@1RahulMani His wife literally forgave the gay furry-tranny loving murderer on the stage. Doesn’t really sound like someone full of hate, but you do as you choose to bash rather than appreciate. Go back to India or wherever you came from
$OPEN
Very interesting to see all these finance gurus die on this hill that this is the next 100x. Maybe it is and I’m an idiot. But I am very active in real estate, have been for years and do a consistent high volume of transactions…
I see Opendoor buy and sell houses on the MLS all the time at SUBSTANTIAL losses just between the buy/sell price, without accounting for any other costs. Sometimes they break even or sell it for slightly higher, but after accounting for all expenses (two sets of closing costs, rehab, commissions, etc) they’re still losing money. A lot of money.
From extensive personal experience, it’s an extremely shitty business model. This will not be the Carvana story or the Amazon of real estate… they have a strict buy box and only buy the nice properties that every investor and their mom wants to buy, these are house that can be sold on the retail market without extensive rehab, so they have to pay very close to retail price to acquire the deal. I have been to many seller appointments where I tell them that I cannot compete with Opendoor’s offer because it’s essentially retail, great for the seller but makes zero sense to any investor. I have seen this model firsthand time and time again and I just know it makes zero sense. They try to pitch that they make money off their transaction fees, but that gets easily wiped out by their losses and not to mention any actual operating cost of the business itself.
You cannot scale yourself out of this one, scaling will only amplify how poor of a model this is. Maybe this runs up and makes some investors some money in the short term, but I really think this will crash and burn despite them being the number 1 homebuyer in America, I just don’t see them outrunning the poor fundamentals of their business