The first step is to select a lender and get pre-approved by your lender. This is an important step, so you can get an idea of what your budget is. Then, when the right property appears, you will be ready to make a winning offer. 

On the Roofstock marketplace, initiate the purchase process by clicking the Add to Cart button or, on properties that are designated to entertain offers, you have the option to enter an offer amount and then click the Make Offer button from the property details page.

Typical offer steps may include:

Make Offer – You submit an offer directly to the seller through our platform. The seller will have two business days to make a decision, which can result in either:

  • Offer Accepted – The seller accepts your offer.
  • Counter Offer – The seller sends you a counter offer which you can either accept or respond with a counter offer of your own.
  • Offer Declined – The seller declined your offer because it may be too low or may have accepted an offer from another investor.
  • Offer Expired – The seller did not take action during the two business day period and the property may still be available on the marketplace.

Buy it Now – allows you to make an offer at the list price and immediately take it off the Roofstock marketplace. You will be prompted to secure the property by paying the Marketplace Fee. A Purchase and Sale Agreement will then be delivered to you for electronic signature/execution. The Purchase and Sale Agreement is usually signed in 24 hours by both parties, and the Escrow or Closing Agent will initiate the closing process by setting a closing date and sending closing documents for execution.

An Open House is a 48-hour promotional period during which a Roofstock Exclusive property is featured on the Roofstock Marketplace. Buyers are invited to submit bids during this time. At the close of the Open House, the seller has 24 hours to review all offers and accept, decline or negotiate. If there is no accepted offer by the end of the 24-hour seller review, the property is listed on the marketplace at its original list price or latest offer price, whichever is higher. All communication is done by email, so make sure to check and respond promptly during the 24-hour seller review period.

They both have advantages. With an occupied property, there’s no interruption of the current lease, so you start earning passive income right away. With a vacant property, you have the opportunity to renovate or add value to the property, and start fresh with a new lease and adjust rent to desired levels. 

The good news is that if you buy a vacant property and the property is in one of the areas covered by one of our Preferred Property Managers offering Rent Guarantee, you can opt to participate in our Guaranteed Rent program for up to 12 months. See details here.

In order to process your offer to the seller, we require your credit card information for two reasons:

  • It assures the seller that you are serious about the offer. They are often considering multiple offers, and this puts everyone on the same even playing field.
  • If your offer is accepted, your card will be charged the higher of $500 or 0.5% of the contract price. Roofstock removes the property from the marketplace as soon as the fee is paid. You are in contract to buy the property and proceed with closing.

The marketplace is structured so a personal visit isn’t really necessary, and in tenant-occupied properties, most sellers feel that visits are disruptive for tenants. Before you close, you can review complete diligence reports and photos of properties, as well as estimates for any immediate repair costs. If you are in contract on a property and still want to tour the property, you could do so if the seller gives you permission or if it is a Roofstock Select listing where the seller has decided to provide showings of the home. 93% of our investors buy out-of-state without personally visiting the property. 

Roofstock will arrange a comprehensive visual inspection by an experienced and vetted third-party property inspector. The report will be made available in the Diligence Documents (Analysis tab).

On properties with an inspection contingency, the inspection will occur after you are in contract. You will have an opportunity to review the report, which will be provided to you via email, and re-negotiate your offer terms based on the findings from the inspection. Should you decide to cancel the transaction, and do so before the inspection contingency expiration date, your earnest money deposit will be refunded.

With Roofstock Exclusive listings, Roofstock is the seller’s agent on the listing and transaction. The majority of our buyers do not retain their own independent buyer’s agent. However, you are welcome to retain a buyer’s agent at your own cost. 

With Roofstock Select listings, a Roofstock local buyer’s agent will be assigned to you to handle the purchase on your behalf. 

If you are an agent interested in establishing a commissioned arrangement with Roofstock, contact us at chris@roofstock.com.

Absolutely, and we make it easy. Roofstock can refer you to several of our lending partners offering investors diverse loan product options. You are also free to engage a lender of your choice. Please note that financing contingencies are not permitted in the Purchase and Sale contracts, so buyers should take a few minutes to get pre-approved by a lender before making an offer. If your offer is accepted but you are unable to obtain financing, your earnest money deposit will not be refunded

Closing costs often include transfer taxes, title search and title insurance fees, loan origination fees (if applicable), recording fees, association fees and document preparation/closing fees. A good-faith estimate of closing costs is provided for the convenience of buyers, and actual closing costs will be outlined on the closing statement. 

Roofstock intends to facilitate closings within 14 days of a signed Purchase and Sale Agreement for an all-cash sale; 30 days for financed sale. The closing date is typically scheduled to occur within 30 days from the contract date unless otherwise agreed by buyer and seller.

The marketplace fee is automatically charged to your credit card when an offer has been accepted. The fee, which is calculated as the higher of $500 or 0.5% of the contract price, is disclosed for each investment prior to being charged

If a listing has no contingencies, the marketplace fee paid by you is final and non-refundable. If a listing is subject to contingencies, and you cancel the transaction because (1) a contingency is not satisfied by the seller prior to closing or (2) the seller is otherwise unable to fulfill its obligations under the Purchase and Sale Agreement or other obligation required by applicable law, the marketplace fee will be refunded to your account.

The earnest money deposit, which demonstrates that the buyer is making a good faith intent to purchase to the seller, is $1,500 for any Roofstock property. It is sent by the buyer via wire transfer to the title company, which holds it as a deposit as part of the escrow process. It must be wired within three (3) days of signing the Purchase and Sale Agreement. If it is not received within this timeframe, the property will be returned to the marketplace. These funds will be used as part of the buyer’s down payment or closing costs when the transaction is finalized. The terms of the earnest money deposit are spelled out in the Purchase and Sale Agreement.

Self-directed IRA or solo 401K plans that are linked to a bank account and give the owner checkbook control can be used to fund the purchase of a property on Roofstock. Plans that necessitate custodian approval require additional steps and we recommend that you start the approval process early in order to minimize delays in closing.

Non-local investors can buy properties on Roofstock. Our marketplace, with its analytics on each home and access to Property Managers, is well structured for investors based outside the local property markets. 

For international investors, please contact Ada Phang.

Yes. You can invest through any vehicle which can hold title to real property. At closing you will have the opportunity to indicate how you would like to hold title. Please check with your financial advisor to determine which structure would be most beneficial for you. You can learn more about investing through an LLC on the Roofstock Blog. 

Returns are earned from the rental cash flow after deducting expenses (which may include mortgage payments, property management fees, repairs and maintenance) and any appreciation in the property value when it’s sold. If you are not self-managing, the net cash flow is forwarded to you on a monthly basis from your Property Manager, who collects the rent. 

A new investment offering allows you to buy 1/10th shares of single-family rentals and enjoy the passive income with no management responsibilities. This structure makes it easy for investors to diversify across properties and markets. This is currently available only to accredited investors in accordance with state and federal securities laws. An accredited investor is a person or business entity who has earned an individual income of more than $200,000 per year, or a joint income of $300,000, in each of the past two years and expect to reasonably maintain the same level of income. Accredited investors are allowed to deal in securities that may not be registered with financial authorities. For a complete definition of "accredited investor" and related criteria, click here.