases, were you able to get additional info about tenants you inherited from RoofStocks before signing up with them? If so, what kind of info could they provide? Is there something to watch out for in this regard? And on average how long does it take to fill your vacant property after the tenant leaves? 

Without going back and trying to figure it out I don't recall discussing this off the top of my head.  I do know they've provided copies of the lease(s) as well as payment ledgers.  But that is essentially all the information I've received upon inheriting pre-existing tenants.  When they've vacated it has taken under a month to re-rent once the turnover is complete.  

User Stats

433
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Jason G.
  • Rental Property Investor
  • Long Island, NY
480
Votes |
433
Posts
Jason G.
  • Rental Property Investor
  • Long Island, NY
Replied Sep 28 2021, 16:14

I am in the process of purchasing another property through Roofstock, this time one of their "Select" properties which means that it isn't an exclusive listing of a property on Roofstock but instead one listed on MLS but you use Roofstock who assigns you a local agent who works with you on the deal. I decided to use Roofstock for this purchase because I was moving into a new market and felt it would be an easier way to get my foot in that market, but I can say that I've been a bit disappointed with Roofstock during this process. Not the agent they provided me, but with Roofstock itself. They were hands on with the four prior purchases that were their own exclusive listings, but for this one it is like they are non-existent in the process and don't seem to want to lift much of a finger facilitating property management or securing insurance, which has been a major turnoff. I will write a full review once the deal completes and I know I've been a big advocate of Roofstock in the past, but at least when it comes to these Select properties, I'm not a fan of how they operate.

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Jason G.
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  • Long Island, NY
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Jason G.
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Replied Oct 28 2021, 11:09

Having now closed on the property I will provide an updated review of Roofstock and it will be a multi-post review.  I will first discuss how I ended up deciding to use Roofstock.  

Initially I was interested in connecting with Holton-Wise to invest in the Cleveland, OH market.  I had been following their YouTube channel for quite some time and found James Wise to be very knowledgably and informative and I appreciate that he is active on Bigger Pockets.  I went to their website and filled out a form for them to contact me and they got back to me pretty quickly.  Now everything I'm about to write is based upon what I understood their products and services to be, so I apologize in advance to Holton-Wise if anything isn't accurate and I encourage everyone interested in using them to contact them directly and not just rely on what I'm about to say.  

I had a brief conversation with someone from Holton-Wise and explained that I have five properties in the Atlanta market and was looking to purchase a property in the Cleveland market. They have MLS access feeds based upon specific criteria (e.g., by seller financing, by class, by SFH or multifamily, etc.) that they sell access to as well as an MLS search and video analysis which can be purchased individually or as a package. I have to admit I was very confused after that phone call. The properties I had purchased in Atlanta had been directly through Roofstock or I used my property management company who assigned me an agent who would help me find properties and work with me on purchases. I was more or less looking for an agent experience that I had with the property management company that manages my properties. I e-mailed Holton-Wise for some clarification asking if I purchased an MLS Access and saw a property I was interested in, was the next step ordering a property analysis or would they be able to provide thoughts on the property to me based upon the listing and their expertise, handle making an offer, and then ordering an inspection, etc. I received a response directly from James which informed me that the next step was to order an analysis and that they only write offers on properties that he analyzed.

While I respect their decision to handle representing buyers the way they do, that definitely wasn't for me.  I assume that given their large social media presence they must get inundated by people that are just not serious and would otherwise be wasting their time and resources which requiring them spending money to purchase an analysis would definitely cut down on those not serious and also bring in additional revenue.  But I was looking for more of a traditional buyer agent/investor relationship and while James clearly knows what he is talking about and doing, I just couldn't justify to myself at the time spending money on an analysis per property, so I decided to look elsewhere.  

As I was looking into property management companies and trying to figure out who I would contact next to discuss looking at potential properties I was also looking at Roofstock and came across a duplex that was listed. Now this was considered a "Select" property which means that it was actually listed on MLS and not exclusive to Roofstock. So the way that works is that if you choose to make an offer on their website they will provide you with an agent they work with in that market who will make the offer for you and work with you throughout the purchase. Roofstock still charges their marketplace fee if you go into contract, so thinking about this in hindsight, that cost me $832. Roofstock did handle the inspection, but in all honesty if I just contacted a random agent in the market I would have saved some money or I could have just went with James Wise at that point given asking him to do an analysis and then ordering an inspection on a property would likely have come out to be somewhere around the same, but sometimes you only realize these things after the fact.

Anyhow, I'm going to tag @James Wise in this post just so he can comment if he chooses to and I will write a follow-up post regarding my current thoughts and experience with Roofstock on this purchase and the purchase itself over the next week or so.  

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Allen Gross
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  • Vacaville, California 95687
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Allen Gross
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  • Vacaville, California 95687
Replied Oct 28 2021, 12:31

@Jason G.

What an amazing and insightful post! I was growing their listings yesterday and got interested. This experience you shared is invaluable. Thank you very much for the time and effort you put into this post!

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James Wise
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James Wise
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  • Cleveland, OH
Replied Oct 28 2021, 12:52
Originally posted by @Jason G.:

Having now closed on the property I will provide an updated review of Roofstock and it will be a multi-post review.  I will first discuss how I ended up deciding to use Roofstock.  

Initially I was interested in connecting with Holton-Wise to invest in the Cleveland, OH market.  I had been following their YouTube channel for quite some time and found James Wise to be very knowledgably and informative and I appreciate that he is active on Bigger Pockets.  I went to their website and filled out a form for them to contact me and they got back to me pretty quickly.  Now everything I'm about to write is based upon what I understood their products and services to be, so I apologize in advance to Holton-Wise if anything isn't accurate and I encourage everyone interested in using them to contact them directly and not just rely on what I'm about to say.  

I had a brief conversation with someone from Holton-Wise and explained that I have five properties in the Atlanta market and was looking to purchase a property in the Cleveland market. They have MLS access feeds based upon specific criteria (e.g., by seller financing, by class, by SFH or multifamily, etc.) that they sell access to as well as an MLS search and video analysis which can be purchased individually or as a package. I have to admit I was very confused after that phone call. The properties I had purchased in Atlanta had been directly through Roofstock or I used my property management company who assigned me an agent who would help me find properties and work with me on purchases. I was more or less looking for an agent experience that I had with the property management company that manages my properties. I e-mailed Holton-Wise for some clarification asking if I purchased an MLS Access and saw a property I was interested in, was the next step ordering a property analysis or would they be able to provide thoughts on the property to me based upon the listing and their expertise, handle making an offer, and then ordering an inspection, etc. I received a response directly from James which informed me that the next step was to order an analysis and that they only write offers on properties that he analyzed.

While I respect their decision to handle representing buyers the way they do, that definitely wasn't for me.  I assume that given their large social media presence they must get inundated by people that are just not serious and would otherwise be wasting their time and resources which requiring them spending money to purchase an analysis would definitely cut down on those not serious and also bring in additional revenue.  But I was looking for more of a traditional buyer agent/investor relationship and while James clearly knows what he is talking about and doing, I just couldn't justify to myself at the time spending money on an analysis per property, so I decided to look elsewhere.  

As I was looking into property management companies and trying to figure out who I would contact next to discuss looking at potential properties I was also looking at Roofstock and came across a duplex that was listed. Now this was considered a "Select" property which means that it was actually listed on MLS and not exclusive to Roofstock. So the way that works is that if you choose to make an offer on their website they will provide you with an agent they work with in that market who will make the offer for you and work with you throughout the purchase. Roofstock still charges their marketplace fee if you go into contract, so thinking about this in hindsight, that cost me $832. Roofstock did handle the inspection, but in all honesty if I just contacted a random agent in the market I would have saved some money or I could have just went with James Wise at that point given asking him to do an analysis and then ordering an inspection on a property would likely have come out to be somewhere around the same, but sometimes you only realize these things after the fact.

Anyhow, I'm going to tag @James Wise in this post just so he can comment if he chooses to and I will write a follow-up post regarding my current thoughts and experience with Roofstock on this purchase and the purchase itself over the next week or so.  

Full disclosure: I didn't read through this whole thread and only read over the comment Jason tagged me in. 

Jason, everything you've mentioned in regards to the process of investing in properties using Holton-Wise is summed up very accurately. The only thing I'd add / clarify is that HoltonWise does not charge investors up front to work with us to write offers on properties they want to purchase that HoltonWise is listing and selling on The Investment Properties For Sale Show. What HoltonWise charges investors up front for, is working with them 1 on 1 to source, analyze and make offers on properties that are listed by others on the MLS.

For a more detailed look at these fees and why a company like mine does so well charging them I think folks would be best served to check out the thread I've linked to below. It explains in great detail the major issues investors run into when trying to work with Realtors to source investment properties.

THIS is why your Realtor is Ignoring you-DATA says they Should!

Good luck out there Jason. Hope your investment does well and I appreciate the attention to detail in your post.

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James Wise
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James Wise
  • Real Estate Broker
  • Cleveland, OH
Replied Oct 29 2021, 09:46
Originally posted by @James Wise:
Originally posted by @Jason G.:

Having now closed on the property I will provide an updated review of Roofstock and it will be a multi-post review.  I will first discuss how I ended up deciding to use Roofstock.  

Initially I was interested in connecting with Holton-Wise to invest in the Cleveland, OH market.  I had been following their YouTube channel for quite some time and found James Wise to be very knowledgably and informative and I appreciate that he is active on Bigger Pockets.  I went to their website and filled out a form for them to contact me and they got back to me pretty quickly.  Now everything I'm about to write is based upon what I understood their products and services to be, so I apologize in advance to Holton-Wise if anything isn't accurate and I encourage everyone interested in using them to contact them directly and not just rely on what I'm about to say.  

I had a brief conversation with someone from Holton-Wise and explained that I have five properties in the Atlanta market and was looking to purchase a property in the Cleveland market. They have MLS access feeds based upon specific criteria (e.g., by seller financing, by class, by SFH or multifamily, etc.) that they sell access to as well as an MLS search and video analysis which can be purchased individually or as a package. I have to admit I was very confused after that phone call. The properties I had purchased in Atlanta had been directly through Roofstock or I used my property management company who assigned me an agent who would help me find properties and work with me on purchases. I was more or less looking for an agent experience that I had with the property management company that manages my properties. I e-mailed Holton-Wise for some clarification asking if I purchased an MLS Access and saw a property I was interested in, was the next step ordering a property analysis or would they be able to provide thoughts on the property to me based upon the listing and their expertise, handle making an offer, and then ordering an inspection, etc. I received a response directly from James which informed me that the next step was to order an analysis and that they only write offers on properties that he analyzed.

While I respect their decision to handle representing buyers the way they do, that definitely wasn't for me.  I assume that given their large social media presence they must get inundated by people that are just not serious and would otherwise be wasting their time and resources which requiring them spending money to purchase an analysis would definitely cut down on those not serious and also bring in additional revenue.  But I was looking for more of a traditional buyer agent/investor relationship and while James clearly knows what he is talking about and doing, I just couldn't justify to myself at the time spending money on an analysis per property, so I decided to look elsewhere.  

As I was looking into property management companies and trying to figure out who I would contact next to discuss looking at potential properties I was also looking at Roofstock and came across a duplex that was listed. Now this was considered a "Select" property which means that it was actually listed on MLS and not exclusive to Roofstock. So the way that works is that if you choose to make an offer on their website they will provide you with an agent they work with in that market who will make the offer for you and work with you throughout the purchase. Roofstock still charges their marketplace fee if you go into contract, so thinking about this in hindsight, that cost me $832. Roofstock did handle the inspection, but in all honesty if I just contacted a random agent in the market I would have saved some money or I could have just went with James Wise at that point given asking him to do an analysis and then ordering an inspection on a property would likely have come out to be somewhere around the same, but sometimes you only realize these things after the fact.

Anyhow, I'm going to tag @James Wise in this post just so he can comment if he chooses to and I will write a follow-up post regarding my current thoughts and experience with Roofstock on this purchase and the purchase itself over the next week or so.  

Full disclosure: I didn't read through this whole thread and only read over the comment Jason tagged me in. 

Jason, everything you've mentioned in regards to the process of investing in properties using Holton-Wise is summed up very accurately. The only thing I'd add / clarify is that HoltonWise does not charge investors up front to work with us to write offers on properties they want to purchase that HoltonWise is listing and selling on The Investment Properties For Sale Show. What HoltonWise charges investors up front for, is working with them 1 on 1 to source, analyze and make offers on properties that are listed by others on the MLS.

For a more detailed look at these fees and why a company like mine does so well charging them I think folks would be best served to check out the thread I've linked to below. It explains in great detail the major issues investors run into when trying to work with Realtors to source investment properties.

THIS is why your Realtor is Ignoring you-DATA says they Should!

Good luck out there Jason. Hope your investment does well and I appreciate the attention to detail in your post.

 Jason you shot me a reply in the thread I linked to you. I wanted to get your take here in this thread though. After going through all of the data I provided in the other thread I wondered if you had any additional thoughts or just to see if there was any update to your perspective on the industry in general.

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Jason G.
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  • Long Island, NY
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Jason G.
  • Rental Property Investor
  • Long Island, NY
Replied Oct 29 2021, 10:39
Originally posted by @James Wise:

Jason you shot me a reply in the thread I linked to you. I wanted to get your take here in this thread though. After going through all of the data I provided in the other thread I wondered if you had any additional thoughts or just to see if there was any update to your perspective on the industry in general.

My main takeaway was just how ignorant or uninformed I was about the industry from an agent perspective and how investors, especially oos investors are looked at, but this is why you've been a tremendous resource both on bigger pockets and on your YouTube channel with the information you provide investors.  I didn't put much thought into the commissions and how much that really turns out to be when you break it down like you did in that post.  All the properties I've purchased range from 81k-179k, so no one is getting rich off of being my agent, even if I used the same agent for every purchase.  And I did have that impression that by buying multiple properties that it somehow made me more appealing to work with, but at those commissions, it isn't like I'm buying apartment buildings here that make me some kind of great catch as a client.  That was really just one of those "aha posts" where as an investor I just read it and it really just made me realize that a portion my mindset was just off.  And while I did have some idea that agents deal with a lot of non serious people trying to be investors, just you breaking everything down really made me understand why you created the model you have with respect to taking on prospective investors.  Honestly, I wish I saw your post before even reaching out originally to you because I don't think I would have had as difficult a time considering asking you to perform a property analysis for me as I had coming from my mindset that I had prior to reading that post.  But in my investing journey I'm always trying to learn and grow so I thank you for taking the time in pointing me to that post and I hope that anyone following my thread takes a moment to read it also because it was really helpful.  

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James Wise
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James Wise
  • Real Estate Broker
  • Cleveland, OH
Replied Oct 29 2021, 11:02
Originally posted by @Jason G.:
Originally posted by @James Wise:

Jason you shot me a reply in the thread I linked to you. I wanted to get your take here in this thread though. After going through all of the data I provided in the other thread I wondered if you had any additional thoughts or just to see if there was any update to your perspective on the industry in general.

My main takeaway was just how ignorant or uninformed I was about the industry from an agent perspective and how investors, especially oos investors are looked at, but this is why you've been a tremendous resource both on bigger pockets and on your YouTube channel with the information you provide investors.  I didn't put much thought into the commissions and how much that really turns out to be when you break it down like you did in that post.  All the properties I've purchased range from 81k-179k, so no one is getting rich off of being my agent, even if I used the same agent for every purchase.  And I did have that impression that by buying multiple properties that it somehow made me more appealing to work with, but at those commissions, it isn't like I'm buying apartment buildings here that make me some kind of great catch as a client.  That was really just one of those "aha posts" where as an investor I just read it and it really just made me realize that a portion my mindset was just off.  And while I did have some idea that agents deal with a lot of non serious people trying to be investors, just you breaking everything down really made me understand why you created the model you have with respect to taking on prospective investors.  Honestly, I wish I saw your post before even reaching out originally to you because I don't think I would have had as difficult a time considering asking you to perform a property analysis for me as I had coming from my mindset that I had prior to reading that post.  But in my investing journey I'm always trying to learn and grow so I thank you for taking the time in pointing me to that post and I hope that anyone following my thread takes a moment to read it also because it was really helpful.  

 That's good to hear. That was the intended effect. Sure there is a bit of me explaining why I do what I do for my company in there. But in all reality I'd like to see this model applied to the normal relationship with an investor and an agent. The reason there is so much dissatisfaction on both sides is because neither side is receiving equitable compensation for the relationship. In my experience the pay to play model allows both sides to get what they want and build a more beneficial relationship with one another.

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Jason G.
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Jason G.
  • Rental Property Investor
  • Long Island, NY
Replied Nov 5 2021, 11:22

My first step was getting pre-approved with a lender since I knew I was going to purchase a property in the Cleveland market, I just didn't know which one.  When a property is listed on Roofstock Select, you cannot give any offer amount you want.  You are restricted on a minimum, and that is the amount I submitted.  I paid the market place fee and then the next day was contacted by a local real estate agent who prepared the PSA.  The seller accepted my offer, which likely means that it was either fair or too high.  

After the PSA was executed the title company provided me with wiring instructions and I wired the EMD.

From there the agent sent me copies of the leases and began working towards scheduling the inspection.  Originally the closing date was 30 days, but ultimately we closed at almost 60 because my agent was having difficulty getting the inspection scheduled with the tenants.  The cost of the inspection was covered by Roofstock and it was a detailed a thorough inspection.  As a result of items found in the inspection report we negotiated a reduction in sale price.

Regarding property management companies they offered IIP Management, Rearden Property Management, and Hemlane as options.  I had attempted to purchase an investment property in that market once before and had chosen Allstar which Roofstock still had a relationship with.  I wanted to know more information regarding Rearden and if Allstar was an option and this was the exchange with Roofstock's Senior Transaction Coordinator.  

9/13/21 Me: "Rearden is listed as 9-15% of monthly rent collected.  For this property what would be the actual percentage?  Is Allstar also a preferred property manager option?  It isn't being listed for this property but I've seen it on others."

9/13/21 Roofstock: "I have looped in your agent to advice on your question regarding rental financials."

9/13/21 Me: "Wouldn't that be something you guys at Roofstock would be familiar with since Rearden and Allstar are your preferred property managers?"

9/13/21 Roofstock: This is a Select transaction that is owned by a local agent, in this transaction your agent is . . . who listed this property from MLS. You have full representation from the agent and they own all of the data uploaded from MLS including rental financials."

9/13/21 Me: "I'm not asking about rental financials.  He had already sent me copies of the tenant leases.  The Roofstock platform is asking me to choose a property management company to handle management of the property after we close.  This is what my questions are referring to and you keep referring [to the agent]."

9/13/21 Roofstock: "Apologies, I misunderstood what you were asking.  Reardon will need to provide you with the exact percentage for this property.  [The agent] will have the rental financials if needed for Reardon to Calculate.  I have inquired about Allstar for you.  Please do note this property is not limited to preferred management companies as there is no Roofstock Guarantees so there are no requirements to meet with management selection."

9/15/21 Roofstock: "Please . . . be advised Allstar is still a preferred management company with Roofstock."

9/28/21 Me: "Since no additional information on property management costs with Reardon have been provided and we are approaching closing we would like to select Allstar for management.  Please confirm receipt of this e-mail and please facilitate having the property setup with Allstate."

9/28/21 Roofstock: "I have updated your selection in our system.  You will need to connect with Allstar directly to initiate your management agreement with them."

9/28/21 Me: "What is their contact information nd point of contact?  In all my previous uses of Roofstock you guys have always facilitated this."

They then provided me with the contact information and I reached out and that was when I made that post above about not being happy with Roofstock.  This ticked me off.  Their Senior Transaction Coordinator had no idea what I was talking about when I was asking about property management companies and made no effort to find out what rate would apply to the property.  It just felt that she did not know what she was doing.  Yes, I could have reached out to any of the property management companies myself and inquired about fees, but the benefit of using Roofstock, or at least had been, was that they would make all the connections and reach out to everyone for that information.  Why am I paying them a fee to begin with if they aren't going to do anything except to pass me off to a local agent and more or less tell me I'm his problem now?  

I did receive a phone call from my assigned account manager from Roofstock after the Bigger Pockets post and he was  apologetic, explained that the involvement on Select properties should be the same as on the Exclusive ones from Roofstock and that this would be a learning moment for that Senior Transaction Coordinator.  But it really left a sour taste in my mouth.  After that the Senior Transaction Coordinator seemed to have been a little more proactive, at least with following up with the lender and agent on the scheduling of the appraisal. But then that was the last time I heard from her which was on 10/8 when she wanted to know when the new closing date and appraisal contingency date were to update her system.  We closed on 10/25 so that was it with any contact with Roofstock itself except for what looked like a system generate congratulations on the closing.  

Now granted, the entire thing wasn't THAT bad, and at this point this is my 6th property, so I'm no newbie.  But I can see that being extremely confusing and frustrating for anyone trying to get their first property under their belt and utilizing Roofstock to get it done.  I don't know if this experience is representative of how they are currently functioning overall, but then you have to also consider that the person I was working with had a "senior" title to their name, so that is a little concerning on what kind of quality you are getting.  I won't likely use them again for any other Ohio properties and just continue to use my property management company to expand the Georgia portfolio.  

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Tony Kim
  • Rental Property Investor
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Tony Kim
  • Rental Property Investor
  • Los Angeles
Replied Nov 5 2021, 14:19
Originally posted by @Jason G.:

My first step was getting pre-approved with a lender since I knew I was going to purchase a property in the Cleveland market, I just didn't know which one.  When a property is listed on Roofstock Select, you cannot give any offer amount you want.  You are restricted on a minimum, and that is the amount I submitted.  I paid the market place fee and then the next day was contacted by a local real estate agent who prepared the PSA.  The seller accepted my offer, which likely means that it was either fair or too high.  

After the PSA was executed the title company provided me with wiring instructions and I wired the EMD.

From there the agent sent me copies of the leases and began working towards scheduling the inspection.  Originally the closing date was 30 days, but ultimately we closed at almost 60 because my agent was having difficulty getting the inspection scheduled with the tenants.  The cost of the inspection was covered by Roofstock and it was a detailed a thorough inspection.  As a result of items found in the inspection report we negotiated a reduction in sale price.

Regarding property management companies they offered IIP Management, Rearden Property Management, and Hemlane as options.  I had attempted to purchase an investment property in that market once before and had chosen Allstar which Roofstock still had a relationship with.  I wanted to know more information regarding Rearden and if Allstar was an option and this was the exchange with Roofstock's Senior Transaction Coordinator.  

9/13/21 Me: "Rearden is listed as 9-15% of monthly rent collected.  For this property what would be the actual percentage?  Is Allstar also a preferred property manager option?  It isn't being listed for this property but I've seen it on others."

9/13/21 Roofstock: "I have looped in your agent to advice on your question regarding rental financials."

9/13/21 Me: "Wouldn't that be something you guys at Roofstock would be familiar with since Rearden and Allstar are your preferred property managers?"

9/13/21 Roofstock: This is a Select transaction that is owned by a local agent, in this transaction your agent is . . . who listed this property from MLS. You have full representation from the agent and they own all of the data uploaded from MLS including rental financials."

9/13/21 Me: "I'm not asking about rental financials.  He had already sent me copies of the tenant leases.  The Roofstock platform is asking me to choose a property management company to handle management of the property after we close.  This is what my questions are referring to and you keep referring [to the agent]."

9/13/21 Roofstock: "Apologies, I misunderstood what you were asking.  Reardon will need to provide you with the exact percentage for this property.  [The agent] will have the rental financials if needed for Reardon to Calculate.  I have inquired about Allstar for you.  Please do note this property is not limited to preferred management companies as there is no Roofstock Guarantees so there are no requirements to meet with management selection."

9/15/21 Roofstock: "Please . . . be advised Allstar is still a preferred management company with Roofstock."

9/28/21 Me: "Since no additional information on property management costs with Reardon have been provided and we are approaching closing we would like to select Allstar for management.  Please confirm receipt of this e-mail and please facilitate having the property setup with Allstate."

9/28/21 Roofstock: "I have updated your selection in our system.  You will need to connect with Allstar directly to initiate your management agreement with them."

9/28/21 Me: "What is their contact information nd point of contact?  In all my previous uses of Roofstock you guys have always facilitated this."

They then provided me with the contact information and I reached out and that was when I made that post above about not being happy with Roofstock.  This ticked me off.  Their Senior Transaction Coordinator had no idea what I was talking about when I was asking about property management companies and made no effort to find out what rate would apply to the property.  It just felt that she did not know what she was doing.  Yes, I could have reached out to any of the property management companies myself and inquired about fees, but the benefit of using Roofstock, or at least had been, was that they would make all the connections and reach out to everyone for that information.  Why am I paying them a fee to begin with if they aren't going to do anything except to pass me off to a local agent and more or less tell me I'm his problem now?  

I did receive a phone call from my assigned account manager from Roofstock after the Bigger Pockets post and he was  apologetic, explained that the involvement on Select properties should be the same as on the Exclusive ones from Roofstock and that this would be a learning moment for that Senior Transaction Coordinator.  But it really left a sour taste in my mouth.  After that the Senior Transaction Coordinator seemed to have been a little more proactive, at least with following up with the lender and agent on the scheduling of the appraisal. But then that was the last time I heard from her which was on 10/8 when she wanted to know when the new closing date and appraisal contingency date were to update her system.  We closed on 10/25 so that was it with any contact with Roofstock itself except for what looked like a system generate congratulations on the closing.  

Now granted, the entire thing wasn't THAT bad, and at this point this is my 6th property, so I'm no newbie.  But I can see that being extremely confusing and frustrating for anyone trying to get their first property under their belt and utilizing Roofstock to get it done.  I don't know if this experience is representative of how they are currently functioning overall, but then you have to also consider that the person I was working with had a "senior" title to their name, so that is a little concerning on what kind of quality you are getting.  I won't likely use them again for any other Ohio properties and just continue to use my property management company to expand the Georgia portfolio.  

Here's a summary of my interaction with Roofstock on a property I sold with them (mostly paraphrased):

Agent: OK, so the buyer came back with a list of demands after the inspection. He has also provided an estimate of the work to be completed or you can arrange for repairs yourself during escrow.

Me: OK, please let the buyer know that I will agree to each of his demands and that I will provide a credit for each item listed in his estimate. Since he is a cash buyer, I'd like to close quickly.

One week later:

Me: Hello, just checking in to see if your heard back from the buyer.

No response, so I called her directly.

Agent's response:  So the buyer wants to know which items you are willing to provide credit for.

Me (while restraining my incredulous tone): Please tell him I will credit him for every single item.

Another few days passes:

Me: Hello, so any update? Did you tell the buyer that I will agree to each of his demands?

Agent: The buyer wants to know if you will provide credit for item #4 which was waterproofing the basement.

At this point I'm extremely angry and start yelling at the agent.

Me: What part of credit for every item do you not understand? Please tell him I will credit every single damn item on his list so that we can close this deal!!

I don't know where Roofstock hires their agents, but the one I got was truly an idiot.