Roofstock, an online real estate marketplace that makes it easier for landlords to invest in single-family rental (SFR) properties from almost anywhere in the United States, recently bought a property management firm called Great Jones. CEO of Roofstock Gary Beasley says that Great Jones "fills a final piece for us becoming an end-to-end digital real estate platform."
Roofstock experienced 10 times year-over-year growth in transaction volume in the first half of 2021, has surpassed $3 billion in investment transactions, operates in over 70 markets in 24 states, and can now, with its newest acquisition, offer all real estate investors a fully digital retail investing experience typically reserved for larger investors only.
The addition of Great Jones allows Roofstock to offer property management for its customers, many of whom are remote investors who typically have a greater need for a reliable property management company. Great Jones, a digitally native technology company that specializes in single-family homes, already manages over 5,000 properties. Adding Great Jones to Roofstock means investors don't need to have different, local property managers for each property; they can get this service for all their properties through Great Jones.
Roofstock, founded in 2015 by real estate investors in the SFR space, is a real estate investment marketplace that offers a buy side, a sell side, institutional services, and portfolio transactions. The Roofstock idea is to make the process of investing in real estate as easy as investing in stocks.
Great Jones is Roofstock's third acquisition since its founding. Earlier this year, Roofstock bought Stessa, a software platform that manages real estate investments. With Stessa, property owners can monitor their rental property investments from their dashboard. They can track income and expenses, view the lease, and use the information they find to make decisions on optimizing returns. Also, in 2018, Roofstock acquired Streetlane Homes to be the property manager for institutional investors.
On the buy side, Roofstock customers search the Roofstock marketplace based on price, desired return, location, property details, neighborhood rating, and tenant payment history details. At a glance, Roofstock provides investors with all the numbers: annualized return, cap rate, gross yield, cash flow, and appreciation. Investors also see the expected rent, expenses, property taxes, and loan payments (if applicable). Investors can buy using cash, or they can finance the transaction.
On the sell side, landlords who already have a tenant in the home can sell that home to Roofstock before waiting for the tenant to vacate, as is the usual practice. Landlords continue to collect rent until the home closes, at which time they pay 3% commission fees to Roofstock, as Roofstock is a brokerage. Roofstock markets the home to investors who search its website.
The institutional services and portfolio transaction sides are for large investors and institutions who can buy, manage and sell single-family homes at scale.
The Millionacres bottom line
Says CEO Beasley,"With the right technology and an integrated set of digital tools, anyone can become a real estate investor." That comment might be a tad optimistic, as success takes a bit more than that. But Roofstock does much of the initial work for investors, and with this latest acquisition, keeps people on the Roofstock platform. All that could help people on their journey of becoming a successful real estate investor.
On a personal note to Roofstock: I'm not interested in selling at this time, but thanks for the offer.