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A comment on Zillow lost money because they weren't willing to lose money. Parent comment

Re:Zillow lost money because they weren't willing to lose money by sklargh on Saturday November 27, 2021 @03:46PM (#29363228)
I never got WeWork because it looked like they onboarded all of a 10-year lease's duration risk and then hoped to make up the difference somehow?
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Re:Zillow lost money because they weren't willing to lose money by erikpukinskis on Saturday November 27, 2021 @04:36PM (#29363801)
> somehow?

By marking it up and/or appreciation. They buy it for $500/sqft and then rent it for $100/sqft. In that hypothetical the breakeven is 5 years, plus overhead.

If the occupancy doesn’t work out in their favor, they may still make it up in appreciation.

What’s a duration risk?

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