INSUBCONTINENT EXCLUSIVE:
There are fewer startups that are promising to make it easier to buy a home as an income-producing property
Among these is Roofstock, a four-year-old, Oakland, Calif.-based online marketplace where buyers and sellers buy and sell rental homes in
The idea: Both institutional and retail investors can buy and sell homes without forcing renters to leave their homes; buyers can also
Investors just gave the company a fresh $50 million to go after it more aggressively, too
Earlier backer SVB Capital led the round, but it was joined by Citi Ventures, Fort Ross Ventures, Mark VC and 7 Global Capital, as well some
other earlier investors, like Khosla Ventures, Bain Capital Ventures, Lightspeed Venture Partners and Canvas Ventures.The company, which
has now raised $133 million altogether)
But its co-founder and CEO, Gary Beasley, answered some of our other questions this morning.TC: How, or where, does the company drum up
represent owners of investment properties, property management companies, listing services and institutions
from increasing the rent of tenants as soon as a property changes hands?GB: Landlords need to honor existing leases and follow local laws
pricing and sale strategy [but we] provide sellers with several data-driven tools to help them set a listing price, including comparable
sales values, probabilities of sale at various prices and estimates of days-to-sell
We also provide sellers with the ability to field offers on homes or list at a non-negotiable price
properties?GB: We combine our data with various third-party sources, like Corelogic, House Canary and Zillow to give investors a portrait of
a property that includes valuation, neighborhood rating, comparisons with similar homes, as well as other tools and information.TC: How does
Roofstock get paid?GB: We make money through each transaction
We charge 2.5% to sellers, and .5% to buyers.TC: How long on average does it take to sell a house?GB: The majority of properties that sell
on Roofstock go under contract within 15 days or less, which is significantly faster than the industry standard.TC: How many properties has
fourth quarter of last year, our run rate was about 500 home transactions per month
are under 35.TC: You operate in more than 70 U.S
Where are you seeing the most transactions?GB: The top markets on Roofstock are Atlanta, Memphis, Indianapolis, Jacksonville and the greater
historically been a strong investment option during economic downturns
During the 2007 to 2011 housing downturn, rental rates [showed] positive rent growth despite broader economic conditions.
