Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Zillow is hemorrhaging cash and cannot afford to rent homes in our market where the return is poor for the prices they are paying. Carrying inventory is not a great option for them, particularly if they would have to make repairs.
Their iFlip model is evolving into a mortgage funding model.
Opendoor is working in distress mode, buying rundown properties and flipping them without any inspections, minimal repairs, etc.
It is just not as easy as the VC guys hoped. Hundreds of millions have been burned already, and it will be billions before Z settles on a sustainable, profitable model.
If you notice Opendoor's new listings....they have actually started watermarking all of the photos with "this home is for sale; NOT for rent".
If you notice Opendoor's new listings....they have actually started watermarking all of the photos with "this home is for sale; NOT for rent".
Someone is sweating over there...
oh my lol.
I can't believe they can make money when their MEDIAN days on market is over 30 (my market). A 30 DOM means owning about 20 days, selling for 30 days, closing for 30 days. at 80 day turns, 3% x 4.6 turns ain't doing it.
In our market, 15% on their current inventory has been on the market 3 months. I don't think that kind of hit is sustainable either.
Now, if they weren't paying "market price", then they could bundle homes they purchase and sell in the secondary market, one would think.
And my market is listed as one of their top 3. Would be valuable to hear stats from a Phoenix agent and Austin agent.
If you notice Opendoor's new listings....they have actually started watermarking all of the photos with "this home is for sale; NOT for rent".
Someone is sweating over there...
This is most likely to thwart craigslist scammers who list vacant homes for rent and then abscond with the would-be tenants deposit and first months' rent. I imagine with an Opendoor account they can easily pose as the homeowner or property manager and show the properties to prospective tenants who would be none the wiser. Those watermarks are a public service on their part, not a sign that they can't sell anything.
Opendoor is huge in my neighborhood for some reason. This is one of those neighborhoods that was built 30 years ago and homeowners have a lot of appreciation, and many of them are snowbirds, elderly, or both. Their business model is going to go south in a hurry though if the real estate market starts to drop and/or lending costs increase. I'm sure they know this, and we will be seeing an IPO any day now.
This is most likely to thwart craigslist scammers who list vacant homes for rent and then abscond with the would-be tenants deposit and first months' rent. I imagine with an Opendoor account they can easily pose as the homeowner or property manager and show the properties to prospective tenants who would be none the wiser. Those watermarks are a public service on their part, not a sign that they can't sell anything.
Zillow is hemorrhaging cash and cannot afford to rent homes in our market where the return is poor for the prices they are paying. Carrying inventory is not a great option for them, particularly if they would have to make repairs.
Their iFlip model is evolving into a mortgage funding model.
Opendoor is working in distress mode, buying rundown properties and flipping them without any inspections, minimal repairs, etc.
It is just not as easy as the VC guys hoped. Hundreds of millions have been burned already, and it will be billions before Z settles on a sustainable, profitable model.
Imagine wealthy foreign investors buying and renting out houses in high demand areas. Not the original ibuyers like zillow or opendoor. They (z and od) need volume for their model to work so they might get linked to investment companies who can afford to turn ownership neighborhoods into high rental areas for example in “silicon valley” type cities.
This is most likely to thwart craigslist scammers who list vacant homes for rent and then abscond with the would-be tenants deposit and first months' rent. I imagine with an Opendoor account they can easily pose as the homeowner or property manager and show the properties to prospective tenants who would be none the wiser. Those watermarks are a public service on their part, not a sign that they can't sell anything.
Opendoor is huge in my neighborhood for some reason. This is one of those neighborhoods that was built 30 years ago and homeowners have a lot of appreciation, and many of them are snowbirds, elderly, or both. Their business model is going to go south in a hurry though if the real estate market starts to drop and/or lending costs increase. I'm sure they know this, and we will be seeing an IPO any day now.
Imagine wealthy foreign investors buying and renting out houses in high demand areas. Not the original ibuyers like zillow or opendoor. They (z and od) need volume for their model to work so they might get linked to investment companies who can afford to turn ownership neighborhoods into high rental areas for example in “silicon valley” type cities.
Investors with a plan to buy and hold are entirely different from flippers or iFlippers.
Imagine wealthy foreign investors buying and renting out houses in high demand areas. Not the original ibuyers like zillow or opendoor. They (z and od) need volume for their model to work so they might get linked to investment companies who can afford to turn ownership neighborhoods into high rental areas for example in “silicon valley” type cities.
the "institutional buyers" made hay - purchased homes - when markets were weak and prices down. That merant they had 2 plays - the rent could cover the return (cash flow positive) when they paid lowered asking prices and as markets improved, they got price appreciation.
I don't know what happened, but in our market, American Homes 4 Rent barely owns any homes anymore. They only have 14 in Wake County, where they had hundreds in 2012. Everything they still own was bought in 2013.
Now, prices are high enough that it's difficult to find cash flow positive, AND based on risk, they can't count on the appreciation totalling 30% over 4-5 years.
I'd assume it's like that in almost all of the "hot markets".
I can't believe they can make money when their MEDIAN days on market is over 30 (my market). A 30 DOM means owning about 20 days, selling for 30 days, closing for 30 days. at 80 day turns, 3% x 4.6 turns ain't doing it.
In our market, 15% on their current inventory has been on the market 3 months. I don't think that kind of hit is sustainable either.
Now, if they weren't paying "market price", then they could bundle homes they purchase and sell in the secondary market, one would think.
And my market is listed as one of their top 3. Would be valuable to hear stats from a Phoenix agent and Austin agent.
The time on market in your area, is in line with national figures.
Those that worry all these homes will become rentals, need to stop and realize, renters also need a place to live. Everyone cannot afford to buy a home, and will rent homes. If the area does not have enough resale homes to fill the need, builders will come in and build more homes.
I bought and sold homes for investors,to use as rentals, for many years. My best day, was all homes in a 13 unit infill to be built subdivision, plus a V.A. financed home to be foreclosed on following day. All 14 sold in 2.5 hours on the telephone, all to investor clients, buying 2 to 5 homes for rentals. By the way. only will top 15% of agents sell more than 14 homes in a year. These homes were all rented day they were completed and sale closed, due to huge demand for rentals.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
