All Forum Posts by: Jason Pabon

Disclosure: I am a full time Roofstock Employee

Hi Amy,

Really good responses on this thread. With Roofstock, you have the ability of using a local agent through their Certified Agent Network. They'd connect you w/ a local agent in the area who can help source and hand hold you through the process.

I'd be happy to answer any further questions you have about the model.

Hope this helps!

-Jason

@Ben Howard - appreciate your response. Speaking from personal experience here. In a hot seller market like Sacramento, you are receiving multiple offers on almost every home. Going direct to the agent worked best because I got the home I wanted and the agent didn't have to split his commission (win-win). If I had buyer representation on this deal, I would've had to bid $20-30k above ask and waive my appraisal contingency. Not something I'm willing to do!

Yes, there's always benefits to having someone on your side (esp. if you're a first-timer) but if you know your market and know the steps in a real estate transaction, shouldn't be hard to find an inspector and title company to work with. Just my take!

Investment Info:

Single-family residence other investment in Sacramento.

Purchase price: $505,000
Cash invested: $100,000

Bought my first primary in December 2020! This was my first "big boy" purchase I did on my own (w/ help of my partner) to establish a foundation. We bought a single family 3bd/2bath 2,000 sq ft home in Sacramento!

What made you interested in investing in this type of deal?

The pandemic and our first born made us desire more space. We were living in a townhome for about 3 years before and knew that we needed a bigger place for our kid to grow up.

How did you find this deal and how did you negotiate it?

Sacramento (and all markets right now) are seeing a huge sellers market! We worked with an agent for 4 mo. and we made at least 10 offers - after getting continuously let down and having to outbid 20-30k above the list price, I decided to change my strategy and go direct to the listing agent! We offered at list price and they accepted our offer. Sometimes in this market, going direct to the agent will work to your advantage. Agents will also double end the deal - it's a win/win!

How did you finance this deal?

20% down conventional

How did you add value to the deal?

New paint
New flooring
Updated master bath
New lighting

Lessons learned? Challenges?

Buying a primary is WAY different than an investment.

When you buy a rental home, you're looking for the quickest way to get a renter in there while trying to minimize cost.
When you own a primary, you have more emotion invested in the deal. You're looking to make things absolutely perfect and you don't mind spending the extra money.

When you buy a rental home, you're solely based on numbers.
When you own a primary, you're mostly focused on location.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Agents (direct listing agent)
Lenders (local her in Sacramento - fairway mortgage)

Try listening to podcasts and self-educating yourself. There's lots of free resources out there these days. 

If you're interested in a real estate coach I can introduce you to a few people in my network. I bought my first two after getting a coach and it was helpful.

Keep in touch!

@Drew Smith most conventional lenders will require 20% for investment properties. I typically see investors that live in expensive areas invest in other markets (money goes a lot further). You can own 5 homes instead of 1 with the cash you have and start to build a nice portfolio. Let me know if you need any assistance or want to learn more about remote investing.

Good luck!  

You'll run out of money faster than you'll run out of deals.

Has anyone who commented actually purchased a home on Roofstock? I think @Michael Hren was asking for pros/cons and sharing their experience w/ the platform. 

There are lots of resources and forums available on BP if you do a quick search. Happy to introduce a few investors that can also share their experience. 

@Jake Lee nice to meet you! I am also from the Bay Area and recently moved to Sacramento. There’s lots of demand in this area and homes are still going above ask. Are you targeting single family or 2-4 units? Would love to connect and network with other investors as well.

-Jason

@Brad Eckhardt I know someone that's used both. Happy to send an intro.
Roofstock offers a lease up guarantee and a 30 day money back guarantee on all properties. 

Have you tried considering both and seeing which one gives you a better experience? (assuming you're looking to build a portfolio)

Great way to get started - if you're a W2 employee making good income, you'd want to start investing passively and learn the ropes. Turnkey rentals and house hacking are the two best ways to get started.