Opendoor = We’re Doomed?

[Barrett A.]

Hi All,

I was hoping to get some of y’alls opinions on how today’s news about Opendoor could impact our business.

I have personally received a slick letter from this company, offering to buy one of my rentals.

They just received $325 million in funding, just as I am attempting to get my business’s first Deal.

I will not give up - if anything, this is an indication that there are still deals to be found in the USA. 

But is it reasonable to be worried that big companies like this will squeeze us out with razor thin margins?

https://www.cnbc.com/2018/06/13/house-flipping-start-up-opendoor-raises-325-million-series-e.html

[Ross Denman]

It's like anything else. When the market saturates, the investors find new opportunities. We saw this in Indianapolis with American Homes for Rent. They raised millions of dollars publically and were buying everything on the auction block built after 1990. Unfortunately, they were paying more than most of us were willing to pay and we had to source our deals differently. Markets always change. Inventory suppliers always change. You just have to go to where the deals are. Find motivation and desire and you will always find opportunity.

When you discover creative real estate tactics, you don't worry too much about these monstrous companies as they tend to have one tool to rely on... throw money at it. It's doubtful that they have a "grass roots" acquisition division. Some of my favorite case studies have been from people who found a property by just walking or biking a street in an area that they like.

In Indianapolis, decent inventory is getting slim and I imagine that's the case most everywhere, but there will always be deals. Beware, there are a lot of people investing in speculation right now as well. A deal has to be a deal from the beginning... let the big guys take on the bad eggs and wait it out. 

Learn how to search for motivation and you can get to the deals before they can. Tired landlords, divorces, problematic rentals, probate, foreclosures, regulatory issues, etc.