Roofstock Buys Great Jones to Help Investors Profit From Real Estate
- Roofstock single-family home market has acquired Great Jones real estate management company.
- Roofstock CEO said the move will help individual investors buy and manage homes remotely.
- The company dominates the technology world for single-family homes and has grown 10 times over last year.
It becomes easier to invest in real estate without lifting a finger.
Roofstock, the single-family rental marketplace that has become a one-stop shop for investors, has acquired Great Jones, an Oakland-based single-family property management company, for an undisclosed amount, the company told Insider.
With Roofstock, investors can buy or sell rental properties, or even shares in rental properties if they cannot afford a whole house. The houses usually already have tenants for the built-in income.
Investors can buy a home through Roofstock to rent out and then let Great Jones handle the day-to-day chores, from coordinating with HVAC or plumbing specialists to performing minor repairs on site. Roofstock’s goal is to “create a fully digital retail investment experience that is normally only available to larger investors,” according to a press release.
In 2018, the company acquired Streetlane Homes, a property management firm aimed at large institutional owners. Now Rooftstock can also offer reliable rental control services to private investors who only own one or two properties.
“Small investors are less concerned about optimizing rent,” Gary Beasley, CEO and co-founder of Roofstock, told Insider. “Instead, they tend to say, ‘Make it easy for me.'”
Prior to the takeover, Great Jones – not to be confused with the bustling cookwear company – managed 5,000 homes in southern cities like Austin and Raleigh and much of the super-hot sunbelt region. It has raised more than $ 30 million in venture funding from investors like MongoDB and Business Insider co-founder Kevin Ryan.
Beasley said Great Jones can also help bring Roofstock to more single-family rental investors who could use Roofstock’s marketplace to either sell their property – or buy some other property already rented – across the board.
Roofstock, which has raised more than $ 130 million in funding since its inception in 2015, is a major beneficiary of the pandemic-induced boom in single-family homes. The company caters to both large institutional investors, who have been criticized for overcrowding the housing market with their extensive portfolios, as well as smaller investors who may only own one house.
Roofstock said it exceeded $ 3 billion in transactions and saw the dollar value of transactions on its website grow 10x in the first half of 2021 compared to the pandemic months of the first half of 2020. The deal marks the second takeover of Roofstock this year: In March, it took over the auditing and asset management company Stessa.
Roofstock is one of the few single family home technology companies that works with both institutions and individual investors. Beasley knows the institutional game well, having co-founded Waypoint Homes, which eventually became part of Invitation Homes, the largest single-family home rental company.
His co-founder of Waypoint is now the CEO and co-founder of Mynd Management, a single-family property management company that recently closed a $ 5 billion deal to buy homes for Invesco. While Mynd has paved the way by partnering with major investors, Beasley said Roofstock is designed for every class of investor.
“What we’re building is more like Switzerland,” said Beasley. “Many, many customers will use us in many different markets.”