Re:Startup Pays Cash to Buy Homes, Flip Them
by uptown on Friday January 22, 2016 @12:21PM
(#10954076)
I've been following what you guys have been doing since when you were using the name HomeRun, and really like how you're trying to change the way real estate transactions function. Has OpenDoor considered the possibility of converting housing inventory you're "stuck with" during a downturn into rentals, or rent-to-buy, to weather a down-period, or is it better to just offload it to Blackstone and get it off your books?
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Re:Startup Pays Cash to Buy Homes, Flip Them
by jdross on Friday January 22, 2016 @08:56PM
(#10956829)
Yes, it's an option we've discussed. It obviously depends on liquidity in the market at the time and the size of the decrease. It's worth remembering that housing has only crashed like this twice in 100 years, and that a lot of investors made a lot of money in the last downturn, if they were smart.
A good analogy may be CarMax, who shifted their mix in the recession towards distressed cars and ultimately kept revenue/profits reasonably consistent. Of note: This was at the same time car companies like GM and Ford were seriously at risk of bankruptcy.