Opendoor.com Have They Figured Out The Perfect #CRE Business Model?

Opendoor.com Have They Figured Out The Perfect #CRE Business Model?

Opendoor.

Opendoor is a new company based in San Francisco.

They make an offer on your house and will close in as little as three days.

This is how IT WORKS.

So why am I showing you Opendoor?

THEY ARE TRANSFORMING THE REAL ESTATE TRANSACTION.

Here is how!

1. A potential seller inputs their property information.

2. In less than three minutes the seller requests an offer.

3. They analyze the market data and make an offer.

4. If the seller accepts Opendoor will handle the transaction and the seller then choses when to close.

Are there more specific details of the transaction process?  Of course there are and they spell them out simply and clearly on the site.

YES, they work with brokers. CLICK CLICK CLICK!

So far it does not seem like anything special or different does it?  You’re smart. You’ve seen versions of this thing come and go right?

Let me help you open your mind just that little bit more.

Facing the consumer.

There it is again. That fancy word. This is a pure consumer play.

1. A potential seller inputs their property information.

Did you see that? No listing. No database. No MLS. No………middleman!

Sound familiar?

Wait. Let me say that again so you understand. The potential seller inputs the data themselves onto a platform owned managed and funded by……….THE BUYER!

The seller and the buyer agree on a price based on data (Big Huge Ass Data) from the actual marketplace.

The data is provided by………(_____)(______)(_____)(_____) ………There are a bunch of companies that want to have their names in those empty boxes.

How much do you think the consumer cares? You want them to care A LOT right? What if they don’t? (Don’t even start with the legacy/bullshit/boomer/I need to keep my job for 10 more years asshole argument.)

What should get your undivided attention the THE BIG HUGE ASS DATA.

What are they using?

How do they come up with a market price?

They must be stealing it or jumping in dumpsters and getting old faxes with comps on them or something like that. That’s the only way right?

The market is the market and has been defined by (_________) mostly forever.

Opendoor also simplifies the transaction process by doing EVERYTHING.

” We come to you.” It’s on the site. Find it.

Oh and Opendoor writes THE CHECK.

Quick summary.

1. Submit property info.

2. Have a market value placed on the property.

3. Get an offer to purchase.

4. Agree to terms.

5. Have the entire transaction handled for you.

6. Choose exactly when you want to move.

7. Get A CHECK………All on the same platform.

Billions and Billions. 

How much money is being spent to create “the marketplace” for property?

How much money is being spent to “define” the marketplace?

How much money is being spent to “support” the marketplace?

How many platforms are competing for that consumer?

How many platforms face the consumer and offer to buy their property?

How many platforms face the consumer and do it the way Opendoor does?

How many platforms have the team that Opendoor does?

I had a conversation a couple of months ago with a SF hitter tech CEO and he was literally gushing about the people involved. They have all the tech cred in the world.

Oh, but they don’t have the real estate cred you say? Really, they just figured out how to get a seller to give them a “listing” make an offer agree on a price get a signed agreement go to close and fund the check. WITHOUT YOU!

How many of those are you doing? Right now? Where are you in that transaction?

THEY ARE ALL OF THEM!

But Duke this is just a transaction for a house.

This means nothing to me. It just a house it’s not commercial real estate.

(Sigh) That’s as far as you can think? You can’t go beyond that? (Sigh)

So here we sit. The #CRE big bad boys. We’re smart. Smart as hell and we know it.

There has to be some kind of catch right?

These damn tech people are not that smart are they?

They must have missed something.

They didn’t.

I am having one of those moments right now.

Right now there is somebody in #CRE reading this and I know what they are thinking.

It could not be that simple could it?

Go ahead and research the hell out of this.

It’s all in front of you.

There are people in #CRE with some big $$$$ and big balls.

Want to show how big they really are?

Opendoor sure as hell is!

Opendoor.com Have They Figured Out The Perfect #CRE Business Model?

 

 

 

 

 

 

 

 

Duke Long

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