Roofstock

[DYLAN BLUM]

I am still in the research stage and looking into the website roofstock.com. They are a turnkey. I am wondering if anyone has had experience with this company or actually purchased through them. They seem to have a very transparent process and show all properties on their website. It seems pretty legitimate to me but looking for opinions from others. Thanks!

[Keith Anderson]

I'm under contract on a property with Roofstock and have previously purchased from a turnkey provider in the Chicago area.

It's important to note that Roofstock is a marketplace for certified, off-MLS properties with certified tenants in place. This means that Roofstock does diligence on the properties and tenants (all of which is available to you as an investor) and connects you to vetted property managers. They also have preferred relationships with lenders.

Unlike the firms more commonly referred to as "turnkey" operators, however, Roofstock does not renovate properties before sale, nor do they run in-house property management.

The upsides seem to be that:

• Their marketplace lets you search, filter, and analyze many properties across the Roofstock markets more efficiently than any single turnkey operator or marketer does
• Their properties do not carry the typical turnkey markups, which may leave a bit more meat on the bone (these tend to be rental properties owned by institutional investors)
• The provide much more complete and useful data in their proformas, with the ability to easily tweak assumptions

The downsides seem to be that:

• Properties are provided as-is and likely haven't had a complete renovation, so repairs and CapEx may be higher with their properties (though they do disclose details and expected useful life on big ticket items like the roof and key mechanicals)
• You lose the "one neck to choke" benefit of turnkeys, though they do assign advisors who are available to assist you throughout the process of closing on the home

If you are familiar with Homeunion, Investability, or Mashvisor, they are all worth a look for comparison. 

I find Roofstock's business model and fee structure to be clearer and more investor-friendly than close-ish counterparts Homeunion.

I haven't looked closely at Investability. 

Mashvisor is an interesting research tool but not as powerful for largely hands-off property acquisition and management.

None of this represents an endorsement of any particular service; I'm just sharing my observations and opinions.