Online RE Marketplace Roofstock Expands Into Los Angeles

Roofstock

Last week we had a chance to catch up with Roofstock’s Chairman & Co-Founder Gregor Watson, who has an impressive background in online startups and investment real estate, and apparently is quite the ping pong player, according to the company website.  Gregor walked us through the Roofstock model.  Each of the RETechs we’ve featured in the recent past – including Money360 and PeerStreet – all have a different revenue model.  In the case of Roostock, rather than investing in shares of various investment properties, this site facilitates the transaction of the purchase and sale of income-producing rental homes and also offers turnkey property management by certified property managers in the 14 markets it currently serves.  It’s an interesting model.  So far, Watson stated that the primary client base has been institutional, but he does anticipate that as they move forward, they will have more retail investors. 
(Cindy Taylor/Publisher)

“Roofstock, the leading online marketplace for investing in single-family rental homes, today announced that it has expanded into Los Angeles. Known for its world-famous entertainment industry, entrepreneurial spirit and bustling new technology scene, Los Angeles is the 14th market to join Roofstock’s online marketplace alongside , Atlanta, Dallas, Tampa, Indianapolis, Jacksonville, Las Vegas, Miami, North Carolina, Orlando, Riverside/San Bernardino, San Francisco/East Bay and Southwest Florida.

We are pleased to welcome Los Angeles to Roofstock’s fast-growing real estate ecosystem,” said Gary Beasley, co-founder and chief executive officer at Roofstock. “The addition of Los Angeles offers our customers a tremendous opportunity to invest in high-yielding L.A. market properties.”

Home to notable technology companies Tinder, Hyperloop One, SpaceX, Hulu, and Snap, the Los Angeles metropolitan area has emerged as a top U.S. market, reaping the economic benefits of major tech industry growth.

The Los Angeles County Economic Development Corporation has reported that unemployment in the area has followed a year-over-year downward trend since 2010 and is forecasted to stay below five percent through 2018. Low unemployment rates combined with steady growth in jobs and income has led to high renter demand and 96.9% occupancy rates, above the 95% national average, according to John Burns Real Estate Consulting.

Roofstock users seeking total return or capital preservation will value the market’s four percent appreciation forecasts, above the 3.4 percent national average. Further, the negative equity rate of 5.5 percent, well below the national average of 10.5 percent, indicates less potential for local foreclosures and makes the name-brand market an attractive option for single-family investors.

Roofstock’s advanced platform makes investing in property easy by offering detailed inspections, valuation and title reports, as well as information about the tenants and local certified property managers. The company stands behind its marketplace with a bold 30-day Money-Back Guarantee.”

Source: Roofstock