Roofstock’s Primary Mission & Owners
Roofstock is a Fintech company that operates out of Oakland, CA. Rich Ford, Gary Beasley and Gregor Watson started this company in 2015. Roofstock has come an awful long way in eight short years. Currently, Gary Beasley is the CEO and Founder, Gregor Watson is the Chairman and Co-Founder, and Rich Ford is the Chief Development Officer and Co-Founder.
Gary Beasley is a seasoned executive and serial entrepreneur investing in various industries. Most of his experience as an operator has been with operation-intensive and tech-driven service and real estate businesses. One of his visions is to make real estate investment a cost-effective and easy achievement for the average person.
He has been responsible for developing small companies and helping larger organizations grow even further. He also led ZipRealty as their CFO, as well as Starwood Waypoint Residential Trust as their co-CEO.
Some of Gary’s specialties include general management, growing, and starting companies, M&A negotiation, private equity investing, IPO preparation and execution, capital fundraising, strategy, budgeting, and forecasting, leading and building teams, developing corporations, and strategic planning.
Rich Ford has over 20 years of experience in acquisitions, mergers, and raising capital for various projects. He brings underwriting models and industry-leading analytics to the table. He also has the expertise to foster the necessary relationships, use the right tools, and be industry-savvy overall. Roofstock has
grown fast, and Rich Ford has been a driving force behind this.
Gregor Watson also founded 643 Capital Management. He considers himself a serial entrepreneur who started two companies in the rental space for single-family homes. Gregor is one of the first people who got involved in the single-family rental space on a large scale. In addition, Gregor was one of the first to raise institutional money in this area. Earlier in his life, he participated in collegiate baseball. He also considers himself an excellent ping-pong player.
Now this company’s transaction volume is over $1.6 billion to date. He has also made a tremendous impact on the institutional client base of Roofstock. He caused the entire company to make its first acquisition just so these clients could be better served.
Roofstock is currently constructing the world’s largest marketplace online for real estate investing. Their mission is to make real estate investing online accessible to everyone and to make ownership of property feasible and easy for the average person.
Whether you are an international asset manager or a first-time real estate investor, you will be able to inspect, buy and own your own residential investment property no matter where you live. And you can do this with confidence! Roofstock is not a start-up company.
They have done over five billion in transactions since they launched in 2015 and are using cutting-edge technology and top-of-the-line innovations to continue to disrupt this industry moving forward. They have real estate to purchase in over 70 different areas and employ over 200 people.
Some of their top investors include Khosla Ventures, Bain Capital Ventures, Lightspeed Venture Partners, Canvas Ventures, NYCA, QED Investors, SoftBank, and Silicon Valley Bank.
Roofstock Pros & Cons
In this part of our Roofstock Review, we will talk about the Pros & Cons.
Pros
You can buy and sell in 27 states
- You can buy and sell in 27 states
- Each property is wholly vetted
- Buyers and sellers are paying low fees
- You won’t receive any sign-up fees
- The property management service they offer is optional
- You can use Roofstock One as a passive investment alternative
Cons
- Your Real Estate investment isn’t as liquid as other asset classes
- A sizeable down payment is necessary on investment properties
- You can only join Roofstock One if you are an accredited investor
Roofstock Marketplace
This is a real estate investment market that operates on the internet. It allows sellers and buyers to collaborate and engage in the transaction of investment properties. The most popular filtering options are list price, neighborhood rating, and location. You can also save the filters you specify.
Buying on Roofstock – How Rental Property Investment Works
Before you start on Roofstock as a Real Estate investor, you have to ask yourself three important questions.
Question #1 – How much do you plan on spending?
Question #2 – How much do you plan on putting down?
Question #3 – Will you be financing, or are you a cash buyer?
There are four basic steps you will be going through when purchasing a property on Roofstock.
Step #1 Search – Roofstock offers special filters so you can perform your search by the desired rate of return, location, list price, and more. You can also get alerts by signing up. This way, you’ll be notified when your desired property is available.
Step #2 Analyze – This is where you look at all the property details.
View floor plans, 3-D model, curb view, 3-D tour, pictures
- View floor plans, 3-D model, curb view, 3-D tour, pictures
- Property valuation and inspection, insurance guide, and title report
- You will have access to special tools for cost estimates and visualizing return
- You will be notified of tenant details, payment history, and if there’s a current lease.
- You will receive a neighborhood rating and a local schools report
- You will get a list of your options for local property management
Step #3 Make an Offer – It doesn’t cost you any money to submit an offer. If the offer you submit is accepted, Roofstock will charge you a marketplace fee of $500.00 or 0.5% of the contract price. The higher of these two is what you will pay Roofstock. This fee helps them with their underwriting, transaction management services, and certification.
Go To an Open House
This will give you a chance to look at a property before many other investors do. The new exclusive listings will usually go through the open house process. You have a chance to submit an offer in the first 24 hours.
Get Pre-Approved
Now is the time to get pre-approved with a lender if you want to obtain financing. This will give your offer more strength when compared to other offers that don’t have proof of funds.
Step #4 Close – As the buying and selling process keeps moving forward with the property you are purchasing, Roofstock’s transaction and service team will keep in touch with you during escrow until escrow closes and the property becomes yours!
After Step #4 is the earning phase. You are currently the owner of a rental property, and you can start earning rental income as soon as the property closes. Whoever you choose as your property manager will deal with all the daily stuff. Roofstock will continue to be there with you as you keep earning.
Selling on Roofstock
This part of our Roofstock Review goes into selling on Roofstock.
Here you have the opportunity to list your rental property using the Roofstock Marketplace. They have an extensive network of buyers from all over the world searching for single-family rentals.
When you list your property on Roofstock, they will act as your exclusive broker. They will be there with you for assistance during the entire sales process, but you will always stay in control of the property. You can set the list price as high or low as you want. Then, when an offer comes in, you can either accept it,
try to negotiate a better price on your behalf, or reject the offer.
You’ll have access to a Worldwide Network of Buyers
You won’t be selling to someone in your neighborhood. With Roofstock, you will be connecting with potential buyers from all over the world that are specifically searching for investment properties.
Your Tenants can stay at your property
There’s no reason to move your tenants out; there won’t be any costs of showing your home and staging it.
You will pay low fees and get quick offers
Your average home that sells through Roofstock gets an offer in about eight days. And the Roofstock commission rate is only 3% of your home’s sale price or $2,500, whichever is greater. You can compare that to most realtors, who charge 6%.
Use their simple, Tech Savvy approach
You will have access to top-level analytics and special tools that will assist you in making smarter investment decisions.
Want to sell even quicker?
You can request a cash offer. This can allow you to close in as short a period of time as ten days. In addition, you can let the tenants stay on the property while the sales process is in motion. This will alleviate a lot of pressure from the tenants and yourself.
Transaction times could vary, but this is a rough timeline of the selling process.
The Listing Agreement is Signed.
(This process takes 10-20 days)
- Documents are Submitted by Seller
- Marketing photos of the property are taken by Roofstock
- Roofstock will underwrite the property
- Roofstock will need the preliminary title pulled
- If the seller wants, Roofstock will conduct a home inspection
Your Listing is Published
(This process takes 3-18 days)
Your property is listed and promoted on Roofstock Marketplace
- Your property is listed and promoted on Roofstock Marketplace
- Seller gets an email after any offer that is made
- Negotiations will take place with the buyer when they are needed
Your Offer is Accepted (closing process begins)
(This process takes 30-45 days)
After acceptance of the buyer offer, the home will go into contract
- After acceptance of the buyer offer, the home will go into contract
- A home inspection will be conducted if needed.
- After all this is completed, you have sold your rental property!
- Once you sell your property, you will pay Roofstock a 3% commission or $2,500, whichever is higher. Properties are usually listed in 10-20 days.
Roofstock Financing (Find a Lender or Use Your Own)
Once you get to the Roofstock Financing page, There is a custom search bar where you can filter searches by Property Price, Down Payment, Credit Score, State, and Loan Terms. Currently, Roofstock is working with Axos Bank and Beeline.
Learn the Finance Process
Select the Lender of Your Choice
- Explore the lenders who are on Roofstock
- You can choose your own lender if it suits you
- Your lender needs to know you are purchasing an investment property
Apply For Lender Preapproval
- Submit your application form over the internet
- If approved, know what your purchasing power is
- Find a property you can afford
Submit Your Pre-approval Letter
Your offer will strengthen when you submit your Preapproval Letter
- Your offer will strengthen when you submit your Preapproval Letter
- Upload your letter online
- Keep an eye out for your lender to fund your loan during the closing process
- If you need to learn more about this process, you can speak to the Roofstock team. They will be happy to help.
Large Scale (Institutional) Investing With Roofstock
Roofstock has unique solutions that allow investors to manage, buy and sell real estate on an institutional level. If you have big aspirations, they have your six!
Create a Solution that works for you
Roofstock has already created the most prominent solution allowing real estate investors to manage real estate as they scale. You can manage your investments, create customizable portfolios, and discover what works best for you within their platform.
Roofstock only uses the Top-Professionals in Single-Family rentals
With cutting-edge data science, the sharpest people in this business and institutional scaling, there are no limits to what you can achieve.
Serious Expertise
This team so far has operated, acquired, and moved over 5 billion dollars in single-family rental homes. They have also significantly benefited REITs, institutional investors, and global asset managers in helping them accomplish their investing goals.
Property Science & Analytics
Over 90 million single-family properties in the U.S. have been filtered out and sorted by their investment attributes. Any of these properties can be quickly sent to your buy box, giving you information on particular properties and neighborhoods.
Fully Integrated Platform
Their platform is set up to perform in-house property management and manage client portfolios anywhere in the U.S.
Large-Scale Tools and Insights
You will receive tools on an institutional level, portfolio management, reports and insights that will help you reach your investment goals.
Multiple Channel Exit Options
You will have different exit options if you are interested in divesting your portfolio. The Roofstock Marketplace has a network of global investors already in place.
Roofstock Platform Services
This solution was put together for large investors to build and scale their portfolios.
Roofstock One
We will discuss Roofstock One in this part of our Roofstock Review.
What are the Objectives of Roofstock One?
The goal of Roofstock One is to allow you, as an investor, to hold your assets there and to continue to grow your Real Estate investment portfolio as long as you want. They also want to start a secondary market so you can begin trading Roofstock One shares. Right now, an investment in Roofstock One isn’t very liquid. They require that the investment horizon for Roofstock One investors be five years or longer.
How does Roofstock One work?
Shares of Common Stock and Tracking are available to Roofstock One investors. You can create your customized portfolio that caters to your specific investment objectives. Once you are invested in Roofstock One, you will be able to get pro-rata quarterly payments once the board approves these. This will be a net distribution minus all the expenses on the underlying properties. Some of these funds could be tied to depreciation.
Roofstock One will have an asset manager that will work with other property managers who will manage these properties. This will provide investors with a hands-off approach to investing.
How does Roofstock One compete with Buying my own Rental Property?
The purpose of Roofstock One is to become a passive investment for investors. If you want to have the responsibilities of being a landlord and want direct ownership of the property, then purchasing a rental property might be for you. Roofstock One allows for an efficient alternative to investing on your own. You don’t have to worry about dynamics like obtaining a mortgage, property title, functional management responsibilities, tenancy issues, locating a property manager, etc.
As a Roofstock One investor, you can assemble and manage your targeted portfolio involving different markets. It will allow you to zone in on your specific investment goals while creating another stream of passive income and enjoying long-term growth, and possibly benefiting from future home price appreciation.
Who can Join Roofstock One?
Only accredited investors can join Roofstock One. An accredited investor is defined in Rule 501 of Regulation D under the Securities Act of 1933. You have to meet specific requirements, like a single individual making at least $200,000 per year or a couple making $300,000 per year combined. Another way to achieve accredited investor status is to have $1,000,000 (one million dollars) in net worth for yourself or between you and your spouse.
Roofstock One will need to verify your accredited investor status. You won’t be able to participate in any related investments until they prove your accredited investor status.
What is the Roofstock One Minimum Investment?
You only need $5,000 to get started. After you make your first investment, you can make future investments for as little as $100.00 per transaction. They do not have a maximum amount of Roofstock One shares you can buy. They monitor every trading stock and need to ensure you are buying, at most, the maximum number of shares they want you to buy. This amount will vary per stock.
Work With a Roofstock Certified Agent
This is the service you want to use if you are a serious buyer. Roofstock can connect you to someone in their certified agent network. This will allow you to get personal guidance in growing or starting your investment rental portfolio.
Why is a Roofstock Certified Agent Best to Work With?
You want an experienced agent on the front of your team. Roofstock Certified Agents are licensed and investor-focused. Roofstock picks these agents so they can help you make better offers and become a successful real estate investor. They have a record of success and did $50,000,000 in real estate transactions in 2021. Roofstock picks the best-performing agents in the most high-demand markets. They make all this experience work in your favor, saving you resources and time.
There are more ways to work with Roofstock than just browsing their marketplace. Once you get pre-approved; you can let them know what market or what particular property you are interested in making an offer. Once you signup for free as a Roofstock member, you can look at all the available markets they have.
Once you have a preferred market in mind, you can apply to the “shop with an agent” program! Here’s what you can expect when you do this in your preferred neighborhood:
- You will be introduced to a Roofstock Certified Agent that knows your local marketplace.
- They will mentor you on how to make a reasonable offer in your market before it’s time for you to create one.
- They will represent you starting at the negotiating process until its time to close.
Have you Been Pre-approved yet?
If you apply to this program, Roofstock will assume you are a transaction-ready investor who is familiar with the market you are about to invest in. The agent you work with will want you to provide them with a pre-approval letter if you plan on using financing. If you are a cash buyer, they will want a proof of funds letter before they proceed.
They are using Delmar Mortgage, and you can request pre-approval from them. However, you do not need to work with them as a condition of joining this program, purchasing a property, or submitting an offer on Roofstock Marketplace. You can use your lender, Delmar Mortage, or shop for another third-party lender. You only have to go with a lender that will provide you with the best rates and services. If you go with Delmar Mortgage, Roofstock could receive a financial benefit or fee.
6 Steps to Purchasing a Property as a Roofstock Buyer
Step #1 – Submit Your Property. Use the Roofstock property submission form. Let them know the details regarding a property on the MLS or another property you are interested in that’s not on the Roofstock Marketplace. The property you submit must be in one of the Roofstock Market locations mentioned above.
Step #2 – Screen This Property. They have underwriting technology that will screen the property you submit. This will not cost you anything. They will reach you in two business days and let you know if your submitted property will work well in the Roofstock Marketplace.
Step #3 – Connect with a Screened Roofstock Certified Agent. They have a certified agent network with agents that are investor-focused. One will be assigned to you in the property area you are interested in doing business. After this, you will be introduced to underwriting details and an estimate on the pro forma return.
Step #4 – Submit your offer. You will use the Roofstock Marketplace to submit your offer. Before you do this, your agent will assist you in reviewing all the financials, answer all your questions, and keep you up on key insights regarding the local market.
Step #5 – Start the Escrow Process. They will start a free property inspection once your offer is accepted. Your agent will help you with the purchase process from start to finish, which includes negotiations and assistance after the property closes.
Step #6 – Finish the transaction! This is when the property is officially yours. Here’s what you need to think about after you close. You will need a property manager to focus on the daily operations so you can build this investment. You can use Stessa, software that will help you automate your income. And finally, continue visiting the Roofstock Blog, which will keep you updated regarding all things real estate investing.
How to Become a Roofstock Certified Agent
As a Real Estate agent, referrals are essential to your business. Roofstock can only work with a small number of agents for each market. Will you be one of them?
The Roofstock Certified Agent network can help grow your revenue if you are an investor-focused agent. Here is what you can expect:
Buyer Leads
The single-family rental market is a multi-trillion-dollar market. You can access this market directly by tapping into an investor network with over Three hundred seventy thousand people waiting to do business.
Seller Leads
Sellers will need your help putting their rental properties in front of thousands of serious buyers from all over the world who are interested in purchasing properties remotely.
Institutional Leads
You can even earn more with Roofstock by working with institutions and more prominent investors looking to scale their single-family rental market purchases.
What it Takes to Become a Roofstock Certified Agent
Know What it Takes to Qualify
Make sure your license with the Real Estate Commission is in good standing
- Make sure your license with the Real Estate Commission is in good standing
- Must have a clean history with no complaints or disciplinary action
- Must strive to achieve the best customer service and be investor oriented
Submit Your Application
Complete a form Roofstock will give you on their website. They will reach you and schedule an interview if you qualify.
Enroll in a Special Training Program – Only Pay When Finished
You don’t have to pay anything up-front. Roofstock will give you special training, and when you complete this, you will be able to join the Roofstock Certified Agent Network. You will learn to operate the analytics and tools on the Roofstock Marketplace to maximize buyer and seller experiences.
Meet Roofstock’s Program Requirements and Gain Access to Referrals
As part of this network, you can operate the tools essential to generating referral leads using Roofstock. To keep in good standing as a member, you will need to adhere to the following guidelines:
Always adhere to Roofstock requirements:
Make all your weekly meetings
- Make all your weekly meetings
- Become active in surveys and product feedback sessions which are conducted throughout the year.
- Be part of marketing initiatives to help build your identification.
Examples are doing blog posts or performing on a podcast.
You can still stay at your current brokerage while working with Roofstock. They will be acting as a referring agent to you, so you can still do business as usual.
Buyer referral fees to Roofstock are 50% if you represent a buyer. This is because Roofstock only refers to high-intent buyers who have either made an offer or about to make an offer on a specific property. Therefore, you will not be working “cold” leads.
Seller referral fees are 35% if you are representing a seller.
Roofstock Property Management
Roofstock makes property management simple. Enjoy the advantages of owning a rental property without the responsibility that comes with being a landlord.
Different Ways the Roofstock Property Management Team can help you
Don’t Waste Your Time All the daily operations of your property are handled by their management teams so you can save time and grow another passive income stream.
Maintain Peace of Mind Whether its communicating with tenants, maintenance or repairs, the Roofstock property management team will keep your rental property run smoothly and protect your assets.
Invest More Wisely Purchase in markets with the highest returns for investors. You can own a property anywhere in the U.S. and still use their services.
You will be working with quality property managers, who are all vetted and watched closely to make sure their ongoing performance is maintained.
All property managers need to pass muster in the following areas:
- They must have a current license in good standing
- They need to maintain transparency and responsiveness
- Their past portfolio performance is monitored
- Roofstock customers will benefit from preferred pricing
- Property Managers will have referrals from conducting good business
- They need to have recognition by trade organizations
- They need to understand how to use data and reporting tools well
- Their pricing and fee structure must be reasonable
- They must have some time and experience in business
- They need to have proven market coverage
This is how the Roofstock Property Management service works:
They will connect you – They will introduce you to some of their preferred property managers.
Choose the Property Manager you Want – You can select one of Roofstock’s property managers or you can use your own.
They Take it From Here – From this point forward, you work with your property manager while they take care of the daily tasks required to maintain the rental property.
Become a Preferred Property Manager With Roofstock
Reap the benefits after you achieve your preferred status!
Increase Your Revenue
Get more management contracts. Every Roofstock property buyer is an investor. 85-90% of these investors stick with the same property manager.
Grow Your Business
Most Roofstock investors purchase remotely. Therefore, they depend on local property managers that are trustworthy. These investors will be referred directly to you.
Grow Your Recognition
As a preferred partner on Roofstock, you will grow your brand visibility. Tens of thousands of investors visit this site each week.
Property Management With Great Jones
There are tremendous life-changing financial benefits to being a real estate investor. However, you are also a full-time landlord, chasing rent, fixing toilets, and communicating with your residents on nights and weekends.
Sometimes when you turn to local property managers, it feels like you’re “managing your manager.” Sometimes when you take this approach, you lose focus when it comes to maximizing your returns. The people at Great Jones got tired of hearing stories about parts and labor upcharges and managers practicing too many old-school tactics and not using technology to their advantage, which puts a strain on the investor.
Great Jones has been working with Roofstock since the middle of 2021. As of now Jay Goldklang and Abigail Besdin are the Co-Founders of Great Jones. Their mission is to make owning residential rental real estate transparent and, more importantly, profitable. They do not have a locked-in contract, so you can cancel anytime.
All the professional service companies they work with are licensed, insured, and vetted. Their sign-up fees are no more than $100 per unit. They don’t charge any fees for cancellations, site visits, or maintenance management.
They have a 5 step approach to make your life as an investor easier.
They will only find quality residents.
They use data-driven rental tools to align with your objectives
- They use data-driven rental tools to align with your objectives
- They will spend time and effort marketing your property
- All rental applicants are thoroughly vetted
They want long-term occupancy
Residents can access emergency support 24/7
- Residents can access emergency support 24/7
- Their work request system is simple, highly efficient, and mobile
You’re income will be reliable
You’ll get your rent within 30 days from the time they collect it
- You’ll get your rent within 30 days from the time they collect it
- You will not be charged any hidden fees
Their upkeep procedures are top-notch
They will only work with the best service professionals
- They will only work with the best service professionals
- You won’t be charged a markup price for parts and labor
- The vendors they work with are established and will save you money on materials and labor.
Great Jones is invested in your success
Their team has renovated, purchased, managed, and sold many homes in the areas they operate in.
They want to work with you, so they develop a future profitable plan. Part of this plan includes growing your portfolio and increasing your earnings.
Vacancy Protection Through Roofstock
You can now have more confidence when you purchase a vacant home. You can get up to six months of vacancy protection on your vacant home until you have the opportunity to secure a signed lease.
If a single-family rental you purchase is vacant at closing, and you are working with a Roofstock Property manager, or is subject to 30 days or less written owner leaseback agreement, the home qualifies for vacancy protection.
Here are the qualifications
- Once your property is rent-ready, and you can’t locate a tenant within 45 days, Roofstock will give you the predetermined market rent price of 75% for six months unless you can get a tenant to sign a lease. Once a tenant signs the lease, the vacancy checks will stop.
- The home needs to be “rent ready,” which means it needs to be in good condition to collect revenue at the predetermined rent rate. A tenant also needs to be able to occupy the property. A Roofstock Preferred Property Manager has the final say regarding the home being rent ready.
- Single Family Rentals that don’t have any tenants during closing and have 30 days or less written owner-occupied leaseback agreement will qualify for vacancy protection.
- To qualify for vacancy protection, the listing needs to include a Preferred Property Manager inside the listing.
- You can not get vacancy protection for multiplexes, duplexes, or any home you bought through Roofstock Marketplace, the VIP program, or short-term rentals.
You can opt-in to the vacancy protection program through the Transaction Tracker. The property must be in rent-ready condition within ninety days of closing escrow.
You will only qualify for rent protection if your Preferred Property Manager can’t find a qualified applicant who will pay 90% or higher of the predetermined rent rate within 45 days of it being rent ready. Your preferred property manager will have qualifications they need to abide by that will comply with Fair Housing and applicable laws.
At the end of the month is when vacancy protection payments are calculated. You will receive these payments next month. The last vacancy protection payment you will receive will be prorated to when the lease is signed or six months after you qualify, whichever comes first.
Roofstock may change these terms in the future for properties that aren’t grandfathered in and that haven’t had transactions entered with them.
Roofstock Agent & Broker Opportunities
You can quickly assist your clients with buying and selling leased rental properties. As a result, you will get more business and work less. Roofstock will give you access to the 4 trillion dollar single-family rental market.
Sell Faster Than Before Your listings will be exposed to a large number of real estate investors in the U.S. and abroad.
Earn More Commissions Bring your customers to Roofstock and get a referral fee once they purchase or sell. It’s that simple.
Expand Your Business Get more buyers by allowing them access to nationwide portfolios and single-family rentals.
Stop the “Busy” Work No more worrying about signs and open houses. All your business will be 100% online. Roofstock has streamlined every step of the process.
How much Commissions can I earn?
Roofstock charges a three percent listing fee if you refer a buying client. You will make either 25% of this three percent fee or $1,500, whichever is greater. You will continue to get paid these fees for two years anytime a client makes a transaction on the platform.
If you list a property that sells, you will be charged three percent of the sale price after a successful closing. Some of these costs will be used to market your listings to global Roofstock investors. Whatever fee you charge the seller over three percent is yours to keep.
When will I get paid?
At the close of escrow, they will cut a check to your brokerage firm.
Roofstock Neighborhood Rating System
Roofstock has a Neighborhood Rating feature that will let you know the rewards and risks of investing in various neighborhoods. The rating goes on a system from 1-5 stars. I put my property which is located in a nice area into the search box, which gave me a rating of 3.5 stars.
Doing this only takes a few seconds. I entered my property address and clicked the “Get Your Neighborhood Rating” orange button. Once you get your result, there’s another button that says, “See Similar Properties”. Once you do this, it will display an exhaustive list of properties from all over the U.S. with similar neighborhood ratings listed on Roofstock Marketplace.
If you are a buyer, this tool will give you the neighborhood score of the property you are looking to purchase.
If you’re trying to sell your property, enter the address so you’ll know what type of neighborhood this property is in.
In addition to your rental home being important, the location is as well. Investment appeal is primarily determined by the neighborhood you are in. The Roofstock Neighborhood Rating is the first rating index for single-family rentals that are in U.S. neighborhoods. These ratings are determined at the census tract level.
This system has a proprietary algorithm that will give you the risks of the area and benefits based on specific factors such as employment rates, school district quality, home values, and the list goes on.
This is just one more tool you have at your disposal to make property buying and selling a more enriched experience.
Buy Newly Built Homes With Lennar
Lennar is one of the largest U.S. home builders. You can purchase one of their newly built homes from anywhere worldwide. Lennar builds homes that include upscale features. You can buy one of these homes as a vacation getaway, for personal use, or as a rental home.
They make a home easy to purchase with Roofstock’s transaction management services. Roofstock also offers concierge services that will make the rental process easier to manage.
- First, browse their homes and ask them any questions you may have. They have a search feature that specifically only shows Lennar properties.
- Next, go to their website and submit an offer.
- After closing, you can live in your home or rent it out.
- Finally, manage your home with Roofstock Concierge services.
Lennar offers a one-year warranty on all workmanship and materials.
They offer a two-year warranty for electrical, wiring, heating & cooling, plumbing, mechanical systems, and ventilation.
Finally, they offer a ten-year structural warranty, which covers the foundation and more.
They currently offer homes in Dallas and Fort Worth, Texas, Atlanta, Georgia, and San Antonio, Texas.
They have representatives that will answer all your detailed questions. You can email them or schedule a call.
1031 Exchange Using Roofstock
When you do a 1031 Exchange, they give you 45 days to locate a property and One hundred eighty days to finish the exchange. You must make these timeframes to avoid ending up paying capital gains taxes.
In other words, you can defer all capital gains taxes when you take your profit and reinvest it in a new property or multiple properties. The catch is that these properties must have an equal or higher value, and the loan amounts must be equal or higher.
Roofstock allows you to maximize the benefits of your 1031 Exchange by trading up to single-family rental homes. They have the resources and tools that will help you achieve this.
As mentioned before, you must make your transactions quickly to be within the 1031 guidelines. You can own your portfolio of cash-flowing homes and still operate with the 1031 Exchange time limits.
Some other benefits of a 1031 Exchange are diversification. You are also able to invest in new markets. The potential returns you make can be more significant over time. You can make a higher income with a unique portfolio.
Roofstock has someone ready to consult with you that will tell you which services you need and what tools to use so you can develop the right real estate portfolio size that will cater to your individual needs. Finally, you can reinvest with embedded equity.
Open a Self-Directed IRA (SDIRA) With Roofstock’s Partner
Roofstock has established a partnership with the New Direction Trust Company, which will give you the opportunity to purchase and hold properties in your IRA account. You can open a new account with them and transfer or rollover funds from an IRA you already own. When you roll these over to the New Direction Trust Company, you won’t incur any tax penalty.
The profits and rental income from any real estate that is in your IRA are tax-deferred. Now, these assets are considered part of your retirement savings. The Self-Directed IRA you own is your Title Holder once you buy a property. If you try to buy a property and you don’t have enough assets in your IRA, you can get a non-recourse loan that will add to your buying power.
Here are the steps involved:
- Open and add funds to your IRA
- You can establish your new IRA account with New Direction Trust Company.
- Find the property you want inside this IRA account.
- Diversify Your IRA
- You can diversify your IRA by adding more properties.
New Direction Trust Company will take care of the custodial and administrative functions of your IRA. It will be able to buy real estate and have all the same tax advantages that a retirement account will have. Roofstock makes Real Estate Investing easy, whether you invest with your IRA funds, retirement funds, or tap into a combination of these two.
Roofstock Academy
Roofstock Academy was created to give everyone a one-stop shop for their real estate investment education. Michael Albaum is the head coach and program manager. So whether you are just getting started or are a seasoned investor with numerous deals under your belt, they have what you’re looking for.
They have access to 1-on-1 coaches, group coaching sessions, a private dedicated forum, and over 50 hours of on-demand lectures. They also have multiple program offerings that will fit whatever your needs are as an investor. So please go check them out; they offer a money-back guarantee on their platform, so this way, you can get the education you are looking for.
To date, Roofstock academy members have acquired over 45 million dollars of real estate acquisitions on and off the platform. Roofstock Academy was created for investors by investors. Roofstock Academy was everything the people who made it wished they had known before they started investing but didn’t know at the time. So learn from their mistakes, and join this community of satisfied and successful investors.
Sorry, the Roofstock Academy is currently closed. They are working full-time to service the academy members they already have.
Where Does Roofstock Operate?
Below are a list of states and cities Roofstock has properties in. Of course, there could be even more by the time you view this list. But this will give you a good idea.
Alabama – Birmingham, Huntsville, Montgomery, Tuscaloosa
Arizona – Phoenix
California – S.F. East Bay, Los Angeles, Riverside, San Bernardino
Florida – Tampa, Orlando, Jacksonville, Fort Myers, Miami, Crestview,
Fort Walton Beach, Destin
Georgia – Atlanta, Augusta, Columbus, Savannah, Warner Robins, Macon
Illinois – Chicago, Cahokia
Indiana – Indianapolis
Kansas – Kansas City
Kentucky – Lexington
Michigan – Detroit
Mississippi – Hattiesburg, Jackson, Memphis Metro
Missouri – Kansas City, Springfield, St Louis
Nevada – Las Vegas
North Carolina – Charlotte
Ohio – Cleveland, Cincinnati, Columbus, Dayton, Akron
Oklahoma – Tulsa, Oklahoma City
Pennsylvania – Pittsburgh
South Carolina – Aiken, Columbia, Greenville, Charleston, Spartanburg
Tennessee – Memphis, Chattanooga, Nashville
Texas – Dallas, Houston, San Antonio, Austin, Killeen, El Paso, Lubbock, Waco
Wisconsin – Milwaukee
What is Stessa?
Stessa is financial management software you can try for free. Roofstock partnered up with them to make your life easier. They have tracked over 25 billion in assets.
Now you will be able to maximize profits with automated income, savvy money management, personalized reporting, expense tracking, and more.
Stessa does offer a premium service for $1,000 per month that will help you do more profound market research and rent analysis. Here are some highlights of the main capabilities:
You can track unlimited properties with this software
- You can track unlimited properties with this software
- Performance dashboards are offered at the property and portfolio level
- Expense tracking and automated income features
- Store and organize your Real Estate docs
- Run all the monthly reports you want
- Tax-ready financials are ready to export
- Online portfolio you can access from anywhere
- Information is easy to share with family and business associates
- Top data protection security in this industry is available
- Track your expenses while on the move with the Android and iOS apps
- Resources are available to help you optimize and scale
- Take advantage of their real estate investing newsletter
Roofstock Careers
Roofstock is changing the game when it comes down to how real estate investing works. Employees collaborate a lot and are swift at employing innovations. They also have some of the best technology and industry experts. They have offices in California, Dallas, and Oakland. Their headquarters are in uptown
Oakland across from the BART train station. They have on-site happy hours as well. They have developed a work environment that encourages free collaboration and big thinking.
Roofstock Customer Reviews
Below you will read some paraphrased reviews from some happy Roofstock customers.
Michael Fabbrini – I am now a Real Estate Investor thanks to Roofstock. They provided a terrific investment opportunity with fully screened professionals who could help him and take him through the whole process. Since he lived in a high-priced market, the only way he could enter the market was to find properties out of state. Roofstock’s platform and guidance gave him a roadmap to invest out of state with confidence. It was 10 years before he was able to purchase his first investment property, and after finding
Roofstock, after eight months, is on his third property.
Colin Walsh – Colin has an estimated five-year cash return of $11,375. Colin investigated the Roofstock Marketplace and looked at its main features. They had guarantees around the issues he was concerned with. He was referring to the 30-day money-back guarantee, the inspection reports, and the lease-up guarantee, which was for vacant properties. The “Bring Your Own Property” feature was also a big deal.
Lenny Hu – Lenny Hu has a five-year estimated cash return of $84,887. Buying on Roofstock is almost as simple as purchasing from Amazon. He was part of some online investing forums, which is how he discovered Roofstock. They referred to it as turnkey real estate you could invest in. He was already familiar with remote real estate investing since he had already bought two homes he hadn’t seen.
He was happy to receive inspection reports, yearly appreciation percentages, market data, estimated cash returns, and more. Roofstock gives a lot of great information up front. He believed the numbers were accurate and the properties would be good. The Roofstock team stayed in close communication with him throughout the entire closing process. They wanted to make sure he started collecting money on the first day.
He felt their marketplace offered the same hands-off approach and ease of use as the online stock market. He doesn’t have to speak with anyone he doesn’t want to.
Payton S. Payton S. has an estimated five-year cash return of $50,350. Roofstock stands behind its properties and makes things as easy as possible. Payton was listening to a Real Estate Investing Podcast when he heard about Roofstock. He did some more research and then learned that a turnkey provider would allow him to branch out into different areas and be more hands-off.
He looked into a few similar companies but chose Roofstock over some competitors. Other turnkey providers gave out some information, but what made Roofstock so great was that they were completely transparent throughout the process.
The local market evaluations, the full pro forma analysis, and additional property data made this an easy decision for him. This doesn’t include the fact that they carried inventory in many different markets. He was initially hesitant to purchase a property he hadn’t seen before. Roofstock will show you everything
you need to know about the property without visiting it.
Nate P Nate saved an estimated $18,000 by selling on Roofstock. Nate always liked investing in real estate to provide an extra income stream in addition to his 9-to-5 job. His first deal was two single-family properties in Indianapolis. He learned a lot from purchasing these two properties. He wasn’t interested in paying double the commission. He was referring to paying 6% in traditional broker fees. Since Roofstock charges 2.5%, that was a better deal. He also lacked the experience and time to sell to another investor.
Nate’s property managers and Roofstock had an initial kickoff call that he appreciated very much. The seller services team ensured the property managers were on point, including routine inspections and tenant communications. Nate didn’t have to say anything; he was happy to be on the call.
Tom F. – Tom is a Roofstock 1031 Exchange customer. He upgraded from one large office building to 169 small rental homes. Because of this miracle, he was able to double his returns. He recommends getting familiar with the 1031 process before you start. He also said to get a good 1031 qualified intermediary and front-load your work. He mentioned that every day is critical in this process, so don’t waste
your time. He only recommends using Roofstock as your partner.
Traditional financial advisors tried to get Tom to invest in a home depot, Walgreens, and a shopping mall. However, he didn’t want to go there because those places didn’t fit his profile.
Billy T. He likes the idea of selling a property already occupied the most. He kept receiving rent while the house was in the listing process. When you do a fix and flip, the utilities, interest, and staging costs are all your responsibility. Billy started fixing and flipping houses before he went full-time in 2017.
He liked doing this since he thought it minimized his risk. He used to flip houses and sell these as vacant homes. Now he’s taking advantage of receiving rental income by leasing his properties and selling them with Roofstock. This way, he can reduce his risk and market his homes to a nationwide circuit of real estate buyers.
Linda D. – Linda wanted an easier way to invest in rental properties, so she came to Roofstock. She used to work with agents when trying to purchase Single-Family Rentals. She had trouble trying to get her intentions across to these agents. She would have bought many more properties if there had been a more straightforward way to invest.
She wanted financial freedom, which motivated her to expand her real estate portfolio. In addition, she wanted to travel a lot and work on her terms. To accomplish this, she had to have a more efficient way to invest in real estate. This solution was Roofstock Marketplace. She now has access to cash producing
Single-Family Rentals within different geographic markets. She didn’t need an agent to find the cash-flowing properties she was looking for. She felt the ease of using this service was incredible, like the Amazon of shopping for real estate.
Josh L. – Josh got used to investing in traditional assets because of his expertise in financial services. This was his first experience with investing in real estate for several reasons. First, he wanted some diversity in his portfolio; he liked the idea of making passive income every month and liked the idea of putting some
of his money in tangible assets. There were also tax benefits, and he wanted to be a part of that.
He was already familiar with investing principles but needed to figure out how to apply these principles to real estate. He figured single-family rental properties were easy to get his foot in the door rather than jump into multi-unit properties. He tried looking at small apartment units in Manhattan, but things needed to be fixed. So now is he knew he needed to find homes outside the area where he lived.
Roofstock was able to help Josh locate preferable markets and was able to break the numbers down on each property he was interested in. Search fields were used to find the most high-yielding properties. He was able to calculate his returns, assuming there was a tenant in there. They also helped him find a great management team that understood his goals as an investor.
Bryce H. – There are a lot of upfront costs in real estate investing if you are around New York City. Now Bryce can invest in other markets, and thanks Roofstock for this. He wants to diversify his real estate portfolio and has taken an active interest in real estate over the last two years. He previously invested in a commercial real estate fund he realized was a very passive endeavor. He wanted a more proactive approach to adding diversity to his real estate portfolio.
Rental properties were on his mind, and he wanted an easier way to begin investing in one. He heard from others to start small and size up as you get experience. The price of Real Estate in NYC was far above the national average, so he was looking at Florida. Roofstock showed him how to invest in a rental property with tenants currently occupying the dwelling. He had access to property data and inspection reports so he could weed out properties that fit his personal investment goals.
Because of the certification process, Roofstock provides and the property’s inspection reports, Bryce could invest confidently without having to go out personally and visit the property. The certification process was all he needed. He also calculated his expected returns because of Roofstock, which were based on estimated expenses and rental income. This was all calculated to achieve a high-yield investment.
Roofstock Affiliate Program
Joining the Roofstock affiliate program is free and only takes a few minutes. You can start promoting them today. Roofstock is partnering with Impact, which manages reporting, tracking, and payment for affiliates.
If you have an audience geared toward Real Estate Investment, primarily single-family rental homes, you have the right audience to promote this program. Whether you have a small niche site, are considered an influencer, or have a large content site, you will earn good commissions by promoting them.
Right now, you will earn a $15.00 commission whenever one of your website visitors goes through your referral link and signs up on Roofstock. You will need to earn a $50.00 minimum before you receive payment. Their cookie length is 90 days. You can get paid through Bank Transfer or Paypal.
Also, check out this sales page’s Roofstock Agent & Broker Opportunities section. You can get paid even more if you are a licensed agent or broker.
Roofstock FAQs
What is Roofstock all about?
Roofstock is the leading platform and marketplace for Real Estate Investing. They have properties available in many of the top U.S. markets. They offer analytics, insights, and research so investors can buy properties in attractive rental markets. Whether you want to look at diligence documents, remotely visit or view homes in person, need help obtaining financing, or need property management services, Roofstock is your all-in-one shop to make real estate cost-effective, simple, and accessible.
How does a Roofstock transaction differ from the rest?
Roofstock was the first company, a true pioneer in creating a platform to let investors view qualitative, quantitative, and detailed financial information on single-family rental properties, and conduct all the necessary transactions through an online platform. The information that allows investors to do this comes from quite a few different sources, and some of this information isn’t readily available online and requires local research. Before Roofstock, only larger companies with connections and deep industry knowledge could invest in single-family homes at scale.
Roofstock’s platform solves the efficiency and accessibility problem of a typical real estate transaction by integrating the entire transaction process and adding property management services into the picture. The two most important benefits of Real Estate Investing, which is the potential for appreciation and monthly cash flow, now reaches a much bigger audience. This audience can now purchase properties from a wider geographical area than before. There’s no more need for inside information or unique connections to buy
a property from a different state or region.
Does Roofstock own the properties they list?
Almost all the properties on Roofstock Marketplace are individually owned. Roofstock Marketplace was constructed to connect sellers and buyers. They do own some properties that were bought and renovated to their standards. Then, these properties were put on the marketplace and made available to investors who were looking for these types of properties.
Is my personal information safe with Roofstock?
The most current digital encryption technology safeguards the data you submit. Their transactions require your credit card details. They use a company called Braintree, a secure credit card processing platform that is secure and operates by industry standards.
How is Roofstock Profiting from all this?
They charge various fees for different listings, which are listed below. No matter what type of listing they have, they are much better than your standard 6% listing fee.
Below are marketplace fees to buyers and seller commission fees:
- Buyers pay $500.00 or 0.5% of the buying price, whatever cost is higher. These fees go toward certification, transaction support, and guarantees they offer.
- Sellers will get 3% of the sales price or $2,500, whatever fee is more significant on a tenant-occupied or vacant property. This fee is for sellers’ services, including underwriting, certification, custom marketing, consultation, and transaction management.
Is Roofstock a licensed Real Estate brokerage?
Yes, they are! Roofstock Realty LLC is fully licensed, and they partner with other licensed brokers in states that they are not licensed in.
Does Roofstock have a good track record?
The key to Roofstock’s success is combining cutting-edge technology and in-depth operational experience, which allows this company to cater to a broad audience.
Some of the milestones they have achieved are:
- They started operating in early 2016 and, since then, have made over $5 billion in transactions which make it one of the most rapidly growing proptech (property technology) start-ups.
- Since early 2016, $133 million was raised in venture capital.
- Within two years, they have been operating in 26 states and over seventy markets.
- Most of their marketplace listings are under contract within fifteen days.
How do I get started investing?
First, you must go through the free sign-up process on Roofstock’s website.
After this, visit the Roofstock blog. Then check out How to Get Started in Real Estate Investing
- The Complete Guide. This will cover the five steps you will have to take to start your Real Estate Investment journey. Next, they have a Roofstock Webinar Series you can look at, which has presentation materials and the recordings themselves. When it reopens, you can also join the Roofstock academy.
You must register for a Roofstock account to stay updated on all the latest information.
Can you purchase any property on the Roofstock Marketplace?
Yes, you can submit an offer if you see a property you like. After an offer is accepted on a property, it is removed from the marketplace. No one else can see it, and no other buyer can submit an offer on it.
How do new properties get added to Roofstock Marketplace?
Every day new properties get added to the marketplace. You should check back regularly, or sign up and get all the latest alerts. You can get the alerts you want by setting custom filters. Also, check “be notified immediately” in your preferences as you sign up. This way, you’ll receive the properties that fit your parameters as soon as they hit the marketplace.
What are the steps to buying a property on Roofstock?
The first thing you should do is get pre-approved by a lender. You can use your lender or one recommended by Roofstock; that’s your choice. Doing this is essential because, after this, you will know what your budget is. This way, when a property you like is within this budget, you can make an offer that will win.
Specific properties on Roofstock are designed to entertain offers. So make an offer on one of these. Enter the offer amount and click the “make offer” on the property details page. The seller has two business days to decide.
They can either accept, counteroffer, or decline your offer.
An expired offer is when they take no action after two business days have passed.
If your offer is accepted, the escrow process starts. Once it gets this far, there are lots of professionals that will get involved and ensure the process runs smoothly.
How does the Open House process work?
An open house is where an exclusive Roofstock property is highlighted on the Roofstock Marketplace for 24 hours. Buyers are encouraged to submit bids while this is going on. After the open house closes, the seller has twenty-four hours to look at all the incoming offers and decline, accept or counteroffer. If no offer is accepted within 24 hours, the property will return to the marketplace at its latest offer price or
original list price, whatever price is higher. The 24-hour review process is done by email, so always check and respond quickly during this review period.
Why do you require my credit card details since it’s free to submit an offer?
Your credit card details are required for two different reasons:
This will convince the seller that you are serious about buying the property. They often review multiple offers, putting all buyers on equal ground.
You will be charged the higher of $500 or 0.5% of the contract price if the offer you submit is accepted. As soon as you pay this fee, the property will be removed from the marketplace. You will now purchase the property due to the contract and start the closing process.
Roofstock 30-Day Money-Back Guarantee
If you buy a Roofstock-certified single-family home and are unsatisfied, you might be eligible for a 30-day money-back guarantee. There are some eligibility requirements, and they are listed below.
Homes must pass a property inspection and meet Roofstock’s certification requirements. The inspection must be made by a Roofstock-approved vendor, which must be done within 90 days of offer placement. In addition, the Roofstock Marketplace property has to include its guarantee badge to be eligible for certification.
The property must be maintained in the same condition as when you bought it. You are also responsible for the upkeep, insurance, property management fees, and other expenses that may arise while you own the property.
Roofstock-certified, single-family properties are only eligible under their 30-day guarantee. Short-term rentals, multi-family properties, The VIP program, select, and portfolio properties are unsuitable for a refund.
Editor’s Final Comments
If you are a buyer or seller looking to lower your transaction fees, it is worth signing up for Roofstock, which is free, and taking a deeper dive into their website to continue your research. They give buyers access to advanced tools to make the process simpler, and the Roofstock Marketplace can be used as a vetting tool to find the exact property you are in the market for.
The attractive fee structure is great and allows the average investor to dive right in. The quality control processes they offer are also very appealing. If you are in the market for Single-Family Rental (SFR) properties, we believe Roofstock should be your first choice. While Roofstock offers great, streamlined data, make sure you use your own due diligence in addition to employing these tools.
It will never hurt to sign-up for free. You aren’t obligated to do anything. Get involved by getting on their mailing list, signing up for their podcasts and keep up to date on all their new Roofstock Marketplace listings, which you can custom filter so you get email notifications of the exact properties you are looking for.
Click Here and sign-up for Roofstock. Single-Family rentals are now your oyster. Finally, if you have any questions about this company, feel free to contact Jeff West after going through their free sign-up process. I’m very familiar with this company and will be happy to answer all your questions.
