Opendoor homes, can you get a deal on theses

[Juan Zamora]

Ok, here’s another topic I’m interested in, has anyone been successful with submitting low offers on opendoor properties given all the bad news about this company and in high risk of bankruptcy. Would today be a goo time to send in offers or will they stick to their numbers given the company has been trying to offload debt?

[Chris Martin]

At least in my market (Raleigh NC) they (Opendoor) are not yet desperate to unload inventory at a discount. I looked at 30 or so properties that they sold recently and posted the dozen or so (since 11/1/2022) of their sales in this BP post. The more I dig into their SEC filings, the more I think it is premature to talk bankruptcy. Even with two more bad quarters, most likely they have enough cash, liquidity of inventory, and credit lines to stay afloat. There is a possibility, though, their next few quarters will be worse than last (ending 9/30/22). A key metric to follow is the Homes Sold to Homes Purchased ratio, which should be closer to 2 in 2022Q4 and 2023Q1. At 9/30/22, they had roughly six months of inventory per SEC filings. Here is a page list of their latest Letter to Shareholders which is split up into individual pages. I don't know why they didn't just make one file.