Roofstock, an online marketplace for buying and selling single-family rental homes, just raised $50 million to go after a bigger piece of the fast-growing market.
The round, led by SVB Capital, brings Roofstock’s total equity raised to $133 million, according to TechCrunch. Other participants in the round included Citi Ventures, Fort Ross Ventures and 7 Global Capital, as well as earlier investors Khosla Ventures, Bain Capital Ventures, Lightspeed Venture Partners and Canvas Ventures.
Based in Oakland, Calif., Roofstock was launched in 2015 by Devin Wade, Gary Beasley, Gregor Watson, and Rich Ford. The company, which claims to have facilitated $2 billion in deals, collects a 3 percent fee on each sale — 2.5 percent from the seller and 0.5 percent from the buyer.
Roofstock operates in 70 markets around the country and its marketplace enables buyers and sellers to transact even with tenants in place, allowing buyers to make money immediately. Under the terms, landlords need to honor existing leases, and can’t jack up the rent on Day 1.
This past summer, Roofstock also launched a marketplace where investors can buy a stake of a single-family rental — as low as 10 percent.
The company pegs single-family rentals as a $3 billion industry — and a market that is well insulated from a downturn.
“During the 2007 to 2011 housing downturn,” CEO Gary Beasley said, “rental rates [showed] positive rent growth despite broader economic conditions.” [TechCrunch] — E.B. Solomont
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