The ultrafine (d = 4 nm) magnetite ferrofluid with a narrow nanoparticle size distribution has been synthesized in one stage at room temperature from a solution of iron(II) and (III) chlorides in dimethylsulfoxide (DMSO) with the propylene epoxide admixture. This is the first example of obtaining a stable concentrated ultrafine magnetite/DMSO ferrofluid at room temperature. X-ray diffraction, transmission electron microscopy, ferromagnetic resonance, Mossbauer spectroscopy, and magnetostatic study have been used to elucidate the role of DMSO and the H2O/DMSO ratio in the formation of a stable colloid with a desired nanoparticle size. The initial stages of the magnetite nanoparticles formation have been investigated by the ferromagnetic resonance technique.