Long Distance Real Estate Investing|Emil Shour from Roofstock - a podcast by Cody of Fly to FI and Justin aka Saving Sherpa
from 2020-01-28T08:00:58
Today's episode is an awesome chat with Emil from Roofstock.
Emil covers why he wanted to get into real estate and what held him back.He knew his area of California was too expensive and discovered the idea of long-distance real estate.
Roofstock gave him the tools and confidence to make his real estate dreams a reality. Then a couple of years later he actually joined the company and is here today to walk us all through his journey and what Roofstock could bring to the community.Listen, learn, and let us know what you think.
Episode SummaryEmil's Background
Emil was instilled with values early from his frugal parentsIn high school, he got interested in stocks and started self investing
At the time he was picking individual stocks but doesn't advise that
He luckily had a friend who was like a child genius with stocksWhen heading out for college he needed a car and sold his stocks to purchase one
In college, he studied economicsHis first job would be aggregating data on pharmaceutical companies
It's clear Emil gets a ton from his time working across a few startups
Emil also stresses the importance of NetworkingIt would ultimately lead to his job at Roofstock
Emil's Journey to Roofstock
Emil became a user of Roofstock in 2017At the time the company wasn't at a point to bring on remote workers
He would continue to send marketing materials to Roofstock that he thought the could useOver time Roofstock opened up remote positions and he went to work with them
Emil had a strong connection to the company because he always wanted to invest in real estateHis dad actually had been investing in real estate for a long time
The problem for Emil was the prices that were near himSo he got interested in remote real estate
That's where Roofstock came in to save the day
He now has several properties over multiple states including Florida and Indiana.He bought his first home in 2017 for $84k in Jacksonville with an original rent of $900
The property had a new roof and HVAC so it almost turn-keyToday it is renting for $954
He also has never had to change tenantsTotal cash-flow has been $8,200
Appreciation has also increased the property value by $26kRoofstock Details
Roofstock links you up with preferred property managersYou're not required to use them but you're not forced to find someone
Roofstock makes their money during the sale of the homesIt's actually a great deal for both the buyer and seller
The seller ends up paying 2.5% vs a standard 6% for the saleThen the buyer pays $500 but gets a ton of support
Beyond the property manager help, they also have preferred lendersEmil scans Roofstock to find states with good returns
Then he looks for states that have landlord-friendly laws to avoid squattersHe also recommends job and population growth
Most properties have an inspection reportThis inspection report also comes with an estimate to get it rent-ready
Then you can leverage the property manager to find a trusted contractorRoofstock Guarantees
If you're not happy with a purchase, roofstock will help you sell it
If it's not sold after 90 days, roofstock actually buys it back
They also have a rent guaranteeThis kicks in if you can't rent a property after 45 days
After that point, Roofstock will pay 75% of rentIt does require some things on your end
You're using a preferred property manager
The home is rent readyRent isn't set at an unreasonable level
Free to Sign UpYep, Roofstock is 100% free to sign up
You only need an account for certain functionalities, but still freeCurrently, they service residential only but up to 4 unit properties
Key Takeaways
Everything gets disrupted: It's awesome to see a service like this trying to take something traditional and put a unique twist on it.
Further episodes of The Financial Independence Show
Further podcasts by Cody of Fly to FI and Justin aka Saving Sherpa