Opendoor

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• bullish endorsement Unattributed

  We're all super interested to see how Open Door does. It's a phenomenally disruptive and clever idea. Can't wait to try it out. Hopefully you bring it to the same market.

• bullish prediction Keith Rabois

  we need to get to 50, 60 cities. This should work everywhere.

• mixed assessment Keith Rabois

  I think there's a couple big challenges in a market like San Francisco... One is that it's not that hard to sell a house right now... So our value proposition to the seller is a lot less right now. Second thing is the median house in San Francisco is right now is a million dollars... That means our model inaccuracy is very expensive... I think there's two challenges. That said, we can help on the buyer side pretty soon... I think we'll get around to it eventually. But it's not a priority. I mean

• bullish assessment Unattributed

  There's a lot of complexity to mortgages. It's like, but, yes, we could do our own mortgage or at least a short-term mortgage that converts into a longer-term mortgage.

• bullish assessment Unattributed

  The biggest area, though, that takes the longest time is to get a mortgage. So most people in the United States, 80% of people buy a home with a mortgage. It takes, believe it or not, three weeks to four weeks, 30 to 40 days to get a mortgage arranged in the United States, which is absurd because there's one formula that every bank uses. So it's, like, insane that it takes 30 or 40 days to get a mortgage. So we actually sell the house in quotes, like, by contract very, very quickly, like, a matt

• bullish assessment Unattributed

  Yeah, I think most people, it would reduce a lot of friction. People hesitate a lot. I mean, obviously a home is a major purchase. The median home in the United States is roughly $250,000. That's a big deal for anybody. So reducing that uncertainty and the scary nature of, well, what if I don't like it for some reason, could be a real value proposition.

• bullish assessment Unattributed

  Yeah, well, there's a lot of demand. So it's a really good idea. There's a lot of demand. If you have a house and you're selling it, you'll see a reasonable number of people who come visit you and take this open house will ask about this. But most sellers who are normal people can't afford to do that because I need all the cash up front, and I can't afford to let you rent it. Or I need to know confidently that I'm selling this house so I can go buy a new one. This doesn't work for a normal selle

• bullish assessment Unattributed

  We're going to allow people to buy more easily, maybe with more options. There's just a lot of friction in buying. Selling is a really acute pain point, but there's friction in buying, too.

• bullish prediction Unattributed

  But we have a couple other buyer-side innovations coming later this year that could be pretty creative.

• bullish assessment Unattributed

  And people like the no pressure. So sometimes when you go to our house, there's an agent hand-holding you through everything. You don't want to offend them by leaving super quickly. But sometimes you just know instantly this is just not the right house. So if you're there by yourself, you can just leave, and no one cares. So we found that to be really unique.

• bullish assessment Unattributed

  People also just, when they're driving down a neighborhood, see a house. They weren't really in the market, but they're like, that's the house I really want. I've always wanted to live there. And so you can just go up to the door and tour the house. In addition, there's no sales pressure.

• bullish assessment Unattributed

  So we took a look at the buying side experience, although we started primarily on the seller side innovation. And we said, well, you should be able to see a home at a minimum. You should be able to see a home 24-7. So we put, like, electronic locks on all of our homes. You can just walk up to the home whenever you want.

• neutral fact_claim Keith Rabois

  We have a new tool for her to enter the information about my house, plug it in, and say, hey, what offer would you give me? And then we give them an offer, and then she tries to convince her client to take our offer, and then she gets paid.

• neutral fact_claim Keith Rabois

  We're generally buying directly from the home buyer. But when we sell our houses, we're perfectly happy if people in the audience want to buy a house and show up with their own agent, and we pay out the full commission when you show up with a buying agent.

• neutral fact_claim Keith Rabois

  That's the primary reason we're expanding to different markets, is housing markets haven't moved historically in the last 100 years together. So our risk of holding inventory decreases the more cities we're in.

• neutral fact_claim Unattributed

  So we only do primary residential real estate, so we don't do vacation homes. Primary residential real estate in different cities in the United States moves differently. So it's not as if there's one macro correction.

• bullish assessment Unattributed

  So we went to the people who like to buy houses and said, give us a lot of money, and we'll buy roughly in the same formula, 20% of our money, 80% leverage.

• neutral fact_claim Unattributed

  So what we charge is we give you a valuation, which tells you what your home's worth, and then we charge approximately a 9% fee to move out of your house whenever you want. That compares to about 6% that you'd have to pay a real estate agent, so it includes that. So it's about a 3% delta on average.

• neutral fact_claim Unattributed

  In practice, it takes us days, weeks to sell a house correctly as well. So we wind up, the faster we grow, the more homes we have in inventory. I read in the Wall Street Journal recently that we have a couple hundred homes in inventory.

• bullish assessment Unattributed

  So unlike the car buying services, which there's a lot of, there's not really a good option for doing this. For a normal American, their primary actual net worth is tied up in their house, and there's no liquidity to a house at all.

• bullish assessment Unattributed

  it's been doing really, really well. It allows you to sell your home in 30 seconds, hopefully online. Yep. Move out of your house and get paid in three days.

• bullish prediction Jason Calacanis

  they're going to cut out all the real estate brokers eventually

• bullish assessment Jason Calacanis

  open door is buying the homes really quickly and then they sell them and they're going to cut out all the real estate brokers eventually you're just they're just going to be able to buy and sell a home or even rent it while it's waiting to be purchased or you could rent to buy it who knows what they're going to come up with over there but they're going to inventory homes that's a brilliant idea

• bullish endorsement Jason Calacanis

  Keith raboy is doing an interesting startup where they actually will buy your home from you immediately uh within a couple of days and then they hold that inventory they put it on the market they allow anybody to look at the home at any time during the day with a key and uh in a lock box and a you know Smart Lock and with video cameras in the spaces so there are a lot there's a lot of innovation to be had