Flipped to Open Door!

[Pratik P.]

We recently unexpectedly sold a property to Open Door and wanted to share the experience. 

We got a call from a seller that needed to sell her house very quickly. She wouldn't tell us exactly why but she was willing to sell the house to us at a discount if we could buy it in 4 days. We see the house and say okay let's do it....we close. 

The house needed maybe 15k in work. New carpet, paint, landscaping and other minor repairs, then it's ready to be listed. But it was already in "livable" condition. 

Purchased: $280,000

Rehab: $15,000

ARV: $360,000

I heard about Open Door so I put in an offer request on their website just out of curiosity and they came back with a pretty high price. After running some numbers it made more sense to just sell it to them instead of spend 2-3 months rehabbing and listing it to net maybe a bit more. 

Their offer: $376,000

After their 6.5% service charge and closing costs: $349,000

Their repair assessment came in around $14,000 which I felt was high. So I asked them to reduce to $10,000 which they agreed to. 

So Net proceeds ~ $340,000

I was pretty surprised with how much they offered and how fast they went. Did the assessment a few days after contract. The fastest they could close was 2 weeks, which they did right on time. And their contract said the seller could back out at any time???

Seems like their business model is basically "wholetailing". Buy houses that are already in decent shape, get a repair credit from the seller, do the repairs quickly and put it right back on the market. Their profit margin seems to be pretty thin though.

[Anthony Carbajal]

Awesome!  Thanks for sharing.