My first (bad) investment experience with Roofstock

[Anandakumar Elumalai]

After spending almost half a year in reading the forums, books etc finally I got ready to do my first investment on Roofstock. I really liked a property that was from Memphis, TN. It was listed as a 'open house' property.

I made an offer of 175K. After the 'open house' period, the seller had 24 hrs to review and select an offer (according to Roofstock website). If the Seller does not take any action, the property gets listed in Roofstock again.

I did not receive any response during the seller review. One of the Roofstock representative told Seller has not accepted any offer and the property will be getting listed on roofstock again. He gave me the exact time at which it will be coming to open market.

I waited until then and when the property was available on the open market I purchased it. I got confirmation from Roofstock that the purchase was successful and I got a questionnaire to fill out. Market fees was debited on my card. My wife double checked and confirmed with Roofstock representative that we actually got the property. So far so good.

All these happened on Saturday.

Following Monday, got a one line text from Roofstock that the purchase was cancelled . I logged on to their website and the property was marked as 'Off the market'. I tried again after 30 mins to see it was in 'Sale pending' stage which means it was sold to someone else.

I wrote an email to roofstock asking for details. I am just getting weak apology replies stating it was their fault and would waiver the market fee on the next purchase.

What is interesting is that a Roofstock representative was closely working with me while I placed the order and confirmed that purchase went through fine and congratulated on the first purchase. Not sure what happened in between.

It is very frustrating.

Has this happened to anyone else?

I do not think this is normal. I am getting lot of questions in my mind and still have not heard anything convincing from roofstock.

[Jason G.]

I've purchased three investment properties through Roofstock and I am currently in the process of purchasing a fourth.  I've purchased one investment property outside of Roofstock.  I agree with @Ross Yeager in that this isn't too bad of an issue.  Deals can fall apart for a variety of reasons at different points in the process.  You lost no money and Roofstock is making an effort to make it up to you by waving the market place fee of your next purchase which is $500+ depending on the purchase price.  I know it is a frustrating experience, but I wouldn't let this incident dissuade you from utilizing Roofstock to acquire investment properties.